EarningsQ3 2026 Earnings Report
FBBPF Q3 2026 EPS Results
Actual EPS$0.11
Consensus EPS$0.06
Beat/MissBeat by +$0.05
One Year Ago EPS$0.05
FBBPF Q3 2026 Revenue Results
Actual Revenue―
Expected Revenue$169.11M
Beat/Miss―
YoY Revenue Growth―
Earnings Announcement Details
QuarterQ3 2026
Date10/21/2026
TimeAfter Close
Conference CallWednesday, October 21, 2026
FBBPF Upcoming Earnings
FIBRA Prologis's next earnings date is estimated for January 20, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
FBBPF Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive, supported by 96.5% occupancy, 8% year-over-year FFO growth, strong leasing and net absorption, improving market supply conditions, approximately 25% leasing spreads and mark-to-market potential, and a strong balance sheet with more than $1 billion of liquidity. Offsetting challenges included a 2% AFFO decline, higher bad debt reserves from two financially troubled customers, retention of 66% versus an 83% historical average, declining market rents, revised guidance, acquisition timing delays, and disposition activity shifting toward 2027. Management remained positive about market demand and the end of 2026.Company Guidance
Strong Occupancy and Operating Performance
Period-end occupancy was 96.5%, approximately 360 basis points above the market and up 70 basis points from the second quarter. Average occupancy was 95%.
FFO Growth
FFO was $97 million, up 8% compared with 2025, or $0.057 per certificate.
Healthy Leasing and Net Absorption
Leasing activity reached approximately 9 million square feet, including nearly 3 million square feet during the quarter. Net absorption, including build-to-suit deliveries in Mexico City, was approximately 12 million square feet, more than twice the first-half average. The company expects net absorption to reach around 30 million square feet in 2026, just below the 2023 peak and about twice pre-pandemic levels.
Improving Market Balance
Customer demand is strengthening, net absorption is increasing, construction starts are declining, and the construction pipeline declined 34%, more than expected. Management said these trends point to a more balanced market.
Data Center Demand
Companies serving the data center sector accounted for approximately 20% of year-to-date leasing activity, totaling an estimated 6 million square feet. Demand was reported in Juárez, Guadalajara, Tijuana, and Monterrey, with Juárez and Guadalajara identified among the main drivers.
Broad-Based Demand Across Industries
New leasing during the quarter exceeded 1 million square feet across manufacturing, logistics, retail, data centers, electronics, third-party logistics providers, and e-commerce. Management said demand was broad-based across markets and expressed encouragement about the pipeline in the second half of the year and into 2027.
E-Commerce and Logistics Growth Opportunities
Management said e-commerce and logistics remain potential sources of demand because fulfillment networks have expanded more slowly than e-commerce sales over the past two years. The company expects this could create additional demand for space and said it may pursue more developments or acquisitions in 2027.
Strong Leasing Spreads and Mark-to-Market Potential
Net effective rent change remained strong at 36%, consistent with expectations. The combined portfolio's leasing spread was approximately 25%, and the portfolio has approximately 25% mark-to-market potential that management expects to capture as leases roll over.
Same-Store NOI Growth
Same-store cash NOI grew approximately 2% and GAAP same-store NOI grew approximately 3%. Rental income increased due to strong rent changes on rollover and annual bumps.
Successful Backfill of Customer Exposure
The company resolved nearly 40% of the exposure related to two customers facing financial difficulties by releasing the space at rents approximately 50% higher than the previous leases. Management said the teams are actively working through the remainder.
Solid Balance Sheet and Liquidity
Loan to value was 24%, 70% of debt was fixed, and average debt maturity was six years. Liquidity was north of $1 billion, providing flexibility to evaluate market opportunities.
Balance Sheet Capacity
Management said its internal loan-to-value target is 35%, compared with approximately 25% currently, providing around $1.3 billion of firepower if needed. The company intends to maintain its BBB+ rating as long as the sovereign rating allows.
Positive Lease Rollover Outlook
For 2027, the company expects approximately 3.5% U.S. dollar escalators on dollar-denominated leases and Mexican inflation, or INPC, indexation on peso-denominated leases. Management said it is optimistic about the rollover and has no concerns, supported by close customer relationships and visibility into upcoming lease expirations.
Lease Backfill Activity
Approximately 1 million square feet of move-outs occurred during the quarter, and 56% was backfilled during the quarter.
Disciplined Capital Allocation
Management said it evaluates opportunities based on expected returns relative to its cost of capital and balance-sheet impact, while remaining focused on sound investments and high-quality Mexican assets. The company acquired one building earlier in the year that was leased to an e-commerce player in the State of Mexico.
Potential Future Development and Acquisition Pipeline
The company said it continues to analyze properties available in the market, including potential opportunities through the Prologis sponsor and CKD pipeline, based on cost of capital and balance-sheet capacity. It expects additional developments or acquisitions in consumption markets, Mexico City, and Juárez over time.
Potential Disposition Activity
The company has received bids for dispositions, with values in line with its current internal view. It completed approximately $70 million of dispositions this year and expects closings from the current process in 2027, with larger volumes anticipated in 2027.
FBBPF Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed