EarningsQ3 2026 Earnings Report
MX:PLD Q3 2026 EPS Results
Actual EPS$16.16
Consensus EPS$14.60
Beat/MissBeat by +$1.56
One Year Ago EPS$15.41
MX:PLD Q3 2026 Revenue Results
Actual Revenue$44.85B
Expected Revenue$40.87B
Beat/MissBeat by +$3.98B
YoY Revenue Growth+7.84%
Earnings Announcement Details
QuarterQ3 2026
Date10/15/2026
TimeBefore Open
Conference CallThursday, October 15, 2026
MX:PLD Upcoming Earnings
Prologis's next earnings date is estimated for January 27, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:PLD Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive overall. Prologis reported solid operating performance, strong leasing and rent growth, improving logistics market conditions, substantial data center demand, robust liquidity, and higher full-year growth and investment guidance. The principal challenges were higher interest rates, greater underwriting caution, potential pressure on values and transaction volumes, and timing uncertainty for some dispositions, contributions, and data center projects.Company Guidance
Strong Leasing Activity and Capital Deployment
Prologis signed 60 million square feet of leases in the third quarter, fully replenished its pipeline, and remained on track for $15 billion of capital deployment and recycling activity for the year.
SEGRO Combination Receives Shareholder Approval
SEGRO shareholders overwhelmingly approved the combination with Prologis on September 28. Following completion, Prologis expects to have a 368 million square foot operating portfolio in Europe, with greater scale and broader development opportunities across logistics and data centers. The transaction is expected to close in the first half of 2027, subject to regulatory clearances.
Healthy Operating Fundamentals and Resilient Demand
Management said operating fundamentals remain healthy and demand should remain resilient even in a higher-rate environment. E-commerce, advanced manufacturing, and the build-out of the data center supply chain were identified as long-term demand drivers.
Supply Constraints Support Future Rent Growth
Construction costs are escalating, financing is more expensive, and return requirements are trending higher, making new projects harder to justify at current rents. Rents required to justify new construction are now 27% above current market levels, leaving meaningful room for rent growth before new supply becomes economically viable.
Core FFO and Occupancy Growth
Third-quarter core FFO was $1.60 per share, or $1.61 per share excluding net promote expense. Ending occupancy was 95.6%, up 10 basis points from the second quarter, while average occupancy was 95.1%, also up 10 basis points.
Strong Lease Mark-to-Market and Same-Store NOI Growth
Rent change on rollover was 38% on a net effective basis and 23% on a cash basis, adding $85 million of incremental NOI. Lease mark-to-market was 16%, representing approximately $780 million of embedded NOI at spot rents. Same-store NOI growth was 5.7% on a net effective basis and 5.9% on a cash basis.
Development Pipeline and Land Holdings Provide Long-Term Runway
Prologis started $1 billion of development in the third quarter, bringing year-to-date starts to nearly $5 billion. The company owns or controls sites capable of supporting the next $40 billion of logistics development. The build-to-suit pipeline was approximately 20% to 25% larger than a year ago, and build-to-suits are expected to represent 55% to 65% of the year's starts.
Accretive Acquisition and Disposition Activity
The company acquired $950 million of real estate during the quarter at an estimated 20% discount to replacement cost. Disposition activity totaled $310 million, and the positive IRR spread between acquisitions and dispositions stood at 150 basis points year-to-date.
Significant Data Center Development Opportunity
The data center pipeline totaled 5.8 gigawatts, including 1.7 gigawatts of secured power and 4.1 gigawatts in advanced stages. Letters of intent covered approximately 1 gigawatt, much of which is expected to start in 2027. Prologis has already started more than $2 billion of data centers this year and said the pipeline has not been impacted by data center moratoriums.
Growing Data Center Supply-Chain Demand
Customers supporting the data center build-out represented approximately 10% of new leasing globally and 17% in the U.S. during the quarter. Prologis estimates these customers will require upwards of 150 million square feet of demand through the end of the decade for facility build-out and ongoing service. The company said this demand is strengthening.
Improving U.S. Logistics Market Conditions
U.S. net absorption totaled 63 million square feet in the third quarter, consistent with the normalized annual range of 230 million to 240 million square feet. Market vacancy declined 10 basis points to 7.1%, market rents increased another 50 basis points, and the quarter marked the third consecutive quarter of positive rent growth.
Broadening Demand Across U.S. Markets
Demand is broadening across geographies and size categories, with Houston, Dallas, and Atlanta continuing to lead. Southern California is steadily improving, Northern New Jersey is gaining momentum, and the San Francisco Bay Area has high occupancy and strong rent growth. Dallas, Houston, Atlanta, Phoenix, Indianapolis, and Northern California were cited as markets on pace for 5% to 6% market rent growth this year.
Positive International Operating Trends
Europe's market vacancy remained low at 5.3%, while market rents increased 70 basis points during the quarter and were up 275 basis points year-over-year. The Netherlands, U.K., Spain, and Italy were identified as strong markets. Brazil continued to lead across Latin America, Japan experienced growing market rents aided by declining vacancy, and Mexico's elevated lease mark-to-market continued to support rent change and same-store growth.
Strengthening Southern California Performance
Southern California net absorption was positive and market occupancy rose to 93.5% year-over-year, while Prologis was nearly 97% occupied. Inland Empire demand remained healthy, and Class A properties in the South Bay were benefiting from renewed aerospace activity.
Improved Financial Flexibility
Prologis raised $2.4 billion of common equity during the quarter and closed approximately $1.3 billion of debt financing at an average rate of just under 4%. Approximately 95% of debt is fixed-rate with approximately 8 years of average life remaining, and quarter-end liquidity was nearly $9 billion.
Raised Operating and Investment Guidance
The company increased its same-store growth outlook to 5.5% to 6% on a net effective basis and 7% to 7.5% on a cash basis. Development starts guidance increased to $6 billion to $6.75 billion, acquisitions guidance increased to $2.1 billion to $2.3 billion, and expected net earnings were $4.05 to $4.15 per share. Core FFO guidance was $6.25 to $6.29 per share, both with and without promotes.
Declining Free Rent as Leasing Activity Improves
Management said free rent as a percentage of lease value declined sequentially when unpacked from the trailing 12-month figure and expects it to move closer to 3% over the longer term.
MX:PLD 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