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SEGRO PLC (LSE:SGRO), the FTSE 100 warehouse and data centre landlord, said it had contracted £70 million of new headline rent in the nine months to 30 September, 32% more than a year earlier, and that the Prologis takeover was expected to complete in the first half of 2027.

Headline rent is the annualised gross rent receivable once incentives such as rent-free periods have expired.

Of the new rent, £42 million came from the existing portfolio and £28 million from development lettings, in a trading update covering 1 January to 30 September.

Shareholders approved the scheme of arrangement for Prologis’s recommended best and final share offer on 28 September, but the deal remains subject to certain conditions, with Prologis progressing the relevant regulatory processes with SEGRO’s assistance.

Rent reviews, renewals and regears, which reset leases to current market levels, delivered an average uplift of 43% in the UK, 34% across the group and 5% in continental Europe.

Occupancy rose 20 basis points to 94.7% since the half-year, and customer retention stayed at 80%.

Development completions totalled 152,500 square metres, representing £13 million of potential headline rent, 59% of which had been secured through pre-lets or the leasing of speculatively developed space before completion.

Projects under construction or in advanced negotiations represent £103 million of potential rent, two-thirds of which is associated with pre-lets.

SEGRO expects to sign a pre-let with a major hyperscaler in the coming months for its first fully fitted data centre in west London, through a joint venture with Pure DC.

SEGRO has completed £223 million of disposals above book value, with a further £57 million exchanged and due to complete by year-end, while discussions on a new UK big box joint venture are progressing and are expected to generate about £500 million of net proceeds.

Loan-to-value stands at 33%, with £1.2 billion of available liquidity.

David Sleath, the chief executive, said demand and supply dynamics for modern, well-located industrial, logistics and data centre space remained supportive, enabling progress with lettings, rent increases and development signings.

Full year results are due on 10 February 2027.

Healthy customer demand supports continued momentum

, /PRNewswire/ -- Prologis, Inc. (NYSE: PLD) today announced results for the quarter ended September 30, 2026.

Net earnings per diluted share was $0.86, compared with $0.82 for the same period in 2025. Core funds from operations (Core FFO)* per diluted share was $1.60, compared with $1.49 for the same period in 2025. Core FFO, excluding Net Promote Income (Expense)* per diluted share was $1.61, compared with $1.50 for the same period in 2025. "We executed well on our plan this quarter, signing 60 million square feet of leases and announcing nearly $2.3 billion of transactions," said Daniel S. Letter, chief executive officer of Prologis. "Customers are running lean on inventory, and excess capacity within their networks has largely cleared. We see healthy demand supported by e-commerce, advanced manufacturing and the build-out of the data center supply chain."

Letter added: "On SEGRO, shareholder approval was an important milestone in bringing our two companies together. We look forward to completing the transaction and expanding our platform in Europe, increasing the scale at which we can serve customers."

"Our financial results reflect another quarter of strong operating performance and disciplined capital allocation," said Timothy D. Arndt, chief financial officer of Prologis. "That performance, together with the strength of our balance sheet, gives us the capacity and flexibility to continue investing in growth even in a higher interest rate environment."

OPERATING PERFORMANCE 

Owned & Managed

     3Q26

Average Occupancy

95.1 %

Period End Occupancy

95.6 %

Leases Commenced (Operating and Development Portfolio)             

55.9 MSF

Retention

75.9 %

Prologis Share

3Q26

Average Occupancy

95.1 %

Cash Same Store NOI* Growth

5.9 %

Net Effective Rent Change

38.0 %

Cash Rent Change

23.4 %

 DEPLOYMENT ACTIVITY

Prologis Share

          3Q26

Acquisitions

$702M

     Weighted avg stabilized cap rate (excluding other real estate)          

4.2 %

Development Stabilizations

$401M

     Estimated weighted avg yield

5.6 %

     Estimated weighted avg margin

9.7 %

     Estimated value creation

$39M

     % Build-to-suit

17.5 %

Development Starts

$964M

     Estimated weighted avg yield

6.6 %

     Estimated weighted avg margin

16.1 %

     Estimated value creation

$155M

     % Build-to-suit

18.3 %

Total Dispositions and Contributions

$169M

Weighted avg stabilized cap rate (excluding land, properties under
development, and other real estate)

5.1 %

BALANCE SHEET STRENGTH & LIQUIDITY
During the quarter, the company:

Closed, together with its co-investment ventures, an aggregate of $1.3 billion of debt at a weighted average interest rate of 4.0% and a weighted average term of 4.5 years. As of quarter-end:

Total available liquidity was approximately $8.8 billion. Debt-to-Adjusted EBITDA* was 4.5x and debt as a percentage of total market capitalization was 23.9%. The weighted average interest rate on the company's share of total debt was 3.3%, with a weighted average term of 7.6 years. Forecasted earnings for 2026, 2027 and 2028 are 99%, 98% and 97%, respectively, in USD or hedged through derivative contracts and 96% of Prologis' equity was in USD. 2026 GUIDANCE 
Prologis' guidance for net earnings is included in the table below as well as guidance for Core FFO*, which are reconciled in our supplemental information.

2026 GUIDANCE 

Earnings (per diluted share)**

Previous

Current

Net earnings attributable to common
stockholders

$4.40 to $4.55

$4.05 to $4.15

Core FFO attributable to common
stockholders/unitholders*

$6.22 to $6.30

$6.25 to $6.29

Core FFO attributable to common
stockholders/unitholders, excluding Net
Promote Income (Expense)*

$6.22 to $6.30

$6.25 to $6.29

  ** Note: Please refer to section titled "U.K. Takeover Code Required Disclosure in Connection With Offer
for SEGRO plc" below.

Operations - Prologis Share

Previous

Current

Average occupancy

95.25% to 95.75%

95.25% to 95.50%

Cash Same Store NOI*

6.75% to 7.25%

7.00% to 7.50%

Net Effective Same Store NOI*

5.25% to 5.75%

5.50% to 6.00%

Strategic Capital (in millions)

Previous

Current 

Strategic Capital revenue, excluding promote
revenue

$660 to $680

$650 to $660

Net Promote Income (Expense)1

$0

$0

 G&A (in millions)

 Previous

 Current 

General & administrative expenses

$510 to $525

$515 to $525

Capital Deployment - Prologis Share (in millions)2

Previous 

Current 

Development stabilizations

$2,250 to $2,750

$2,500 to $3,000

Development starts

$4,500 to $5,500

$5,000 to $5,750

Acquisitions

$1,500 to $2,000

$2,100 to $2,300

Contributions

$2,000 to $2,500

$1,750 to $2,250

Dispositions

$2,250 to $2,750

$1,750 to $2,500

Realized development gains

$600 to $700

$600 to $700

1.

Net promote expense relates to amortization of stock compensation issued to employees related to promote income recognized in prior periods.

2.

Inclusive of data centers.

*‌

This is a non-GAAP financial measure. See the Notes and Definitions in our supplemental information for further explanation and a reconciliation to the most directly comparable GAAP measure.

The earnings guidance described above includes potential gains recognized from real estate transactions but excludes any future or potential foreign currency or derivative gains or losses as our guidance assumes constant foreign currency rates. In reconciling from net earnings to Core FFO*, Prologis makes certain adjustments, including but not limited to our share of real estate depreciation and amortization expense, gains (losses) recognized from real estate transactions and early extinguishment of debt, impairment charges, deferred taxes and unrealized gains or losses on foreign currency or derivative activity. The difference between the company's Core FFO* and net earnings guidance relates predominantly to these items. Please refer to our quarterly Supplemental Information, which is available on our Investor Relations website at https://ir.prologis.com and on the SEC's website at www.sec.gov for a definition of Core FFO* and other non-GAAP measures used by Prologis, along with reconciliations of these items to the closest GAAP measure for our results and guidance.

U.K. TAKEOVER CODE REQUIRED DISCLOSURE IN CONNECTION WITH OFFER FOR SEGRO PLC
Prologis' Earnings (per diluted share) guidance set forth above (the "Profit Forecast") constitutes a profit forecast for the purposes of Rule 28 of the U.K. City Code on Takeovers and Mergers (the "Code"). The U.K. Takeover Panel has granted Prologis a dispensation from the Code requirement to include a report from a reporting accountant and Prologis' financial advisers in respect of the Profit Forecast. SEGRO plc has agreed to Prologis receiving this dispensation, on the basis that: (i) the Profit Forecast is presented on a basis consistent with Prologis' ordinary course quarterly guidance; and (ii) the Prologis board of directors is providing the confirmations in respect of the Profit Forecast stated below. The U.K. Takeover Panel has granted its dispensation on the same basis.

Prologis' board of directors has considered the Profit Forecast and confirms that the Profit Forecast is valid and has been properly compiled on the basis of the assumptions, and subject to the factors, set forth in the "Forward-Looking Statements" disclaimer below and that the basis of accounting used in preparing the Profit Forecast is consistent with the accounting policies of Prologis.

The Profit Forecast and certain other statements set forth in this announcement constitute "forward-looking statements" as described in the "Forward-Looking Statements" disclaimer below, and investors should consider the Profit Forecast and such other statements in the context of being so disclaimed.

OCTOBER 15, 2026, CALL DETAILS
The call will take place on Thursday, October 15, 2026, at 9:00 a.m. PT/12:00 p.m. ET. To access a live broadcast of the call, please dial +1 (877) 897-2615 (toll-free from the United States and Canada) or +1 (201) 689-8514 (from all other countries). A live webcast can be accessed from the Investor Relations section of www.prologis.com.

A telephonic replay will be available October 15 - October 29 at +1 (877) 660-6853 (from the United States and Canada) or +1 (201) 612-7415 (from all other countries) using access code 13757425. The webcast replay will be posted in the Investor Relations section of www.prologis.com under "Events & Presentations."

ABOUT PROLOGIS
The world runs on logistics. At Prologis, we don't just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one–not just shaping the future of logistics but building what comes next. Learn more at Prologis.com.

FORWARD-LOOKING STATEMENTS
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," and "estimates" including variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to the combination with SEGRO plc ("SEGRO"), rent and occupancy growth, acquisition and development activity, including data center developments and power procurement related thereto, contribution and disposition activity, general conditions in the geographic areas where we operate, expectations regarding new lines of business, our debt, capital structure and financial position, our ability to earn revenues from co-investment ventures, form new co-investment ventures and the availability of capital in existing or new co-investment ventures—are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) international, national, regional and local economic and political climates and conditions; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties, including those specific to data center development and the integration of the operations of significant real estate portfolios; (v) maintenance of Real Estate Investment Trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; (x) Prologis' and SEGRO's ability to complete the combination on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties relating to satisfying the conditions to the combination and relating to failure to realize the expected benefits or synergies of the combination; and (xi) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.

dollars in millions, except per share/unit data

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Rental and other revenues

$                             2,224

$                             2,064

$                                6,544

$                                6,098

Strategic capital revenues

164

150

567

439

Total revenues

2,388

2,214

7,111

6,537

Net earnings attributable to common stockholders

816

763

2,857

1,924

Core FFO attributable to common stockholders/unitholders*

1,545

1,426

4,544

4,178

AFFO attributable to common stockholders/unitholders*

1,207

1,064

4,002

3,184

Adjusted EBITDA attributable to common stockholders/unitholders*

2,081

1,868

6,401

5,428

Estimated value creation from development stabilizations - Prologis Share

39

169

516

473

Common stock dividends and common limited partnership unit distributions

1,045

967

3,097

2,898

Per common share - diluted:

Net earnings attributable to common stockholders

$                               0.86

$                              0.82

$                                  3.04

$                                 2.06

Core FFO attributable to common stockholders/unitholders*

1.60

1.49

4.73

4.37

Core FFO attributable to common stockholders/unitholders, excluding Net Promote Income (Expense)*

1.61

1.50

4.72

4.41

Business line reporting:

Real estate* 

1.54

1.43

4.53

4.19

Strategic capital* 

0.06

0.06

0.20

0.18

Core FFO attributable to common stockholders/unitholders*

1.60

1.49

4.73

4.37

Realized development gains, net of taxes*

0.08

0.01

0.47

0.05

Dividends and distributions per common share/unit

1.07

1.01

3.21

3.03

*This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.

in thousands

September 30, 2026

June 30, 2026

December 31, 2025

Assets:

Investments in real estate properties:

Operating properties

$                                                  83,327,950

$                                                   82,117,896

$                                                  80,561,020

Development portfolio

3,168,563

2,741,535

3,019,009

Land

4,794,539

4,802,617

4,888,153

Other real estate investments

7,468,798

7,351,737

6,661,174

98,759,850

97,013,785

95,129,356

Less accumulated depreciation

16,359,720

15,783,188

14,729,149

Net investments in real estate properties   

82,400,130

81,230,597

80,400,207

Investments in and advances to unconsolidated entities

11,505,548

11,467,403

11,093,936

Assets held for sale or contribution

545,788

498,975

203,344

Net investments in real estate

94,451,466

93,196,975

91,697,487

Cash and cash equivalents

2,273,497

1,765,043

1,145,647

Other assets

7,169,743

6,049,854

5,881,122

Total assets

$                                               103,894,706

$                                                101,011,872

$                                                  98,724,256

Liabilities and Equity:

Liabilities:

Debt 

$                                                 36,832,482

$                                                  36,442,085

$                                                  35,037,073

Accounts payable, accrued expenses and other liabilities

6,720,593

6,450,272

5,933,175

Total liabilities

43,553,075

42,892,357

40,970,248

Equity:

Stockholders' equity

55,909,034

53,725,722

53,193,178

Noncontrolling interests

3,312,124

3,304,267

3,316,713

Noncontrolling interests - limited partnership unitholders

1,120,473

1,089,526

1,244,117

Total equity

60,341,631

58,119,515

57,754,008

Total liabilities and equity

$                                                103,894,706

$                                                101,011,872

$                                                  98,724,256

Three Months Ended

Nine Months Ended

     September 30,

September 30,

in thousands, except per share amounts

2026

2025

2026

2025

Revenues:

Rental

$                       2,205,269

$                       2,054,200

$                       6,507,427

$                       6,066,797

Strategic capital 

164,326

150,351

566,757

438,652

Development management and other 

17,923

9,330

36,509

31,966

Total revenues

2,387,518

2,213,881

7,110,693

6,537,415

Expenses:

Rental 

511,715

484,635

1,562,859

1,460,915

Strategic capital 

84,202

69,270

261,681

194,964

General and administrative 

127,597

110,662

384,113

332,234

Depreciation and amortization

710,300

647,999

2,131,324

1,957,278

Other

16,957

8,724

47,246

30,079

Total expenses

1,450,771

1,321,290

4,387,223

3,975,470

Operating income before gains on real estate transactions, net

$                           936,747

$                            892,591

$                        2,723,470

$                      2,561,945

Gains on dispositions of development properties and land, net

51,538

15,435

423,717

53,363

Gains on other dispositions of investments in real estate, net

56,435

32,235

359,924

116,078

Operating income

$                        1,044,720

$                            940,261

$                        3,507,111

$                      2,731,386

Other income (expense):

Earnings from unconsolidated entities, net

155,417

92,827

396,183

268,418

Interest expense

(286,955)

(258,274)

(817,552)

(741,891)

Foreign currency, derivative and other gains (losses) and other income (expense), net     

64,535

100,981

218,809

(53,506)

Gains (losses) on early extinguishment of debt, net

144

—

(1,777)

—

Total other income (expense)

(66,859)

(64,466)

(204,337)

(526,979)

Earnings before income taxes

977,861

875,795

3,302,774

2,204,407

Current income tax benefit (expense)

(59,164)

(59,847)

(196,264)

(124,271)

Deferred income tax benefit (expense)

(38,795)

5,312

(57,839)

2,948

Consolidated net earnings

879,902

821,260

3,048,671

2,083,084

Net earnings attributable to noncontrolling interests

(46,191)

(38,329)

(125,231)

(107,044)

Net earnings attributable to noncontrolling interests - limited partnership units

(16,608)

(18,665)

(62,170)

(47,592)

Net earnings attributable to controlling interests

817,103

764,266

2,861,270

1,928,448

Preferred stock dividends

(1,369)

(1,369)

(4,216)

(4,326)

Net earnings attributable to common stockholders 

$                            815,734

$                              762,897

$                        2,857,054

$                           1,924,122

Weighted average common shares outstanding - Diluted

968,511

956,603

961,350

955,824

Net earnings per share attributable to common stockholders - Diluted

$                                  0.86

$                                    0.82

$                                 3.04

$                                    2.06

    Three Months Ended

Nine Months Ended

September 30,

September 30,

in thousands

2026

2025

2026

2025

Net earnings attributable to common stockholders

$                            815,734

$                              762,897

$                           2,857,054

$                          1,924,122

Add (deduct) NAREIT defined adjustments:

Real estate related depreciation and amortization

683,465

626,093

2,052,673

1,896,978

Gains on other dispositions of investments in real estate, net of taxes (excluding development properties and land)      

(56,435)

(32,277)

(358,450)

(115,048)

Adjustments related to noncontrolling interests

(11,268)

(13,142)

(35,361)

(48,888)

Our proportionate share of adjustments related to unconsolidated entities

142,760

138,279

426,100

422,637

NAREIT defined FFO attributable to common stockholders/unitholders*

$                         1,574,256

$                           1,481,850

$                           4,942,016

$                          4,079,801

Add (deduct) our modified adjustments:

Unrealized foreign currency, derivative and other losses (gains), net

12,728

(37,767)

(6,911)

154,948

Deferred income tax expense (benefit)

38,795

(5,312)

57,839

(2,948)

Adjustments related to noncontrolling interests

6

—

503

—

Our proportionate share of adjustments related to unconsolidated entities

437

(1,183)

(5,725)

(2,948)

FFO, as modified by Prologis attributable to common stockholders/unitholders*

$                         1,626,222

$                           1,437,588

$                           4,987,722

$                         4,228,853

Add (deduct) Core FFO defined adjustments:

Gains on dispositions of development properties and land, net

(51,538)

(15,435)

(423,717)

(53,363)

Current income tax expense (benefit) on dispositions

7,413

2,799

15,473

3,602

Losses (gains) on early extinguishment of debt, net

(144)

—

1,777

—

Venture formation costs

—

—

6,049

—

Adjustments related to noncontrolling interests

—

675

271

3,496

Our proportionate share of adjustments related to unconsolidated entities

(37,380)

3

(43,382)

(4,945)

Core FFO attributable to common stockholders/unitholders*

$                         1,544,573

$                           1,425,630

$                           4,544,193

$                         4,177,643

Add (deduct) AFFO defined adjustments:

Gains on dispositions of development properties and land, net

51,538

15,435

423,717

53,363

Current income tax benefit (expense) on dispositions

(7,413)

(2,799)

(15,473)

(3,602)

Straight-line rents and amortization of lease intangibles

(174,807)

(162,529)

(501,708)

(530,691)

Property improvements

(98,490)

(109,397)

(195,773)

(212,536)

Turnover costs

(177,483)

(138,212)

(435,258)

(413,577)

Amortization of debt discount, financing costs and management contracts, net

22,126

21,989

65,512

65,310

Stock compensation amortization expense

49,964

44,509

165,744

141,654

Adjustments related to noncontrolling interests

19,656

25,052

59,285

57,628

Our proportionate share of adjustments related to unconsolidated entities

(22,832)

(55,987)

(108,547)

(151,669)

AFFO attributable to common stockholders/unitholders*

$                         1,206,832

$                          1,063,691

$                          4,001,692

$                         3,183,523

*This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.

Three Months Ended

Nine Months Ended

September 30,

September 30,

in thousands

2026

2025

2026

2025

Net earnings attributable to common stockholders

$                                 815,734

$                                   762,897

$                                2,857,054

$                                1,924,122

Gains on other dispositions of investments in real estate, net (excluding development properties and land)

(56,435)

(32,235)

(359,924)

(116,078)

Depreciation and amortization expense

710,300

647,999

2,131,324

1,957,278

Interest charges

254,043

242,992

747,749

694,500

Current and deferred income tax expense, net

97,959

54,535

254,103

121,323

Net earnings attributable to noncontrolling interests - limited partnership units

16,608

18,665

62,170

47,592

NOI adjustments for real estate transactions

(1,740)

1,353

12,450

11,663

Preferred stock dividends

1,369

1,369

4,216

4,326

Unrealized foreign currency, derivative and other losses (gains), net

12,728

(37,767)

(6,911)

154,948

Stock compensation amortization expense

49,964

44,509

165,744

141,654

Losses (gains) on early extinguishment of debt, net

(144)

—

1,777

—

Venture formation costs

—

—

6,049

—

Adjustments related to noncontrolling interests

(28,970)

(32,315)

(99,398)

(97,984)

Our proportionate share of adjustments related to unconsolidated entities

209,127

195,704

624,796

585,130

Adjusted EBITDA attributable to common stockholders/unitholders*

$                              2,080,543

$                              1,867,706

$                              6,401,199

$                              5,428,474

*This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.

Adjusted EBITDA. We use Adjusted EBITDA attributable to common stockholders/unitholders ("Adjusted EBITDA"), a non-GAAP financial measure, as a measure of our operating performance. The most directly comparable GAAP measure is net earnings.

We believe Adjusted EBITDA provides relevant and useful information by offering insight into our operating performance before the effects of financing decisions, income taxes, and certain non-cash or non-recurring charges.

We calculate Adjusted EBITDA by beginning with consolidated net earnings attributable to common stockholders and removing the effect of:

gains or losses from the disposition of investments in real estate (excluding development properties and land); depreciation and amortization expense; impairment charges; interest charges; current and deferred income taxes; preferred stock dividends; unrealized gains or losses on foreign currency and derivatives; stock compensation amortization expense; gains from the revaluation of equity investments upon acquisition of a controlling interest; gains or losses on early extinguishment of debt and derivative contracts (including cash charges); and third-party costs associated with the successful formation of new ventures. We also include an adjustment to reflect a full period of NOI on the operating properties we acquire or stabilize during the quarter and to remove NOI on properties we dispose of during the quarter, assuming all transactions occurred at the beginning of the quarter. For properties we contribute, we make an adjustment to reflect NOI at the new ownership percentage for the full quarter.

We calculate Adjusted EBITDA based on our proportionate ownership share of both our unconsolidated entities and consolidated ventures. We reflect our share of Adjusted EBITDA measures for unconsolidated entities by applying our average ownership percentage for the period to the applicable adjusting items on an entity-by-entity basis. We reflect our share for consolidated ventures in which we do not own 100% of the equity by removing the noncontrolling interests share of the applicable adjustments based on our average ownership percentage for the applicable periods.

While we believe Adjusted EBITDA is an important supplemental measure, it should not be used alone as it excludes significant components of net earnings computed under GAAP and is therefore limited as an analytical tool. We do not use Adjusted EBITDA as an alternative measure to net earnings computed under GAAP or as an alternative to cash from operating activities computed under GAAP or as an indicator of our ability to fund our cash needs. Our computation of Adjusted EBITDA may not be comparable to EBITDA reported by other companies in both the real estate industry and other industries. We compensate for the limitations of Adjusted EBITDA by providing investors with financial statements prepared according to GAAP, along with this detailed discussion of Adjusted EBITDA and a reconciliation to Adjusted EBITDA from consolidated net earnings attributable to common stockholders.

Business Line Reporting is a non-GAAP financial measure. Core FFO and development gains are generated by our three lines of business: (i) real estate operations; (ii) strategic capital; and (iii) development. The real estate operations line of business represents total Prologis Core FFO, less the amount allocated to the strategic capital line of business. The amount of Core FFO allocated to the strategic capital line of business represents the third-party share of asset management fees and transactional fees that we earn from our consolidated and unconsolidated co-investment ventures less costs directly associated with our strategic capital group and Net Promote Income (Expense). Realized development gains include our share of gains on dispositions of development properties and land, net of taxes. To calculate the per share amount, the amount generated by each line of business is divided by the weighted average diluted common shares outstanding used in our Core FFO per share calculation. Management believes evaluating our results by line of business is a useful supplemental measure of our operating performance because it helps the investing public compare the operating performance of Prologis' respective businesses to other companies' comparable businesses. Prologis' computation of FFO by line of business may not be comparable to that reported by other real estate companies as they may use different methodologies in computing such measures.

Calculation of Per Share Amounts

Three Months Ended

Nine Months Ended

Sep. 30,

Sep. 30,

in thousands, except per share amounts

2026

2025

2026

2025

Net earnings

Net earnings attributable to common stockholders

$             815,734

$              762,897

$           2,857,054

$           1,924,122

Noncontrolling interest attributable to exchangeable limited partnership units

16,781

18,781

62,639

47,592

Adjusted net earnings attributable to common stockholders - Diluted

$             832,515

$              781,678

$           2,919,693

$           1,971,714

Weighted average common shares outstanding - Basic

944,132

928,851

936,252

928,186

Incremental weighted average effect on exchange of limited partnership units

19,778

22,809

20,629

22,958

Incremental weighted average effect of equity awards

4,601

4,943

4,469

4,680

Weighted average common shares outstanding - Diluted

968,511

956,603

961,350

955,824

Net earnings per share - Basic

$                    0.86

$                    0.82

$                    3.05

$                    2.07

Net earnings per share - Diluted

$                    0.86

$                    0.82

$                    3.04

$                    2.06

Three Months Ended

Nine Months Ended

Sep. 30,

Sep. 30,

in thousands, except per share amounts

2026

2025

2026

2025

Core FFO

Core FFO attributable to common stockholders/unitholders

$          1,544,573

$           1,425,630

$           4,544,193

$           4,177,643

Noncontrolling interest attributable to exchangeable limited partnership units

261

273

714

825

Core FFO attributable to common stockholders/ unitholders - Diluted

$          1,544,834

$           1,425,903

$           4,544,907

$           4,178,468

Less: Net Promote Income (Expense)

(10,158)

(12,268)

3,689

(36,598)

Core FFO attributable to common stockholders/ unitholders, excluding Net      
Promote Income (Expense) - Diluted

$          1,554,992

$           1,438,171

$           4,541,218

$           4,215,066

Weighted average common shares outstanding - Basic

944,132

928,851

936,252

928,186

Incremental weighted average effect on exchange of limited partnership units

19,778

22,909

20,629

23,223

Incremental weighted average effect of equity awards

4,601

4,943

4,469

4,680

Weighted average common shares outstanding - Diluted

968,511

956,703

961,350

956,089

Core FFO per share - Diluted

$                    1.60

$                     1.49

$                     4.73

$                     4.37

Core FFO per share, excluding Net Promote Income (Expense) - Diluted

$                    1.61

$                     1.50

$                     4.72

$                     4.41

Development Portfolio includes industrial and non-industrial properties, data centers, yards and parking lots that are under development and properties that are developed but have not met Stabilization. At September 30, 2026, total TEI for yards, parking lots, data centers and non-industrial assets was $2.9 billion on an Owned and Managed basis and $2.8 billion on a Prologis Share basis. We do not disclose square footage for yards and parking lots.

Estimated Value Creation represents the value that we expect to create through our development and leasing activities. We calculate Estimated Value Creation by estimating the Stabilized NOI that the property will generate and applying a stabilized capitalization rate applicable to that property. Estimated Value Creation is calculated as the amount by which the value exceeds our TEI, including closing costs and taxes, if any, and does not include any fees or promotes we may earn. 

Estimated Weighted Average Margin is calculated on development properties as Estimated Value Creation, less estimated closing costs and taxes, if any, on properties expected to be sold or contributed, divided by TEI.

Estimated Weighted Average Stabilized Yield is calculated on the properties in the Development Portfolio as Stabilized NOI divided by TEI. The yields on a Prologis Share basis were as follows:

               Pre-Stabilized

Developments

               2026 Expected Completion

               2027 and Thereafter Expected
Completion

               Total Development Portfolio

U.S.

6.8 %

6.3 %

7.9 %

7.6 %

Other Americas       

5.0 %

8.9 %

8.8 %

8.2 %

Europe

5.0 %

5.5 %

5.9 %

5.4 %

Asia

5.7 %

6.2 %

4.9 %

5.3 %

Total

6.1 %

6.2 %

7.5 %

7.1 %

FFO, as modified by Prologis attributable to common stockholders/unitholders ("FFO, as modified by Prologis"); Core FFO attributable to common stockholders/unitholders ("Core FFO"); AFFO attributable to common stockholders/unitholders ("AFFO"); (collectively referred to as "FFO"). FFO is a non-GAAP financial measure that is commonly used in the real estate industry, with net earnings as the most directly comparable GAAP measure.

The National Association of Real Estate Investment Trusts ("NAREIT") defines FFO as earnings computed under GAAP to exclude depreciation and gains and losses from sales net of any related tax, along with impairment charges, of previously depreciated properties. We exclude the gains on revaluation of equity investments upon acquisition of a controlling interest and the gain recognized from a partial sale of our investment, as these are similar to gains from the sales of previously depreciated properties. This measure excludes similar adjustments from our unconsolidated entities and the third parties' share of our consolidated ventures.

Our FFO Measures

Our FFO measures begin with NARElT's definition, with certain adjustments to calculate FFO, as modified by Prologis, and Core FFO, both as defined below, to reflect our business and execution of our management strategy. While these adjustments are subject to significant fluctuations from period to period, with both positive and negative short-term impacts, the removal of the effects of these items enhances our understanding of the core operating performance of our properties over the long term.

We use FFO, as modified by Prologis, so that management, analysts and investors are able to evaluate our performance against other REITs that do not have similar operations or operations in jurisdictions outside the U.S. We use both Core FFO and AFFO to (i) assess our operating performance as compared to other real estate companies; (ii) evaluate our performance and the performance of our properties in comparison with expected results and results of previous periods; (iii) evaluate the performance of our management; (iv) budget and forecast future results to assist in the allocation of resources; (v) provide guidance to the financial markets to understand our expected operating performance; and (vi)  evaluate how a specific potential investment will impact our future results.

We calculate our FFO measures based on our proportionate ownership share of both our unconsolidated entities and consolidated ventures. We reflect our share of our FFO measures for unconsolidated entities by applying our average ownership percentage for the period to the applicable adjustments on an entity-by-entity basis. We reflect our share for consolidated ventures in which we do not own 100% of the equity by removing the noncontrolling interests share of the applicable adjustments based on our average ownership percentage for the applicable periods.

FFO, as modified by Prologis

To arrive at FFO, as modified by Prologis, we adjust the NAREIT defined FFO measure to exclude:

deferred income tax benefits and deferred income tax expenses recognized by our subsidiaries; current income tax expense related to acquired tax liabilities that were recorded as deferred tax liabilities in an acquisition, to the extent the expense is offset with a deferred income tax benefit  in earnings that is excluded from our defined FFO measure; and foreign currency exchange gains and losses resulting from (a) debt transactions between us and our foreign entities; (b) third-party debt that is used to hedge our investment in foreign entities; (c) derivative financial instruments related to any such debt transactions; and (d) mark-to-market adjustments associated with derivative and other financial instruments. Core FFO

To arrive at Core FFO, we adjust FFO, as modified by Prologis, to exclude the following:

gains or losses from the disposition of land and development properties that were developed with the intent to contribute or sell; income tax expense related to the sale of investments in real estate; impairment charges recognized related to our investments in real estate generally as a result of our change in intent to contribute or sell these properties; gains or losses from the early extinguishment of debt and redemption and repurchase of preferred stock; and third-party costs associated with the successful formation of new ventures. AFFO

To arrive at AFFO, we adjust Core FFO to include realized gains from the disposition of land and development properties, net of current tax expense, turnover costs and property improvements and exclude the following items that we recognize directly in Core FFO:

straight-line rents; amortization of above- and below-market lease intangibles; amortization of management contracts; amortization of debt premiums and discounts and financing costs, net of amounts capitalized; and stock compensation amortization expense. Limitations on the use of our FFO measures

While we believe our modified FFO measures are important supplemental measures, neither NAREIT's measures or our measures of FFO should be used alone because they exclude significant components of net earnings computed under GAAP and are, therefore, limited as an analytical tool. Some of these limitations arise from excluding income tax expense that may be payable or depreciation and amortization expenses that reflect costs necessary to maintain operating performance. In addition, our FFO measure does not reflect changes in asset values resulting from fluctuations in market conditions or foreign currency exchange rates nor costs or benefits from settlement of deferred income taxes or the extinguishment of debt. We do not use NAREIT's measures or our measures of FFO as alternatives to net earnings computed under GAAP or as alternatives to cash from operating activities computed under GAAP or as indicators of our ability to fund our cash needs.

We compensate for the limitations by using our FFO measures only in conjunction with net earnings computed under GAAP when making our decisions. This information should be read with our complete Consolidated Financial Statements prepared under GAAP. To assist investors in compensating for these limitations, we reconcile our modified FFO measures from consolidated net earnings attributable to common stockholders.

Guidance. The following is a reconciliation of our annual guided Net Earnings per share to our guided Core FFO per share:

                                             Low

                                        High

Net earnings attributable to common stockholders (a)

$  4.05

$     4.15

Our share of:

Depreciation and amortization

3.28

3.32

Net gains on real estate transactions, net of taxes

(1.12)

(1.22)

Unrealized foreign currency losses (gains), losses (gains) on early

   extinguishment of debt and other, net

0.04

0.04

Core FFO attributable to common stockholders/unitholders

$  6.25

$     6.29

Less: Net Promote Income (Expense)

—

—

Core FFO attributable to common stockholders/unitholders, excluding Net Promote                
Income (Expense)

$  6.25

$     6.29

‌   

(a)

‌

Earnings guidance includes potential future gains recognized from real estate transactions, but excludes future foreign currency or derivative gains or losses
as these items are difficult to predict.

Market Capitalization equals Market Equity, less liquidation preference of the preferred shares/units, plus our share of total debt.

Net Promote Income (Expense) is promote revenue earned from third-party investors during the period, net of related cash and stock compensation expenses, and taxes and foreign currency derivative gains and losses, if applicable.

Operating Portfolio represents industrial properties in our Owned and Managed portfolio that have reached Stabilization. Assets held for sale, Non-Strategic Assets and non-industrial assets are excluded from the portfolio. NOI of our Operating Portfolio excludes net termination fees and adjustments. Prologis Share of NOI includes NOI for the properties contributed to or acquired from co-investment ventures at our actual share prior to and subsequent to change in ownership. The U.S. markets not presented consist of Austin, Charlotte, Columbus, Denver, Louisville, Portland, Raleigh-Durham, Reno, San Antonio, Savannah and Tampa. The European countries not presented consist of Belgium, Czech Republic, Hungary, Italy, Poland, Slovakia, Spain and Sweden.

Owned and Managed represents the consolidated properties as well as properties owned by our unconsolidated co-investment ventures, which we manage.

Prologis Share represents our proportionate economic ownership of each entity, or property included in our total Owned and Managed portfolio, whether consolidated or unconsolidated.

Rent Change (Cash) represents the percentage change in starting rental rates per the lease agreement, on new and renewed leases, commenced during the period compared with the previous ending rental rates in that same space. This measure excludes any short-term leases of less than one-year, holdover payments, free rent periods and introductory ("teaser") rates defined as 50% or less of the stabilized rate.

Rent Change (Net Effective) represents the percentage change in net effective rental rates (average rate over the lease term), on new and renewed leases, commenced during the period compared with the previous net effective rental rates for the same respective spaces. This measure excludes any short-term leases of less than one year and holdover payments.

Retention is the square footage of all leases commenced during the period that are rented by existing tenants divided by the square footage of all expiring leases during the reporting period. The square footage of tenants that default or buy-out prior to expiration of their lease and short-term leases of less than one year, are not included in the calculation.

Same Store. Our same store metrics are non-GAAP financial measures, which are commonly used in the real estate industry and expected from the financial community, on both a net effective and cash basis. We evaluate the performance of the operating properties we own and manage using a "same store" analysis because the population of properties in this analysis is consistent from period to period, which allows us and investors to analyze our ongoing business operations. We determine our same store metrics on property NOI, which is calculated as rental revenue less rental expense for the applicable properties in the same store population for both consolidated and unconsolidated properties based on our ownership interest, as further defined below.

We define our same store population for the three months ended September 30, 2026 as the properties in our Owned and Managed Operating Portfolio, including the property NOI for both consolidated properties and properties owned by the unconsolidated co-investment ventures at January 1, 2025 and owned throughout the same three-month period in both 2025 and 2026.

We believe the drivers of property NOI for the consolidated portfolio are generally the same for the properties owned by the ventures in which we invest and therefore we evaluate the same store metrics of the Owned and Managed portfolio based on Prologis' ownership in the properties ("Prologis Share").

The same store population excludes properties held for sale to third parties, along with development properties that were not stabilized at the beginning of the period (January 1, 2025) and properties acquired or disposed of to third parties during the periods. To derive an appropriate measure of period-to-period operating performance, we remove the effects of foreign currency exchange rate movements by using the reported period-end exchange rate to translate from local currency into the U.S. dollar, for both periods.

As non-GAAP financial measures, the same store metrics have certain limitations as an analytical tool and may vary among real estate companies. As a result, we provide a reconciliation of Rental Revenues less Rental Expenses ("Property NOI") (from our Consolidated Financial Statements prepared in accordance with U.S. GAAP) to our Same Store Property NOI measures, as follows:

     Three Months Ended

Sep. 30,

dollars in thousands

‌                         2026

‌                         2025

               ‌     Change (%)

Reconciliation of Consolidated Property NOI to Same Store Property NOI measures:                 

Rental revenues

$     2,205,269

$     2,054,200

Rental expenses

(511,715)

(484,635)

Consolidated Property NOI

$     1,693,554

$     1,569,565

Adjustments to derive same store results:

Property NOI from consolidated properties not included in same
     store portfolio and other adjustments (a)

(210,095)

(163,892)

Property NOI from unconsolidated co-investment ventures
     included in same store portfolio (a)(b)

1,001,336

955,412

Third parties' share of Property NOI from properties included in
     same store portfolio (a)(b)

(774,809)

(743,868)

Prologis Share of Same Store Property NOI - Net Effective (b)

$     1,709,986

$     1,617,217

5.7 %

Consolidated properties straight-line rent and fair value lease
     amortization included in the same store portfolio (c)

(137,117)

(132,380)

Unconsolidated co-investment ventures straight-line rent and fair
     value lease amortization included in the same store portfolio (c)

(37,816)

(38,610)

Third parties' share of straight-line rent and fair value lease
      amortization included in the same store portfolio (b)(c)

29,103

31,079

Prologis Share of Same Store Property NOI - Cash (b)(c)

$     1,564,156

$     1,477,306

5.9 %

‌     

(a)

‌

We exclude properties held for sale to third parties, along with development properties that were not stabilized at the beginning of the periods and properties acquired or disposed of to third parties during the periods. We also exclude one-time items due to early lease terminations, including termination fees received from customers and the write-off of related lease assets and liabilities, that are not indicative of the property's recurring operating performance in order to evaluate the growth or decline in each property's rental revenues. Same Store Property NOI is adjusted to include an allocation of property management expenses for our consolidated properties based on the property management services provided to each property (generally, based on a percentage of revenues). On consolidation, these amounts are eliminated and the actual costs of providing property management and leasing services are recognized as part of our consolidated rental expense.

(b)

We include the Property NOI for the same store portfolio for both consolidated properties and properties owned by the co-investment ventures based on our investment in the underlying properties. In order to calculate our share of Same Store Property NOI from the co-investment ventures in which we own less than 100%, we use the co-investment ventures' underlying Property NOI for the same store portfolio and apply our ownership percentage at September 30, 2026 to the Property NOI for both periods, including the properties contributed during the periods. We adjust the total Property NOI from the same store portfolio of the co-investment ventures by subtracting the third parties' share of both consolidated and unconsolidated co-investment ventures. During the periods presented, certain wholly owned properties were contributed to a co-investment venture and are included in the same store portfolio. Neither our consolidated results nor those of the co-investment ventures, when viewed individually, would be comparable on a same store basis because of the changes in composition of the respective portfolios from period to period (e.g. the results of a contributed property are included in our consolidated results through the contribution date and in the results of the venture subsequent to the contribution date based on our ownership interest at the end of the period). As a result, only line items labeled "Prologis Share of Same Store Property NOI" are comparable period-over-period.

(c)

We further remove certain noncash items (straight-line rent and fair value lease amortization) included in the financial statements prepared in accordance with U.S. GAAP to reflect a Same Store Property NOI - Cash measure. We manage our business and compensate our executives based on the same store results of our Owned and Managed portfolio at 100% as we manage our portfolio on an ownership-blind basis.
We calculate those results by including 100% of the properties included in our same store portfolio.

Stabilization is defined as the earlier of when a property that was developed has been completed for one year, is contributed to a co-investment venture following completion or is 90% occupied. Upon Stabilization, a property is moved into our Operating Portfolio.

Total Expected Investment ("TEI") represents total estimated cost of development or expansion, including land, development and leasing costs. TEI is based on current projections and is subject to change.

Weighted Average Interest Rate is based on the effective rate, which includes the amortization of related premiums and discounts and finance costs.

Weighted Average Stabilized Capitalization ("Cap") Rate is calculated as Stabilized NOI divided by the Acquisition Price.

SOURCE Prologis, Inc.

MassMutual Private Wealth & Trust FSB boosted its holdings in shares of Prologis, Inc. (NYSE:PLD – Free Report) by 14.5% in the third quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 40,258 shares of the real estate investment trust’s stock after buying an additional 5,091 shares during the quarter. MassMutual Private Wealth & Trust FSB’s holdings in Prologis were worth $5,227,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Baird Financial Group Inc. boosted its position in Prologis by 20.6% in the 2nd quarter. Baird Financial Group Inc. now owns 122,809 shares of the real estate investment trust’s stock worth $16,637,000 after purchasing an additional 21,000 shares in the last quarter. Callan Family Office LLC purchased a new stake in Prologis during the second quarter worth $3,394,000. BlackRock Inc. purchased a new stake in Prologis during the second quarter worth $14,006,587,000. AssuredPartners Investment Advisors LLC acquired a new stake in Prologis during the second quarter valued at $3,436,000. Finally, Nykredit A S acquired a new stake in Prologis during the second quarter valued at $40,490,000. 93.50% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes Several research firms have recently issued reports on PLD. Mizuho increased their target price on shares of Prologis from $150.00 to $159.00 and gave the stock an “outperform” rating in a research note on Friday, July 17th. BMO Capital Markets reduced their price target on Prologis from $162.00 to $158.00 and set an “outperform” rating for the company in a report on Monday, June 29th. Scotiabank increased their price target on Prologis from $146.00 to $150.00 and gave the stock a “sector perform” rating in a research report on Thursday, July 23rd. Truist Financial raised their price objective on Prologis from $154.00 to $162.00 and gave the company a “buy” rating in a report on Tuesday, July 21st. Finally, Barclays boosted their price objective on Prologis from $139.00 to $156.00 and gave the company an “overweight” rating in a research report on Thursday, July 16th. Sixteen research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $154.52.

View Our Latest Stock Report on Prologis Prologis Trading Down 0.7% PLD stock opened at $127.98 on Tuesday. Prologis, Inc. has a 12-month low of $111.03 and a 12-month high of $153.35. The business’s 50-day moving average is $138.11 and its 200 day moving average is $139.95. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.63. The stock has a market cap of $119.42 billion, a price-to-earnings ratio of 28.50 and a beta of 1.31.

Prologis (NYSE:PLD – Get Free Report) last released its earnings results on Thursday, July 16th. The real estate investment trust reported $1.13 earnings per share for the quarter, beating the consensus estimate of $0.75 by $0.38. Prologis had a return on equity of 7.29% and a net margin of 45.79%.The business had revenue of $2.43 billion for the quarter, compared to the consensus estimate of $2.16 billion. During the same quarter last year, the business posted $1.46 earnings per share. The business’s quarterly revenue was up 11.0% compared to the same quarter last year. Prologis has set its FY 2026 guidance at 6.220-6.300 EPS. On average, sell-side analysts anticipate that Prologis, Inc. will post 6.27 EPS for the current fiscal year.

Prologis Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Wednesday, September 16th were paid a dividend of $1.07 per share. This represents a $4.28 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend was Wednesday, September 16th. Prologis’s payout ratio is 95.32%.

Prologis Profile (Free Report)

Prologis, Inc (NYSE: PLD) is a global logistics real estate company that owns, develops, acquires and manages distribution facilities, warehouses and other properties used throughout the supply chain. Its portfolio serves manufacturers, retailers, transportation providers and third-party logistics companies.

The company provides logistics real estate and related services in key markets across North America, Europe, Asia and Latin America. Its properties are generally located near major population centers, transportation hubs, ports and trade corridors, supporting e-commerce, industrial and distribution operations.

Prologis traces its roots to 1983 and was created in its current form through the 1999 merger of ProLogis and Security Capital Industrial Trust.

Read More Five stocks we like better than Prologis NVIDIA’s Record High Raises a Bigger Question About How Far the Rally Can Run A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks Want to see what other hedge funds are holding PLD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Prologis, Inc. (NYSE:PLD – Free Report).

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QRG Capital Management Inc. grew its holdings in Prologis, Inc. (NYSE:PLD – Free Report) by 11.0% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 154,967 shares of the real estate investment trust’s stock after purchasing an additional 15,396 shares during the quarter. QRG Capital Management Inc.’s holdings in Prologis were worth $20,993,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also made changes to their positions in the stock. Envestnet Portfolio Solutions Inc. lifted its position in Prologis by 1.7% during the second quarter. Envestnet Portfolio Solutions Inc. now owns 156,316 shares of the real estate investment trust’s stock worth $21,176,000 after buying an additional 2,577 shares in the last quarter. Andra AP fonden raised its stake in Prologis by 11.3% during the second quarter. Andra AP fonden now owns 174,728 shares of the real estate investment trust’s stock worth $23,670,000 after purchasing an additional 17,700 shares during the period. Anchor Investment Management LLC boosted its holdings in Prologis by 1,510.7% in the 2nd quarter. Anchor Investment Management LLC now owns 451 shares of the real estate investment trust’s stock valued at $61,000 after purchasing an additional 423 shares during the last quarter. Sequoia Financial Advisors LLC boosted its holdings in Prologis by 0.3% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 27,758 shares of the real estate investment trust’s stock valued at $3,760,000 after purchasing an additional 84 shares during the last quarter. Finally, National Pension Service grew its stake in shares of Prologis by 1.0% in the 2nd quarter. National Pension Service now owns 2,832,204 shares of the real estate investment trust’s stock valued at $383,679,000 after buying an additional 29,124 shares during the period. 93.50% of the stock is currently owned by institutional investors and hedge funds.

Prologis Trading Down 1.4% NYSE PLD opened at $134.00 on Thursday. The firm has a 50 day simple moving average of $140.80 and a 200-day simple moving average of $140.12. The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.70 and a current ratio of 0.70. Prologis, Inc. has a one year low of $111.03 and a one year high of $153.35. The firm has a market cap of $125.03 billion, a price-to-earnings ratio of 29.84 and a beta of 1.30.

Prologis (NYSE:PLD – Get Free Report) last announced its earnings results on Thursday, July 16th. The real estate investment trust reported $1.13 earnings per share for the quarter, topping the consensus estimate of $0.75 by $0.38. Prologis had a net margin of 45.79% and a return on equity of 7.29%. The firm had revenue of $2.43 billion for the quarter, compared to the consensus estimate of $2.16 billion. During the same period in the prior year, the firm earned $1.46 EPS. The firm’s revenue for the quarter was up 11.0% on a year-over-year basis. Prologis has set its FY 2026 guidance at 6.220-6.300 EPS. Equities research analysts anticipate that Prologis, Inc. will post 6.27 EPS for the current fiscal year. Prologis Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Wednesday, September 16th will be paid a $1.07 dividend. This represents a $4.28 annualized dividend and a dividend yield of 3.2%. The ex-dividend date is Wednesday, September 16th. Prologis’s dividend payout ratio (DPR) is presently 95.32%.

Analyst Upgrades and Downgrades PLD has been the subject of a number of recent analyst reports. Barclays raised their price target on shares of Prologis from $139.00 to $156.00 and gave the stock an “overweight” rating in a report on Thursday, July 16th. BMO Capital Markets cut their target price on Prologis from $162.00 to $158.00 and set an “outperform” rating for the company in a research note on Monday, June 29th. BTIG Research lifted their target price on Prologis from $160.00 to $170.00 and gave the company a “buy” rating in a research report on Wednesday, July 1st. Wells Fargo & Company reduced their price objective on shares of Prologis from $167.00 to $166.00 and set an “overweight” rating on the stock in a report on Tuesday, September 1st. Finally, Truist Financial upped their target price on shares of Prologis from $154.00 to $162.00 and gave the company a “buy” rating in a research report on Tuesday, July 21st. Sixteen analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $154.52.

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Prologis Company Profile (Free Report)

Prologis, Inc is a global real estate investment trust (REIT) that owns, develops, acquires and manages logistics and industrial properties. Its portfolio is designed to support supply-chain operations and includes distribution centers, warehouses, fulfillment facilities and other industrial buildings used by manufacturers, retailers, transportation companies and logistics providers.

The company also provides related property and business services, including facility management, leasing, development and customer-focused solutions through its Prologis Essentials platform.

Recommended Stories Five stocks we like better than Prologis Chips to Bots: Qualcomm’s Agentic AI Breakout Ciena Fell 40%—Now One Analyst Sees 50% Upside Energy Transfer Taps the AI Power Boom Viking’s Obesity Edge May Be Staying Power, Not Weight Loss Want to see what other hedge funds are holding PLD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Prologis, Inc. (NYSE:PLD – Free Report).

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Could Falling Yields Make REIT Stocks Worth a Second Look?Prologis NYSE: PLD Chief Financial Officer Tim Arndt said the logistics real estate company continues to see improving leasing activity, rising occupancy and positive market rent growth as it moves through the third quarter.

Speaking at an investor event moderated by Sarah Cooper, Global Head of Real Estate Equity Sales, Arndt said the operational trends the company has discussed over recent quarters have continued. He pointed to strong leasing volumes, faster customer decision-making, improving occupancy and positive market rent growth as factors supporting development activity and broader value creation.

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Prologis Q1 2026: Data Centers Steal the ShowArndt said Prologis expects third-quarter lease signings to be in the range of its recent record quarters, which have totaled roughly 60 million to 65 million square feet. While the quarter was not complete, he said the company had seen a strong start and that deals in the agreement stage were moving more quickly through the pipeline.

“We are seeing our lease pipeline stay well over 100 million square feet in new inquiries,” Arndt said.

Data Center Demand Adds to Leasing Activity 3 Under-the-Radar AI Infrastructure Stocks Powering the Next BuildoutAbout 10% of Prologis’ new leasing is tied to some form of support for the data center build-out, according to Arndt. He said the opportunity should provide a longer-term source of logistics demand because data center infrastructure requires an ecosystem of hardware, chips, mechanical, electrical and plumbing equipment, as well as future repair, maintenance and replacement activity.

Prologis has also expanded its own data center development efforts. Arndt said the company has a team of about 75 people focused on the business and has secured or advanced approximately 5.8 gigawatts of power capacity. Of that total, 1.6 gigawatts are secured, while the remainder is in advanced stages.

The company has started approximately $4 billion of data center build-to-suit transactions since formally pursuing the opportunity, Arndt said. Prologis generally plans to minimize risk by securing power at attractive costs, beginning vertical construction only after signing leases with high-credit tenants, and selling projects after completion to recycle capital into its core logistics operations.

Arndt said Prologis has completed more than $2 billion of data center starts during the first half of the year, filling its guidance bucket for data center starts. The company may also use private equity partnerships for particularly large turnkey development opportunities, while continuing to fund other activity from its balance sheet and through capital recycling.

Market Fundamentals and Rent Growth Arndt said U.S. logistics net absorption of 66 million square feet in the second quarter represented a return toward a more productive market pace. He estimated that a healthy annual absorption level would be around 225 million square feet.

Earlier weaker absorption reflected tenants working through excess space taken during the early stages of the COVID-19 period, he said. As customers right-size their portfolios, Prologis has seen demand increase, with its portfolio benefiting ahead of the broader market because of its location and quality.

The company’s lease mark-to-market, or the difference between in-place rents and market rents, stands at about 17%, which Arndt said represents roughly $700 million of potential incremental revenue as leases roll. He added that replacement-cost rents are approximately another 20% above current market rents, producing a combined rent gap of roughly 38% to 39% when compounded.

Arndt said that if markets tighten and replacement-cost rent gaps close as they have in prior real estate cycles, market rent growth could reach the mid-single digits annually for several years. He described that outlook as potentially conservative, depending on inflation, secular demand drivers and the pace of market tightening.

Strong markets include Sun Belt and Southeast U.S. locations, Texas, Indianapolis, Columbus and Memphis, according to Arndt. Southern California is “definitely inflecting,” he said, with Prologis more than 96% occupied there and reporting strong rent growth. Seattle and central Pennsylvania remain behind other U.S. markets, while China continues to work through excess vacancy. Europe has been a stabilizing part of the company’s portfolio, Arndt said, with high occupancy and positive market rent growth emerging sooner than in the U.S. He said Prologis expects its pending SEGRO transaction to close in the first half of next year, subject to regulatory processes and a shareholder vote expected at the end of the month. Arndt described the companies’ European portfolios and teams as highly complementary.

Development, Capital and E-Commerce Prologis owns or controls 14,000 acres of land, much of which it prepared and entitled during slower post-COVID periods, Arndt said. The company has seen continued demand for build-to-suit projects, particularly for larger buildings that can be difficult for tenants to find in existing inventory.

Build-to-suit development has historically represented about 35% of Prologis’ development starts, and Arndt said the company expects a similar mix going forward.

The company’s strategic capital platform has nearly $70 billion in third-party assets under management. Arndt said Prologis has been developing new investment vehicles across regions and formats, including vehicles with more development exposure, as it seeks to attract capital beyond traditional open-ended funds.

On e-commerce, Arndt said online sales account for approximately 24% of U.S. retail sales and are expected to gain roughly 100 basis points of penetration annually through the end of the decade. Prologis expects e-commerce to account for about 28% to 30% of U.S. retail sales by 2030. The company sees a three-times multiplier in logistics demand for each retail dollar that shifts to e-commerce, he said.

Arndt added that e-commerce leasing has returned to the high-teens percentage of Prologis’ new leasing activity. While Amazon remains active, he said the company typically serves roughly 35 to 40 individual e-commerce tenants in a given quarter.

Arndt said customers have largely moved beyond uncertainty surrounding tariffs and trade-policy changes, adapting supply chains rather than abandoning logistics footprints. He said supply-chain disruption and a need for redundancy could directionally support logistics demand over time.

About Prologis (NYSE:PLD)Prologis, Inc is a global real estate investment trust (REIT) that owns, develops, acquires and manages logistics and industrial properties. Its portfolio is designed to support supply-chain operations and includes distribution centers, warehouses, fulfillment facilities and other industrial buildings used by manufacturers, retailers, transportation companies and logistics providers.

The company also provides related property and business services, including facility management, leasing, development and customer-focused solutions through its Prologis Essentials platform.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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, /PRNewswire/ -- The Board of Directors of Prologis, Inc. (NYSE: PLD) declared a regular cash dividend for the quarter ending September 30, 2026, on the following securities:

A dividend of $1.07 per share of the company's common stock, payable on September 30, 2026, to common stockholders of record at the close of business on September 16, 2026; and A dividend of $1.0675 per share of the company's 8.54% Series Q Cumulative Redeemable Preferred Stock, payable on September 30, 2026, to Series Q stockholders of record at the close of business on September 16, 2026. ABOUT PROLOGIS
The world runs on logistics. At Prologis, we don't just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one–not just shaping the future of logistics but building what comes next. Learn more at Prologis.com.

FORWARD-LOOKING STATEMENTS
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," and "estimates" including variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to rent and occupancy growth, acquisition and development activity, including data center developments and power procurement related thereto, contribution and disposition activity, general conditions in the geographic areas where we operate, expectations regarding new lines of business, our debt, capital structure and financial position, our ability to earn revenues from co-investment ventures, form new co-investment ventures and the availability of capital in existing or new co-investment ventures—are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) international, national, regional and local economic and political climates and conditions; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties, including those specific to data center development and the integration of the operations of significant real estate portfolios; (v) maintenance of Real Estate Investment Trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.

SOURCE Prologis, Inc.

BlackRock Inc. acquired a new stake in shares of Prologis, Inc. (NYSE:PLD – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund acquired 103,392,538 shares of the real estate investment trust’s stock, valued at approximately $14,006,587,000. BlackRock Inc. owned approximately 11.08% of Prologis at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also modified their holdings of PLD. High Point Wealth Management LLC acquired a new position in Prologis during the fourth quarter worth $26,000. Ares Financial Consulting LLC acquired a new stake in Prologis in the 4th quarter valued at $26,000. Clearstead Trust LLC acquired a new stake in Prologis in the 2nd quarter valued at $28,000. SouthState Bank Corp lifted its position in Prologis by 73.1% during the 4th quarter. SouthState Bank Corp now owns 225 shares of the real estate investment trust’s stock worth $29,000 after buying an additional 95 shares in the last quarter. Finally, Hilton Head Capital Partners LLC bought a new stake in Prologis during the 4th quarter worth about $29,000. 93.50% of the stock is currently owned by institutional investors and hedge funds.

Prologis Stock Down 0.3% PLD stock opened at $140.61 on Tuesday. Prologis, Inc. has a 1-year low of $105.42 and a 1-year high of $153.35. The business’s 50 day simple moving average is $143.05 and its 200 day simple moving average is $140.04. The company has a current ratio of 0.70, a quick ratio of 0.70 and a debt-to-equity ratio of 0.63. The firm has a market capitalization of $131.20 billion, a PE ratio of 31.32 and a beta of 1.31.

Prologis (NYSE:PLD – Get Free Report) last issued its quarterly earnings data on Thursday, July 16th. The real estate investment trust reported $1.13 earnings per share for the quarter, topping analysts’ consensus estimates of $0.75 by $0.38. The business had revenue of $2.43 billion for the quarter, compared to analyst estimates of $2.16 billion. Prologis had a return on equity of 7.29% and a net margin of 45.79%.Prologis’s quarterly revenue was up 11.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.46 EPS. Prologis has set its FY 2026 guidance at 6.220-6.300 EPS. As a group, research analysts anticipate that Prologis, Inc. will post 6.28 EPS for the current year. Insider Buying and Selling In other news, CFO Timothy D. Arndt sold 3,597 shares of the firm’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $150.00, for a total value of $539,550.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders own 0.52% of the company’s stock.

Analysts Set New Price Targets Several equities analysts have recently weighed in on PLD shares. Wells Fargo & Company raised their price objective on Prologis from $155.00 to $167.00 and gave the company an “overweight” rating in a report on Monday, June 1st. Royal Bank Of Canada upgraded Prologis from a “sector perform” rating to an “outperform” rating and upped their target price for the stock from $148.00 to $160.00 in a report on Tuesday, August 4th. Morgan Stanley increased their price target on Prologis from $135.00 to $151.00 and gave the company an “equal weight” rating in a research report on Tuesday, May 26th. Raymond James Financial assumed coverage on Prologis in a research note on Thursday, June 18th. They issued a “market perform” rating for the company. Finally, Barclays boosted their price target on Prologis from $139.00 to $156.00 and gave the stock an “overweight” rating in a research report on Thursday, July 16th. Sixteen investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $154.57.

Get Our Latest Stock Report on PLD

Prologis Company Profile (Free Report)

Prologis, Inc is a real estate investment trust (REIT) specializing in logistics and distribution facilities. The company focuses on acquiring, developing, and managing high-quality industrial real estate assets that support supply chain infrastructure for third-party logistics providers, e-commerce businesses, retailers and manufacturers. Its portfolio primarily consists of warehouse and distribution centers designed to optimize goods movement and storage near key transportation hubs.

With a global presence, Prologis serves customers across the Americas, Europe and Asia Pacific.

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Combination expands Prologis' European platform and enhances long-term growth opportunities

, /PRNewswire/ -- Prologis, Inc. (NYSE: PLD) today announced that it has reached agreement with the board of SEGRO plc (LSE: SGRO) on the terms of a recommended acquisition of SEGRO, valuing SEGRO's entire issued and to be issued ordinary share capital at approximately $18.8 billion.

Daniel S. Letter, chief executive officer of Prologis, commented:

"We are pleased to have reached agreement with the SEGRO Board on a combination that we believe will create meaningful value. This deal brings together SEGRO's exceptional portfolio and customer relationships with Prologis' global platform, operating expertise and financial strength.

We have great respect for SEGRO, its people and the business they have built over many years. The constructive engagement between our leadership teams throughout this process has reinforced our confidence in the opportunity ahead.

As we move forward, we will approach the work ahead thoughtfully and deliberately. We look forward to building on the strengths of both companies and creating even greater value for our customers and shareholders."

Combination Highlights

The combination will:

bring together two premier portfolios in a global platform with approximately $269 billion of assets under management; strengthen the customer value proposition through a more connected global network; create a European operating portfolio of 368 million square feet, expanding Prologis' European footprint by 47%; establish a combined European development pipeline of 13 million square feet while increasing Prologis' European land bank by 126%; and expand long-term growth opportunities across logistics, energy and digital infrastructure. Transaction Terms

Under the terms of the recommended acquisition, SEGRO shareholders will receive 0.0920 new Prologis shares for each SEGRO share. Shareholders may elect to receive cash in lieu of some or all of their Prologis share consideration, subject to the terms of the partial cash alternative. SEGRO shareholders will also be entitled to receive and retain any 2026 interim dividend of up to 10.14 pence per SEGRO share and any 2026 final dividend of up to 22.56 pence per SEGRO share, which SEGRO intends to pay prior to closing.

The maximum aggregate amount of cash available under the partial cash alternative is approximately £3.5 billion. Each SEGRO shareholder's basic entitlement under the partial cash alternative is equal to 25% of the fixed price of 1,031.7 pence per SEGRO share. Accordingly, a shareholder electing to receive only its basic entitlement would receive 258 pence in cash and 0.0690 new Prologis shares for each SEGRO share.

Shareholders may elect to receive less than or more than their basic entitlement. Elections to receive cash in excess of the basic entitlement will be scaled back on a pro rata basis if aggregate cash elections exceed the maximum cash available. Shareholders who do not elect to participate in the partial cash alternative will receive 0.0920 new Prologis shares for each SEGRO share.

The cash consideration payable under the partial cash alternative will be funded through a committed term loan facility, together with existing liquidity and other available sources of funding.

Further details are available in the Rule 2.7 announcement, which is posted on the transaction microsite accessible through Prologis' investor relations website.

Expected Financial Impact

The combination is expected to enhance Prologis' long-term earnings and return potential. In the first full year following completion, assuming annualized run-rate synergies, the combination is expected to have a broadly neutral to minimally dilutive impact on Core FFO per share and AFFO per share.

Prologis expects to maintain A2/A credit ratings from Moody's and S&P.

Approvals and Timing

The boards of Prologis and SEGRO have reached agreement on the terms of the transaction, and the SEGRO board unanimously intends to recommend it. The transaction is expected to close in the first half of 2027, subject to the requisite approvals of SEGRO shareholders, sanction of the scheme by the court, receipt of applicable regulatory approvals and satisfaction of customary closing conditions.

The transaction does not require approval by Prologis shareholders.

As part of the transaction, Prologis will apply for a secondary listing of its shares on the London Stock Exchange, with the approval of that application being a condition to completion.

ABOUT PROLOGIS
The world runs on logistics. At Prologis, we don't just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one–not just shaping the future of logistics but building what comes next. Learn more at Prologis.com.

FURTHER INFORMATION
This document is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote in any jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or pursuant to an exemption from registration under the Securities Act of 1933, as amended.

FORWARD-LOOKING STATEMENTS
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we and SEGRO operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "will," "can" and "estimates" including variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to the combination, rent and occupancy growth, acquisition and development activity, including data center developments and power procurement related thereto, contribution and disposition activity, general conditions in the geographic areas where we and SEGRO operate, expectations regarding new lines of business, our and SEGRO's respective debt, capital structure and financial position, our or SEGRO's ability to earn revenues from co-investment ventures, form new co-investment ventures and the availability of capital in existing or new co-investment ventures—are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) Prologis' and SEGRO's ability to complete the combination on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties relating to satisfying the conditions to the combination; (ii) the effect of the combination on the ability of Prologis and SEGRO to operate their respective businesses and retain and hire key personnel and to maintain favorable business relationships; (iii) failure to realize expected benefits or synergies of the combination; (iv) significant transaction costs and/or unknown or inestimable liabilities; (v) the risk of shareholder litigation in connection with the combination, including resulting expense or delay; (vi) the risk that SEGRO's business will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; (vii) risks related to future opportunities and plans for the combined company, including the uncertainty of expected future financial performance and results of the combined company following the closing of the transaction; (viii) risks related to the market value of the Prologis shares to be issued as consideration in the combination, including foreign currency exchange rates; (ix) other risks related to the completion of the combination and actions related thereto; (x) international, national, regional and local economic and political climates and conditions; (xi) changes in global financial markets, interest rates and foreign currency exchange rates; (xii) increased or unanticipated competition for our properties; (xiii) risks associated with acquisitions, dispositions and development of properties, including those specific to data center development and the integration of the operations of significant real estate portfolios; (xiv) maintenance of Real Estate Investment Trust status, tax structuring and changes in income tax laws and rates; (xv) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (xvi) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (xvii) risks of doing business internationally, including currency risks; (xviii) environmental uncertainties, including risks of natural disasters; and (xix) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.

SOURCE Prologis, Inc.

View of the Prologis warehouse in Nieuwegein, Netherlands in this undated handout obtained by Reuters on November 30, 2020. Courtesy of Prologis/Handout via REUTERS/File Photo Purchase Licensing Rights, opens new tab

SummaryCompaniesBest and final bid of £10.32 per Segro shareSeveral investors had called on companies ​to engage furtherSegro shares up more than 4%July 22 (Reuters) - U.S. ‌warehousing giant Prologis (PLD.N), opens new tab on Wednesday made what it called its best and final proposal to buy British rival Segro (SGRO.L), opens new tab for about £14 billion ($18.8 billion), in a last-minute ​approach ahead of a takeover deadline as investors urged the ​pair to keep talking.

Shares in Segro rose more than ⁠4% to £9.07 by 0936 GMT but remained below the new bid ​price of £10.32 per share.

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The offer comprises 0.0920 Prologis shares and a partial ​cash alternative of up to £3.5 billion, marking an improvement from the company's third proposal, which Segro rejected on Monday.

"The Best and Final Proposal is final and will ​not be increased," Prologis said in a statement, although it added ​that it could still choose to do so under some exceptional conditions.

Investors including ‌APG ⁠Asset Management, Norges Bank and CCLA Investment Management urged the companies to engage in talks, saying a combination was valuable and merited consideration.

Prologis' latest proposal represents a roughly 45% premium to the group's closing ​price on June ​23, the day ⁠before Prologis first went public with its interest.

"We met and engaged with Prologis over the weekend and ​have been clear that we would consider and engage ​again ⁠on a revised proposal," a Segro spokesperson said in a statement emailed to Reuters shortly before Prologis' improved bid was announced.

The British group did ⁠not ​immediately respond to a further request for ​comment on the latest offer.

($1 = 0.7478 pounds)

Reporting by Prerna Bedi, Pushkala Aripaka, Anushka Chourasia ​and Nithyashree R B in Bengaluru; Editing by Subhranshu Sahu, Kirsten Donovan

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Prologis (PLD - Free Report) came out with quarterly funds from operations (FFO) of $1.63 per share, beating the Zacks Consensus Estimate of $1.53 per share. This compares to FFO of $1.46 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an FFO surprise of +6.54%. A quarter ago, it was expected that this industrial real estate developer would post FFO of $1.48 per share when it actually produced FFO of $1.5, delivering a surprise of +1.35%.

Over the last four quarters, the company has surpassed consensus FFO estimates three times.

Prologis, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $2.18 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.68%. This compares to year-ago revenues of $2.03 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.

Prologis shares have added about 12.4% since the beginning of the year versus the S&P 500's gain of 10.6%.

What's Next for Prologis?While Prologis has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Prologis was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $1.57 on $2.16 billion in revenues for the coming quarter and $6.17 on $8.58 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, InvenTrust Properties Corp. (IVT - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 3.

This company is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of +11.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

InvenTrust Properties Corp.'s revenues are expected to be $79.56 million, up 8.2% from the year-ago quarter.

Second quarter results show momentum building across the business

Raises 2026 guidance for the second time; leasing hits record

, /PRNewswire/ -- Prologis, Inc. (NYSE: PLD) raised its 2026 guidance for the second time this year, supported by record leasing and improving operating fundamentals.

"We believe the business is entering its next phase of growth," said Daniel S. Letter, chief executive officer of Prologis. "Customer demand is broadening, and our opportunity set is expanding as logistics, digital infrastructure and energy needs increasingly intersect. Given our scale and deep customer relationships, we are well positioned for this next cycle."

Key highlights for the quarter ended June 30, 2026:

Financials Results:

Net earnings per diluted share was $1.13, compared with $0.61 for the same period in 2025. Core funds from operations (Core FFO)* per diluted share was $1.63, compared with $1.46 for the same period in 2025. Core FFO, excluding Net Promote Income (Expense)* per diluted share was $1.60, compared with $1.47 for the same period in 2025. Operational Results:

Signed over 67 million square feet of leases, a record level. Increased owned & managed period end occupancy to 95.5%, a 20-basis point increase compared to March 31, 2026. Delivered same-store NOI* (at Prologis share) year-over-year growth of 6.4% on a net effective basis and 8.5% on a cash basis. Capital Deployment (Owned & Managed):

Started $1.6 billion of development across logistics and data centers. Completed $1.8 billion of third-party acquisitions at attractive discounts to replacement cost. Executed $766 million of dispositions, recycling capital into higher-return opportunities. Contributed $518 million of logistics real estate to Strategic Capital vehicles. Expanded the data center power pipeline to 5.8 GW. "Our business is performing at a high level, with multiple drivers of growth across the platform," said Timothy D. Arndt, chief financial officer of Prologis. "Embedded rent growth provides clear earnings visibility, and the scale of the opportunity ahead of us, together with our strong balance sheet, positions Prologis to deliver durable earnings growth and compound long-term value."

OPERATING PERFORMANCE  

Owned & Managed

2Q26

Average Occupancy

95.0 %

Period End Occupancy

95.5 %

Leases Commenced (Operating and Development Portfolio)     

61.7 MSF

Retention

72.7 %

Prologis Share

2Q26

Average Occupancy

94.9 %

Cash Same Store NOI*

8.5 %

 Net Effective Rent Change 

36.9 %

Cash Rent Change

22.3 %

DEPLOYMENT ACTIVITY

Prologis Share

2Q26

Acquisitions

$1,119M

     Weighted avg stabilized cap rate (excluding other real estate)

4.1 %

Development Stabilizations

$646M

     Estimated weighted avg yield

6.3 %

     Estimated weighted avg margin

13.8 %

     Estimated value creation

$89M

     % Build-to-suit

24.0 %

Development Starts

$1,342M

     Estimated weighted avg yield

7.2 %

     Estimated weighted avg margin

32.3 %

     Estimated value creation

$434M

     % Build-to-suit

74.7 %

Total Dispositions and Contributions

$1,009M

Weighted avg stabilized cap rate (excluding land, properties under development, and other real estate)

5.1 %

BALANCE SHEET STRENGTH & LIQUIDITY
During the quarter, the company:

Closed, together with its co-investment ventures, an aggregate of $3.4 billion of debt at a weighted average interest rate of 4.4% and a weighted average term of 6.2 years. As of quarter-end:

Total available liquidity was approximately $7.6 billion. Debt-to-Adjusted EBITDA* was 4.7x and debt as a percentage of total market capitalization was 23.9%. The weighted average interest rate on the company's share of total debt was 3.3%, with a weighted average term of 7.9 years. Forecasted earnings for 2026, 2027 and 2028 are 99%, 98% and 97%, respectively, in USD or hedged through derivative contracts and 96% of Prologis' equity was in USD. 2026 GUIDANCE 
Prologis' guidance for net earnings is included in the table below as well as guidance for Core FFO*, which are reconciled in our supplemental information. 

2026 GUIDANCE  

Earnings (per diluted share)**   

Previous

Current

Net earnings attributable to common stockholders

$3.80 to $4.05

$4.40 to $4.55

Core FFO attributable to common stockholders/unitholders*

$6.07 to $6.23

$6.22 to $6.30

Core FFO attributable to common stockholders/unitholders, excluding Net Promote Income (Expense)*

$6.12 to $6.28

$6.22 to $6.30

 ** Note: Please refer to section titled "U.K. Takeover Code Required Disclosure in Connection With Possible Offer for SEGRO plc" below. 

Operations - Prologis Share 

Previous

Current   

Average occupancy

95.00% to 95.75%

95.25% to 95.75%

Cash Same Store NOI*

6.25% to 7.00%

6.75% to 7.25%

Net Effective Same Store NOI*

4.75% to 5.50%

5.25% to 5.75%

Strategic Capital (in millions) 

Previous 

Current   

Strategic Capital revenue, excluding promote revenue

$660 to $680

$660 to $680

Net Promote Income (Expense)1

$(50)

$0

G&A (in millions) 

Previous

Current

General & administrative expenses

$510 to $525

$510 to $525

Capital Deployment - Prologis Share (in millions)2

Previous 

Current  

Development stabilizations

$2,250 to $2,750

$2,250 to $2,750

Development starts

$3,500 to $4,500

$4,500 to $5,500

Acquisitions

$1,000 to $1,500

$1,500 to $2,000

Contributions

$1,750 to $2,250

$2,000 to $2,500

Dispositions

$1,750 to $2,250

$2,250 to $2,750

Realized development gains

$500 to $700

$600 to $700

Net promote expense relates to amortization of stock compensation issued to employees related to promote income recognized in prior periods. Inclusive of data centers.        *This is a non-GAAP financial measure. See the Notes and Definitions in our supplemental information for further explanation and a reconciliation to the most directly comparable GAAP measure.

The earnings guidance described above includes potential gains recognized from real estate transactions but excludes any future or potential foreign currency or derivative gains or losses as our guidance assumes constant foreign currency rates. In reconciling from net earnings to Core FFO*, Prologis makes certain adjustments, including but not limited to our share of real estate depreciation and amortization expense, gains (losses) recognized from real estate transactions and early extinguishment of debt, impairment charges, deferred taxes and unrealized gains or losses on foreign currency or derivative activity. The difference between the company's Core FFO* and net earnings guidance relates predominantly to these items. Please refer to our quarterly Supplemental Information, which is available on our Investor Relations website at https://ir.prologis.com and on the SEC's website at www.sec.gov for a definition of Core FFO* and other non-GAAP measures used by Prologis, along with reconciliations of these items to the closest GAAP measure for our results and guidance.

U.K. TAKEOVER CODE REQUIRED DISCLOSURE IN CONNECTION WITH POSSIBLE OFFER FOR SEGRO PLC
Prologis' Earnings (per diluted share) guidance set forth above (the "Profit Forecast") constitutes a profit forecast for the purposes of Rule 28 of the U.K. City Code on Takeovers and Mergers (the "Code"). The U.K. Takeover Panel has granted Prologis a dispensation from the Code requirement to include a report from a reporting accountant and Prologis' financial advisers in respect of the Profit Forecast. SEGRO plc has agreed to Prologis receiving this dispensation, on the basis that: (i) the Profit Forecast is presented on a basis consistent with Prologis' ordinary course quarterly guidance; and (ii) the Prologis board of directors is providing the confirmations in respect of the Profit Forecast stated below. The U.K. Takeover Panel has granted its dispensation on the same basis.

Prologis' board of directors has considered the Profit Forecast and confirms that the Profit Forecast is valid and has been properly compiled on the basis of the assumptions, and subject to the factors, set forth in the "Forward-Looking Statements" disclaimer below and that the basis of accounting used in preparing the Profit Forecast is consistent with the accounting policies of Prologis.

The Profit Forecast and certain other statements set forth in this announcement constitute "forward-looking statements" as described in the "Forward-Looking Statements" disclaimer below, and investors should consider the Profit Forecast and such other statements in the context of being so disclaimed.

JULY 16, 2026, CALL DETAILS 
The call will take place on Thursday, July 16, 2026, at 9:00 a.m. PT/12:00 p.m. ET. To access a live broadcast of the call, please dial +1 (877) 897-2615 (toll-free from the United States and Canada) or +1 (201) 689-8514 (from all other countries). A live webcast can be accessed from the Investor Relations section of www.prologis.com.

A telephonic replay will be available July 16 - July 30 at +1 (877) 660-6853 (from the United States and Canada) or +1 (201) 612-7415 (from all other countries) using access code 13757425. The webcast replay will be posted in the Investor Relations section of www.prologis.com under "Events & Presentations."

ABOUT PROLOGIS
The world runs on logistics. At Prologis, we don't just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one–not just shaping the future of logistics but building what comes next. Learn more at Prologis.com.

FORWARD-LOOKING STATEMENTS
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," and "estimates" including variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to rent and occupancy growth, acquisition and development activity, including data center developments and power procurement related thereto, contribution and disposition activity, general conditions in the geographic areas where we operate, expectations regarding new lines of business, our debt, capital structure and financial position, our ability to earn revenues from co-investment ventures, form new co-investment ventures and the availability of capital in existing or new co-investment ventures—are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) international, national, regional and local economic and political climates and conditions; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties, including those specific to data center development and the integration of the operations of significant real estate portfolios; (v) maintenance of Real Estate Investment Trust status, tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (vii) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (viii) risks of doing business internationally, including currency risks; (ix) environmental uncertainties, including risks of natural disasters; and (x) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading "Risk Factors." We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.

dollars in millions, except per share/unit data

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Rental and other revenues

$                       2,183

$                       2,037

$                          4,321

$                           4,036

Strategic capital revenues

242

147

402

288

Total revenues

2,425

2,184

4,723

4,324

Net earnings attributable to common stockholders

1,061

570

2,041

1,161

Core FFO attributable to common stockholders/unitholders*

1,559

1,396

3,000

2,752

AFFO attributable to common stockholders/unitholders*

1,323

1,036

2,795

2,120

Adjusted EBITDA attributable to common stockholders/unitholders*

2,143

1,789

4,321

3,561

Estimated value creation from development stabilizations - Prologis Share

89

64

477

304

Common stock dividends and common limited partnership unit distributions

1,027

966

2,053

1,931

Per common share - diluted:

Net earnings attributable to common stockholders

$                         1.13

$                         0.61

$                            2.18

$                            1.25

Core FFO attributable to common stockholders/unitholders*

1.63

1.46

3.13

2.88

Core FFO attributable to common stockholders/unitholders, excluding Net Promote Income (Expense)*

1.60

1.47

3.12

2.91

Business line reporting:

Real estate* 

1.54

1.40

2.99

2.76

Strategic capital* 

0.09

0.06

0.14

0.12

Core FFO attributable to common stockholders/unitholders*

1.63

1.46

3.13

2.88

Realized development gains, net of taxes*

0.09

0.01

0.39

0.04

Dividends and distributions per common share/unit

1.07

1.01

2.14

2.02

*This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.

in thousands

June 30, 2026

March 31, 2026

December 31, 2025

Assets:

Investments in real estate properties:

Operating properties

$                                           82,117,896

$                                        80,875,731

$                                         80,561,020

Development portfolio

2,741,535

2,492,161

3,019,009

Land

4,802,617

4,684,949

4,888,153

Other real estate investments

7,351,737

7,188,604

6,661,174

97,013,785

95,241,445

95,129,356

Less accumulated depreciation

15,783,188

15,298,353

14,729,149

Net investments in real estate properties

81,230,597

79,943,092

80,400,207

Investments in and advances to unconsolidated entities

11,467,403

11,241,723

11,093,936

Assets held for sale or contribution

498,975

499,799

203,344

Net investments in real estate

93,196,975

91,684,614

91,697,487

Cash and cash equivalents

1,765,043

861,144

1,145,647

Other assets

6,049,854

5,587,693

5,881,122

Total assets

$                                         101,011,872

$                                        98,133,451

$                                         98,724,256

Liabilities and Equity:

Liabilities:

Debt 

$                                           36,442,085

$                                        34,669,592

$                                         35,037,073

Accounts payable, accrued expenses and other liabilities

6,450,272

5,515,367

5,933,175

Total liabilities

42,892,357

40,184,959

40,970,248

Equity:

Stockholders' equity

53,725,722

53,503,401

53,193,178

Noncontrolling interests

3,304,267

3,316,274

3,316,713

Noncontrolling interests - limited partnership unitholders

1,089,526

1,128,817

1,244,117

Total equity

58,119,515

57,948,492

57,754,008

Total liabilities and equity

$                                         101,011,872

$                                        98,133,451

$                                         98,724,256

Three Months Ended

Six Months Ended

June 30,

June 30,

in thousands, except per share amounts

2026

2025

2026

2025

Revenues:

Rental

$                          2,177,074

$                        2,025,332

$                         4,302,158

$                         4,012,597

Strategic capital

241,619

147,162

402,431

288,301

Development management and other

6,759

11,375

18,586

22,636

Total revenues

2,425,452

2,183,869

4,723,175

4,323,534

Expenses:

Rental

530,861

487,963

1,051,144

976,280

Strategic capital

95,590

64,917

177,479

125,694

General and administrative

129,626

106,871

256,516

221,572

Depreciation and amortization

689,518

657,221

1,421,024

1,309,279

Other

20,166

11,706

30,289

21,355

Total expenses

1,465,761

1,328,678

2,936,452

2,654,180

Operating income before gains on real estate transactions, net

$                            959,691

$                           855,191

$                        1,786,723

$                         1,669,354

Gains on dispositions of development properties and land, net

79,196

10,477

372,179

37,928

Gains on other dispositions of investments in real estate, net

212,449

47,044

303,489

83,843

Operating income

$                         1,251,336

$                           912,712

$                        2,462,391

$                         1,791,125

Other income (expense):

Earnings from unconsolidated entities, net

147,470

107,692

240,766

175,591

Interest expense

(276,311)

(251,866)

(530,597)

(483,617)

Foreign currency, derivative and other gains (losses) and other income (expense), net

109,663

(122,829)

154,274

(154,487)

Gains (losses) on early extinguishment of debt, net

(31)

—

(1,921)

—

Total other income (expense)

(19,209)

(267,003)

(137,478)

(462,513)

Earnings before income taxes

1,232,127

645,709

2,324,913

1,328,612

Current income tax benefit (expense)

(89,319)

(27,723)

(137,100)

(64,424)

Deferred income tax benefit (expense)

(18,854)

4,318

(19,044)

(2,364)

Consolidated net earnings

1,123,954

622,304

2,168,769

1,261,824

Net earnings attributable to noncontrolling interests

(39,062)

(37,139)

(79,040)

(68,715)

Net earnings attributable to noncontrolling interests - limited partnership units

(22,701)

(13,936)

(45,562)

(28,927)

Net earnings attributable to controlling interests

1,062,191

571,229

2,044,167

1,164,182

Preferred stock dividends

(1,347)

(1,505)

(2,847)

(2,957)

Net earnings attributable to common stockholders

$                         1,060,844

$                           569,724

$                         2,041,320

$                         1,161,225

Weighted average common shares outstanding - Diluted

957,884

955,882

957,654

955,601

Net earnings per share attributable to common stockholders - Diluted

$                                   1.13

$                                 0.61

$                                  2.18

$                                  1.25

Three Months Ended

Six Months Ended

June 30,

June 30,

in thousands

2026

2025

2026

2025

Net earnings attributable to common stockholders

$                         1,060,844

$                             569,724

$                        2,041,320

$                         1,161,225

Add (deduct) NAREIT defined adjustments:

Real estate related depreciation and amortization

663,658

638,199

1,369,208

1,270,885

Gains on other dispositions of investments in real estate, net of taxes (excluding development properties and land)

(210,975)

(46,964)

(302,015)

(82,771)

Adjustments related to noncontrolling interests

(13,356)

(17,339)

(24,093)

(35,746)

Our proportionate share of adjustments related to unconsolidated entities

132,185

133,734

283,340

284,358

NAREIT defined FFO attributable to common stockholders/unitholders*

$                         1,632,356

$                          1,277,354

$                        3,367,760

$                         2,597,951

Add (deduct) our modified adjustments:

Unrealized foreign currency, derivative and other losses (gains), net

(5,370)

137,817

(19,639)

192,715

Deferred income tax expense (benefit)

18,854

(4,318)

19,044

2,364

Adjustments related to noncontrolling interests

(215)

—

497

—

Our proportionate share of adjustments related to unconsolidated entities

(5,437)

(3,136)

(6,162)

(1,765)

FFO, as modified by Prologis attributable to common stockholders/unitholders*

$                         1,640,188

$                          1,407,717

$                        3,361,500

$                         2,791,265

Add (deduct) Core FFO defined adjustments:

Gains on dispositions of development properties and land, net

(79,196)

(10,477)

(372,179)

(37,928)

Current income tax expense (benefit) on dispositions

6,758

659

8,060

803

Losses (gains) on early extinguishment of debt, net

31

—

1,921

—

Venture formation costs

6,049

—

6,049

—

Adjustments related to noncontrolling interests

—

2,748

271

2,821

Our proportionate share of adjustments related to unconsolidated entities

(14,703)

(4,665)

(6,002)

(4,948)

Core FFO attributable to common stockholders/unitholders*

$                         1,559,127

$                          1,395,982

$                        2,999,620

$                         2,752,013

Add (deduct) AFFO defined adjustments:

Gains on dispositions of development properties and land, net

79,196

10,477

372,179

37,928

Current income tax benefit (expense) on dispositions

(6,758)

(659)

(8,060)

(803)

Straight-lined rents and amortization of lease intangibles

(161,152)

(187,801)

(326,901)

(368,162)

Property improvements

(71,218)

(68,772)

(97,283)

(103,139)

Turnover costs

(133,959)

(152,242)

(257,775)

(275,365)

Amortization of debt discount, financing costs and management contracts, net

21,986

22,209

43,386

43,321

Stock compensation amortization expense

55,148

43,984

115,780

97,145

Adjustments related to noncontrolling interests

20,001

18,594

39,629

32,576

Our proportionate share of adjustments related to unconsolidated entities

(39,404)

(45,863)

(85,715)

(95,682)

AFFO attributable to common stockholders/unitholders*

$                         1,322,967

$                          1,035,909

$                        2,794,860

$                         2,119,832

*This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.

Three Months Ended

Six Months Ended

June 30,

June 30,

in thousands

2026

2025

2026

2025

Net earnings attributable to common stockholders

$                          1,060,844

$                            569,724

$                         2,041,320

$                         1,161,225

Gains on other dispositions of investments in real estate, net (excluding development properties and land)

(212,449)

(47,044)

(303,489)

(83,843)

Depreciation and amortization expense

689,518

657,221

1,421,024

1,309,279

Interest charges

255,798

235,858

493,706

451,508

Current and deferred income tax expense, net

108,173

23,405

156,144

66,788

Net earnings attributable to noncontrolling interests - limited partnership units

22,701

13,936

45,562

28,927

NOI adjustments for real estate transactions

4,926

2,481

14,190

10,310

Preferred stock dividends

1,347

1,505

2,847

2,957

Unrealized foreign currency, derivative and other losses (gains), net

(5,370)

137,817

(19,639)

192,715

Stock compensation amortization expense

55,148

43,984

115,780

97,145

Losses (gains) on early extinguishment of debt, net

31

—

1,921

—

Venture formation costs

6,049

—

6,049

—

Adjustments related to noncontrolling interests

(36,884)

(31,819)

(70,428)

(65,669)

Our proportionate share of adjustments related to unconsolidated entities

192,790

182,264

415,669

389,426

Adjusted EBITDA attributable to common stockholders/unitholders*

$                          2,142,622

$                         1,789,332

$                         4,320,656

$                         3,560,768

*This is a non-GAAP financial measure. Please see our Notes and Definitions for further explanation.

Adjusted EBITDA. We use Adjusted EBITDA attributable to common stockholders/unitholders ("Adjusted EBITDA"), a non-GAAP financial measure, as a measure of our operating performance. The most directly comparable GAAP measure is net earnings.

We believe Adjusted EBITDA provides relevant and useful information by offering insight into our operating performance before the effects of financing decisions, income taxes, and certain non-cash or non-recurring charges.

We calculate Adjusted EBITDA by beginning with consolidated net earnings attributable to common stockholders and removing the effect of:

gains or losses from the disposition of investments in real estate (excluding development properties and land); depreciation and amortization expense; impairment charges; interest charges; current and deferred income taxes; preferred stock dividends; unrealized gains or losses on foreign currency and derivatives; stock compensation amortization expense; gains from the revaluation of equity investments upon acquisition of a controlling interest; gains or losses on early extinguishment of debt and derivative contracts (including cash charges); and third-party costs associated with the successful formation of new ventures. We also include an adjustment to reflect a full period of NOI on the operating properties we acquire or stabilize during the quarter and to remove NOI on properties we dispose of during the quarter, assuming all transactions occurred at the beginning of the quarter. For properties we contribute, we make an adjustment to reflect NOI at the new ownership percentage for the full quarter.

We calculate Adjusted EBITDA based on our proportionate ownership share of both our unconsolidated entities and consolidated ventures. We reflect our share of Adjusted EBITDA measures for unconsolidated entities by applying our average ownership percentage for the period to the applicable adjusting items on an entity-by-entity basis. We reflect our share for consolidated ventures in which we do not own 100% of the equity by removing the noncontrolling interests share of the applicable adjustments based on our average ownership percentage for the applicable periods.

While we believe Adjusted EBITDA is an important supplemental measure, it should not be used alone as it excludes significant components of net earnings computed under GAAP and is therefore limited as an analytical tool. We do not use Adjusted EBITDA as an alternative measure to net earnings computed under GAAP or as an alternative to cash from operating activities computed under GAAP or as an indicator of our ability to fund our cash needs. Our computation of Adjusted EBITDA may not be comparable to EBITDA reported by other companies in both the real estate industry and other industries. We compensate for the limitations of Adjusted EBITDA by providing investors with financial statements prepared according to GAAP, along with this detailed discussion of Adjusted EBITDA and a reconciliation to Adjusted EBITDA from consolidated net earnings attributable to common stockholders.

Business Line Reporting is a non-GAAP financial measure. Core FFO and development gains are generated by our three lines of business: (i) real estate operations; (ii) strategic capital; and (iii) development. The real estate operations line of business represents total Prologis Core FFO, less the amount allocated to the strategic capital line of business. The amount of Core FFO allocated to the strategic capital line of business represents the third-party share of asset management fees and transactional fees that we earn from our consolidated and unconsolidated co-investment ventures less costs directly associated with our strategic capital group and Net Promote Income (Expense). Realized development gains include our share of gains on dispositions of development properties and land, net of taxes. To calculate the per share amount, the amount generated by each line of business is divided by the weighted average diluted common shares outstanding used in our Core FFO per share calculation. Management believes evaluating our results by line of business is a useful supplemental measure of our operating performance because it helps the investing public compare the operating performance of Prologis' respective businesses to other companies' comparable businesses. Prologis' computation of FFO by line of business may not be comparable to that reported by other real estate companies as they may use different methodologies in computing such measures.

Calculation of Per Share Amounts

Three Months Ended

Six Months Ended

Jun. 30,

Jun. 30,

in thousands, except per share amount

2026

2025

2026

2025

Net earnings

Net earnings attributable to common stockholders

$     1,060,844

$        569,724

$      2,041,320

$      1,161,225

Noncontrolling interest attributable to exchangeable limited partnership units

22,831

13,936

45,858

28,927

Adjusted net earnings attributable to common stockholders - Diluted

$     1,083,675

$       583,660

$      2,087,178

$      1,190,152

Weighted average common shares outstanding - Basic

933,092

928,476

932,175

927,909

Incremental weighted average effect on exchange of limited partnership units      

20,160

22,731

21,061

23,115

Incremental weighted average effect of equity awards

4,632

4,675

4,418

4,577

Weighted average common shares outstanding - Diluted

957,884

955,882

957,654

955,601

Net earnings per share - Basic

$          1.14

$           0.61

$           2.19

$           1.25

Net earnings per share - Diluted

$          1.13

$           0.61

$           2.18

$           1.25

Three Months Ended

Six Months Ended

Jun. 30,

Jun. 30,

in thousands, except per share amount

2026

2025

2026

2025

Core FFO

Core FFO attributable to common stockholders/unitholders

$      1,559,127

$      1,395,982

$      2,999,620

$      2,752,013

Noncontrolling interest attributable to exchangeable limited partnership units

221

258

453

552

Core FFO attributable to common stockholders/ unitholders - Diluted

$     1,559,348

$      1,396,240

$      3,000,073

$      2,752,565

Less: Net Promote Income (Expense)

26,229

(13,437)

13,847

(24,330)

Core FFO attributable to common stockholders/ unitholders, excluding Net
Promote Income (Expense) - Diluted

$     1,533,119

$      1,409,677

$      2,986,226

$      2,776,895

Weighted average common shares outstanding - Basic

933,092

928,476

932,175

927,909

Incremental weighted average effect on exchange of limited partnership units

20,160

22,990

21,061

23,383

Incremental weighted average effect of equity awards

4,632

4,675

4,418

4,577

Weighted average common shares outstanding - Diluted

957,884

956,141

957,654

955,869

Core FFO per share - Diluted

$          1.63

$           1.46

$           3.13

$           2.88

Core FFO per share, excluding Net Promote Income (Expense) - Diluted            

$          1.60

$           1.47

$           3.12

$           2.91

Development Portfolio includes industrial and non-industrial properties, data centers, yards and parking lots that are under development and properties that are developed but have not met Stabilization. At June 30, 2026, total TEI for yards, parking lots, data centers and non-industrial assets was $2.9 billion on an Owned and Managed and $2.8 billion on a Prologis Share basis. We do not disclose square footage for yards and parking lots.

Estimated Value Creation represents the value that we expect to create through our development and leasing activities. We calculate Estimated Value Creation by estimating the Stabilized NOI that the property will generate and applying a stabilized capitalization rate applicable to that property. Estimated Value Creation is calculated as the amount by which the value exceeds our TEI, including closing costs and taxes, if any, and does not include any fees or promotes we may earn. 

Estimated Weighted Average Margin is calculated on development properties as Estimated Value Creation, less estimated closing costs and taxes, if any, on properties expected to be sold or contributed, divided by TEI.

Estimated Weighted Average Stabilized Yield is calculated on the properties in the Development Portfolio as Stabilized NOI divided by TEI. The yields on a Prologis Share basis were as follows:

          Pre-Stabilized 
Developments

          2026 Expected Completion

          2027 and Thereafter Expected
Completion

          Total Development Portfolio

U.S.

5.7 %

6.6 %

8.2 %

7.6 %

Other Americas

— %

7.6 %

7.5 %

7.6 %

Europe

5.3 %

5.3 %

5.9 %

5.4 %

Asia

5.7 %

6.2 %

4.9 %

5.2 %

Total

5.6 %

6.1 %

7.7 %

7.0 %

FFO, as modified by Prologis attributable to common stockholders/unitholders ("FFO, as modified by Prologis"); Core FFO attributable to common stockholders/unitholders ("Core FFO"); AFFO attributable to common stockholders/unitholders ("AFFO"); (collectively referred to as "FFO"). FFO is a non-GAAP financial measure that is commonly used in the real estate industry, with net earnings as the most directly comparable GAAP measure.

The National Association of Real Estate Investment Trusts ("NAREIT") defines FFO as earnings computed under GAAP to exclude depreciation and gains and losses from sales net of any related tax, along with impairment charges, of previously depreciated properties. We exclude the gains on revaluation of equity investments upon acquisition of a controlling interest and the gain recognized from a partial sale of our investment, as these are similar to gains from the sales of previously depreciated properties. This measure excludes similar adjustments from our unconsolidated entities and the third parties' share of our consolidated ventures.

Our FFO Measures

Our FFO measures begin with NARElT's definition, with certain adjustments to calculate FFO, as modified by Prologis, and Core FFO, both as defined below, to reflect our business and execution of our management strategy. While these adjustments are subject to significant fluctuations from period to period, with both positive and negative short-term impacts, the removal of the effects of these items enhances our understanding of the core operating performance of our properties over the long term.

We use FFO, as modified by Prologis, so that management, analysts and investors are able to evaluate our performance against other REITs that do not have similar operations or operations in jurisdictions outside the U.S. We use both Core FFO and AFFO to (i) assess our operating performance as compared to other real estate companies; (ii) evaluate our performance and the performance of our properties in comparison with expected results and results of previous periods; (iii) evaluate the performance of our management; (iv) budget and forecast future results to assist in the allocation of resources; (v) provide guidance to the financial markets to understand our expected operating performance; and (vi)  evaluate how a specific potential investment will impact our future results.

We calculate our FFO measures based on our proportionate ownership share of both our unconsolidated entities and consolidated ventures. We reflect our share of our FFO measures for unconsolidated entities by applying our average ownership percentage for the period to the applicable adjustments on an entity-by-entity basis. We reflect our share for consolidated ventures in which we do not own 100% of the equity by removing the noncontrolling interests share of the applicable adjustments based on our average ownership percentage for the applicable periods.

FFO, as modified by Prologis

To arrive at FFO, as modified by Prologis, we adjust the NAREIT defined FFO measure to exclude:

deferred income tax benefits and deferred income tax expenses recognized by our subsidiaries; current income tax expense related to acquired tax liabilities that were recorded as deferred tax liabilities in an acquisition, to the extent the expense is offset with a deferred income tax benefit  in earnings that is excluded from our defined FFO measure; and foreign currency exchange gains and losses resulting from (a) debt transactions between us and our foreign entities; (b) third-party debt that is used to hedge our investment in foreign entities; (c) derivative financial instruments related to any such debt transactions; and (d) mark-to-market adjustments associated with derivative and other financial instruments. Core FFO

To arrive at Core FFO, we adjust FFO, as modified by Prologis, to exclude the following:

gains or losses from the disposition of land and development properties that were developed with the intent to contribute or sell; income tax expense related to the sale of investments in real estate; impairment charges recognized related to our investments in real estate generally as a result of our change in intent to contribute or sell these properties; gains or losses from the early extinguishment of debt and redemption and repurchase of preferred stock; and third-party costs associated with the successful formation of new ventures. AFFO

To arrive at AFFO, we adjust Core FFO to include realized gains from the disposition of land and development properties, net of current tax expense, turnover costs and property improvements and exclude the following items that we recognize directly in Core FFO:

straight-line rents; amortization of above- and below-market lease intangibles; amortization of management contracts; amortization of debt premiums and discounts and financing costs, net of amounts capitalized; and stock compensation amortization expense. Limitations on the use of our FFO measures

While we believe our modified FFO measures are important supplemental measures, neither NAREIT's measures or our measures of FFO should be used alone because they exclude significant components of net earnings computed under GAAP and are, therefore, limited as an analytical tool. Some of these limitations arise from excluding income tax expense that may be payable or depreciation and amortization expenses that reflect costs necessary to maintain operating performance. In addition, our FFO measure does not reflect changes in asset values resulting from fluctuations in market conditions or foreign currency exchange rates nor costs or benefits from settlement of deferred income taxes or the extinguishment of debt. We do not use NAREIT's measures or our measures of FFO as alternatives to net earnings computed under GAAP or as alternatives to cash from operating activities computed under GAAP or as indicators of our ability to fund our cash needs.

We compensate for the limitations by using our FFO measures only in conjunction with net earnings computed under GAAP when making our decisions. This information should be read with our complete Consolidated Financial Statements prepared under GAAP. To assist investors in compensating for these limitations, we reconcile our modified FFO measures from consolidated net earnings attributable to common stockholders.

Guidance. The following is a reconciliation of our annual guided Net Earnings per share to our guided Core FFO per share:

Low

High

Net earnings attributable to common stockholders (a)

$ 4.40

$  4.55

Our share of:

Depreciation and amortization

3.26

3.29

Net gains on real estate transactions, net of taxes

(1.45)

(1.55)

Unrealized foreign currency losses (gains), losses (gains) on early

   extinguishment of debt and other, net

0.01

0.01

Core FFO attributable to common stockholders/unitholders

$ 6.22

$  6.30

Less: Net Promote Income (Expense)

—

—

Core FFO attributable to common stockholders/unitholders, excluding Net Promote      
Income (Expense)

$ 6.22

$  6.30

‌     

(a)

Earnings guidance includes potential future gains recognized from real estate transactions, but excludes future foreign currency or derivative gains or
losses as these items are difficult to predict.

Market Capitalization equals Market Equity, less liquidation preference of the preferred shares/units, plus our share of total debt.

Net Promote Income (Expense) is promote revenue earned from third-party investors during the period, net of related cash and stock compensation expenses, and taxes and foreign currency derivative gains and losses, if applicable.

Operating Portfolio represents industrial properties in our Owned and Managed portfolio that have reached Stabilization. Assets held for sale, Non-Strategic Assets and non-industrial assets are excluded from the portfolio. NOI of our Operating Portfolio excludes net termination fees and adjustments. Prologis Share of NOI includes NOI for the properties contributed to or acquired from co-investment ventures at our actual share prior to and subsequent to change in ownership. The U.S. markets not presented consist of Austin, Charlotte, Columbus, Denver, Louisville, Portland, Raleigh-Durham, Reno, San Antonio, Savannah and Tampa. The European countries not presented consist of Belgium, Czech Republic, Hungary, Italy, Poland, Slovakia, Spain and Sweden.

Owned and Managed represents the consolidated properties as well as properties owned by our unconsolidated co-investment ventures, which we manage.

Prologis Share represents our proportionate economic ownership of each entity, or property included in our total Owned and Managed portfolio, whether consolidated or unconsolidated.

Rent Change (Cash) represents the percentage change in starting rental rates per the lease agreement, on new and renewed leases, commenced during the period compared with the previous ending rental rates in that same space. This measure excludes any short-term leases of less than one-year, holdover payments, free rent periods and introductory (teaser rates) defined as 50% or less of the stabilized rate.

Rent Change (Net Effective) represents the percentage change in net effective rental rates (average rate over the lease term), on new and renewed leases, commenced during the period compared with the previous net effective rental rates for the same respective spaces. This measure excludes any short-term leases of less than one year and holdover payments.

Retention is the square footage of all leases commenced during the period that are rented by existing tenants divided by the square footage of all expiring leases during the reporting period. The square footage of tenants that default or buy-out prior to expiration of their lease and short-term leases of less than one year, are not included in the calculation.

Same Store. Our same store metrics are non-GAAP financial measures, which are commonly used in the real estate industry and expected from the financial community, on both a net effective and cash basis. We evaluate the performance of the operating properties we own and manage using a "same store" analysis because the population of properties in this analysis is consistent from period to period, which allows us and investors to analyze our ongoing business operations. We determine our same store metrics on property NOI, which is calculated as rental revenue less rental expense for the applicable properties in the same store population for both consolidated and unconsolidated properties based on our ownership interest, as further defined below.

We define our same store population for the three months ended June 30, 2026 as the properties in our Owned and Managed Operating Portfolio, including the property NOI for both consolidated properties and properties owned by the unconsolidated co-investment ventures at January 1, 2025 and owned throughout the same three-month period in both 2025 and 2026.

We believe the drivers of property NOI for the consolidated portfolio are generally the same for the properties owned by the ventures in which we invest and therefore we evaluate the same store metrics of the Owned and Managed portfolio based on Prologis' ownership in the properties ("Prologis Share").

The same store population excludes properties held for sale to third parties, along with development properties that were not stabilized at the beginning of the period (January 1, 2025) and properties acquired or disposed of to third parties during the periods. To derive an appropriate measure of period- to-period operating performance, we remove the effects of foreign currency exchange rate movements by using the reported period-end exchange rate to translate from local currency into the U.S dollar, for both periods.

As non-GAAP financial measures, the same store metrics have certain limitations as an analytical tool and may vary among real estate companies. As a result, we provide a reconciliation of Rental Revenues less Rental Expenses ("Property NOI") (from our Consolidated Financial Statements prepared in accordance with U.S GAAP) to our Same Store Property NOI measures, as follows:

Three Months Ended

Jun. 30,

dollars in thousands

2026

2025

Change (%)

Reconciliation of Consolidated Property NOI to Same Store Property NOI measures:     

Rental revenues

$   2,177,074

$   2,025,332

Rental expenses

(530,861)

(487,963)

Consolidated Property NOI

$  1,646,213

$  1,537,369

Adjustments to derive same store results:

Property NOI from consolidated properties not included in same
     store portfolio and other adjustments (a)

(179,260)

(158,079)

Property NOI from unconsolidated co-investment ventures
     included in same store portfolio (a)(b)

1,000,076

939,990

Third parties' share of Property NOI from properties included in
     same store portfolio (a)(b)

(777,776)

(731,166)

Prologis Share of Same Store Property NOI - Net Effective (b)

$  1,689,253

$  1,588,114

6.4 %

Consolidated properties straight-line rent and fair value lease
     amortization included in the same store portfolio (c)

(128,107)

(144,879)

Unconsolidated co-investment ventures straight-line rent and fair
     value lease amortization included in the same store portfolio (c)

(34,940)

(37,338)

Third parties' share of straight-line rent and fair value lease
      amortization included in the same store portfolio (b)(c)

29,086

28,117

Prologis Share of Same Store Property NOI - Cash (b)(c)

$  1,555,292

$  1,434,014

8.5 %

‌     

(a)

We exclude properties held for sale to third parties, along with development properties that were not stabilized at the beginning of the periods and properties acquired or disposed of to third parties during the periods. We also exclude one-time items due to early lease terminations, including termination fees received from customers and the write-off of related lease assets and liabilities, that are not indicative of the property's recurring operating performance in order to evaluate the growth or decline in each property's rental revenues. Same Store Property NOI is adjusted to include an allocation of property management expenses for our consolidated properties based on the property management services provided to each property (generally, based on a percentage of revenues). On consolidation, these amounts are eliminated and the actual costs of providing property management and leasing services are recognized as part of our consolidated rental expense.

(b)

We include the Property NOI for the same store portfolio for both consolidated properties and properties owned by the co-investment ventures based on our investment in the underlying properties. In order to calculate our share of Same Store Property NOI from the co-investment ventures in which we own less than 100%, we use the co-investment ventures' underlying Property NOI for the same store portfolio and apply our ownership percentage at June 30, 2026 to the Property NOI for both periods, including the properties contributed during the periods. We adjust the total Property NOI from the same store portfolio of the co-investment ventures by subtracting the third parties' share of both consolidated and unconsolidated co-investment ventures. During the periods presented, certain wholly owned properties were contributed to a co-investment venture and are included in the same store portfolio. Neither our consolidated results nor those of the co-investment ventures, when viewed individually, would be comparable on a same store basis because of the changes in composition of the respective portfolios from period to period (e.g. the results of a contributed property are included in our consolidated results through the contribution date and in the results of the venture subsequent to the contribution date based on our ownership interest at the end of the period). As a result, only line items labeled "Prologis Share of Same Store Property NOI" are comparable period over period.

(c)

We further remove certain noncash items (straight-line rent and fair value lease amortization) included in the financial statements prepared in accordance with U.S. GAAP to reflect a Same Store Property NOI - Cash measure.
We manage our business and compensate our executives based on the same store results of our Owned and Managed portfolio at 100% as we manage our portfolio on an ownership blind basis. We calculate those results by including 100% of the properties included in our same store portfolio.

Stabilization is defined as the earlier of when a property that was developed has been completed for one year, is contributed to a co-investment venture following completion or is 90% occupied. Upon Stabilization, a property is moved into our Operating Portfolio.

Total Expected Investment ("TEI") represents total estimated cost of development or expansion, including land, development and leasing costs. TEI is based on current projections and is subject to change.

Weighted Average Interest Rate is based on the effective rate, which includes the amortization of related premiums and discounts and finance costs.

Weighted Average Stabilized Capitalization ("Cap") Rate is calculated as Stabilized NOI divided by the Acquisition Price.

SOURCE Prologis, Inc.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

THIS IS AN ANNOUNCEMENT FALLING UNDER RULE 2.4 OF THE CITY CODE ON TAKEOVERS AND MERGERS (THE "CODE") AND DOES NOT CONSTITUTE A FIRM INTENTION TO MAKE AN OFFER UNDER RULE 2.7 OF THE CODE. THERE CAN BE NO CERTAINTY THAT ANY FIRM OFFER WILL BE MADE.

, /PRNewswire/ -- Prologis, Inc. ("Prologis") announces that on 16 June 2026 it sent a letter to the Board of SEGRO plc ("SEGRO") setting out the terms of an indicative all-share proposal, pursuant to which Prologis would acquire the entire issued and to be issued share capital of SEGRO (the "Combination").

On 23 June 2026, the Board of SEGRO unequivocally rejected the Combination proposal.

Under the terms of the Combination, SEGRO shareholders would receive for each SEGRO share:

0.084 new Prologis shares (the "Exchange Ratio")

Based on the Prologis share price of $145.3 and a GBP:USD exchange rate of 1.32 in each case at market close on 23 June 2026, being the last trading day prior to this announcement, the Combination implies a value of 925 pence for each SEGRO share and values SEGRO's entire issued and to be issued ordinary share capital at approximately £12.6 billion, representing:

a premium of 24.6 per cent to SEGRO's share price of 742 pence on 23 June 2026 (being the last trading day prior to this announcement); a premium of 26.7 per cent to the 1-month volume weighted average SEGRO share price of 730 pence as of 23 June 2026 (being the last trading day prior to this announcement); a premium of 31.4 per cent to the 3-month volume weighted average SEGRO share price of 704 pence as of 23 June 2026 (being the last trading day prior to this announcement); and a price equal to SEGRO's last reported EPRA NTA* per share of 925 pence as of 31 December 2025 Following completion of the Combination, SEGRO shareholders would hold approximately 10.5 per cent of Prologis' issued share capital.

Prologis believes that the Combination is a highly compelling opportunity for SEGRO shareholders. SEGRO shareholders would receive shares in the world's largest logistics REIT with a $140.9 billion market capitalisation, unlocking, on closing, significant upside to the current share price.

Furthermore, the Combination provides SEGRO shareholders with participation in a global platform with a track record of outperformance across key metrics and the successful integration of major corporate transactions with the delivery of synergies. Prologis believes these factors will provide SEGRO shareholders with accelerated growth compared to the growth available to them in a standalone SEGRO.

Prologis believes that its global platform, balance sheet strength and diversified capital base can unlock the significant embedded value of SEGRO's development and data center pipeline.

Prologis also believes the Combination would deliver significant benefits to its customers, employees and Prologis shareholders.

Clear Strategic Rationale and Value Creation

Prologis believes that the Combination has clear strategic rationale and provides SEGRO shareholders with a compelling value proposition:

Opportunity to Join Forces with the Global Leader in Logistics Real Estate  Combination with Prologis will provide SEGRO shareholders with diversification into global growth markets SEGRO and Prologis' European portfolios are highly complementary with an expected clear line of sight to scale benefits Resolves Structural Constraints Limiting SEGRO's Growth Potential SEGRO has traded at a persistent discount to its EPRA NTA per share with an average discount to EPRA NTA* of 19 per cent and 17 per cent over the last two years and three years, respectively Prologis has superior balance sheet strength with Net Debt / Enterprise Value of 22 per cent versus 37 per cent for SEGRO and Net Debt / Adjusted EBITDA of 4.8x versus 8.4x for SEGRO Prologis' access to public equity, debt and private capital will enable Prologis to unlock embedded opportunities for investment for which Prologis believes SEGRO is unable to unlock standalone due to structural constraints, including its balance sheet capacity and trading discount Accelerates Monetisation of SEGRO's Development, Power and Data Center Opportunities Prologis anticipates that its platform, balance sheet strength and significant access to capital can unlock the significant embedded value of SEGRO's development and data center pipeline in a way that SEGRO will not be able to do on a standalone basis Prologis has the scale, capital, and execution capabilities to fund and deliver SEGRO's pipeline Value Realisation at a Premium and Enhanced Growth for SEGRO Shareholders Significant share price premium while retaining an interest in a stronger combined entity Prologis has outperformed SEGRO on total shareholder return over both 3 and 5 years (37 per cent and 39 per cent, respectively) leading its peer group average and significantly exceeding SEGRO's total shareholder return (3 year: 19 per cent; 5 years: negative 20 per cent.) Prologis' Proven Stewardship of Shareholder Capital and Strong M&A Integration Track Record Prologis' history of achieving cost and revenue synergies underscores the strength of the platform and successful integration Consistent with this track record, shareholders of the enlarged group can anticipate significant synergies from the Combination Prologis urges SEGRO shareholders to encourage the SEGRO Board to engage with Prologis to allow a binding offer to be put to SEGRO shareholders for their consideration.

There can be no certainty that an offer for SEGRO will be made. A further announcement will be made as appropriate.

Important Code Notes

In accordance with Rule 2.6(a) of the Code, Prologis is required, by not later than 5:00 pm (London time) on 22 July 2026, to either announce a firm intention to make an offer for SEGRO in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer for SEGRO, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline may only be extended with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Code.

In accordance with Rule 2.5(a) of the Code, Prologis reserves the right to vary the form and/or mix of consideration as set out in this announcement and/or introduce other forms of consideration. Prologis reserves the right to make an offer for SEGRO at a lower value and/or on less favourable terms than those described in this announcement: (a) with the agreement or recommendation of the Board of SEGRO; (b) if a third party announces a possible or a firm intention to make an offer for SEGRO which, at that date, is of a value less than the value implied by the Combination; or (c) following the announcement by SEGRO of a Rule 9 waiver transaction pursuant to Appendix 1 of the Code or a reverse takeover (as defined in the Code). If after the date of this announcement SEGRO declares, makes or pays any dividend or distribution or other return of capital to its shareholders, Prologis reserves the right to make an equivalent reduction to terms of the Combination or an equalisation dividend to a common date.

*EPRA NTA is not calculated from a valuation of SEGRO's assets under Rule 29 of the Takeover Code. It is sourced from SEGRO's 31 December 2025 audited financial statements. At the relevant point, a valuation of SEGRO's assets will be published by SEGRO in accordance with Rule 29 of the Takeover Code.

Linklaters LLP is retained as legal adviser to Prologis.

Further information

N.M. Rothschild & Sons Limited ("Rothschild & Co"), which is authorised and regulated by the Financial Conduct Authority (the "FCA") in the United Kingdom and J.P. Morgan Securities LLC, together with its affiliate J.P. Morgan Securities plc (which conducts its UK investment banking business as J.P. Morgan Cazenove and which is authorised in the United Kingdom by the Prudential Regulation Authority ("PRA") and regulated in the United Kingdom by the PRA and the FCA) (together "J.P. Morgan"), and Eastdil Secured International Limited ("Eastdil Secured" or "ESI") which is authorised and regulated by the Financial Conduct Authority (the "FCA") in the United Kingdom are acting exclusively for Prologis and for no one else in connection with the subject matter of this announcement and will not be responsible to anyone other than Prologis for providing the protections afforded to their clients or for providing advice in connection with the subject matter of this announcement. This announcement is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote in any jurisdiction.

The release, publication or distribution of this announcement in jurisdictions outside the United Kingdom may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about, and observe such restrictions. Any failure to comply with such restrictions may constitute a violation of the securities law of any such jurisdiction.

Disclosure requirements of the Code

Under Rule 8.3(a) of the Code, any person who is interested in 1% or more of any class of relevant securities of an offeree company or of any securities exchange offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any securities exchange offeror is first identified. An Opening Position Disclosure must contain details of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 pm (London time) on the 10th business day following the commencement of the offer period and, if appropriate, by no later than 3.30 pm (London time) on the 10th business day following the announcement in which any securities exchange offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a securities exchange offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Code, any person who is, or becomes, interested in 1% or more of any class of relevant securities of the offeree company or of any securities exchange offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any securities exchange offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s), save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 pm (London time) on the business day following the date of the relevant dealing.

If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of an offeree company or a securities exchange offeror, they will be deemed to be a single person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4).

Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Panel's website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. You should contact the Panel's Market Surveillance Unit on +44 (0)20 7638 0129 if you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure.

Rule 2.4 information

In accordance with Rule 2.4(c)(iii) of the Code, Prologis confirms that it is not aware of any dealings in SEGRO shares that would require it to offer a minimum level, or a particular form, of consideration under Rule 6 or Rule 11 of the Code. However, it has not been practicable for Prologis to make enquiries of all persons acting in concert with it prior to the date of this announcement in order to confirm whether any details are required to be disclosed under Rule 2.4(c)(iii) of the Code. To the extent that any such details are identified following such enquiries, Prologis will make an announcement disclosing such details as soon as practicable, and in any event by no later than the time it is required to make its Opening Position Disclosure under Rule 8.1 of the Code.

Rule 2.9 information

In accordance with Rule 2.9 of the Code, Prologis confirms that, as of the date of this announcement, it has issued and outstanding 932,983,938 shares of common stock at par value of $0.01 per share. Prologis does not hold any of its common stock in treasury. The International Securities Identification Number (ISIN) of the shares of common stock is US74340W1036. The Legal Entity Identifier (LEI) for Prologis is 529900DFH19P073LZ636.

Publication on Website

In accordance with Rule 26.1 of the Code, a copy of this announcement will be available subject to certain restrictions relating to persons resident in restricted jurisdictions on Prologis' website at https://ir.prologis.com/ promptly and in any event by no later than 12 noon (London time) on 25 June 2026. The content of this website is not incorporated into and does not form part of this announcement.

Forward-Looking Statements

The statements in this announcement that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which Prologis and SEGRO operate as well as management's beliefs and assumptions. Such statements involve uncertainties that could significantly impact Prologis' or SEGRO's financial results. Words such as "expects," "anticipates," "intends," "believes," "would", "could", "should" and "estimates," including variations of such words and similar expressions, are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that Prologis expects or anticipates will occur in the future – including statements relating to any possible transaction between Prologis and SEGRO , rent and occupancy growth, acquisition and development activity, including data center developments and power procurement related thereto, contribution and disposition activity, general conditions in the geographic areas where Prologis and SEGRO operate, expectations regarding new lines of business, Prologis' and SEGRO's debt, capital structure and financial position, Prologis' ability to earn revenues from co-investment ventures or form new co-investment ventures and the availability of capital in existing or new co-investment ventures – are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although Prologis believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, Prologis can give no assurance that its expectations will be attained, and therefore actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) the ultimate outcome of any possible transaction between Prologis and SEGRO, including the possibility that SEGRO will reject any proposed transaction with Prologis; (ii) uncertainties as to whether SEGRO will cooperate with Prologis regarding any proposed transaction; (iii) the effect of the announcement of any proposed transaction on the ability of Prologis and SEGRO to operate their respective businesses and retain and hire key personnel and to maintain favourable business relationships; (iv) the timing of any proposed transaction; (v) the ability to satisfy closing conditions to the completion of any proposed transaction (including shareholder approvals); (vi) other risks related to the completion of any proposed transaction and actions related thereto; (vii) international, national, regional and local economic and political climates and conditions; (viii) changes in global financial markets, interest rates and foreign currency exchange rates; (ix) increased or unanticipated competition for Prologis' or SEGRO's properties; (x) risks associated with acquisitions, dispositions and development of properties, including the integration of the operations of significant real estate portfolios; (xi) maintenance of Real Estate Investment Trust ("REIT") status, tax structuring and changes in income tax laws and rates; (xii) availability of financing and capital, the levels of debt that Prologis and SEGRO maintain and their credit ratings; (xiii) risks related to Prologis' investments in and management of its co-investment ventures, including ability to establish new co-investment ventures; (xiv) risks of doing business internationally, including currency risks; (xv) environmental uncertainties, including risks of natural disasters; (xvi) risks related to global pandemics; and (xvii) those additional factors discussed under Part I, Item 1A. Risk Factors in Prologis' Annual Report on Form 10-K for the year ended December 31, 2025. Prologis undertakes no duty to update any forward-looking statements appearing in this announcement except as may be required by law.

Non-GAAP Measures

This announcement includes certain terms and non-GAAP financial measures that are not specifically defined herein. These terms and financial measures for Prologis are defined and, in the case of the non-GAAP financial measures, reconciled to the most directly comparable GAAP measures, in Prologis' quarterly Earnings Release and Supplemental Information that is available on Prologis' investor relations website at www.ir.prologis.com and on the SEC's website at www.sec.gov.

Sources of information and bases of calculation

Share price and volume weighted average share price data is derived from FactSet GBP:USD exchange rate of 1.3196 is derived from Chatham Financial as of 23 June 2026 The value attributed to SEGRO's issued share capital (and therefore the value of the Combination) is based upon fully diluted share capital of 1,361,127,593 SEGRO ordinary shares of 10 pence each, comprising: 1,353,927,858 ordinary shares in issue as of 29 May 2026 as announced by SEGRO pursuant to the FCA's Disclosure Guidance and Transparency Rules (with no shares held in treasury); and 7,199,735 shares relating to SEGRO's share schemes, derived from SEGRO's public filings. This figure is net of shares held by the SEGRO Employee Benefit Trust Prologis' issued share capital is based upon fully diluted share capital of 970,140,938 shares at par value of $0.01 per share, comprising: 932,983,938 shares of common stock at par value of $0.01 per share; and 37,157,000 shares relating to Prologis' share schemes, derived from Prologis' public filings. Discount to EPRA NTA is calculated as the see-through value of the offer at the Exchange Ratio divided by the SEGRO last reported EPRA NTA at 31 December 2025 of 925 pence per share Prologis' market capitalisation is calculated based on the share price at market close on 23 June 2026 of $145.3 multiplied by Prologis' fully diluted share count of 970,140,938 shares SEGRO's shareholding in the enlarged group is calculated as (i) newly issued Prologis shares of 114,334,718 (calculated as 1,361,127,593 SEGRO shares multiplied by the Exchange Ratio); divided by (ii) the enlarged group issued share capital of 1,084,475,656 (equal to the existing Prologis fully diluted issued share capital of 970,140,938 plus the newly issued shares of 114,334,718) Enterprise value used for Net Debt / Enterprise Value sourced from FactSet at market close on 23 June 2026 Total shareholder return equals the change in share price plus dividends received over the relevant time period. This data is as of 23 June 2026. Information sourced from FactSet SEGRO EPRA NTA sourced from SEGRO's 2025 Annual Report and Accounts, with prior years' EPRA NTA sourced from its 2024 and 2023 Annual Report and Accounts and its 2024 and 2023 interim results SEGRO Net Debt and Net Debt / Adjusted EBITDA sourced from 2025 annual results announcement released on 20 February 2026 Prologis financial information extracted from Prologis' 2026 Q1 Earnings Release published on 16 April 2026 Prologis Net Debt and Net Debt / Adjusted EBITDA sourced from Prologis' 2026 Q1 Earnings Release published on 16 April 2026 SOURCE Prologis, Inc.