Record 67 million sq ft leasing signed in the quarter
Prologis reported a strong Q2 2026, with record leasing, improving occupancy, and better-than-expected FFO, leading to a raise in full-year guidance. The narrative pivoted towards a new growth phase driven by logistics, data centers, and energy, with management highlighting a vast pipeline of data center opportunities. Record 67M sq ft of leases signed in Q2 2026.
Buzzberg readRecord 67 million sq ft leasing signed in the quarterPrologis reported a strong Q2 2026, with record leasing, improving occupancy, and better-than-expected FFO, leading to a raise in full-year guidance. The narrative pivoted towards a new growth phase driven by logistics, data centers, and energy, with management highlighting a vast pipeline of data center opportunities. Record 67M sq ft of leases signed in Q2 2026.Read full analysisCollapse analysis
Prologis reported a strong Q2 2026, with record leasing, improving occupancy, and better-than-expected FFO, leading to a raise in full-year guidance. The narrative pivoted towards a new growth phase driven by logistics, data centers, and energy, with management highlighting a vast pipeline of data center opportunities. Record 67M sq ft of leases signed in Q2 2026.
US net absorption hit 66M sq ft, the highest since 2022; market rents rose ~70 bps.
Data center power pipeline expanded to ~5.8 gigawatts, representing up to $87B in potential turnkey investment.
Raised full-year core FFO guidance to $6.22-$6.30 per share.
Revenue$2.4255B
+6% QoQ
EPS$1.13
+8% QoQ
Gross margin17.31%
reported
Op margin39.57%
reported
What changed this quarter
01
Demand
Record 67 million sq ft leasing signed in the quarter
Management called the quarter 'exceptional,' raised full-year guidance, and repeatedly framed the market as entering its next phase of growth.
02
Data Centers
Power pipeline now 5.8 GW, worth up to $87B turnkey
Record 67M sq ft of leases signed in Q2 2026.
03
Guidance
Full-year outlook raised on stronger operating performance
Guidance tone
04
Demand
U.S. absorption highest since 2022, vacancy fell to 7.2%
Record 67 million sq ft leasing signed in the quarter. Management called the quarter 'exceptional,' raised full-year guidance, and repeatedly framed the market as entering its next phase of growth.
Demand & capex
Demand
Bookings & conversion
Record 67 million sq ft leasing signed in the quarter. Management called the quarter 'exceptional,' raised full-year guidance, and repeatedly framed the market as entering its next phase of growth.
Capex
Investment and capacity
Management raised development starts guidance to $5.5-6.5 billion on strong demand, with $2.1 billion of year-to-date data center starts already exceeding prior full-year guidance. Acquisitions guidance was also increased to $1.5-2 billion. The balance sheet remains a source of capacity, with debt-to-EBITDA at 4.7x.
Tone · Upbeat
Management called the quarter 'exceptional,' raised full-year guidance, and repeatedly framed the market as entering its next phase of growth.
Supply-chain alpha
A1
Management estimates that every $1 trillion of data center capex generates 30-40 million square feet of incremental logistics demand, creating a durable multi-year source of growth for warehouse real estate.
“Our research estimates that each $1 trillion of data center capex will generate 30 to 40 million square feet of incremental logistics demand, creating a durable multi-year source of growth.”
Prologis's pipeline of data center projects represents less than 1% of its global portfolio, but they see over 10 gigawatts of development opportunity over the next 10 years, implying substantial runway for growth in this segment.
“Importantly, the projects in our current power pipeline represent less than 1% of our global portfolio, underscoring the runway ahead.”