Prologis profits jump as data center demand drives record development

Prologis (NYSE:PLD), the global leader in logistics real estate, today reported a robust set of financial results for the first quarter of 2026, highlighted by a significant earnings jump and a strategic pivot toward digital infrastructure.

The company posted net earnings per diluted share of $1.05, a substantial increase from the $0.63 reported in the same period last year.

Core funds from operations (Core FFO) per diluted share—a key metric for REIT performance—came in at $1.50.

Operational demand for industrial space reached new heights during the quarter, with Prologis delivering a record 64 million square feet of leasing.

This momentum was matched by a massive commitment to the burgeoning AI and cloud computing markets as the company commenced $1.3 billion in data center build-to-suit development projects.

On the financial front, Prologis demonstrated significant balance sheet strength.

The company successfully closed an aggregate of $5.5 billion in debt at a weighted average interest rate of 3.7%, effectively managing its cost of capital in a complex interest rate environment.

As of March 31, 2026, the firm maintained approximately $6.7 billion in liquidity, providing ample "dry powder" for its ambitious development pipeline.

Buoyed by the quarterly performance and high occupancy rates across its core portfolio, Prologis modestly raised its full-year 2026 guidance for both net earnings and Core FFO.