Prologis faces deadline to bid for SEGRO or walk away

Prologis ↘ 2.14% reported a strong second-quarter 2026 earnings beat on July 16 and raised its full-year guidance for the second time this year, while separately stepping up pressure on British warehouse landlord SEGRO as a UK Takeover Code deadline for a firm bid expires today.

Record Leasing and Raised Guidance

Prologis posted earnings per share of $1.13 for the second quarter, topping the analyst consensus estimate of $0.75 by $0.38, according to MarketBeat. Quarterly revenue rose 11 percent year-over-year to $2.43 billion, also exceeding the consensus estimate of $2.16 billion. The company signed over 67 million square feet of leases during the quarter, a record level, and increased period-end occupancy to 95.5 percent. Prologis raised its core FFO guidance to $6.22–$6.30 per share and average occupancy guidance to 95.25–95.75 percent.MarketBeat+2

SEGRO Takeover Talks Hit a Wall

In a separate announcement issued on July 21, Prologis disclosed that its senior representatives met with SEGRO management in London on Sunday to explore whether "a credible path to a transaction capable of recommendation by the SEGRO Board" existed. Prologis said it was "disappointed that the discussion did not provide meaningful clarity" and reiterated its view that the SEGRO board is making a mistake by rebuffing the approach.Cision PR Newswire

The meeting followed Prologis' revised proposal announced on July 20, which implied a see-through value of 993 pence per SEGRO share — a 9.7 percent premium to SEGRO's latest reported net asset value of 905 pence. Prologis first went public with its £12.6 billion all-share approach on June 23 after SEGRO's board unanimously rejected it, according to Reuters. Under UK takeover rules, Prologis must announce a firm intention to make an offer or walk away by 5:00 p.m. London time on July 22.Reuters+1

What Comes Next

Prologis stated it "remains ready to engage constructively at any time" but emphasized its commitment to disciplined capital allocation. The company argued that SEGRO's standalone earnings growth of 4.7 percent annually through 2028 does not justify its aspirational valuation, and that its shareholders would be better served by gaining exposure to Prologis' larger platform. Whether Prologis files a firm offer today or steps back will determine the immediate future of what would be one of the largest real estate transactions in recent years.Cision PR Newswire