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Prologis Beats Q3 Targets, Raises Development Forecast Again

Prologis reported third-quarter consolidated revenue of $2.39 billion, an 8% year-over-year increase that topped consensus estimates by the same margin. Core FFO per share rose 11 cents year-over-year and came in 3 cents above expectations. The San Francisco-based warehouse REIT signed 60 million square feet of leases during the quarter while lifting average occupancy to 95.1%, up 30 basis points year-over-year. Net effective rent change on multiyear leases reached 38%, approaching the company's full-year target of 40%. Prologis raised its 2026 development starts guidance to between $5 billion and $5.75 billion, an 8% midpoint increase from previous guidance. Full-year core FFO guidance was narrowed to $6.29 per share. CEO Dan Letter attributed strong demand to e-commerce growth, advanced manufacturing expansion, and data center infrastructure buildout. The outlook assumes 95.5% average occupancy for the full year.