10-QPeriod: Q2 FY2026

Prologis, Inc. Quarterly Report for Q2 Ended Jun 30, 2026

Filed July 29, 2026For Securities:PLDPLDGP

Summary

Prologis, Inc. (PLD) reported robust financial performance for the six months ended June 30, 2026, demonstrating continued growth in its core logistics real estate operations and strategic capital segment. The company saw a significant increase in total revenues to $4.72 billion, up from $4.32 billion in the prior year period, driven by strong rental income and strategic capital activities. Net earnings attributable to common stockholders reached $2.04 billion for the first half of 2026, a substantial increase from $1.16 billion in the same period last year. This growth was fueled by substantial gains on real estate dispositions, high occupancy rates (95.4% for the O&M portfolio), and positive rent changes on lease rollovers, averaging 34.2% on a net effective basis. The company also highlighted its continued expansion in development, with $3.0 billion in TEI of consolidated development projects started, including significant investment in data centers. Prologis maintains a strong balance sheet with $7.6 billion in total liquidity and a weighted average debt term of 8 years, positioning it well for future growth and strategic initiatives, including a recently announced proposal to acquire SEGRO plc.

Key Highlights

  • 1Total revenues increased to $4.72 billion for the first six months of 2026, up from $4.32 billion in the prior year period.
  • 2Net earnings attributable to common stockholders rose significantly to $2.04 billion for the first six months of 2026, compared to $1.16 billion in the same period of 2025.
  • 3Occupancy in the Owned and Managed (O&M) operating portfolio remained strong at 95.4% as of June 30, 2026.
  • 4Rent change on leases that commenced during the first six months of 2026 was 34.2% on a net effective basis, reflecting healthy market demand and embedded rent growth.
  • 5Consolidated development starts totaled $3.0 billion in Total Estimated Investment (TEI) for the first six months of 2026, with a notable emphasis on data center development.
  • 6The company reported total available liquidity of $7.6 billion as of June 30, 2026, comprising $5.8 billion in credit facility capacity and $1.8 billion in unrestricted cash.
  • 7Prologis announced a significant proposal to acquire SEGRO plc, indicating strategic ambition for further market expansion and consolidation.

Frequently Asked Questions

Prologis demonstrated strong financial performance for the first six months of 2026. Total revenues grew to $4.72 billion, and net earnings attributable to common stockholders increased substantially to $2.04 billion, driven by robust rental income, high occupancy, and significant gains from real estate dispositions. The company also made substantial investments in development projects, particularly in data centers.

Prologis maintains a strong balance sheet with $36.44 billion in total debt as of June 30, 2026, with a weighted average remaining term of 8 years and an average interest rate of 3.3%. The company reported total available liquidity of $7.6 billion, including $5.8 billion in credit facility capacity and $1.8 billion in cash and cash equivalents, providing ample resources for its operations and strategic initiatives.

Prologis's revenue growth is primarily driven by its Real Estate Segment, specifically through rental income from its occupied properties and from the rollover of in-place leases to current market rents, which has averaged a 34.2% net effective rent change on new and renewed leases. The Strategic Capital Segment also contributes through asset and property management fees and promote revenues from its unconsolidated co-investment ventures.

Prologis announced a proposal to acquire SEGRO plc, a significant player in the logistics real estate market. If successful, this acquisition would represent a major strategic move for Prologis, likely expanding its global footprint, enhancing its portfolio scale, and potentially creating significant synergies and market leadership. The terms include a mix of stock and cash, and the transaction is subject to due diligence and agreement on definitive terms.