A logistics real estate company that owns, develops, and manages warehouses and distribution centers across dozens of countries, renting them to thousands of businesses including Amazon, Home Depot, and FedEx. It traces its roots to a 1983 San Francisco startup and to a firm born as Security Capital Industrial Trust, which renamed itself ProLogis in 1998—and the two rivals merged in 2011 to form today's Prologis. Its name nods to a "prologue," an apt metaphor for the start of a supply chain journey.
Q2 2026 net income rose 65.6% to $982.0M on gains and promote revenue
returned this quarter after fading through 2024 and 2025. rose 7.4% to $2,297.7M and rose 66.7% to $1.05 as $83M in promotes and $675M in real estate gains lifted results against a year-ago quarter with no such items. The business is back to producing one-off gains alongside steady rent growth, with $7.6B in hand.
Key takeaways
Strategic Capital increased to $225M from $162M in the prior half, boosted by $83M in primarily from an Other Americas venture, a one-off item rather than recurring fees.
Net gains on real estate transactions rose to $675M from $122M, mainly from contributions of properties to U.S. and European , a non-recurring item.
Real Estate rose $201M to $3.2B in H1 2026, driven by rent increases on lease rollovers and development completions.
Section summaries
Management's Discussion and Analysis
Prologis Q2 2026 results driven by strong rent growth, development gains, and higher promote revenue, with liquidity of $7.6B.
⌄
Real Estate rose $201M to $3.2B in H1 2026, driven by rent increases on lease rollovers and development completions.
rose 7.4% to $2,297.7M and 2.0% to $2,297.7M from Q1 2026; rose 66.7% to $1.05 year over year but fell 29.5% from Q1's $1.05 to $1.05 — down 29.5% sequentially.
rose 37.9% to $1,211.1M and fell 25.5% from Q1; was 52.7%, up 11.7 points year over year and down 19.5 points sequentially.
Development starts reached $3.0B including $2.1B for data centers, with a 7.2% and 26.2% estimated margin; stood at $7.6B with $2.2B senior notes at 4.3%.
What changed
Q1 2026 flagged whether Q2 Strategic Capital would hold $79M or build; the half-year figure was $225M with $83M , against $162M in H1 2025.
Q1 2026 flagged whether the $384M real estate gains would repeat or be one-off; Q2 gains rose to $675M from $122M, from venture contributions, again non-recurring.
FY 2025 flagged Q1 2026 Strategic Capital recurring fees beyond nine-month $389M; H1 2026 shows $225M with promotes, versus $162M prior half without.
FY 2025 flagged 2026 development against $5.1B 53.5% leased; Q2 development starts were $3.0B TEI with $2.1B data centers, against limited speculative build.
was $35.0B at FY 2025 at 3.2% average; Q2 2026 long-term debt was $34.7B, down 1.0% sequentially, with recent notes at 4.3% versus the portfolio average.
What to watch
Q3 2026 Strategic Capital to see if the $83M promote repeats or recurring fees hold without it
Q3 2026 real estate transaction gains to see if the $675M from venture contributions was one-off
Q3 2026 development starts and margin as $3.0B (including $2.1B data centers) leases up
Any new debt pricing as $34.7B carries 3.2% average while recent notes priced at 4.3%
Strategic Capital increased to $225M from $162M, boosted by $83M in primarily from an Other Americas venture.
Net gains on real estate transactions surged to $675M from $122M, mainly from contributions of properties to U.S. and European co-investment ventures.
Development starts accelerated to $3.0B , including $2.1B for data centers, with a of 7.2% and estimated margin of 26.2%.
Liquidity remained strong at $7.6B, with $2.2B in senior notes issued at a 4.3% weighted average rate and a new Canadian commercial paper program.
Same-store grew 6.4% net effective and 8.5% cash, reflecting positive rent change of 36.9% on rollovers and 95.4% occupancy.
Quantitative and Qualitative Disclosures About Market Risk
The company faces foreign currency and interest rate risks, managed via natural hedges, derivatives, and fixed-rate debt.
⌄
Foreign currency risk arises from investments and earnings abroad, with 8.7% of H1 2026 in foreign currencies.
The company uses natural hedges by borrowing in investment currencies and net investment hedges to minimize net equity in non-USD currencies.
Undesignated foreign currency forwards with $1.4 billion notional hedge translation of future earnings; a 10% USD weakening could cause $143 million in settlement payments.
Interest rate risk is mitigated by predominantly fixed-rate debt ($35.7 billion) and interest rate swaps on variable-rate debt.
A hypothetical 10% increase in interest rates on variable-rate debt would add $4 million in annual .
Prologis and our unconsolidated entities are party to a variety of legal proceedings arising in the ordinary course of business. With respect to any such matters to which we are currently a party, the ultimate disposition of any such matters will not result in a material adverse…
⌄
Prologis and our unconsolidated entities are party to a variety of legal proceedings arising in the ordinary course of business. With respect to any such matters to which we are currently a party, the ultimate disposition of any such matters will not result in a material adverse effect on our business, financial position or results of operations.
At June 30, 2026, no material changes had occurred in our risk factors as discussed in Item 1A. in our Annual Report on Form 10-K for the year ended December 31, 2025.
⌄
At June 30, 2026, no material changes had occurred in our risk factors as discussed in Item 1A. in our Annual Report on Form 10-K for the year ended December 31, 2025.