Prologis Same-Store Cash NOI Growth Cools to 5.9%
Core FFO was $1.60 a share as the logistics REIT guided 2026 Core FFO to $6.25–$6.29 a share.
Prologis (PLD), the global logistics real estate owner, reported Core FFO attributable to common stockholders and unitholders of $1.60 a share in the three months ended September 30, 2026, as same-store cash NOI growth on the Prologis share cooled to 5.9% from 8.5% in the prior quarter.
Core FFO attributable to common stockholders and unitholders was $1.545 billion, compared with $1.559 billion, or $1.63 a share, in the three months ended June 30. Net earnings attributable to common stockholders were $816 million, or $0.86 a share, versus $763 million, or $0.82 a share, a year earlier. AFFO attributable to common stockholders and unitholders was $1.207 billion. Adjusted EBITDA attributable to common stockholders and unitholders was $2.081 billion.
Total revenues were $2.388 billion, including rental and other revenues of $2.224 billion and strategic capital revenues of $164 million. Rental revenue on the income statement was $2.205 billion. Strategic capital revenue, excluding promote revenue, is guided for 2026 at $650 million to $660 million.
Same-store NOI change over the prior year on the Prologis share was 5.9% cash and 5.7% net effective in the third quarter, after 8.5% cash and 6.4% net effective in the second quarter. Average occupancy of the operating portfolio was 95.4%, and period-ending occupancy was 95.5%. 2026 same-store NOI (Prologis share) was guided at 7.00% to 7.50% cash and 5.50% to 6.00% net effective, and average occupancy (Prologis share) was guided at 95.25% to 95.50%.
Leasing remained active, but the run rate of commencements eased. Total square feet of leases commenced were 55.9 million in the third quarter, versus 61.7 million in the second quarter; operating-portfolio commencements were 54.4 million square feet. Trailing-twelve-month operating-portfolio commencements were 218.0 million square feet, or 17.9% of the portfolio. Rent change on leases commenced was 35.7% net effective and 21.1% cash; on the Prologis share, those figures were 38.0% net effective and 23.4% cash.
At September 30, 2026, Prologis owned or had investments in properties and development projects expected to total approximately 1.3 billion square feet in 20 countries, across 5,941 buildings. Annualized Prologis share of operating-portfolio NOI was $7.2 billion. The United States accounted for 815 million square feet and 84% of NOI, Europe 266 million square feet and 9% of NOI, Other Americas 130 million square feet and 5% of NOI, and Asia 116 million square feet and 2% of NOI.
The operating portfolio comprised 5,492 buildings and 1.23 billion square feet, with 811.7 million square feet on the Prologis share. Third-quarter NOI on the Prologis share was $1.788 billion. The United States contributed $1.506 billion of Prologis-share NOI, or 84.2% of the total; Other Americas $91.5 million, or 5.1%; Europe $158.7 million, or 8.9%; and Asia $31.9 million, or 1.8%. Southern California remained the largest market at $347.7 million of Prologis-share NOI, or 19.5% of the total.
Development value creation slowed. Estimated value creation from development stabilizations on the Prologis share was $39 million in the third quarter, versus $89 million in the second quarter. Trailing-twelve-month estimated value creation from development stabilizations (Prologis share) was $610 million at September 30, versus $740 million at June 30. Realized development gains, net of taxes, were $0.08 a share in the quarter. 2026 realized development gains were guided at $600 million to $700 million.
Capital expenditures on owned and managed properties were $410.1 million in the third quarter, versus $340.5 million in the second quarter; the Prologis share was $303.8 million. Trailing four-quarter capital expenditures were 14.1% of operating-portfolio NOI. Weighted-average ownership of the operating portfolio was 74.1%.
Gross AUM was $238 billion at September 30. Strategic capital fees and promotes were $420 million. Build-out of land (TEI) was $39.7 billion. The data-center power pipeline remained 5.8 GW secured or in the advanced stage, with the mix shifting to 1.7 GW secured (including 680 MW under development) and 4.1 GW in the advanced stage.
Cash and cash equivalents were $2.27 billion at September 30, versus $1.77 billion at June 30. Debt was $36.83 billion.
For 2026, Prologis guided Core FFO attributable to common stockholders and unitholders at $6.25 to $6.29 a share, and net earnings attributable to common stockholders at $4.05 to $4.15 a share. Development stabilizations were guided at $2.75 billion to $3.25 billion on the Prologis share, development starts at $6.00 billion to $6.75 billion, acquisitions at $3.10 billion to $3.40 billion, dispositions at $2.50 billion to $3.25 billion, and contributions at $3.00 billion to $3.50 billion. Prologis said it has hedged rates for the majority of estimated 2026 euro, sterling, and yen Core FFO.