Prologis, Inc. Q3 2026 Earnings Recap

Prologis shares fell 3.6% after earnings, likely reflecting a more cautious capital-markets outlook: management said higher rates could slow transactions and pressure property values, and raised its bar for allocating capital. Operating metrics improved, but the call offered no relief from that valuation and investment uncertainty.

Key Takeaways

• Core FFO was $1.60 per share, or $1.61 excluding net promote expense; occupancy rose 10 basis points sequentially to 95.6%.
• Rent change on rollover was 38% net effective and 23% cash; same-store NOI grew 5.7% net effective and 5.9% cash.
• U.S. market vacancy fell 10 basis points to 7.1%, while market rents rose 50 basis points for a third consecutive quarter.
• The company started $1 billion of development in the quarter and acquired $950 million of real estate at an estimated 20% discount to replacement cost.
• Data-center pipeline totaled 5.8 gigawatts, with letters of intent covering about 1 gigawatt; management said higher rates may slow transactions and pressure values.