Prologis/DCT Deal Shows Strong Demand for Industrial Assets, Might Signal M&A Boom

If Prologis Inc.’s proposed $8.4 billion acquisition of smaller rival DCT Industrial Trust Inc. goes through, it’ll create an industrial REIT with 71 million sq. ft. of existing and planned warehouses and distribution centers. Some observers say the deal could be the start of a tidal wave of M&A activity in the industrial REIT sector, yet others believe the Prologis-DCT combo will trigger more of an M&A ripple.

John Guinee, managing director at St. Louis-based brokerage firm Stifel Nicolaus & Co. Inc., who tracks REITs, says he’d be “astounded” if the six publicly-traded industrial REITs he covers aside from San Francisco-based Prologis and Denver-based DCT weren’t involved in a merger or go-private deal before the end of 2018

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