Prologis Inc. (NYSE:PLD) shares rose Thursday after the warehouse-focused real estate investment trust reported better-than-expected first-quarter funds from operations and raised its full-year 2026 outlook, with the midpoint topping estimates.
Revenue And Earnings Performance
Rental and other revenue totaled $2.137 billion, missing the analyst consensus estimate of $2.212 billion.
Total expenses rose to $1.47 billion from $1.33 billion in the year-earlier period.
Operating income increased to $1.21 billion from $878 million a year earlier.
Core funds from operations rose to $1.50 per share from $1.42 a year earlier, beating the consensus estimate of $1.49. Earnings per share increased to $1.05 from $0.63 in the prior-year quarter.
Operating Metrics And Leasing Activity
Prologis reported strong operating metrics, with owned and managed average occupancy at 95.3% and Prologis share average occupancy at 95.4% at quarter’s end.
Prologis share of same-store property net operating income, on a cash basis, rose 8.8% year over year to $1.53 billion.
The company ended the quarter with $861.1 million in cash and equivalents as of March 31, 2026.
Prologis highlighted strong operating momentum in the quarter, with CEO Daniel S. Letter noting that the company achieved a record 64 million square feet of lease signings in its logistics segment, driven by solid platform performance and resilient customer demand.
He added that Prologis is also expanding its data center footprint, with $1.3 billion in build-to-suit development starts, while continuing to scale its digital infrastructure and energy capabilities to support future growth.
FY26 Outlook
For fiscal 2026, Prologis raised its core FFO guidance to a range of $6.07 to $6.23 per share from a prior range of $6.00 to $6.20, compared with a consensus estimate of $6.14.
The company also increased its Prologis share average occupancy outlook to 95.0% to 95.75%, from a prior range of 94.75% to 95.75%.
CFO Timothy D. Arndt said the company’s Strategic Capital platform is being strengthened through new partnerships with GIC and La Caisse, which are expected to broaden access to capital and support large-scale investments while maintaining balance sheet discipline.
He added that, despite ongoing geopolitical uncertainty, strong execution combined with capital strength has supported the company’s decision to raise its Core FFO outlook.
PLD Price Action: Prologis shares were up 2.39% at $143.11 at the time of publication on Thursday. The stock is trading near its 52-week high of $143.94, according to Benzinga Pro data.
Photo via Shutterstock
Recent Comments