PLD

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In theory, REITs should deliver abnormal returns when inflation runs hot. In practice, REITs have barely registered positive returns. While I am not overly bullish on REITs (to say the least), I still see some exceptions that might be worth scooping up.

Shares hit a near four-year high after Segro said late Wednesday that it would recommend Prologis's latest proposal to shareholders.

SEGRO PLC (LSE:SGRO) shares jumped 7% to 957p in early trading on Thursday after the board of the warehouse developer said it "would be minded" to recommend the "best and final" takeover proposal made by Prologis Inc (NYSE:PLD), after the US logistics property group raised its offer and committed to a secondary London listing. Prologis offered 0.092 new shares for each Segro share, alongside a partial cash alternative of up to £3.5 billion.

Prologis delivered a strong 2Q26, beating earnings and raising guidance, signaling a sector-wide positive inflection for industrial REITs. PLD's report highlighted robust demand, renewed market rent growth, and upward-trending same-store NOI, with 2026 guidance raised to $6.22-$6.30. Key risks include ramping supply and USMCA trade uncertainty, but U.S.-focused REITs with smaller footprints and lower leverage-adjusted valuations are better positioned.

SEGRO PLC (LSE:SGRO) shares jumped as US logistics property giant Prologis Inc (NYSE:PLD) raised its bid in what it described as a "best and final" offer, and called for a longer deadline for negotiations. The revised proposal values the FTSE 100 property group at around £14 billion, with shareholders offered 0.092 new Prologis shares for each Segro share – a 9.5% improvement on its initial approach – plus a £3.5 billion partial cash alternative.

Prologis—the world's largest owner of industrial real estate—made a 9.5% increase over its initial proposal to take over its smaller U.K. rival, but ruled out further increases.

U.S. ​logistics firm Prologis on Wednesday ‌offered to buy Segro for about £14 billion ($18.8 billion), or £10.32 per share ​in a last-minute approach ​ahead of a takeover deadline.

Segro's shareholder ​CCLA Investment ‌Management on Wednesday ​urged ​the British warehouse ⁠landlord to ​engage ​with Prologis over its £13.5 billion ($18.06 ​billion) ​proposal, hours before ‌the ⁠formal deadline for an ​offer.

As a long-term shareholder in both companies, Norges Bank Investment Management said it understood the rationale for a combination and the proposal merited consideration.