Prologis (PLD) Q3 2026 Earnings Call: FFO, Data Centers and Guidance

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

Business and Operating Performance