Logistics warehouse operator Prologis reported another quarter of record lease signings, prompting it to raise earnings guidance for a second time this year. The San Francisco-based real estate investment trust's second-quarter results came in ahead of ***** ysts' forecasts Thursday before the market opened.
Prologis (NYSE: PLD) reported consolidated revenue of $2.43 billion, which was 11% higher year over year and ahead of a $2.16 billion consensus estimate. Core funds from operations (FFO) of $1.63 per share were 17 cents higher y/y and 8 cents better than ***** ysts' expectations.
"We believe the business is entering its next phase of growth," said CEO Dan Letter in a news release. "Customer demand is broadening, and our opportunity set is expanding as logistics, digital infrastructure and energy needs increasingly intersect."
Lease signings covering 67 million square feet of ***** e outpaced the prior record set in the first quarter. Leases commenced totaled 61.7 million square feet, up 21% y/y.
Average occupancy improved 10 basis points y/y to 95%, which was 30 bps lower sequentially. Net effective rent change on Prologis' portfolio of multiyear leases was 36.9% in the quarter, near the company's goal of 40% for full-year 2026.