Prologis Q3 net income beats estimates, EPS rises

Overview

• Global logistics real estate provider's Q3 net income beat analyst expectations

• Q3 net earnings per diluted share rose to $0.86 from $0.82 yr/yr

Outlook

• Prologis lowers 2026 net earnings guidance to $4.05-$4.15 per share from $4.40-$4.55

• Prologis expects 2026 average occupancy of 95.25%-95.50% and cash same store NOI growth of 7.00%-7.50%

Result Drivers

• CUSTOMER DEMAND - Co said healthy demand was supported by e-commerce, advanced manufacturing and data center supply chain build-out

• LEASING ACTIVITY - Co signed 60 mln square feet of leases and announced nearly $2.3 bln of transactions in the qtr

• RENT GROWTH - Co reported cash same store NOI growth of 5.9% and net effective rent change of 38% in the qtr

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy"

• Wall Street's median 12-month price target for Prologis, Inc. is $159.50, about 22.3% above its October 14 closing price of $130.46

• The stock recently traded at 42 times the next 12-month earnings vs. a P/E of 40 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)