Prologis Inc

Strong quarter + raised full-year outlook (core operating beats): Prologis delivered Core FFO $1.63/share (incl. net promote income) and $1.60/share (ex-promote), both ahead of expectations. Occupancy ended at 95.5% (up 20 bps QoQ). Same-store NOI growth: 6.4% (net effective) / 8.5% (cash). Rent change on rollover: >36% net effective (incremental $60m NOI) and 22% cash. Portfolio lease mark-to-market flat at 17% (net effective)—fully replenishing the embedded NOI opportunity (~$800m)—suggesting the near-term “reversion” benefit is not worsening, but may normalize later.

Leasing and market recovery are real; biggest upside case is sustained demand: The quarter produced a record 67 million sq ft of leases signed (4th record in 7 quarters) alongside U.S. net absorption of 66 million sq ft (highest since 2022). Vacancy declined to 7.2% in the U.S.; rents up about 70 bps in the quarter. Management frames this as an “inflection into growth,” supported by e-commerce, advanced manufacturing, and increasing digital infrastructure demand. They also note supply tightness—especially large format: very limited >500k sq ft and none >1M sq ft—supporting rent/ramp.

Guidance (major forecast numbers) — logistics fundamentals + development ramp: The company raised guidance due to improved visibility and execution: - Average occupancy: 95.25%–95.75% - Same-store growth: 5.25%–5.75% net effective and 6.75%–7.25% cash - Strategic capital revenue (ex-promotes): $660m–$680m (unchanged) - Net promote income: now expected flat YoY - G&A: $510m–$525m - Development starts (owned/managed): $5.5b–$6.5b (higher; includes $2.1b data center starts in 1H) - Acquisitions: $1.5b–$2.0b - Contributions/dispositions: $4.25b–$5.25b - Net earnings: $4.40–$4.55/share - Core FFO: $6.22–$6.30/share (including and excluding promotes), up ~100 bps at midpoint vs prior