Prologis, Inc. (PLD) Earnings

metirFinance

Dec 2026upcoming

Next quarter

Expected to report Jan 20, 2027 — estimated from last year’s reporting date.

Consensus is $1.55 EPS for Dec 2026 across 2 estimates, ranging $1.55 to $1.56.

PLD Sep 2026

Reported Oct 15, 2026 · before the open

: 1.27%

: $1.58
: $1.60
: —
: —

Highlights

Core FFO beat — Core FFO was $1.60 per diluted share, versus the supplied $1.58 consensus, a 1.27% beat; GAAP diluted EPS was $0.86.
Year-over-year growth — Revenue increased 7.8% to $2.388 billion from $2.214 billion, while net earnings attributable to common stockholders rose 6.9% to $816 million from $763 million.
Occupancy and rent gains — Quarter-end occupancy reached 95.6%, up 10 basis points from Q2; same-store NOI grew 5.9% on a cash basis and 5.7% net effective.
Rollover spreads — Rent change on leases commenced was 23% cash and 38% net effective, generating $85 million of incremental NOI; the 16% lease mark-to-market represented about $780 million of embedded NOI at spot rents.
Development and data centers — Prologis started about $1.0 billion of development in the quarter and reported a 5.8-GW data-center power pipeline, including 1.7 GW secured and 4.1 GW in advanced stages.
2026 guidance — Core FFO guidance is $6.25–$6.29 per share; the company raised same-store NOI growth guidance to 7.0%–7.5% cash and 5.5%–6.0% net effective.
Capital deployment — Management cited about $950 million of acquisitions at an estimated 20% discount to replacement cost and approximately $310 million of dispositions; it expects $15 billion of total activity for 2026.
SEGRO and liquidity — SEGRO shareholders approved the combination, which Prologis still expects to close in the first half of 2027; quarter-end liquidity was nearly $9 billion.

Analysis

Prologis delivered a strong operating quarter and a modest beat against the supplied $1.58 EPS consensus: Core FFO was $1.60 per share, while GAAP diluted EPS was $0.86. Revenue of $2.388 billion was up 7.8% from $2.214 billion a year earlier; net earnings attributable to common stockholders rose 6.9% to $816 million. Core FFO per share increased from $1.49 in Q3 2025. The available figures do not provide a complete Q2 financial comparison, but operating indicators improved sequentially: quarter-end and average occupancy each rose 10 basis points from Q2, to 95.6% and 95.1%, respectively.

The print was defined by stronger same-store performance and wide rent spreads, continued development and data-center investment, and disciplined capital allocation amid higher rates. Same-store NOI grew 5.9% cash and 5.7% net effective; rent changes on commenced leases reached 23% cash and 38% net effective. Prologis started about $1.0 billion of development and reported a 5.8-GW data-center power pipeline. Management raised 2026 cash same-store NOI growth guidance to 7.0%–7.5% and expects $15 billion of capital activity for the year. It also cited a more cautious transaction backdrop as rates pressure buyer-seller pricing, while noting its balance sheet flexibility and nearly $9 billion of liquidity.

Operating performance

Revenue growth reflected higher rental and strategic capital revenues. GAAP operating income was $1.045 billion, up from $940 million a year earlier, while Core FFO attributable to common stockholders and unitholders increased to $1.545 billion from $1.426 billion. Core FFO per share rose 7.4% year over year to $1.60. GAAP earnings also included real estate disposition gains, which were higher than in Q3 2025.

Reported results — Total revenue was $2.388 billion, including $2.205 billion of rental revenue and $164 million of strategic capital revenue; the comparable year-ago figures were $2.214 billion, $2.054 billion and $150 million.
FFO and cash earnings — AFFO was $1.207 billion, up from $1.064 billion a year earlier; adjusted EBITDA attributable to common stockholders and unitholders was $2.081 billion versus $1.868 billion.
Strategic capital — Net promote expense was $10.2 million for the quarter. Fee-related earnings were $71.2 million, with annualized fee-related earnings of $272.4 million.

Leasing and rent growth

The operating story was improving occupancy alongside strong rent capture on leases rolling to current market levels. Management said it signed 60 million square feet of leases and replenished its leasing pipeline. It also described broadening U.S. demand, with e-commerce, advanced manufacturing and data-center supply-chain customers among the sources of activity.

Occupancy — Quarter-end occupancy was 95.6%, up 10 basis points from Q2; average occupancy was 95.1%, also up 10 basis points sequentially. Average occupancy in Q3 2025 was 95.2%.
Same-store NOI — Prologis Share same-store NOI grew 5.9% on a cash basis and 5.7% net effective, compared with 5.2% and 3.9%, respectively, in Q3 2025.
Lease spreads — Rent change on commenced leases was 23.4% cash and 38.0% net effective on a Prologis Share basis. Management cited $85 million of incremental NOI from rollover and a 16% lease mark-to-market, equal to about $780 million of embedded NOI at spot rents.
Market conditions — U.S. net absorption was 63 million square feet in Q3; market vacancy declined 10 basis points to 7.1%, and market rents rose 0.5% for a third consecutive quarter of growth.

Development and data centers

Development activity combined logistics projects with a growing data-center opportunity. Management characterized the higher 2026 starts outlook as primarily a result of a large expected fourth-quarter build-to-suit pipeline, while acknowledging that higher construction costs, financing costs and return requirements make projects harder to justify. The company said 85% of its data-center power pipeline could be ready to start by 2030.

Development starts — Q3 starts totaled $1.024 billion on an owned-and-managed basis, of which management said 80% were speculative. Nine-month starts were $4.728 billion owned and managed.
Development pipeline — The development portfolio totaled $7.884 billion of TEI owned and managed, including $2.588 billion of data-center TEI; estimated value creation for the full portfolio was $1.414 billion on a Prologis Share basis.
Power pipeline — The 5.8-GW pipeline consisted of 1.7 GW of secured power, including 680 MW under development, and 4.1 GW in advanced stages. Customer letters of intent covered about 1 GW, and management said the pipeline was being replenished as projects moved to starts.
Related logistics demand — Data-center supply-chain customers accounted for about 10% of global and 17% of U.S. new leasing in the quarter; management estimated this customer segment could require more than 150 million square feet through the end of the decade.

Capital deployment

Prologis continued to invest while tightening its underwriting in response to rate volatility and a wider bid-ask spread. Management said acquisitions were being made selectively at attractive discounts to replacement cost and that it was cautious about dispositions and contributions where transaction pricing or timing is uncertain. It expects total capital activity of about $15 billion in 2026.

Acquisitions — The supplemental reported about $947 million of third-party acquisitions on an owned-and-managed basis in Q3; management cited approximately $950 million and an estimated 20% discount to replacement cost.
Sales and recycling — The supplemental reported $313 million of combined dispositions and contributions on an owned-and-managed basis for the quarter. Management described dispositions of about $310 million and a 150-basis-point year-to-date IRR spread between acquisitions and dispositions.
Land position — Prologis estimated that its owned or controlled land and related opportunities could support $39.7 billion of build-out TEI, up from $36.7 billion at June 30.

Guidance and balance sheet

The company raised its same-store NOI growth outlook on the strength of year-to-date operations and narrowed its average occupancy range. It also increased development-start and acquisition expectations. Higher rates remain a near-term source of transaction uncertainty, but management pointed to a largely fixed-rate capital structure and substantial liquidity as support for continued investment.

Earnings outlook — 2026 net earnings guidance is $4.05–$4.15 per share and Core FFO guidance is $6.25–$6.29 per share, with or without promotes.
Operating outlook — Average occupancy guidance is 95.25%–95.50%; same-store NOI growth guidance is 7.0%–7.5% cash and 5.5%–6.0% net effective.
Deployment outlook — Owned-and-managed development starts guidance increased to $6.0–$6.75 billion; Prologis Share guidance is $5.0–$5.75 billion. Prologis Share acquisition guidance is $2.1–$2.3 billion.
Financial position — Quarter-end liquidity was nearly $9 billion. Management said about 95% of debt was fixed rate with roughly eight years of average life remaining; Prologis Share debt to adjusted EBITDA was 4.5x.

SEGRO combination

The SEGRO transaction moved forward after shareholders overwhelmingly approved the combination on September 28. Prologis expects regulatory clearances to follow and continues to target a close in the first half of 2027. Management said the combined company would have a 368-million-square-foot European operating portfolio, but did not provide transaction-specific earnings or synergy guidance on the call.

Transaction funding — Prologis raised $2.4 billion of common equity during the quarter for the transaction and closed about $1.3 billion of debt financing at an average rate just under 4%.
Timing and scale — Management expects the deal to close in H1 2027; SEGRO effects are not expected to be included in Prologis' initial 2027 guidance.

Prologis, Inc.

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