Prologis (PLD) Q3 2026 Earnings Call: FFO, Data Centers and Guidance
Source Tradingkey
Key Takeaways
- Prologis reported Q3 2026 core FFO of $1.60 per share, or $1.61 excluding net promote expense. Quarter-end occupancy rose 10 basis points sequentially to 95.6%.
- Net effective rent change on rollover reached 38%, generating $85 million of incremental NOI. Lease mark-to-market was 16%, representing approximately $780 million of embedded NOI at spot rents.
- Same-store NOI increased 5.7% on a net effective basis and 5.9% on a cash basis. Management raised full-year same-store growth guidance while narrowing average occupancy guidance.
- The data center pipeline totaled 5.8 gigawatts, comprising 1.7 gigawatts of secured power and 4.1 gigawatts in advanced stages. Letters of intent covered approximately 1 gigawatt, much of which management expects to start in 2027.
- Prologis increased 2026 development starts guidance to $6.0 billion-$6.75 billion, driven mainly by expected fourth-quarter build-to-suit projects.
- SEGRO shareholders approved the proposed combination on September 28. Prologis continues to expect closing in the first half of 2027, subject to regulatory clearances.
Key Financial Data
| Metric | Q3 2026 result | Change or context |
|---|---|---|
| Core FFO per share | $1.60 | $1.61 excluding net promote expense |
| Quarter-end occupancy | 95.6% | Up 10 basis points from Q2 |
| Average occupancy | 95.1% | Up 10 basis points from Q2 |
| Rent change on rollover | 38% net effective; 23% cash | Added $85 million of incremental NOI |
| Lease mark-to-market | 16% | Approximately $780 million of embedded NOI at spot rents |
| Same-store NOI growth | 5.7% net effective; 5.9% cash | Q3 operating performance |
| Development starts | $1.0 billion | Nearly $5 billion year to date |
| Real estate acquisitions | $950 million | Estimated 20% discount to replacement cost |
| Dispositions | $310 million | Year-to-date acquisition/disposition IRR spread reached 150 basis points |
| Liquidity | Nearly $9 billion | Approximately 95% of debt is fixed-rate, with about eight years of average remaining life |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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