Prologis raises 2026 guidance for second time on record 67M SF leasing, signals SEGRO deal

Prologis reported Q2 2026 net earnings of $1.13 per share, up from $0.61 in Q2 2025, and Core FFO of $1.63 per share, up from $1.46 year-over-year. The company raised full-year 2026 guidance for the second time: net earnings now $4.40 to $4.55 per share (from $3.80 to $4.05) and Core FFO $6.22 to $6.30 per share (from $6.07 to $6.23). Management cited record leasing, improving fundamentals, and broadening customer demand as drivers.

Prologis started $1.6 billion of development (logistics and data centers) and completed $1.8 billion of acquisitions at discounts to replacement cost. The company executed $766 million of dispositions and contributed $518 million to co-investment vehicles. Notably, Prologis expanded its data center power pipeline to 5.8 gigawatts, signaling growing focus on digital infrastructure alongside traditional logistics. Full-year development starts guidance was raised to $4.5 to $5.5 billion (from $3.5 to $4.5 billion).

Prologis closed $3.4 billion of debt in Q2 at a 4.4% weighted average rate and 6.2-year term. As of quarter-end, the company had $7.6 billion of available liquidity, debt-to-adjusted EBITDA of 4.7x, and debt at 23.9% of total market capitalization. The weighted average interest rate on Prologis' share of total debt was 3.3% with a 7.9-year term, reflecting a strong balance sheet and low cost of capital.

Prologis disclosed that its 2026 earnings guidance constitutes a profit forecast under U.K. Takeover Code Rule 28, in connection with a possible offer for SEGRO plc. The U.K. Takeover Panel granted Prologis a dispensation from certain reporting requirements, with SEGRO's agreement, because the forecast is consistent with Prologis' ordinary-course guidance and the board confirmed it is properly compiled. This disclosure signals Prologis may be pursuing or in discussions regarding an acquisition of SEGRO, a U.K.-listed logistics REIT.

Prologis reported Q2 2026 Core FFO of $1.559 billion ($1.63 per share), up from $1.396 billion ($1.46 per share) in Q2 2025. For the six months ended June 30, 2026, Core FFO was $3.000 billion ($3.13 per share) versus $2.752 billion ($2.88 per share) in the prior year. The company also reported net earnings attributable to common stockholders of $1.061 billion ($1.13 per share) for Q2 2026, compared to $570 million ($0.61 per share) in Q2 2025.

Prologis provided full-year 2026 guidance: Core FFO of $6.22 to $6.30 per share, net earnings of $4.40 to $4.55 per share, average occupancy of 95.25% to 95.75%, same-store NOI growth (cash basis) of 6.75% to 7.25%, and same-store NOI growth (net effective basis) of 5.25% to 5.75%. The company also guided to development stabilizations of $2.25 billion to $2.75 billion (Prologis Share) and development starts of $4.5 billion to $5.5 billion (Prologis Share).

In Q2 2026, Prologis commenced 58.6 million square feet of leases in its Operating Portfolio (37.9 million renewals, 20.6 million new). Rent change on a net effective basis was 30.4% (36.9% Prologis Share) and on a cash basis was 17.0% (22.3% Prologis Share). Period-ending occupancy was 95.4% for the Owned and Managed portfolio and 95.8% for Prologis Share. Customer retention was 59.9% for the trailing four quarters.

Strategic capital revenues were $242 million in Q2 2026 (up from $147 million in Q2 2025) and $402 million for the six months ended June 30, 2026 (versus $288 million in the prior year). For full-year 2026, the company guided to strategic capital revenue (excluding promote revenue) of $660 million to $680 million and net promote income of zero.

Prologis announced its second quarter 2026 financial results through a press release and supplemental information package. The 8-K furnishes these materials under Regulation FD but does not file them, meaning they will not be incorporated by reference into other SEC filings unless specifically identified. The actual financial metrics and performance details are contained in the attached exhibits.

Prologis filed an 8-K to disclose its second quarter 2026 results of operations and financial condition. The filing indicates this is a standard quarterly earnings disclosure under Item 2.02, which companies use to furnish financial results to investors. No detailed financial metrics or commentary are provided in the body text shown.