Prologis Stock Earnings Reports

Prologis reported a strong start to 2026 with record leasing (64 million sq ft) and occupancy above expectations (95.3%). Management raised full-year guidance driven by better-than-expected leasing, strong retention (~76%), and improving market rents (first uptick in ~2.5 years). Core FFO outperformed (Q1 core FFO $1.50 per share including net promote expense; $1.52 excluding). Development activity accelerated: $2.1 billion of starts in Q1 (~$850M logistics, $1.3B data center build-to-suits), and the company increased its annual development-starts guide to $4.5–$5.5 billion (about 40% targeted to data center BTS). Energy and data center initiatives are scaling rapidly — 5.6 GW of energy secured or in advanced stages (with ~1.3 GW of customer LOIs) and 1.3 GW of solar/storage installed to date. Prologis also expanded its strategic capital platform, raising >$2.6 billion of third-party equity this cycle and announcing large joint ventures with GIC ($1.6B) and La Caisse ($1.2B post-quarter). Balance sheet and financing remain strong: $5.5 billion of new financing at ~3.75% weighted average, including a $3B recast credit facility at a 63 bps spread. Market commentary: demand is resilient and broadening (including e-commerce, essential goods, and an increasing share from data center suppliers), but management is monitoring geopolitical uncertainty (Middle East conflict) and its potential effects on inflation, rates and customer decision-making. Geographic performance is mixed: strong rent momentum in Central/Southeast U.S., Latin America, Western Europe and Japan; Southern California, LA County and Seattle lag but are showing signs of gradual improvement. Management emphasized disciplined capital allocation, high-quality asset focus, and the optionality created by its land, power and development capabilities.