Prologis narrowed its 2026 Core funds from operations (Core FFO) forecast, lifting the midpoint by 1 cent as it raised same-store growth targets but cut its net earnings outlook.
The company recorded third-quarter revenue of $2.39 billion, up 7.8% from a year earlier. Core FFO came to $1.60 per diluted share, compared with $1.49 in the corresponding 2025 quarter. Excluding net promote income or expense, Core FFO was $1.61 per share, versus $1.50 a year earlier.
The updated 2026 Core FFO range is $6.25 to $6.29 per diluted share, replacing the previous $6.22 to $6.30 forecast. Its midpoint is $6.27, 1 cent above the earlier $6.26 midpoint. The new range spans 4 cents, compared with 8 cents previously; its lower bound rose 3 cents while the upper bound fell 1 cent.
Prologis lowered its 2026 net earnings forecast to $4.05 to $4.15 per diluted share from $4.40 to $4.55. That reduced the bottom of the range by 35 cents and the top by 40 cents.
On a Prologis-share basis, the cash same-store net operating income (NOI) growth forecast rose to 7% to 7.5% from 6.75% to 7.25%. Net effective same-store NOI growth, also on a Prologis-share basis, is forecast at 5.5% to 6%, up from 5.25% to 5.75%. Average occupancy on a Prologis-share basis is projected at 95.25% to 95.50%, compared with the previous 95.25% to 95.75% range.
Prologis CEO Daniel S. Letter cited lean customer inventories and the clearing of excess network capacity as demand factors. He also pointed to e-commerce, advanced manufacturing and development in data-center supply chains. The company identifies Core FFO as a non-GAAP measure.
