Prologis raises 2026 outlook again as record leasing boosts second-quarter profit

Investing.com -- Prologis (NYSE: PLD) raised its full-year 2026 guidance for the second time this year after reporting stronger second-quarter earnings, supported by record leasing activity, improving occupancy and continued growth in its logistics and data center businesses.

The warehouse real estate giant posted net earnings of $1.13 per diluted share for the quarter ended June 30, up from $0.61 a year earlier. Core funds from operations (FFO), a key industry profitability measure, increased to $1.63 per diluted share from $1.46 a year ago, while excluding net promote income, Core FFO came in at $1.60 per share.

Prologis signed more than 67 million square feet of leases during the quarter, the highest level in its history, while period-end occupancy rose to 95.5% from 95.3% at the end of the first quarter. Cash same-store net operating income (NOI) increased 8.5% year over year, while net effective rent growth reached 36.9%.

The company continued deploying capital across its business, starting $1.6 billion of logistics and data center developments, completing $1.8 billion of third-party acquisitions and expanding its data center power pipeline to 5.8 gigawatts. It also completed $766 million of asset dispositions and contributed $518 million of logistics real estate into strategic capital vehicles.

Reflecting the stronger operating performance, Prologis lifted its 2026 net earnings guidance to $4.40-$4.55 per diluted share from $3.80-$4.05 previously. It also raised its Core FFO forecast to $6.22-$6.30 per share from $6.07-$6.23 and increased expectations for development starts, acquisitions, contributions and dispositions.

The company ended the quarter with approximately $7.6 billion of available liquidity, a debt-to-adjusted EBITDA ratio of 4.7 times and a weighted average interest rate of 3.3% on its debt. CEO Daniel Letter said customer demand is broadening across logistics, digital infrastructure and energy, positioning the company for its next phase of growth.

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