Prologis Q3 2026: Core FFO doubled expectations on 38% rent surges
As seen on the 24/7 Wall St. homepage on October 15, 2026.
Prologis is re-signing warehouse space at net effective rents 38% above expiring leases, and it just raised development starts guidance to as much as $5.75 billion on the back of it. Core FFO beat expectations, though full-year net earnings guidance came down to $4.05 to $4.15 per share.
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Prologis posted Core FFO of $1.60 per diluted share in Q3 2026, more than doubling the consensus estimate of $0.78. That is the sixth consecutive quarter of beating earnings expectations, with revenue also topping estimates.
Prologis re-signed warehouse space at net effective rents 38% above expiring leases in Q3, showing how far below market rates much of the existing book was written. That gap between in-place and market rents is steadily converting into reported income.
Prologis raised its full-year development starts target to as much as $5.75 billion and lifted acquisition guidance, while narrowing full-year Core FFO guidance. Management is backing the demand environment with capital.
Full-year net earnings per share guidance was revised down to $4.05 to $4.15, from a prior range of $4.40 to $4.55. CEO Daniel S. Letter cited e-commerce, advanced manufacturing, and the data center supply chain build-out as the primary growth drivers.
The company's data center power portfolio has reached 5.8 gigawatts, and a pending combination with SEGRO plc cleared a shareholder approval milestone during the quarter. Letter called it an important step toward expanding the European platform.