Prologis Q3 Core FFO Rises, 2026 Outlook at $6.25-$6.29

Prologis Inc. (NYSE: PLD) reported higher third-quarter earnings and funds from operations, supported by revenue growth and continued rent increases across its logistics portfolio. The company said it expects 2026 Core FFO of $6.25 to $6.29 per diluted share, alongside Prologis Share cash same-store net operating income growth of 7.0% to 7.5%.

For the three months ended September 30, 2026, Core FFO attributable to common stockholders and unitholders rose to $1.60 per diluted share from $1.49 a year earlier. Core FFO totaled $1.54 billion, compared with $1.43 billion in the third quarter of 2025. Excluding net promote income or expense, Core FFO was $1.61 per share, up from $1.50.

GAAP net earnings attributable to common stockholders increased to $815.7 million, or $0.86 per diluted share, from $762.9 million, or $0.82 per share. AFFO rose to $1.21 billion from $1.06 billion, while adjusted EBITDA increased to $2.08 billion from $1.87 billion.

Total revenue reached $2.39 billion, compared with $2.21 billion a year earlier. Rental revenue increased to $2.21 billion from $2.05 billion, and strategic capital revenue rose to $164.3 million from $150.4 million. Operating income before net gains on real estate transactions was $936.7 million, up from $892.6 million.

For the first nine months of 2026, net earnings attributable to common stockholders were $2.86 billion, compared with $1.92 billion in the prior-year period. Nine-month Core FFO increased to $4.54 billion from $4.18 billion, while AFFO rose to $4.00 billion from $3.18 billion.

Occupancy and Rent Growth

Prologis Share average occupancy was 95.1% in the third quarter, while period-end occupancy was 95.6% on an owned-and-managed basis and 95.5% on a Prologis Share basis. The operating portfolio comprised about 1.23 billion square feet across 5,492 buildings.

Prologis Share cash same-store NOI grew 5.9% from a year earlier, and net-effective same-store NOI increased 5.7%. Rent change on leases that commenced during the quarter was 38.0% on a net-effective Prologis Share basis and 23.4% on a cash basis. Customer retention was 75.9%.

The company commenced 55.9 million square feet of leases during the quarter, including 54.4 million square feet in the operating portfolio. That total consisted of 37.3 million square feet of renewals and 17.1 million square feet of new leases. The weighted-average term of leases started was 58 months.

The U.S. remained the largest contributor, accounting for 84.2% of Prologis Share operating portfolio NOI in the quarter. Europe contributed 8.9%, other Americas 5.1% and Asia 1.8%. Amazon was the largest customer, representing 5.6% of net-effective rent, while the top 25 customers together accounted for 21.8%.

Development and Capital Deployment

Prologis started projects representing $964.2 million of Prologis Share total expected investment during the third quarter. The projects covered 7.7 million square feet and were 15.0% leased at the start. The company estimated a 6.6% weighted-average stabilized yield and approximately $155.4 million of value creation for these starts.

Year-to-date development starts totaled $4.09 billion on a Prologis Share basis. That included about $2.03 billion of data center projects, all of which were leased at the start. The broader development portfolio stood at $6.77 billion of Prologis Share total expected investment at quarter-end, with 39.0% leased and an estimated weighted-average stabilized yield of 7.1%. Prologis estimated value creation of approximately $1.41 billion for the portfolio.

Third-quarter development stabilizations totaled $401.0 million on a Prologis Share basis and generated an estimated $38.9 million of value creation. For the first nine months, stabilizations reached $2.16 billion, with estimated value creation of $515.5 million and a weighted-average stabilized yield of 6.9%.

Prologis also reported a 5.8-gigawatt data center power pipeline. That total comprised 1.7 gigawatts of secured power, including 680 megawatts under development, and 4.1 gigawatts classified as advanced-stage power.

Third-party acquisitions totaled $701.8 million on a Prologis Share basis during the quarter and $2.09 billion for the first nine months. Third-quarter dispositions and contributions were $169.2 million on the same basis, bringing the nine-month total to $1.85 billion.

Guidance and Balance Sheet

For 2026, management expects net earnings attributable to common stockholders of $4.05 to $4.15 per share and Core FFO of $6.25 to $6.29 per share. The company also projects Prologis Share average occupancy of 95.25% to 95.50%, cash same-store NOI growth of 7.0% to 7.5%, and net-effective same-store NOI growth of 5.5% to 6.0%.

Other guidance assumptions include $650 million to $660 million of strategic capital revenue excluding promote revenue, no net promote income or expense, and $600 million to $700 million of realized development gains. Prologis Share development starts are expected to total $5.0 billion to $5.75 billion, with stabilizations of $2.5 billion to $3.0 billion.

At September 30, Prologis had $8.84 billion of liquidity. Prologis Share debt to adjusted EBITDA was 4.5 times, compared with 4.7 times at the end of the second quarter, while the fixed-charge coverage ratio was 6.2 times versus 6.4 times. The weighted-average interest rate was 3.3%, and 5.1% of debt carried floating rates.

The outlook is based on management’s current assumptions about its business and markets. Development costs, yields and value-creation estimates remain projections and are subject to change. In addition, the 4.1 gigawatts of advanced-stage power in the data center pipeline has not yet been secured, and Prologis said there is no assurance that the capacity will become secured power.