- Prologis reported record leasing, signing 66.7 MSF in Q1 2026, with 64 MSF in logistics.
- The company started $1.3B in build-to-suit data center projects in the quarter.
- First-quarter net income rose to $980.5M, and revenue reached $2.3B, both strong year-over-year gains.
- Prologis raised its 2026 guidance, forecasting improved FFO and NOI growth.
Strong Industrial Performance
Prologis opened 2026 with its strongest leasing results yet, signing 66.7 MSF in new leases, as per the Commercial Observer. Most of this activity came from its logistics portfolio, as demand for industrial assets continued to show resilience. Average occupancy remained steady at 95.3 percent, highlighting portfolio stability. The company’s NOI grew 8.8 percent on a cash basis, driven by higher rents and development gains.
Data Center Growth Accelerates
A key highlight for Prologis was the launch of $1.3B in build-to-suit data center projects in Q1. Executives noted high customer interest, with letters of intent totaling 1.3 gigawatts for its powered sites. This push into data center development follows industrywide demand for digital infrastructure and positions Prologis as a larger player in that sector.
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Capital Deployment and Joint Ventures
Prologis started $1.78B in new development projects this quarter, with 80 percent as build-to-suit. Additionally, the company formed a $1.6B joint venture with GIC to target US logistics assets. Though acquisition activity slowed to $268M, dispositions totaled $676M, aligning with Prologis’ refreshed capital allocation approach. At the same time, broader CRE investment activity shows private buyers stepping in as institutions remain selective.
Upward Guidance for 2026
Based on Q1 strength, Prologis raised its 2026 outlook, with core FFO now expected between $6.07 and $6.23 per share. The company also improved its NOI growth and occupancy forecasts, projecting continued strong performance in both logistics and data centers. Planned capital deployment includes $3.5B to $4.5B for development starts and $1B to $1.5B for acquisitions across the year.
