Results at a glance
- Period
- FY2026Q3
- Revenue
- $2.4B (2,387.518 MUSD)
- Net income
- $815.7M (815.734 MUSD)
- Net margin
- 34.2%
From the Prologis Open LedgerView the live ledgerIssuer filing (FY2026Q3)
Prologis (NYSE: PLD), the world's largest industrial REIT, reported third-quarter 2026 net earnings of \$0.86 per diluted share, up from \$0.82, with Core FFO of \$1.60, up from \$1.49 and ahead of consensus. Total revenues of \$2,387.5 million rose 7.8% on rental revenue of \$2,205.3 million. Then came the guidance two-step that defines REIT earnings season: full-year GAAP earnings guidance was cut to \$4.05–4.15 (from \$4.40–4.55), while Core FFO guidance was narrowed upward to \$6.25–6.29 (from \$6.22–6.30). Operations are accelerating; accounting earnings are not — and for a REIT, only one of those pays the dividend.
The split is easy to read in the quarter itself. Operating performance was genuinely strong: 60 million square feet of leases signed, period-end occupancy of 95.5%, \$964 million of development starts at a 6.6% estimated yield, and cash same-store NOI guidance raised to 7.00–7.50%. But GAAP earnings lean on lumpy disposition gains — \$783.6 million year-to-date against \$169.4 million last year — and the full-year guide now assumes fewer of them ahead. FFO strips all of that out, which is why the two numbers walked in opposite directions.
The Headline Numbers
| Metric | Q3 2026 | Q3 2025 | 9M 2026 | 9M 2025 |
|---|---|---|---|---|
| Total revenues | \$2,387.5M | \$2,213.9M | \$7,110.7M | \$6,537.4M |
| Rental revenues | \$2,205.3M | \$2,054.2M | \$6,507.4M | \$6,066.8M |
| Operating income | \$1,044.7M | \$940.3M | \$3,507.1M | \$2,731.4M |
| Consolidated net earnings | \$879.9M | \$821.3M | \$3,048.7M | \$2,083.1M |
| Net earnings to common | \$815.7M | \$762.9M | \$2,857.1M | \$1,924.1M |
| Diluted EPS | \$0.86 | \$0.82 | \$3.04 | \$2.06 |
| Core FFO per share | \$1.60 | \$1.49 | — | — |
| Core FFO ex-promote | \$1.61 | \$1.50 | — | — |
Nine-month figures flatter the trend: net earnings to common of \$2,857.1 million, up 49%, ride \$783.6 million of disposition gains against \$169.4 million last year. Promote income was essentially zero this quarter (Core FFO ex-promote of \$1.61 actually exceeds the \$1.60 headline), so the FFO beat is pure operations — rent growth and occupancy, not fund fees.
Demand: lean inventories, cleared capacity, data centers
CEO Daniel Letter's demand read was blunt: customers are running lean on inventory and excess network capacity "has largely cleared," with e-commerce, advanced manufacturing and the data-center supply chain driving demand. The data-center power pipeline stands at 5.8 gigawatts secured or in advanced stages — a call option on the AI buildout embedded in a warehouse landlord. Gross assets under management reached \$238 billion against \$126 billion of market equity, and the balance sheet remains fortress-grade: debt to adjusted EBITDA of 4.5x, debt at 23.9% of market cap, \$8.8 billion of liquidity, and an average borrowing cost of just 3.3% over 7.6 years. The company still raised \$1.3 billion of fresh debt at 4.0% during the quarter without blinking.
SEGRO: shareholder approval lands
On the pending SEGRO combination — the European expansion — Letter noted shareholder approval as "an important milestone," with closing expected to follow. The transaction would substantially extend the European platform just as continental logistics demand firms. No new terms were disclosed.
Five years in the ledger: the Duke deal and after
The six years now in the open ledger show the post–Duke Realty Prologis: total revenues nearly doubled from \$4,759.4 million in 2021 to \$8,790.1 million in 2025, while the balance sheet grew from \$58.5 billion to \$98.7 billion of assets. Every annual income statement and balance sheet, plus this quarter's condensed statements, is modeled as examinable Beancount below.
