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Prologis posts record leasing gains and data center momentum
Prologis reported second-quarter 2026 core funds from operations of $1.56 billion, up from $1.4 billion a year earlier, and said year-to-date data center starts now surpass full-year guidance.
Prologis, the largest warehouse-focused REIT, said demand for logistics and data centers remains strong, with data center and energy businesses positioned as additional long-term growth opportunities. CEO Dan Letter made the comments during Prologis' second-quarter 2026 earnings call, stating that after several quarters of sustained demand, the market may be entering its next phase.
The REIT beat expectations in the quarter, reporting core funds from operations (FFO) of $1.56 billion, up from $1.4 billion a year earlier and $1.44 billion in the prior quarter. Net income was $1.06 billion, nearly doubling from $570 million a year earlier, and total revenue rose annually from $2.18 billion to $2.43 billion and increased quarter over quarter by nearly 6 percent.
Prologis also highlighted its execution in data centers, saying year-to-date data center starts already surpass full-year guidance. Between April and June, the company acquired $1.8 billion of new real estate and commenced $1.6 billion of new projects, and Letter said projects in its current power pipeline represent less than 1 percent of its global portfolio.
The earnings update arrives amid a corporate decision for Prologis tied to Segro. Prologis has six days to either make a formal offer to buy Segro, Britain’s biggest warehouse REIT, or abandon its unsolicited bid after Segro’s board rejected Prologis’ $16.6 billion all-share proposal in June.