Shares will stay on my watchlist for now, but if shares continue to sell off, I will look to buy a starter position. Shares currently carry a price/FFO of 25.5x, which is still a couple turns above the average multiple over the last decade. While the acquisition will be a boost for the long-term future of the company, Prologis shares have had a rough 2022 and are down 34% YTD. and will nicely compliment Prologis' existing real estate portfolio. Duke's portfolio primarily covers the eastern half of the U.S. That is poised to grow again in 2022, as they recently announced that they will be acquiring Duke Realty, another industrial REIT with a market cap of $19B. Prologis is the largest industrial REIT in the world, with a market cap of $88B. While the price is certainly more attractive than it was three months ago, I will explain why Prologis will remain on my watchlist for now. Prologis recently finalized terms on the acquisition of Duke Realty ( DRE ), another large industrial REIT.
Since then, shares are down over 30%, which was due to the high valuation and a broader market selloff. The last time I wrote about Prologis ( NYSE: PLD), I did a breakdown of the REIT and explained why the valuation was too rich for me at the time. Justin Paget/DigitalVision via Getty Images
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