Second quarter results show momentum building across the business

Raises 2026 guidance for the second time; leasing hits record

SAN FRANCISCO, July 16, 2026 /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.

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SOURCE Prologis, Inc.