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Rental revenues came in at $2.13 billion, increasing 6.9% year over year. The top line also topped the Zacks Consensus Estimate of $2.10 billion, with a 1.12% surprise. Results were supported by robust leasing activity, while net earnings per share rose to $1.05 from 63 cents in the year-ago quarter.
PLD's Q1 in Detail
Total revenues were $2.30 billion, up from $2.14 billion a year ago, driven by higher rental revenues and an increase in strategic capital revenues to $160.8 million from $141.1 million. On the earnings mix, the company’s business line reporting showed core FFO per share contributions of $1.45 from real estate and 5 cents from strategic capital.
PLD’s Leasing and Same-Store Trends
In the first quarter, operating execution remained a notable tailwind. Prologis highlighted record lease signings of 64 million square feet in its logistics business, underscoring resilient customer demand and the scale of its platform.
Portfolio metrics also pointed to healthy fundamentals. Average occupancy (owned and managed portfolio) was 95.3% in the quarter, while leases commenced across the operating and development portfolio totaled 66.7 million square feet. Customer retention stood at 75.8%, indicating a solid level of renewal activity alongside new leasing.
Pricing and same-store performance were also favorable. Prologis’ share of net effective rent change was 31.9%, and cash rent change was 16.8%. Cash same-store net operating income (NOI) growth (Prologis share) came in at 8.8%, reflecting improved cash earnings from the same-store portfolio.
PLD’s Capital Deployment Activity
PLD stayed active on investment and development during the quarter. On a Prologis share basis, acquisitions totaled $268 million, and the company reported development stabilizations of $1.11 billion, with an estimated weighted average yield of 7.6% and value creation of $387 million.
Development starts were also meaningful, totaling $1.78 billion for the quarter on a Prologis share basis. These starts carried an estimated weighted average yield of 8.8% and estimated value creation of $571 million. Notably, Prologis emphasized progress in scaling its data center platform, citing $1.3 billion of build-to-suit development starts.
Capital recycling continued as well. Total dispositions and contributions were $676 million (Prologis share), with a weighted average stabilized cap rate of 5.1% (excluding land, properties under development and other real estate). This activity reflects ongoing portfolio management alongside growth investments.
PLD’s Liquidity
PLD exited the quarter with liquidity positioned to support its operating and investment plans. Total available liquidity was approximately $6.7 billion at quarter end. Debt-to-adjusted EBITDA was 4.8x, and debt as a percentage of total market capitalization was 23.8%.
Debt costs remained stable, with the weighted average interest rate on the company’s share of total debt at 3.3% and a weighted average term of 8.1 years. During the quarter, Prologis and its co-investment ventures closed $5.5 billion of debt at a weighted average interest rate of 3.7% and a weighted average term of 5.9 years.
2026 Outlook
Management also raised its full-year view. For 2026, Prologis increased guidance for core FFO per share to $6.07-$6.23 from $6.00-$6.20 previously. The Zacks Consensus Estimate for the same is currently pegged at $6.14.
Operationally, average occupancy guidance was tightened to 95.00%-95.75%, while cash same-store NOI growth (Prologis share) was raised to 6.25%-7.00%, from the previous range of 5.75% - 6.75%.
We now look forward to the earnings releases of other REITs, such as Digital Realty (DLR - Free Report) and Welltower (WELL - Free Report) , which are slated to report on April 23 and April 28, respectively.
The Zacks Consensus Estimate for DLR’s first-quarter 2026 FFO per share is pegged at $1.94, which implies a 9.6% year-over-year increase.
The Zacks Consensus Estimate for WELL’s first-quarter 2026 FFO per share is pegged at $1.46, which suggests a year-over-year jump of 21.7%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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Prologis' Q1 FFO & Revenues Beat Estimates on Strong Leasing Execution
Key Takeaways
Prologis, Inc. (PLD - Free Report) posted first-quarter 2026 core funds from operations (FFO) per share of $1.50, up 5.6% from $1.42 a year ago. The figure beat the Zacks Consensus Estimate of $1.48 by 1.49%.
Rental revenues came in at $2.13 billion, increasing 6.9% year over year. The top line also topped the Zacks Consensus Estimate of $2.10 billion, with a 1.12% surprise. Results were supported by robust leasing activity, while net earnings per share rose to $1.05 from 63 cents in the year-ago quarter.
PLD's Q1 in Detail
Total revenues were $2.30 billion, up from $2.14 billion a year ago, driven by higher rental revenues and an increase in strategic capital revenues to $160.8 million from $141.1 million. On the earnings mix, the company’s business line reporting showed core FFO per share contributions of $1.45 from real estate and 5 cents from strategic capital.
PLD’s Leasing and Same-Store Trends
In the first quarter, operating execution remained a notable tailwind. Prologis highlighted record lease signings of 64 million square feet in its logistics business, underscoring resilient customer demand and the scale of its platform.
Portfolio metrics also pointed to healthy fundamentals. Average occupancy (owned and managed portfolio) was 95.3% in the quarter, while leases commenced across the operating and development portfolio totaled 66.7 million square feet. Customer retention stood at 75.8%, indicating a solid level of renewal activity alongside new leasing.
Pricing and same-store performance were also favorable. Prologis’ share of net effective rent change was 31.9%, and cash rent change was 16.8%. Cash same-store net operating income (NOI) growth (Prologis share) came in at 8.8%, reflecting improved cash earnings from the same-store portfolio.
PLD’s Capital Deployment Activity
PLD stayed active on investment and development during the quarter. On a Prologis share basis, acquisitions totaled $268 million, and the company reported development stabilizations of $1.11 billion, with an estimated weighted average yield of 7.6% and value creation of $387 million.
Development starts were also meaningful, totaling $1.78 billion for the quarter on a Prologis share basis. These starts carried an estimated weighted average yield of 8.8% and estimated value creation of $571 million. Notably, Prologis emphasized progress in scaling its data center platform, citing $1.3 billion of build-to-suit development starts.
Capital recycling continued as well. Total dispositions and contributions were $676 million (Prologis share), with a weighted average stabilized cap rate of 5.1% (excluding land, properties under development and other real estate). This activity reflects ongoing portfolio management alongside growth investments.
PLD’s Liquidity
PLD exited the quarter with liquidity positioned to support its operating and investment plans. Total available liquidity was approximately $6.7 billion at quarter end. Debt-to-adjusted EBITDA was 4.8x, and debt as a percentage of total market capitalization was 23.8%.
Debt costs remained stable, with the weighted average interest rate on the company’s share of total debt at 3.3% and a weighted average term of 8.1 years. During the quarter, Prologis and its co-investment ventures closed $5.5 billion of debt at a weighted average interest rate of 3.7% and a weighted average term of 5.9 years.
2026 Outlook
Management also raised its full-year view. For 2026, Prologis increased guidance for core FFO per share to $6.07-$6.23 from $6.00-$6.20 previously. The Zacks Consensus Estimate for the same is currently pegged at $6.14.
Operationally, average occupancy guidance was tightened to 95.00%-95.75%, while cash same-store NOI growth (Prologis share) was raised to 6.25%-7.00%, from the previous range of 5.75% - 6.75%.
Prologis currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Prologis, Inc. Price, Consensus and EPS Surprise
Prologis, Inc. price-consensus-eps-surprise-chart | Prologis, Inc. Quote
Upcoming Earnings Releases
We now look forward to the earnings releases of other REITs, such as Digital Realty (DLR - Free Report) and Welltower (WELL - Free Report) , which are slated to report on April 23 and April 28, respectively.
The Zacks Consensus Estimate for DLR’s first-quarter 2026 FFO per share is pegged at $1.94, which implies a 9.6% year-over-year increase.
The Zacks Consensus Estimate for WELL’s first-quarter 2026 FFO per share is pegged at $1.46, which suggests a year-over-year jump of 21.7%.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.