Prologis has once again raised its earnings forecast for 2026 after delivering a strong second quarter, supported by record leasing activity and continued demand for logistics warehouses. It is the second time this year that the company has upgraded its financial outlook.
The San Francisco-based real estate investment trust (REIT) reported $2.43 billion in revenue for the second quarter, an 11% increase compared with the same period last year. The figure also exceeded analysts’ expectations, which had been set at $2.16 billion.
The company’s core funds from operations (FFO) reached $1.63 per share, up 17 cents from a year earlier and 8 cents above market forecasts.
CEO Dan Letter said Prologis is entering a new stage of growth, pointing to stronger customer demand and new opportunities created by the growing links between logistics, digital infrastructure and energy projects.
That momentum was reflected in the company’s leasing activity. During the quarter, Prologis signed leases covering 67 million square feet, the highest quarterly total in its history and above the record set just three months earlier. At the same time, 61.7 million square feet of leases began during the period, marking a 21% increase from the second quarter of 2025.
The company’s warehouse portfolio remained very full as well. The average occupancy was 95%, up from a year ago, but down a little from the last quarter. Rents on new and renewed multiyear leases, meanwhile, rose 36.9%, putting Prologis on pace to hit its target of about 40% rent growth for the full year.
Encouraged by these results, Prologis now expects its core FFO to reach between $6.22 and $6.30 per share in 2026, representing a 2% increase at the midpoint of its previous guidance.
The company also raised its occupancy expectations to a range of 95.25% to 95.75% and increased its planned development investments. It now expects to launch between $4.5 billion and $5.5 billion in new projects this year, including both logistics facilities and new data centers.
Chief Financial Officer Tim Arndt said the company’s existing lease portfolio continues to generate strong rental growth, giving Prologis good visibility on future earnings. Combined with a solid balance sheet and an expanding pipeline of projects, he believes the company is well positioned to deliver steady long-term growth.
Prologis will discuss its second-quarter results in more detail during an investor conference call scheduled for 12 p.m. EDT on Thursday.
