Prologis, Inc. (PLD) Earnings

metirFinance

Sep 2026upcoming

Next quarter

Reports Oct 15, 2026, before the open.

Consensus is $1.58 EPS for Sep 2026 across 2 estimates, ranging $1.56 to $1.60.

PLD Jun 2026

Reported Jul 16, 2026

: 6.54%
: -0.18%

: $1.53
: $1.63
: —
: —

Highlights

Core FFO: Diluted Core FFO was $1.63 per share, 6.5% above the $1.53 consensus, up from $1.46 a year ago and $1.50 in Q1 2026.
Revenue and earnings: Second-quarter revenue rose 11.1% year over year to $2.43 billion, while net earnings attributable to common stockholders increased 86.2% to $1.06 billion, or $1.13 per diluted share.
Underlying property growth: Prologis Share same-store NOI increased 8.5% on a cash basis and 6.4% on a net-effective basis; average occupancy was 95.2%, versus 95.4% a year earlier.
Embedded rent upside: Leases commenced with a 36.9% net-effective rent change and a 22.3% cash rent change on a Prologis Share basis, while remaining lease mark-to-market was approximately 17%.
Strategic capital: Strategic capital revenue increased 64.2% to $241.6 million, including $83.1 million of promote revenue; Strategic Capital NOI rose 77.5% to $146.0 million.
Development acceleration: Prologis started $1.34 billion of development on a Prologis Share basis in Q2 and $3.13 billion in the first half, including $2.03 billion of data-center starts; its power pipeline reached 5.8 gigawatts.
Capital recycling: Q2 dispositions and contributions totaled $1.01 billion on a Prologis Share basis, while third-party acquisitions totaled $1.12 billion; first-half real estate gains were $675.7 million.
Balance sheet: Prologis ended June with $7.6 billion of liquidity, debt to adjusted EBITDA of 4.7x and fixed-charge coverage of 6.4x; consolidated debt was $36.4 billion at a 3.3% weighted-average rate.

Analysis

Prologis delivered a strong second quarter, with the operating measure investors typically use, diluted Core FFO, at $1.63 per share versus $1.53 expected, a 6.5% beat. Core FFO rose from $1.46 in the year-ago quarter and from an implied $1.50 in Q1 2026. Revenue increased 11.1% year over year to $2.43 billion and 5.5% sequentially, while GAAP diluted EPS was $1.13, compared with $0.61 a year ago and $1.05 in Q1. Net income benefited from higher operating results, real estate gains and a $109.7 million foreign-currency, derivative and other gain, versus a $122.8 million loss in the year-ago period.

The defining feature of the print was continued embedded rent growth despite stable occupancy. Same-store cash NOI grew 8.5%, and new and renewal leases captured a 36.9% net-effective rent increase. Strategic capital was another contributor: revenue rose 64% and included a sizable promote, making reported growth more favorable than recurring growth alone. Prologis also accelerated development, particularly data centers, with $3.13 billion of first-half starts and a 5.8-gigawatt secured or advanced-stage power pipeline. Management maintained 2026 Core FFO guidance of $6.22-$6.30 per share, alongside same-store cash NOI growth guidance of 6.75%-7.25%.

Earnings and guidance

The quarter combined solid recurring property performance with unusually strong transaction and promote contributions. Core FFO attributable to common stockholders and unitholders rose 11.7% year over year to $1.56 billion, or $1.63 per diluted share. AFFO increased 27.7% to $1.32 billion, helped partly by realized development gains. GAAP operating income rose 37.1% year over year to $1.25 billion, including $291.6 million of gains on real estate transactions.

Annual outlook: Prologis kept 2026 Core FFO guidance at $6.22-$6.30 per share, with average occupancy guided to 95.25%-95.75% and same-store cash NOI growth of 6.75%-7.25%.
Recurring versus promote-adjusted FFO: Core FFO excluding net promote income was $1.60 per share, up from $1.47 a year ago, while the quarter included $26.2 million of net promote income.

Leasing and rent growth

Leasing metrics continued to show substantial pricing power, although occupancy was broadly stable. Prologis Share average occupancy was 95.2% in the quarter, compared with 95.4% a year earlier and 95.4% in Q1. The portfolio commenced 58.6 million square feet of operating-portfolio leases, including 20.6 million square feet of new leases, and the trailing-twelve-month volume reached 225.9 million square feet.

Mark-to-market capture: Net-effective rent change on commenced leases was 36.9% on a Prologis Share basis, while cash rent change was 22.3%.
Same-store performance: Prologis Share same-store NOI grew 6.4% net effective to $1.69 billion and 8.5% cash to $1.56 billion.
Forward runway: Remaining lease mark-to-market was approximately 17% on a net-effective basis, supporting future rent growth even without additional market-rent gains.

Strategic capital

Strategic capital was a major source of the quarter's incremental earnings. Revenue rose to $241.6 million from $147.2 million a year ago, while segment NOI increased to $146.0 million from $82.2 million. The increase reflected higher recurring and transactional fees as well as promote income, principally from a venture in Other Americas.

Fee-related earnings: Quarterly fee-related earnings were $63.6 million, bringing the annualized fee-related earnings figure to $273.6 million.
Asset base: Third-party AUM was $67.8 billion at quarter-end, and Prologis reported total AUM of approximately $239.8 billion.
Venture formation: Prologis formed four co-investment ventures during the first half: two U.S. development vehicles, one stabilized European vehicle and one Asian acquisition vehicle.

Development and data centers

Development activity accelerated materially, with data centers becoming an increasingly important part of the platform. Q2 development starts totaled $1.34 billion on a Prologis Share basis, including $802.3 million of data-center starts. First-half starts reached $3.13 billion on the same basis, of which $2.03 billion was data center-related.

Development value creation: First-half stabilizations totaled $1.76 billion on a Prologis Share basis and generated estimated value creation of $476.6 million; the total development portfolio carried estimated value creation of $1.38 billion.
Pipeline: The development portfolio had $6.19 billion of Prologis Share TEI, was 48.0% leased and included 2.43 gigawatts of data-center capacity.
Power access: The broader data-center power pipeline was 5.8 gigawatts, comprising 1.6 gigawatts of secured power and 4.2 gigawatts in advanced stages.

Capital deployment and leverage

Prologis continued to recycle capital while funding a larger development program. On a Prologis Share basis, Q2 acquisitions totaled $1.12 billion and dispositions and contributions totaled $1.01 billion. First-half dispositions and contributions reached $1.69 billion, while acquisition activity totaled $1.39 billion.

Liquidity: Cash was $1.77 billion and available credit capacity was $5.83 billion, producing total liquidity of $7.59 billion.
Debt profile: Prologis Share debt was 23.9% of gross market capitalization and 35.7% of gross real estate assets; 4.3% of debt was floating rate and the weighted-average remaining maturity was 7.9 years.
Cash generation: Operating cash flow for the first half was $2.64 billion, up from $2.40 billion a year earlier, against $2.00 billion of common and preferred dividends paid.

Prologis, Inc.

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