News about Prologis

A Prologis survey of more than 1,800 business leaders in the US, UK, Germany, India, China and Mexico found that 91% say retailers and logistics providers urgently need more decentralized fulfillment networks. The share of companies planning to keep their existing global footprint fell 14 percentage points from a year earlier to 36%, as speed now ranks above price in gaining a competitive edge. Power reliability ranks first in logistics location decisions, and CEO Dan Letter said Prologis has built an energy business with over 1.4 gigawatts of solar and storage power. Letter said the company focuses on consumption centers and has sold over 200 million feet of its 1.3 billion feet portfolio because customers no longer wanted it. Around three-quarters of surveyed companies plan big investments in AI demand forecasting and inventory replenishment.

Prologis (NYSE: PLD) reported third-quarter 2026 net earnings of $0.86 per diluted share, up from $0.82 a year earlier, and Core FFO of $1.60 per share, while total revenue rose 7.9% to $2,388m. However, it cut its full-year 2026 net earnings guidance to $4.05–$4.15 per diluted share from $4.40–$4.55, while narrowing Core FFO guidance to $6.25–$6.29. Shares fell 3.8% to $126.985 on the day, extending a 5.11% decline over the prior 20 trading sessions. Management said replacement cost rents sit roughly 27% above current market levels, and SEGRO shareholders approved a combination that would expand its European portfolio to 363 million square feet. The article also cites the 10-year US Treasury yield at 5.21% as a source of pressure on REIT valuations.

Prologis, the world's largest warehouse owner, expects to put more development projects into construction and buy more property after Q3 2026, though higher interest rates could slow transactions. In the third quarter it signed 60 million square feet of leases and average occupancy reached 95.1%, up from 94.8% a year earlier. Revenue was $2.39 billion and core FFO was $1.55 billion, or $1.60 per diluted share, while net income attributable to common shareholders was $816 million. The company raised its 2026 acquisition guidance to $2.1–2.3 billion and development guidance to $5–5.75 billion, citing a very strong build-to-suit fourth quarter. Prologis is also expanding into data center and power infrastructure, and its $18.8 billion merger with U.K. REIT Sergo is expected to close in the first half of 2027.