A record quarter for leasing volume
Prologis reported second-quarter results on July 16, 2026, disclosing more than 67 million square feet of leases signed during the three months ended June 30 — the highest quarterly leasing total in the company's history.
Net earnings came in at $1.13 per diluted share against $0.61 in the same quarter of 2025. Core funds from operations, the measure the REIT sector uses to strip out depreciation, was $1.63 per diluted share against $1.46; excluding net promote income, the figure was $1.60 against $1.47.
Occupancy across the owned and managed portfolio ended the quarter at 95.5%, 20 basis points higher than at March 31. Same-store net operating income on the Prologis share rose 6.4% year over year on a net effective basis and 8.5% on a cash basis.
Capital still moving in both directions
The company started $1.6 billion of development during the quarter across logistics and data center projects, acquired $1.8 billion of third-party assets, sold $766 million, and contributed $518 million into its strategic capital vehicles.
That combination — buying, building and selling simultaneously at scale — describes a landlord recycling capital rather than one either retrenching or expanding outright. The portfolio at quarter end stood at roughly 1.3 billion square feet across 5,929 buildings in 20 countries, serving about 6,500 customers.
Analysis: the two same-store figures diverge for a reason worth understanding. Net effective growth spreads free rent and concessions evenly across a lease term; the cash measure records what was actually collected in the period. A cash figure running two points above the net effective one is consistent with earlier concessions burning off as older leases roll.
The Segro question in the background
The results landed six days before a deadline for Prologis to make a formal offer for the UK logistics owner Segro or step away. Prologis had approached Segro with an unsolicited all-share proposal valued at roughly $16.6 billion, which Segro's board rejected in June 2026.
SEGRO's board reversed course on July 22, agreeing to extend the deadline to August 12 after Prologis raised its offer to 0.0920 new Prologis shares per SEGRO share plus a partial cash alternative. The two sides reached a recommended-acquisition agreement on August 3, valuing SEGRO's share capital at approximately $18.8 billion and creating a combined European operating portfolio of 368 million square feet. What the second-quarter results establish is the operating position from which that revised offer was made: rising occupancy, record leasing and mid-single-digit same-store growth.
What it does and does not tell you about industrial property
One company's leasing record is not a national market reading, and Prologis is an outlier by size. Its scale means its tenants skew toward large national distributors whose space decisions are made on different timetables than those of a regional operator leasing 40,000 square feet.
Core FFO is also a non-GAAP measure defined by Prologis's own reconciliation tables, and the occupancy figure covers the owned and managed portfolio rather than wholly owned assets alone. Both are standard in the sector and both mean the headline numbers are not directly comparable across companies without reading the definitions.
For readers tracking the industrial cycle, the useful signal is directional: the largest owner of warehouse space in the country recorded improving occupancy and positive cash rent growth in the middle of 2026, which is not what a sector in retreat produces.