Key Takeaways
- • Record leasing volume and guidance raise: Prologis signed over 67 million square feet of leases in Q2 2026—a company record—and raised its full-year 2026 guidance for the second time, signaling accelerating business momentum across its logistics and data center portfolios.
- • Strong earnings growth and operational leverage: Net earnings per diluted share increased 85% year-over-year to $1.13, while Core FFO per diluted share grew 12% to $1.63, demonstrating significant operational leverage as occupancy expanded to 95.5% and same-store NOI grew 6.4% (net effective basis) and 8.5% (cash basis).
- • Substantial capital deployment across growth vectors: Prologis deployed $1.6 billion into new logistics and data center development starts, completed $1.8 billion in third-party acquisitions at discounts to replacement cost, and expanded its data center power pipeline to 5.8 GW, reflecting aggressive positioning in high-demand infrastructure segments.
- • Strategic capital redeployment and margin discipline: The company executed $766 million in dispositions while contributing $518 million of logistics assets to Strategic Capital vehicles, maintaining a weighted average margin of 32.3% and generating $434 million in estimated value creation during the quarter.
- • Broadening customer demand and market positioning: CEO Daniel Letter emphasized that customer demand is expanding across the convergence of logistics, digital infrastructure, and energy needs, positioning Prologis's scale and customer relationships to capitalize on the next growth cycle.
Summary
Prologis delivered robust second-quarter 2026 results on July 16, 2026, marked by record leasing activity and a second consecutive upward revision to full-year guidance. The San Francisco-based logistics real estate and data center operator signed 67 million square feet of leases during the quarter, surpassing prior records and reflecting sustained strength in customer demand across its portfolio.
Financial performance accelerated significantly. Net earnings per diluted share reached $1.13, up 85% from $0.61 in the second quarter of 2025. Core FFO per diluted share increased 12% to $1.63 compared with $1.46 year-over-year, while Core FFO excluding Net Promote Income (Expense) grew to $1.60 from $1.47. These metrics demonstrate both scale benefits and operational momentum as the company's occupancy improved to 95.5% on an owned and managed basis, a 20-basis point increase from the first quarter. Same-store NOI at Prologis share showed year-over-year growth of 6.4% on a net effective basis and 8.5% on a cash basis.
Capital deployment remained aggressive and diversified. Prologis initiated $1.6 billion of development projects spanning logistics and data center assets while completing $1.8 billion of third-party acquisitions sourced at attractive discounts to replacement cost. The company also executed $766 million in dispositions to recycle capital into higher-return opportunities and contributed $518 million of logistics real estate to Strategic Capital vehicles, generating $434 million in estimated value creation. The data center power pipeline expanded to 5.8 GW, reflecting Prologis's positioning in digital infrastructure as a growth driver alongside traditional logistics.
CEO Daniel S. Letter characterized the business as "entering its next phase of growth," highlighting the intersection of logistics, digital infrastructure, and energy requirements as the primary opportunity set. The combination of record leasing, occupancy gains, disciplined capital allocation with a 32.3% weighted average margin, and two guidance increases within a single year underscores investor confidence in sustained momentum and Prologis's competitive positioning within institutional-quality real estate infrastructure.
Financial performance accelerated significantly. Net earnings per diluted share reached $1.13, up 85% from $0.61 in the second quarter of 2025. Core FFO per diluted share increased 12% to $1.63 compared with $1.46 year-over-year, while Core FFO excluding Net Promote Income (Expense) grew to $1.60 from $1.47. These metrics demonstrate both scale benefits and operational momentum as the company's occupancy improved to 95.5% on an owned and managed basis, a 20-basis point increase from the first quarter. Same-store NOI at Prologis share showed year-over-year growth of 6.4% on a net effective basis and 8.5% on a cash basis.
Capital deployment remained aggressive and diversified. Prologis initiated $1.6 billion of development projects spanning logistics and data center assets while completing $1.8 billion of third-party acquisitions sourced at attractive discounts to replacement cost. The company also executed $766 million in dispositions to recycle capital into higher-return opportunities and contributed $518 million of logistics real estate to Strategic Capital vehicles, generating $434 million in estimated value creation. The data center power pipeline expanded to 5.8 GW, reflecting Prologis's positioning in digital infrastructure as a growth driver alongside traditional logistics.
CEO Daniel S. Letter characterized the business as "entering its next phase of growth," highlighting the intersection of logistics, digital infrastructure, and energy requirements as the primary opportunity set. The combination of record leasing, occupancy gains, disciplined capital allocation with a 32.3% weighted average margin, and two guidance increases within a single year underscores investor confidence in sustained momentum and Prologis's competitive positioning within institutional-quality real estate infrastructure.
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