Record leasing supports stronger quarterly performance
Prologis (NYSE:PLD) lifted its full-year 2026 outlook for the second time this year after delivering stronger second-quarter results, driven by record leasing activity, higher occupancy levels and continued momentum across its logistics and data center operations.
For the quarter ended June 30, the industrial real estate company reported net earnings of $1.13 per diluted share, up from $0.61 in the same period last year. Core funds from operations (FFO) increased to $1.63 per diluted share from $1.46 a year earlier, while Core FFO excluding net promote income totaled $1.60 per share.
The company completed more than 67 million square feet of leasing during the quarter, marking the highest quarterly leasing volume in its history. Portfolio occupancy improved to 95.5% from 95.3% at the end of the first quarter, while cash same-store net operating income (NOI) climbed 8.5% year over year. Net effective rent growth reached 36.9%.
Investment activity accelerates across logistics and data centers
Prologis continued investing across its platform, launching $1.6 billion of logistics and data center developments during the quarter. It also completed $1.8 billion of third-party acquisitions, expanded its data center power pipeline to 5.8 gigawatts, disposed of $766 million in assets and contributed $518 million of logistics properties into its strategic capital vehicles.
Reflecting the stronger operating performance, the company increased its 2026 net earnings forecast to a range of $4.40 to $4.55 per diluted share, compared with previous guidance of $3.80 to $4.05. Core FFO guidance was also raised to between $6.22 and $6.30 per share from the prior range of $6.07 to $6.23. Management also increased expectations for development starts, acquisitions, property contributions and asset sales.
Prologis ended the quarter with approximately $7.6 billion in available liquidity, a debt-to-adjusted EBITDA ratio of 4.7x and a weighted average debt interest rate of 3.3%. Chief Executive Officer Daniel Letter said customer demand is expanding across logistics, digital infrastructure and energy markets, supporting the company’s long-term growth strategy.
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