How much of the earnings increase was driven by one-time development gains rather than recurring operations?

A large share. Net earnings per diluted share rose to $1.05 from $0.63, but the difference is largely due to realized development gains, which contributed $0.30 per share versus $0.03 a year earlier. Core FFO, which excludes these gains, grew a more modest 5.6% to $1.50 per share. Investors focused on recurring performance should anchor on Core FFO and the $1.52 figure excluding Net Promote Income.

Is Prologis's rent growth slowing?

Yes, on a trailing basis. Net effective rent change (owned-and-managed) fell to 27.1% from 43.4% a year earlier, and cash rent change fell to 13.5% from 23.8%. Prologis Share figures show the same trend (31.9% and 16.8%). Rent growth remains well above historical norms, but the trajectory is downward, and the company's 2026 same-store NOI guidance (cash 6.25%–7.00%) implies that growth will continue to be supported by embedded rent roll-ups.

What drove the 2026 guidance increase?

Management raised Core FFO guidance by $0.07 at both ends of the range, to $6.07–$6.23 per share. Same-store cash NOI guidance was raised to 6.25%–7.00%, and Strategic Capital revenue (excluding promotes) was lifted to $660–$680 million. Realized development gains were raised to $500–$700 million, a factor that affects net earnings guidance more than Core FFO. The company cited stronger leasing and new capital partnerships with GIC and La Caisse.

How strong is Prologis's balance sheet and liquidity?

Strong. Debt-to-Adjusted EBITDA was 4.8x (down from 5.3x at year-end 2025), fixed charge coverage was 6.4x, and debt as a percentage of gross market capitalization was 23.8%. The weighted average interest rate is 3.3% with an 8.1-year average maturity. Liquidity was about $6.7 billion, and the company is rated A2 by Moody's and A by S&P, both with stable outlooks. Floating-rate exposure rose modestly to 4.6% from 3.8%.

What is the company's data center opportunity?

Prologis reports a 5.6 GW data center power pipeline, comprising 1.7 GW of secured power (including 423 MW under development) and 3.9 GW of advanced-stage power. In Q1 2026 it started $1.3 billion of build-to-suit data center development. Data center projects are a meaningful driver of development starts, but the power pipeline includes advanced-stage capacity that is not yet secured, so investors should not assume all of it will convert.

PLD/PLDGP 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed April 16, 2026. Cited figures are marked; the original filing is the authoritative source.

Prologis reported first quarter 2026 results on April 16, 2026, with net earnings attributable to common stockholders of $980 million^a, or $1.05 per diluted share, up from $0.63 a year earlier.

Core FFO was $1.50^b per diluted share ($1.52 excluding Net Promote Income/Expense), versus $1.42 ($1.43) in Q1 2025. Much of the earnings increase came from non-recurring development gains: realized development gains net of taxes were $0.30 per share versus $0.03 a year ago, and gains on dispositions of development properties and land were $293 million. Core FFO growth was more modest, roughly 6% year over year, and AFFO rose to $1.47 billion from $1.08 billion.

Operating fundamentals were solid. Owned-and-managed average occupancy was 95.3%^c, and Prologis Share cash same-store NOI grew 8.8%. The company reported record quarterly lease signings of 64 million square feet in its logistics business, with 66.7 million square feet of leases commenced in total.

Rent change on a net effective basis was 27.1% on an owned-and-managed basis (31.9% Prologis Share), while cash rent change was 13.5% (16.8% Prologis Share). Rent growth decelerated sequentially from prior quarters, which is worth monitoring. Development activity was strong, with $1.8 billion^d of development starts (81% build-to-suit, including data center projects) and a 5.6 GW data center power pipeline.

Management raised 2026 guidance: Core FFO is now $6.07 to $6.23 per share (previously $6.00 to $6.20), net earnings guidance is $3.80 to $4.05, and same-store cash NOI guidance is 6.25% to 7.00%. The balance sheet remains conservative, with Debt/Adjusted EBITDA of 4.8x, a fixed charge coverage ratio of 6.4x, and a 3.3% weighted average interest rate.

Liquidity was about $6.7 billion, and both Moody's (A2) and S&P (A) ratings carry stable outlooks. The company also announced new strategic capital partnerships with GIC and La Caisse to expand its co-investment capacity.

02—Key points

Key Highlights

Net earnings per diluted share of $1.05 vs. $0.63 in Q1 2025, boosted by $293M in development property and land gains; realized development gains were $0.30 per share vs. $0.03 a year ago
Core FFO per diluted share of $1.50 (+5.6% YoY); $1.52 excluding Net Promote Income (Expense), vs. $1.43 in Q1 2025
2026 Core FFO guidance raised to $6.07–$6.23 (from $6.00–$6.20); same-store cash NOI guidance raised to 6.25%–7.00%
Record logistics lease signings of 64M sq ft; owned-and-managed average occupancy of 95.3%; Prologis Share cash same-store NOI growth of 8.8%
Rent growth moderated sequentially: net effective rent change of 27.1% owned-and-managed vs. 43.4% in Q1 2025, and cash rent change of 13.5% vs. 23.8%
Development starts of $1.8B (Prologis Share, 81% build-to-suit, data center heavy) and stabilizations of $1.1B with $387M estimated value creation
Balance sheet remains strong: Debt/Adj. EBITDA of 4.8x, 3.3% weighted average interest rate, ~$6.7B liquidity, A2/A credit ratings; new GIC and La Caisse partnerships announced

03—Questions

Frequently Asked Questions

How much of the earnings increase was driven by one-time development gains rather than recurring operations?
A large share. Net earnings per diluted share rose to $1.05 from $0.63, but the difference is largely due to realized development gains, which contributed $0.30 per share versus $0.03 a year earlier. Core FFO, which excludes these gains, grew a more modest 5.6% to $1.50 per share. Investors focused on recurring performance should anchor on Core FFO and the $1.52 figure excluding Net Promote Income.
Is Prologis's rent growth slowing?
Yes, on a trailing basis. Net effective rent change (owned-and-managed) fell to 27.1% from 43.4% a year earlier, and cash rent change fell to 13.5% from 23.8%. Prologis Share figures show the same trend (31.9% and 16.8%). Rent growth remains well above historical norms, but the trajectory is downward, and the company's 2026 same-store NOI guidance (cash 6.25%–7.00%) implies that growth will continue to be supported by embedded rent roll-ups.
What drove the 2026 guidance increase?
Management raised Core FFO guidance by $0.07 at both ends of the range, to $6.07–$6.23 per share. Same-store cash NOI guidance was raised to 6.25%–7.00%, and Strategic Capital revenue (excluding promotes) was lifted to $660–$680 million. Realized development gains were raised to $500–$700 million, a factor that affects net earnings guidance more than Core FFO. The company cited stronger leasing and new capital partnerships with GIC and La Caisse.
How strong is Prologis's balance sheet and liquidity?
Strong. Debt-to-Adjusted EBITDA was 4.8x (down from 5.3x at year-end 2025), fixed charge coverage was 6.4x, and debt as a percentage of gross market capitalization was 23.8%. The weighted average interest rate is 3.3% with an 8.1-year average maturity. Liquidity was about $6.7 billion, and the company is rated A2 by Moody's and A by S&P, both with stable outlooks. Floating-rate exposure rose modestly to 4.6% from 3.8%.
What is the company's data center opportunity?
Prologis reports a 5.6 GW data center power pipeline, comprising 1.7 GW of secured power (including 423 MW under development) and 3.9 GW of advanced-stage power. In Q1 2026 it started $1.3 billion of build-to-suit data center development. Data center projects are a meaningful driver of development starts, but the power pipeline includes advanced-stage capacity that is not yet secured, so investors should not assume all of it will convert.

04—Continue

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