Prologis (PLD) Q1 2026 earnings summary

Executive summary

• Achieved record leasing with 64 million sq ft signed, strong retention, and exceeded occupancy expectations, driving raised full-year outlook and robust revenue growth, with total revenues up 7% year-over-year to $2.3B for Q1 2026.

• Net earnings attributable to common stockholders rose 66% year-over-year to $980M ($1.05 per share, diluted), and Core FFO per diluted share increased to $1.50 from $1.42, reflecting strong operating and financial results.

• Expanded into data centers with $1.3 billion in build-to-suit starts and logistics with $850 million, leveraging a robust land bank and forming new joint ventures with GIC and La Caisse.

• Maintained high occupancy rates (95.3%) and robust customer retention (up to 77.7%) across a global portfolio of 1.3B square feet, with continued business momentum despite economic and geopolitical uncertainty.

• Significant capital deployment included $1.1B in development stabilizations, $1.8B in development starts, and $2.8B in new joint ventures, reflecting strong investor demand and capital deployment capability.

Financial highlights

• Total revenues for Q1 2026 were $2.30 billion, up from $2.14 billion year-over-year, with net earnings attributable to common stockholders reaching $980 million and Core FFO at $1.44 billion.

• Core FFO per diluted share was $1.50, above expectations, and adjusted EBITDA increased to $2.18 billion from $1.77 billion year-over-year.

• Quarter-end occupancy was 95.3%, with retention at nearly 76% and net effective rent change at 32% (muted by market mix), with full-year rent change expected to approach 40%.

• Same-store NOI growth was 6.1% net effective and 8.8% on cash, aided by low bad debt.

• Dividends and distributions per share rose to $1.07, up from $1.01 year-over-year.

Outlook and guidance

• 2026 Core FFO guidance: $6.07–$6.23 per share; net earnings guidance: $3.80–$4.05 per share, both raised from prior outlook.

• Average occupancy expected at 95.0–95.75% for 2026.

• Same store NOI (cash) growth projected at 6.25–7.00%; net effective NOI growth at 4.75–5.50%.

• Strategic capital revenue expected at $660–$680 million; G&A at $510–$525 million.

• Development starts guidance increased to $4.5–$5.5 billion, with 40% for data centers.