Why did earnings per share rise so sharply year over year?

Q2 2026 net earnings attributable to common stockholders were $1.06 billion versus $570 million in Q2 2025, driven largely by higher gains on real estate dispositions ($212 million on other dispositions and $79 million on development properties and land, versus $47 million and $10 million a year earlier), along with higher rental revenue and strategic capital revenue. Gains are non-recurring, so investors should focus on Core FFO, which grew 11.6% to $1.63 per share.

What drove the guidance raise?

The company cited record leasing, stronger occupancy, and embedded rent growth. Same-store cash NOI guidance was raised to 6.75%-7.25% from 6.25%-7.00%, and net effective guidance to 5.25%-5.75% from 4.75%-5.50%. Net promote expense guidance improved from $(50) million to zero, and realized development gains guidance was narrowed to $600-$700 million.

What does the SEGRO disclosure mean for investors?

The filing includes a U.K. Takeover Code requirement for a possible offer for SEGRO plc. Because the company's earnings guidance is designated a profit forecast under Rule 28, the board has confirmed it, and the U.K. Takeover Panel granted a dispensation from the usual reporting-accountant requirement. The filing does not describe the terms of any offer, so investors should consult further announcements for details on deal size, financing, and likelihood of completion.

Is the balance sheet becoming more leveraged?

Consolidated debt increased to $36.4 billion from $34.7 billion at March 31, 2026, and total liabilities rose to $42.9 billion. However, leverage ratios remained stable: Debt/Adjusted EBITDA was 4.7x (versus 4.8x), debt as a percentage of gross market capitalization was 23.9%, and the weighted average interest rate was 3.3%. Cash rose to $1.77 billion, and liquidity totaled about $7.6 billion.

What are the main growth drivers beyond core logistics?

The company is expanding into data center development, with a power pipeline of 5.8 GW, of which 1.6 GW is secured. Data centers accounted for $802 million of development starts in the quarter (owned and managed), and build-to-suit activity was 74.7% of starts. Strategic capital fee revenue also grew, reaching $242 million for the quarter versus $147 million a year earlier.

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

01—Abstract

Summary

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

Prologis reported second quarter 2026 results on July 16, 2026, and raised its full-year 2026 guidance for the second time this year.

Net earnings attributable to common stockholders rose to $1.13^a per diluted share from $0.61 a year earlier, and Core FFO per diluted share rose to $1.63 from $1.46. Core FFO excluding Net Promote Income was $1.60, up from $1.47. Net earnings guidance was raised to $4.40-$4.55 (from $3.80-$4.05), and Core FFO guidance to $6.22-$6.30 (from $6.07-$6.23).

Net promote expense guidance moved from $(50) million to zero. Management cited record leasing of over 67 million square feet, period-end occupancy of 95.5%^b, and same-store NOI growth of 6.4% on a net effective basis and 8.5% on a cash basis at Prologis share. Leasing and rent growth were the main operating drivers.

Net effective rent change on the operating portfolio was 36.9% at Prologis share, and cash rent change was 22.3%. Development starts totaled $1.34 billion^c at Prologis share for the quarter, with an estimated 7.2% weighted average yield, and the data center power pipeline expanded to 5.8 GW. Balance sheet metrics stayed solid, with Debt/Adjusted EBITDA at 4.7x, debt at 23.9% of market capitalization, roughly $7.6 billion of liquidity, and a weighted average interest rate of 3.3%.

Consolidated debt rose to $36.4 billion^d from $34.7 billion in the prior quarter, and total liabilities increased, which bears watching. The filing also includes a U.K. Takeover Code disclosure tied to a possible offer for SEGRO plc.

Under Rule 28, the company's per-share earnings guidance is designated a profit forecast, and the board has confirmed it. Investors should weigh this acquisition-related context alongside the strong operating and guidance results.

02—Key points

Key Highlights

Diluted net earnings per share of $1.13 for Q2 2026, versus $0.61 in Q2 2025; six-month figure $2.18 versus $1.25.
Core FFO per diluted share of $1.63 (up 11.6% year over year), and $1.60 excluding Net Promote Income.
2026 Core FFO guidance raised to $6.22-$6.30 from $6.07-$6.23, the second raise this year; net earnings guidance raised to $4.40-$4.55 from $3.80-$4.05.
Record leasing of over 67 million square feet; same-store NOI growth of 8.5% cash and 6.4% net effective at Prologis share; net effective rent change of 36.9%.
Period-end occupancy of 95.5% on an owned and managed basis, up 20 basis points from March 31, 2026; approximately $7.6 billion of total liquidity.
Capital deployment of $1.34 billion in development starts (7.2% estimated yield) and $1.12 billion in acquisitions at a 4.1% weighted average stabilized cap rate, with $1.0 billion in dispositions and contributions.
Possible offer for SEGRO plc disclosed under U.K. Takeover Code; the company's EPS guidance is designated a profit forecast and confirmed by the board.

03—Questions

Frequently Asked Questions

Why did earnings per share rise so sharply year over year?
Q2 2026 net earnings attributable to common stockholders were $1.06 billion versus $570 million in Q2 2025, driven largely by higher gains on real estate dispositions ($212 million on other dispositions and $79 million on development properties and land, versus $47 million and $10 million a year earlier), along with higher rental revenue and strategic capital revenue. Gains are non-recurring, so investors should focus on Core FFO, which grew 11.6% to $1.63 per share.
What drove the guidance raise?
The company cited record leasing, stronger occupancy, and embedded rent growth. Same-store cash NOI guidance was raised to 6.75%-7.25% from 6.25%-7.00%, and net effective guidance to 5.25%-5.75% from 4.75%-5.50%. Net promote expense guidance improved from $(50) million to zero, and realized development gains guidance was narrowed to $600-$700 million.
What does the SEGRO disclosure mean for investors?
The filing includes a U.K. Takeover Code requirement for a possible offer for SEGRO plc. Because the company's earnings guidance is designated a profit forecast under Rule 28, the board has confirmed it, and the U.K. Takeover Panel granted a dispensation from the usual reporting-accountant requirement. The filing does not describe the terms of any offer, so investors should consult further announcements for details on deal size, financing, and likelihood of completion.
Is the balance sheet becoming more leveraged?
Consolidated debt increased to $36.4 billion from $34.7 billion at March 31, 2026, and total liabilities rose to $42.9 billion. However, leverage ratios remained stable: Debt/Adjusted EBITDA was 4.7x (versus 4.8x), debt as a percentage of gross market capitalization was 23.9%, and the weighted average interest rate was 3.3%. Cash rose to $1.77 billion, and liquidity totaled about $7.6 billion.
What are the main growth drivers beyond core logistics?
The company is expanding into data center development, with a power pipeline of 5.8 GW, of which 1.6 GW is secured. Data centers accounted for $802 million of development starts in the quarter (owned and managed), and build-to-suit activity was 74.7% of starts. Strategic capital fee revenue also grew, reaching $242 million for the quarter versus $147 million a year earlier.

04—Continue

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