Prologis, Inc.

What they do

Prologis owns, manages, and develops logistics facilities and provides integrated infrastructure solutions, including energy and data center development. The company operates on an owned and managed (O&M) basis, including properties held through co-investment ventures, and evaluates results based on its proportionate economic ownership.

Revenue drivers

• Rental Operations — Generates rental revenue from leasing logistics facilities; Q2 2026 rental and other revenues were $2,183 million, with operating portfolio occupancy at 95.6% and rental growth on rollover of 18%.
• Strategic Capital — Generates fees and promotes from managing co-investment ventures; Q2 2026 strategic capital revenues were $242 million, with $412 million in annualized fees and promotes.
• Development — Builds and stabilizes properties, creating value through development stabilizations; Q2 2026 estimated value creation was $89 million, and $740 million on a trailing twelve-month basis.

Recent performance

Q2 2026 net earnings attributable to common stockholders were $1,061 million, up from $570 million in Q2 2025. Core FFO attributable to common stockholders/unitholders was $1,559 million ($1.63 per diluted share), up from $1,396 million ($1.46 per diluted share) in the prior year. Total revenues were $2,425 million, up 11% year-over-year. Occupancy in the operating portfolio was 95.6% at year-end 2025. Net proceeds from real estate transactions in 2025 were $2.7 billion, with net gains of $944 million.

Strategy

Prologis is leveraging its development capabilities and strategic locations to selectively develop data centers, expanding into digital infrastructure. The company is focused on build-to-suit development, with 60.9% of 2025 development starts being build-to-suit. It also manages capital through co-investment ventures and strategic dispositions, including listing the Prologis C-REIT in China. The company continues to invest in energy solutions and power procurement to support evolving customer needs.

Risks

• Economic uncertainty and trade tensions — Tariff policy proposals and shifting trade policies could disrupt customer demand and affect operating results.
• Interest rate and foreign currency fluctuations — The company is exposed to changes in interest rates and foreign currency exchange rates, though it mitigates risk through natural hedges and derivatives.
• Co-investment venture risks — Risks related to investments in and management of co-investment ventures, including the ability to form new ventures and earn revenues from them.
• Development and construction risks — Risks associated with property development, including integration of new portfolios and potential cost overruns or delays.

Outlook

Management expects continued long-term revenue growth supported by embedded rent growth and the development pipeline. Near-term economic uncertainty remains difficult to predict, but customer sentiment improved as 2025 progressed. The company is expanding its data center power pipeline, with 5.8 GW secured or in advanced stage as of Q2 2026, and expects to continue capitalizing on structural demand for logistics real estate.