Prologis Rewards Its Investors With a 5.9% Dividend Increase

Boosting shareholders’ wealth, Prologis, Inc. PLD recently announced a 5.9% hike in its quarterly cash dividend to $1.07 per share from $1.01 paid out in the prior quarter. The increased dividend will be paid out on March 31 to its shareholders on record as of March 17, 2026.

The latest dividend rate marks an annualized amount of $4.28 per share compared with the prior rate of $4.04. Based on the company’s share price of $136.38 on Feb. 12, the latest hike results in a dividend yield of 3.14%.

Solid dividend payouts are the biggest enticements for real estate investment trust (REIT) investors, and Prologis remains committed to that. In February 2025, the company’s board hiked its quarterly dividend by 5% to $1.01 per share. Prologis has increased its dividend five times in the last five years and has a five-year annualized dividend growth rate of 11.58%. Check Prologis’ dividend history here.

Is Prologis’ Latest Dividend Hike Sustainable?

Prologis provides industrial distribution warehouse space in some of the busiest distribution markets worldwide. The company’s properties are typically located in large, supply-constrained infill markets in proximity to airports, seaports and ground transportation facilities, which facilitates rapid distribution of customers’ products. Prologis’ strategically located facilities and ability to generate sufficient cash flow through its operating platform are reflected in the latest hike. PLD also focuses on seizing the opportunities created by favorable trends in data center businesses.

In the fourth quarter of 2025, 43.8 million square feet of leases commenced in the company’s owned and managed portfolio. The retention level was 77.7% in the quarter. The average occupancy level in Prologis’ owned and managed portfolio was 95.3% in the fourth quarter, up from the prior quarter’s 94.8%. For 2026, Prologis expects average occupancy to be between 94.75% and 95.75%. 

Prologis’ share of net effective rent change was 43.8% in the October-December quarter. In the reported quarter, the cash rent change was 27.3%. Cash same-store net operating income (NOI) grew 5.7% compared with 5.2% in the previous quarter. For 2026, the company expects cash same-store NOI (Prologis share) in the range of 5.75-6.75%.

During the quarter, PLD expanded its data center power pipeline to 5.7 gigawatts of capacity secured or in advanced procurement, and exceeded the 1 gigawatt goal for installed solar and battery storage.

On the balance sheet front, Prologis maintains a healthy balance sheet position with ample flexibility. As of Dec. 31, 2025, this industrial REIT had a total available liquidity of $7.6 billion. The company's weighted average interest rate on its share of the total debt was 3.3%, with a weighted average term of 8.2 years.

Wrapping Up on Prologis

With ample financial flexibility, the company remains well-poised to respond to any challenges and bank on growth opportunities. With a solid operating platform, opportunities for growth and a decent financial position compared with the industry, we expect the latest dividend rate to be sustainable.

Shares of this Zacks Rank #2 (Buy) company have gained 11% over the past three months, outperforming the industry’s growth of 5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Dividend Hikes by Other REITs

Reliable dividend payouts are the most attractive feature for REIT investors. Apart from Prologis, some other REITs that have announced dividend hikes in recent times are American Homes 4 Rent AMH and Equinix Inc. EQIX.

AMH declared a first-quarter 2026 dividend of 33 cents per share, up 10% from 30 cents paid earlier. The increased dividend is payable on March 31 to shareholders on record as of March 13, 2026. AMH has a Zacks Rank of 3 (Hold).

Equinix’s board of directors announced a quarterly cash dividend of $5.16 per share, an increment of 10% over the prior-quarter figure. The dividend will be paid out on March 18 to shareholders on record as of Feb. 25, 2026. Equinix currently has a Zacks Rank of 2.

Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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