Delivers record leasing and scales data center platform
SAN FRANCISCO, April 16, 2026 /PRNewswire/ -- Prologis, Inc. (NYSE: PLD) today announced the following results for the quarter ended March 31, 2026:
- Net earnings per diluted share was $1.05 for the quarter compared with $0.63 for the corresponding period in 2025.
- Core funds from operations (Core FFO)* per diluted share was $1.50 for the quarter compared with $1.42 for the corresponding period in 2025.
- Core FFO, excluding Net Promote Income (Expense)* per diluted share was $1.52 for the quarter compared with $1.43 for the corresponding period in 2025.
"We delivered record lease signings of 64 million square feet in our logistics business this quarter, reflecting the strength of our platform and resilient customer demand," said Daniel S. Letter, chief executive officer of Prologis. "We also advanced our data center platform with $1.3 billion of build-to-suit development starts, and we are scaling digital infrastructure and energy to support our next phase of growth."
"Through our Strategic Capital platform, new partnerships with GIC and La Caisse will expand our access to capital and enhance our ability to invest at scale while preserving balance sheet strength and financial flexibility," said Timothy D. Arndt, chief financial officer of Prologis. "Even amid an uncertain geopolitical environment, this combination of strong execution and capital strength underpins our increased Core FFO outlook."
OPERATING PERFORMANCE
Owned & Managed 1Q26
Average Occupancy 95.3 %
Period End Occupancy 95.3 %
Leases Commenced (Operating and Development Portfolio) 66.7 MSF
Retention 75.8 %
Prologis Share 1Q26
Average Occupancy 95.4 %
Cash Same Store NOI* 8.8 %
Net Effective Rent Change 31.9 %
Cash Rent Change 16.8 %
DEPLOYMENT ACTIVITY
Prologis Share 1Q26
Acquisitions
$268M
Weighted avg stabilized cap rate (excluding other real estate) 4.7 %
Development Stabilizations
$1,113M
Estimated weighted avg yield 7.6 %
Estimated weighted avg margin 34.8 %
Estimated value creation
$387M
% Build-to-suit 47.5 %
Development Starts
$1,783M
Estimated weighted avg yield 8.8 %
Estimated weighted avg margin 32.0 %
Estimated value creation
$571M
% Build-to-suit 81.2 %
Total Dispositions and Contributions
$676M
Weighted avg stabilized cap rate (excluding land, properties under development, and other real estate) 5.1 %
BALANCE SHEET STRENGTH & LIQUIDITY
During the quarter, the company:
- Closed, together with its co-investment ventures, an aggregate of $5.5 billion of debt at a weighted average interest rate of 3.7% and a weighted average term of 5.9 years. The activity included the extension of the maturity date of one of the company's $3.0 billion revolving line of credit.
As of quarter-end:
- Total available liquidity was approximately $6.7 billion.
- Debt-to-Adjusted EBITDA* was 4.8x and debt as a percentage of total market capitalization was 23.8%.
- The weighted average interest rate on the company's share of total debt was 3.3%, with a weighted average term of 8.1 years.
- Forecasted earnings for 2026, 2027 and 2028 are 99%, 97% and 97%, respectively, in USD or hedged through derivative contracts and 96% of Prologis' equity was in USD.
2026 GUIDANCE
Prologis' guidance for net earnings is included in the table below as well as guidance for Core FFO*, which are reconciled in our supplemental information.
2026 GUIDANCE
Earnings (per diluted share) Previous Current
Net earnings attributable to common stockholders
$3.70 to $4.00
$3.80 to $4.05
Core FFO attributable to common stockholders/unitholders*
$6.00 to $6.20
$6.07 to $6.23
Core FFO attributable to common stockholders/unitholders, excluding Net Promote Income (Expense)*
$6.05 to $6.25
$6.12 to $6.28
Operations -
Prologis Share Previous Current
Average occupancy 94.75% to
95.75% 95.00% to 95.75%
Cash Same Store NOI* 5.75% to 6.75% 6.25% to 7.00%
Net Effective Same Store NOI* 4.25% to 5.25% 4.75% to 5.50%
Strategic Capital (in millions) Previous Current
Strategic Capital revenue, excluding promote revenue
$650 to $670
$660 to $680
Net Promote Income (Expense)(1) $(50) $(50)
G&A (in millions) Previous Current
General & administrative expenses
$500 to $520
$510 to $525
Capital Deployment - Prologis Share (in millions)(2) Previous Current
Development stabilizations
$2,250 to $2,750
$2,250 to $2,750
Development starts
$3,000 to $4,000
$3,500 to $4,500
Acquisitions
$1,000 to $1,500
$1,000 to $1,500
Contributions
$1,500 to $2,000
$1,750 to $2,250
Dispositions
$1,750 to $2,250
$1,750 to $2,250
Realized development gains
$400 to $600
$500 to $700
- Net promote expense relates to amortization of stock compensation issued to employees related to promote income recognized in prior periods.
- Inclusive of data centers.
*This is a non-GAAP financial measure. See the Notes and Definitions in our supplemental information for further explanation and a reconciliation to the most directly comparable GAAP measure.
The earnings guidance described above includes potential gains recognized from real estate transactions but excludes any future or potential foreign currency or derivative gains or losses as our guidance assumes constant foreign currency rates. In reconciling from net earnings to Core FFO*, Prologis makes certain adjustments, including but not limited to our share of real estate depreciation and amortization expense, gains (losses) recognized from real estate transactions and early extinguishment of debt, impairment charges, deferred taxes and unrealized gains or losses on foreign currency or derivative activity. The difference between the company's Core FFO* and net earnings guidance relates predominantly to these items. Please refer to our quarterly Supplemental Information, which is available on our Investor Relations website at https://ir.prologis.com and on the SEC's website at www.sec.gov for a definition of Core FFO* and other non-GAAP measures used by Prologis, along with reconciliations of these items to the closest GAAP measure for our results and guidance.
April 16, 2026, CALL DETAILS
The call will take place on Thursday, April 16, 2026, at 9:00 a.m. PT/12:00 p.m. ET. To access a live broadcast of the call, please dial +1 (877) 897-2615 (toll-free from the United States and Canada) or +1 (201) 689-8514 (from all other countries). A live webcast can be accessed from the Investor Relations section of www.prologis.com.
A telephonic replay will be available April 16 - April 30 at +1 (877) 660-6853 (from the United States and Canada) or +1 (201) 612-7415 (from all other countries) using access code 13757425. The webcast replay will be posted in the Investor Relations section of www.prologis.com under "Events & Presentations."
ABOUT PROLOGIS
The world runs on logistics. At Prologis, we don't just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one-not just shaping the future of logistics but building what comes next. Learn more at Prologis.com.
FORWARD-LOOKING STATEMENTS
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," and "estimates" including variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future--including statements relating to rent and occupancy growth, acquisition and development activity, including data center developments and power procurement related thereto, contribution and disposition activity, general conditions in the geographic areas where we operate, expectations regarding new lines of business, our debt, capital structure and financial position, our ability to earn revenues from co-investment ventures, form new co-investment ventures and the availability of capital in existing or new co-investment ventures--are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) international, national, regional and local economic and political climates and conditions; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties, including the integration of the operations of significant real estate portfolios; (v) maintenance of Real Estate Investment Trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.
dollars in millions, except per share/unit data Three Months Ended March 31,
2026 2025
Rental and other revenues $2,137 $1,999
Strategic capital revenues 161 141
Total revenues 2,298 2,140
Net earnings attributable to common stockholders 980 592
Core FFO attributable to common stockholders/unitholders* 1,440 1,356
AFFO attributable to common stockholders/unitholders* 1,472 1,084
Adjusted EBITDA attributable to common stockholders/unitholders* 2,178 1,771
Estimated value creation from development stabilizations - Prologis Share 387 240
Common stock dividends and common limited partnership unit distributions 1,026 965
Per common share - diluted:
Net earnings attributable to common stockholders $1.05 $0.63
Core FFO attributable to common stockholders/unitholders* 1.50 1.42
Core FFO attributable to common stockholders/unitholders, excluding
Net Promote Income (Expense)* 1.52 1.43
Business line reporting:
Real estate* 1.45 1.36
Strategic capital* 0.05 0.06
Core FFO attributable to common stockholders/unitholders* 1.50 1.42
Realized development gains, net of taxes* 0.30 0.03
Dividends and distributions per common share/unit 1.07 1.01
*This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.
in thousands March 31, 2026 December 31, 2025
Assets:
Investments in real estate properties:
Operating properties $80,875,731 $80,561,020
Development portfolio 2,492,161 3,019,009
Land 4,684,949 4,888,153
Other real estate investments 7,188,604 6,661,174
95,241,445 95,129,356
Less accumulated depreciation 15,298,353 14,729,149
Net investments in real estate properties 79,943,092 80,400,207
Investments in and advances to unconsolidated entities 11,241,723 11,093,936
Assets held for sale or contribution 499,799 203,344
Net investments in real estate 91,684,614 91,697,487
Cash and cash equivalents 861,144 1,145,647
Other assets 5,587,693 5,881,122
Total assets $98,133,451 $98,724,256
Liabilities and Equity:
Liabilities:
Debt $34,669,592 $35,037,073
Accounts payable, accrued expenses and other liabilities 5,515,367 5,933,175
Total liabilities 40,184,959 40,970,248
Equity:
Stockholders' equity 53,503,401 53,193,178
Noncontrolling interests 3,316,274 3,316,713
Noncontrolling interests - limited partnership unitholders 1,128,817 1,244,117
Total equity 57,948,492 57,754,008
Total liabilities and equity $98,133,451 $98,724,256
Three Months Ended
March 31,
in thousands, except per share amounts 2026 2025
Revenues:
Rental $2,125,084 $1,987,265
Strategic capital 160,812 141,139
Development management and other 11,827 11,261
Total revenues 2,297,723 2,139,665
Expenses:
Rental 520,283 488,317
Strategic capital 81,889 60,777
General and administrative 126,890 114,701
Depreciation and amortization 731,506 652,058
Other 10,123 9,649
Total expenses 1,470,691 1,325,502
Operating income before gains on real estate transactions, net $827,032 $814,163
Gains on dispositions of development properties and land, net 292,983 27,451
Gains on other dispositions of investments in real estate, net 91,040 36,799
Operating income $1,211,055 $878,413
Other income (expense):
Earnings from unconsolidated entities, net 93,296 67,899
Interest expense (254,286) (231,751)
Foreign currency, derivative and other gains (losses) and other income (expense), net 44,611 (31,658)
Gains (losses) on early extinguishment of debt, net (1,890)
Total other income (expense) (118,269) (195,510)
Earnings before income taxes 1,092,786 682,903
Current income tax benefit (expense) (47,781) (36,701)
Deferred income tax benefit (expense) (190) (6,682)
Consolidated net earnings 1,044,815 639,520
Net earnings attributable to noncontrolling interests (39,978) (31,576)
Net earnings attributable to noncontrolling interests - limited partnership units (22,861) (14,991)
Net earnings attributable to controlling interests 981,976 592,953
Preferred stock dividends (1,500) (1,452)
Net earnings attributable to common stockholders $980,476 $591,501
Weighted average common shares outstanding - Diluted 957,561 956,080
Net earnings per share attributable to common stockholders - Diluted $1.05 $0.63
Three Months Ended
March 31,
in thousands 2026 2025
Net earnings attributable to common stockholders $980,476 $591,501
Add (deduct) NAREIT defined adjustments:
Real estate related depreciation and amortization 705,550 632,686
Gains on other dispositions of investments in real estate, net of taxes (excluding development properties and land) (91,040) (35,807)
Adjustments related to noncontrolling interests (10,737) (18,407)
Our proportionate share of adjustments related to unconsolidated entities 151,155 150,624
NAREIT defined FFO attributable to common stockholders/unitholders* $1,735,404 $1,320,597
Add (deduct) our modified adjustments:
Unrealized foreign currency, derivative and other losses (gains), net (14,269) 54,898
Deferred income tax expense (benefit) 190 6,682
Adjustments related to noncontrolling interests 712
Our proportionate share of adjustments related to unconsolidated entities (725) 1,371
FFO, as modified by Prologis attributable to common stockholders/unitholders* $1,721,312 $1,383,548
Add (deduct) Core FFO defined adjustments:
Gains on dispositions of development properties and land, net (292,983) (27,451)
Current income tax expense (benefit) on dispositions 1,302 144
Losses (gains) on early extinguishment of debt, net 1,890
Adjustments related to noncontrolling interests 271 73
Our proportionate share of adjustments related to unconsolidated entities 8,701 (283)
Core FFO attributable to common stockholders/unitholders* $1,440,493 $1,356,031
Add (deduct) AFFO defined adjustments:
Gains on dispositions of development properties and land, net 292,983 27,451
Current income tax benefit (expense) on dispositions (1,302) (144)
Straight-lined rents and amortization of lease intangibles (165,749) (180,361)
Property improvements (26,065) (34,367)
Turnover costs (123,816) (123,123)
Amortization of debt discount, financing costs and management contracts, net 21,400 21,112
Stock compensation amortization expense 60,632 53,161
Adjustments related to noncontrolling interests 19,628 13,982
Our proportionate share of adjustments related to unconsolidated entities (46,311) (49,819)
AFFO attributable to common stockholders/unitholders* $1,471,893 $1,083,923
*This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.
Three Months Ended
March 31,
in thousands 2026 2025
Net earnings attributable to common stockholders $980,476 $591,501
Gains on other dispositions of investments in real estate, net (excluding development properties and land) (91,040) (36,799)
Depreciation and amortization expense 731,506 652,058
Interest charges 237,908 215,650
Current and deferred income tax expense, net 47,971 43,383
Net earnings attributable to noncontrolling interests - limited partnership units 22,861 14,991
NOI adjustments for real estate transactions 9,264 7,829
Preferred stock dividends 1,500 1,452
Unrealized foreign currency, derivative and other losses (gains), net (14,269) 54,898
Stock compensation amortization expense 60,632 53,161
Losses (gains) on early extinguishment of debt, net 1,890
Adjustments related to noncontrolling interests (33,544) (33,850)
Our proportionate share of adjustments related to unconsolidated entities 222,879 207,162
Adjusted EBITDA attributable to common stockholders/unitholders* $2,178,034 $1,771,436
*This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.
Adjusted EBITDA. We use Adjusted EBITDA attributable to common stockholders/unitholders ("Adjusted EBITDA"), a non-GAAP financial measure, as a measure of our operating performance. The most directly comparable GAAP measure is net earnings.
We believe Adjusted EBITDA provides relevant and useful information by offering insight into our operating performance before the effects of financing decisions, income taxes, and certain non-cash or non-recurring charges.
We calculate Adjusted EBITDA by beginning with consolidated net earnings attributable to common stockholders and removing the effect of:
- gains or losses from the disposition of investments in real estate (excluding development properties and land);
- depreciation and amortization expense;
- impairment charges;
- interest charges;
- current and deferred income taxes;
- preferred stock dividends;
- unrealized gains or losses on foreign currency and derivatives;
- stock compensation amortization expense;
- gains from the revaluation of equity investments upon acquisition of a controlling interest; and
- gains or losses on early extinguishment of debt and derivative contracts (including cash charges).
We also include an adjustment to reflect a full period of NOI on the operating properties we acquire or stabilize during the quarter and to remove NOI on properties we dispose of during the quarter, assuming all transactions occurred at the beginning of the quarter. For properties we contribute, we make an adjustment to reflect NOI at the new ownership percentage for the full quarter.
We calculate Adjusted EBITDA based on our proportionate ownership share of both our unconsolidated entities and consolidated ventures. We reflect our share of Adjusted EBITDA measures for unconsolidated entities by applying our average ownership percentage for the period to the applicable adjusting items on an entity-by-entity basis. We reflect our share for consolidated ventures in which we do not own 100% of the equity by removing the noncontrolling interests share of the applicable adjustments based on our average ownership percentage for the applicable periods.
While we believe Adjusted EBITDA is an important supplemental measure, it should not be used alone as it excludes significant components of net earnings computed under GAAP and is therefore limited as an analytical tool. We do not use Adjusted EBITDA as an alternative measure to net earnings computed under GAAP or as an alternative to cash from operating activities computed under GAAP or as an indicator of our ability to fund our cash needs. Our computation of Adjusted EBITDA may not be comparable to EBITDA reported by other companies in both the real estate industry and other industries. We compensate for the limitations of Adjusted EBITDA by providing investors with financial statements prepared according to GAAP, along with this detailed discussion of Adjusted EBITDA and a reconciliation to Adjusted EBITDA from consolidated net earnings attributable to common stockholders.
Business Line Reporting is a non-GAAP financial measure. Core FFO and development gains are generated by our three lines of business: (i) real estate operations; (ii) strategic capital; and (iii) development. The real estate operations line of business represents total Prologis Core FFO, less the amount allocated to the strategic capital line of business. The amount of Core FFO allocated to the strategic capital line of business represents the third-party share of asset management fees and transactional fees that we earn from our consolidated and unconsolidated co-investment ventures less costs directly associated with our strategic capital group and Net Promote Income (Expense). Realized development gains include our share of gains on dispositions of development properties and land, net of taxes. To calculate the per share amount, the amount generated by each line of business is divided by the weighted average diluted common shares outstanding used in our Core FFO per share calculation. Management believes evaluating our results by line of business is a useful supplemental measure of our operating performance because it helps the investing public compare the operating performance of Prologis' respective businesses to other companies' comparable businesses. Prologis' computation of FFO by line of business may not be comparable to that reported by other real estate companies as they may use different methodologies in computing such measures.
Calculation of Per Share Amounts
Three Months Ended
Mar. 31,
in thousands, except per share amount 2026 2025
Net earnings
Net earnings attributable to common stockholders $980,476 $591,501
Noncontrolling interest attributable to exchangeable limited partnership units 23,027 14,991
Adjusted net earnings attributable to common stockholders - Diluted $1,003,503 $606,492
Weighted average common shares outstanding - Basic 931,261 927,338
Incremental weighted average effect on exchange of limited partnership units 21,979 23,501
Incremental weighted average effect of equity awards 4,321 5,241
Weighted average common shares outstanding - Diluted 957,561 956,080
Net earnings per share - Basic $1.05 $0.64
Net earnings per share - Diluted $1.05 $0.63
Three Months Ended
Mar. 31,
in thousands, except per share amount 2026 2025
Core FFO
Core FFO attributable to common stockholders/unitholders $1,440,493 $1,356,031
Noncontrolling interest attributable to exchangeable limited partnership units 232 294
Core FFO attributable to common stockholders/ unitholders - Diluted $1,440,725 $1,356,325
Less: Net Promote Income (Expense) (12,382) (10,893)
Core FFO attributable to common stockholders/ unitholders, excluding Net $1,453,107 $1,367,218
Promote Income (Expense) - Diluted
Weighted average common shares outstanding - Basic 931,261 927,338
Incremental weighted average effect on exchange of limited partnership units 21,979 23,779
Incremental weighted average effect of equity awards 4,321 5,241
Weighted average common shares outstanding - Diluted 957,561 956,358
Core FFO per share - Diluted $1.50 $1.42
Core FFO per share, excluding Net Promote Income (Expense) - Diluted $1.52 $1.43
Development Portfolio includes industrial and non-industrial properties, data centers, yards and parking lots that are under development and properties that are developed but have not met Stabilization. At March 31, 2026, total TEI for yards, parking lots, data centers and non-industrial assets was $2.0 billion on an Owned and Managed and $1.9 billion on a Prologis Share basis. We do not disclose square footage for yards and parking lots.
Estimated Value Creation represents the value that we expect to create through our development and leasing activities. We calculate Estimated Value Creation by estimating the Stabilized NOI that the property will generate and applying a stabilized capitalization rate applicable to that property. Estimated Value Creation is calculated as the amount by which the value exceeds our TEI, including closing costs and taxes, if any, and does not include any fees or promotes we may earn.
Estimated Weighted Average Margin is calculated on development properties as Estimated Value Creation, less estimated closing costs and taxes, if any, on properties expected to be sold or contributed, divided by TEI.
Estimated Weighted Average Stabilized Yield is calculated on the properties in the Development Portfolio as Stabilized NOI divided by TEI. The yields on a Prologis Share basis were as follows:
Pre- 2026 Expected 2027 and Thereafter Total Development
Stabilized Completion Expected Portfolio
Completion
Developments
U.S. 5.8 % 6.6 % 8.6 % 7.7 %
Other Americas 6.5 % 9.0 % 7.5 % 7.1 %
Europe 5.3 % 5.4 % 5.6 % 5.4 %
Asia 7.4 % 6.2 % 4.6 % 5.5 %
Total 6.2 % 6.2 % 8.0 % 7.0 %
FFO, as modified by Prologis attributable to common stockholders/unitholders ("FFO, as modified by Prologis"); Core FFO attributable to common stockholders/unitholders ("Core FFO"); AFFO attributable to common stockholders/unitholders ("AFFO"); (collectively referred to as "FFO"). FFO is a non-GAAP financial measure that is commonly used in the real estate industry, with net earnings as the most directly comparable GAAP measure.
The National Association of Real Estate Investment Trusts ("NAREIT") defines FFO as earnings computed under GAAP to exclude depreciation and gains and losses from sales net of any related tax, along with impairment charges, of previously depreciated properties. We exclude the gains on revaluation of equity investments upon acquisition of a controlling interest and the gain recognized from a partial sale of our investment, as these are similar to gains from the sales of previously depreciated properties. This measure excludes similar adjustments from our unconsolidated entities and the third parties' share of our consolidated ventures.
Our FFO Measures
Our FFO measures begin with NARElT's definition, with certain adjustments to calculate FFO, as modified by Prologis, and Core FFO, both as defined below, to reflect our business and execution of our management strategy. While these adjustments are subject to significant fluctuations from period to period, with both positive and negative short-term impacts, the removal of the effects of these items enhances our understanding of the core operating performance of our properties over the long term.
We use FFO, as modified by Prologis, so that management, analysts and investors are able to evaluate our performance against other REITs that do not have similar operations or operations in jurisdictions outside the U.S. We use both Core FFO and AFFO to (i) assess our operating performance as compared to other real estate companies; (ii) evaluate our performance and the performance of our properties in comparison with expected results and results of previous periods; (iii) evaluate the performance of our management; (iv) budget and forecast future results to assist in the allocation of resources; (v) provide guidance to the financial markets to understand our expected operating performance; and (vi) evaluate how a specific potential investment will impact our future results.
We calculate our FFO measures based on our proportionate ownership share of both our unconsolidated entities and consolidated ventures. We reflect our share of our FFO measures for unconsolidated entities by applying our average ownership percentage for the period to the applicable adjustments on an entity-by-entity basis. We reflect our share for consolidated ventures in which we do not own 100% of the equity by removing the noncontrolling interests share of the applicable adjustments based on our average ownership percentage for the applicable periods.
FFO, as modified by Prologis
To arrive at FFO, as modified by Prologis, we adjust the NAREIT defined FFO measure to exclude:
- deferred income tax benefits and deferred income tax expenses recognized by our subsidiaries;
- current income tax expense related to acquired tax liabilities that were recorded as deferred tax liabilities in an acquisition, to the extent the expense is offset with a deferred income tax benefit in earnings that is excluded from our defined FFO measure; and
- foreign currency exchange gains and losses resulting from (a) debt transactions between us and our foreign entities; (b) third-party debt that is used to hedge our investment in foreign entities; (c) derivative financial instruments related to any such debt transactions; and (d) mark-to-market adjustments associated with derivative and other financial instruments.
Core FFO
To arrive at Core FFO, we adjust FFO, as modified by Prologis, to exclude the following:
- gains or losses from the disposition of land and development properties that were developed with the intent to contribute or sell;
- income tax expense related to the sale of investments in real estate;
- impairment charges recognized related to our investments in real estate generally as a result of our change in intent to contribute or sell these properties; and
- gains or losses from the early extinguishment of debt and redemption and repurchase of preferred stock.
AFFO
To arrive at AFFO, we adjust Core FFO to include realized gains from the disposition of land and development properties, net of current tax expense, turnover costs and property improvements and exclude the following items that we recognize directly in Core FFO:
- straight-line rents;
- amortization of above- and below-market lease intangibles;
- amortization of management contracts;
- amortization of debt premiums and discounts and financing costs, net of amounts capitalized; and
- stock compensation amortization expense.
Limitations on the use of our FFO measures
While we believe our modified FFO measures are important supplemental measures, neither NAREIT's nor our measures of FFO should be used alone because they exclude significant components of net earnings computed under GAAP and are, therefore, limited as an analytical tool. Some of these limitations arise from excluding income tax expense that may be payable or depreciation and amortization expenses that reflect costs necessary to maintain operating performance. In addition, our FFO measure does not reflect changes in asset values resulting from fluctuations in market conditions or foreign currency exchange rates nor costs or benefits from settlement of deferred income taxes or the extinguishment of debt. We do not use NAREIT's nor our measures of FFO as alternatives to net earnings computed under GAAP or as alternatives to cash from operating activities computed under GAAP or as indicators of our ability to fund our cash needs.
We compensate for the limitations by using our FFO measures only in conjunction with net earnings computed under GAAP when making our decisions. This information should be read with our complete Consolidated Financial Statements prepared under GAAP. To assist investors in compensating for these limitations, we reconcile our modified FFO measures from consolidated net earnings attributable to common stockholders.
Guidance. The following is a reconciliation of our annual guided Net Earnings per share to our guided Core FFO per share:
Low High
Net earnings attributable to common stockholders (a) $3.80 $4.05
Our share of:
Depreciation and amortization 3.22 3.28
Net gains on real estate transactions, net of taxes (0.95) (1.10)
Unrealized foreign currency losses (gains), losses (gains) on early
extinguishment of debt and other, net
Core FFO attributable to common stockholders/unitholders $6.07 $6.23
Less: Net Promote Income (Expense) (0.05) (0.05)
Core FFO attributable to common stockholders/unitholders, excluding Net Promote $6.12 $6.28
Income (Expense)
(a) Earnings guidance includes potential future gains recognized from real estate transactions,
but excludes future foreign currency or derivative gains or losses as these items are
difficult to predict.
Market Capitalization equals Market Equity, less liquidation preference of the preferred shares/units, plus our share of total debt.
Net Promote Income (Expense) is promote revenue earned from third-party investors during the period, net of related cash and stock compensation expenses, and taxes and foreign currency derivative gains and losses, if applicable.
Operating Portfolio represents industrial properties in our Owned and Managed portfolio that have reached Stabilization. Assets held for sale, Non-Strategic Assets and non-industrial assets are excluded from the portfolio. NOI of our Operating Portfolio excludes net termination fees and adjustments. Prologis Share of NOI includes NOI for the properties contributed to or acquired from co-investment ventures at our actual share prior to and subsequent to change in ownership. The U.S. markets not presented consist of Austin, Charlotte, Columbus, Denver, Louisville, Portland, Raleigh-Durham, Reno, San Antonio, Savannah and Tampa. The European countries not presented consist of Belgium, Czech Republic, Hungary, Italy, Poland, Slovakia, Spain and Sweden.
Owned and Managed represents the consolidated properties as well as properties owned by our unconsolidated co-investment ventures, which we manage.
Prologis Share represents our proportionate economic ownership of each entity, or property included in our total Owned and Managed portfolio, whether consolidated or unconsolidated.
Rent Change (Cash) represents the percentage change in starting rental rates per the lease agreement, on new and renewed leases, commenced during the period compared with the previous ending rental rates in that same space. This measure excludes any short-term leases of less than one-year, holdover payments, free rent periods and introductory (teaser rates) defined as 50% or less of the stabilized rate.
Rent Change (Net Effective) represents the percentage change in net effective rental rates (average rate over the lease term), on new and renewed leases, commenced during the period compared with the previous net effective rental rates for the same respective spaces. This measure excludes any short-term leases of less than one year and holdover payments.
Retention is the square footage of all leases commenced during the period that are rented by existing tenants divided by the square footage of all expiring leases during the reporting period. The square footage of tenants that default or buy-out prior to expiration of their lease and short-term leases of less than one year, are not included in the calculation.
Same Store. Our same store metrics are non-GAAP financial measures, which are commonly used in the real estate industry and expected from the financial community, on both a net effective and cash basis. We evaluate the performance of the operating properties we own and manage using a "same store" analysis because the population of properties in this analysis is consistent from period to period, which allows us and investors to analyze our ongoing business operations. We determine our same store metrics on property NOI, which is calculated as rental revenue less rental expense for the applicable properties in the same store population for both consolidated and unconsolidated properties based on our ownership interest, as further defined below.
We define our same store population for the three months ended March 31, 2026 as the properties in our Owned and Managed Operating Portfolio, including the property NOI for both consolidated properties and properties owned by the unconsolidated co-investment ventures at January 1, 2025 and owned throughout the same three-month period in both 2025 and 2026.
We believe the drivers of property NOI for the consolidated portfolio are generally the same for the properties owned by the ventures in which we invest and therefore we evaluate the same store metrics of the Owned and Managed portfolio based on Prologis' ownership in the properties ("Prologis Share").
The same store population excludes properties held for sale to third parties, along with development properties that were not stabilized at the beginning of the period (January 1, 2025) and properties acquired or disposed of to third parties during the periods. To derive an appropriate measure of period- to-period operating performance, we remove the effects of foreign currency exchange rate movements by using the reported period-end exchange rate to translate from local currency into the U.S dollar, for both periods.
As non-GAAP financial measures, the same store metrics have certain limitations as an analytical tool and may vary among real estate companies. As a result, we provide a reconciliation of Rental Revenues less Rental Expenses ("Property NOI") (from our Consolidated Financial Statements prepared in accordance with U.S GAAP) to our Same Store Property NOI measures, as follows:
Three Months Ended
Mar. 31,
dollars in thousands 2026 2025 Change (%)
Reconciliation of Consolidated Property NOI to Same Store Property NOI measures:
Rental revenues $2,125,084 $1,987,265
Rental expenses (520,283) (488,317)
Consolidated Property NOI $1,604,801 $1,498,948
Adjustments to derive same store results:
Property NOI from consolidated properties not included in same (150,967) (122,495)
store portfolio and other adjustments (a)
Property NOI from unconsolidated co-investment ventures 1,010,288 956,327
included in same store portfolio (a)(b)
Third parties' share of Property NOI from properties included in (785,354) (750,429)
same store portfolio (a)(b)
Prologis Share of Same Store Property NOI - Net Effective (b) $1,678,768 $1,582,351 6.1 %
Consolidated properties straight-line rent and fair value lease (134,307) (156,391)
amortization included in the same store portfolio (c)
Unconsolidated co-investment ventures straight-line rent and
fair (45,957) (56,807)
value lease amortization included in the same store portfolio
(c)
Third parties' share of straight-line rent and fair value lease 35,810 41,376
amortization included in the same store portfolio (b)(c)
Prologis Share of Same Store Property NOI - Cash (b)(c) $1,534,314 $1,410,529 8.8 %
(a) We exclude properties held for sale to third parties, along with development properties that
were not stabilized at the beginning of the periods and properties acquired or disposed of
to third parties during the periods. We also exclude one-time items due to early lease
terminations, including termination fees received from customers and the write-off of
related lease assets and liabilities, that are not indicative of the property's recurring
operating performance in order to evaluate the growth or decline in each property's rental
revenues. Same Store Property NOI is adjusted to include an allocation of property
management expenses for our consolidated properties based on the property management
services provided to each property (generally, based on a percentage of revenues). On
consolidation, these amounts are eliminated and the actual costs of providing property
management and leasing services are recognized as part of our consolidated rental expense.
(b) We include the Property NOI for the same store portfolio for both consolidated properties and
properties owned by the co-investment ventures based on our investment in the underlying
properties. In order to calculate our share of Same Store Property NOI from the co-
investment ventures in which we own less than 100%, we use the co-investment ventures'
underlying Property NOI for the same store portfolio and apply our ownership percentage at
March 31, 2026 to the Property NOI for both periods, including the properties contributed
during the periods. We adjust the total Property NOI from the same store portfolio of the
co-investment ventures by subtracting the third parties' share of both consolidated and
unconsolidated co-investment ventures. During the periods presented, certain wholly owned
properties were contributed to a co-investment venture and are included in the same store
portfolio. Neither our consolidated results nor those of the co-investment ventures, when
viewed individually, would be comparable on a same store basis because of the changes in
composition of the respective portfolios from period to period (e.g. the results of a
contributed property are included in our consolidated results through the contribution date
and in the results of the venture subsequent to the contribution date based on our ownership
interest at the end of the period). As a result, only line items labeled "Prologis Share of
Same Store Property NOI" are comparable period over period.
(c) We further remove certain noncash items (straight-line rent and fair value lease
amortization) included in the financial statements prepared in accordance with U.S. GAAP to
reflect a Same Store Property NOI - Cash measure.
We manage our business and compensate our executives based on the same store results of our
Owned and Managed portfolio at 100% as we manage our portfolio on an ownership blind basis.
We calculate those results by including 100% of the properties included in our same store
portfolio.
Stabilization is defined as the earlier of when a property that was developed has been completed for one year, is contributed to a co-investment venture following completion or is 90% occupied. Upon Stabilization, a property is moved into our Operating Portfolio.
Total Expected Investment ("TEI") represents total estimated cost of development or expansion, including land, development and leasing costs. TEI is based on current projections and is subject to change.
Weighted Average Interest Rate is based on the effective rate, which includes the amortization of related premiums and discounts and finance costs.
Weighted Average Stabilized Capitalization ("Cap") Rate is calculated as Stabilized NOI divided by the Acquisition Price.
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SOURCE Prologis, Inc.
Investors: Prologis Investor Relations, mailto:prologis-IR@prologis.com; or Media: Prologis Corporate Communications; mailto:jnelson2@prologis.com