Prologis tops third quarter estimates on strong demand

Investing.com -- Prologis Inc (NYSE: PLD) reported third-quarter earnings and revenue that exceeded analyst expectations, driven by healthy customer demand and strong leasing activity. The stock was mostly flat following the results, up 0.1%.

The industrial real estate company posted adjusted earnings of $1.60 per share for the quarter ended September 30, beating the analyst estimate of $0.78. Revenue reached $2.39 billion, surpassing the consensus estimate of $2.17 billion. The company signed 60 million square feet of leases during the quarter and announced nearly $2.3 billion of transactions. Cash same store net operating income grew 5.9% in the period.

"Customers are running lean on inventory, and excess capacity within their networks has largely cleared," said Daniel S. Letter, chief executive officer of Prologis. "We see healthy demand supported by e-commerce, advanced manufacturing and the build-out of the data center supply chain."

For fiscal 2026, Prologis issued guidance of $4.05 to $4.15 per share, with a midpoint of $4.10 that exceeds the analyst consensus of $3.76. The company also provided Core FFO guidance of $6.25 to $6.29 per share for the full year.

The company raised its cash same store NOI growth outlook to 7.00% to 7.50% from a previous range of 6.75% to 7.25%. Prologis also increased its development stabilizations guidance to $2.5 billion to $3.0 billion and development starts guidance to $5.0 billion to $5.75 billion.

Occupancy stood at 95.6% at quarter-end, with retention of 75.9%. The company reported net effective rent change of 38.0% and cash rent change of 23.4%.

Prologis completed $702 million in acquisitions during the quarter at a weighted average stabilized cap rate of 4.2%, and $169 million in dispositions and contributions.

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