Prologis, Inc. Q2 FY26 Earnings Analysis

- Market rent growth is beginning to show signs of stability with incremental increases, though broad-based and sustained rent growth is still early. - Southern California is in a bottoming process with improving demand and near-trough vacancy; expected to trail overall market rent growth by 2–3 quarters. - Leasing pipelines are at record highs with diverse demand across customer sizes and sectors, indicating strong underlying demand. - Development starts are increasing, with $4.5 billion to $5.5 billion planned, including around 40% in data center build-to-suits. - Strategic capital initiatives have raised over $2.6 billion in third-party equity across multiple new vehicles, signaling capital deployment growth. - Data center demand is a new structural driver, with signed deals showing healthy lease terms and a strong pipeline (1.3 gigawatts under LOI). - Overall, occupancy and same-store NOI are expected to improve, supporting continued growth in sales, revenues, and volumes.

- Net earnings guidance for 2026 range between $3.80 and $4.05 per share. - Core FFO (Funds From Operations), including net promote expense, expected between $6.07 and $6.23 per share. - Core FFO excluding net promote expense anticipated between $6.12 and $6.28 per share, reflecting an 80 basis point increase from prior midpoint. - The company is raising full-year outlook due to first-quarter outperformance and increased average occupancy expectations. - Same-store NOI growth projected at 4.75% to 5.5% net effective. - Cash growth expected between 6.25% and 7%. - Strong leasing momentum and stable occupancy underpin these earnings forecasts. - Increased development starts ($4.5B to $5.5B) and capital deployment anticipate supporting future growth. - Overall, the company remains confident in durable, growing cash flows despite geopolitical uncertainties.

- Development starts increased to $4.5 billion to $5.5 billion (own and managed basis), with ~40% allocated to data center build-to-suits. - Acquisitions expected between $1 billion and $1.5 billion at share. - Combined contribution and disposition activity projected between $3.5 billion and $4.5 billion at share. - 5 new strategic capital vehicles launched recently, including ventures with GIC and La Caisse focused on development and acquisitions, plus an acquisition vehicle in Japan. - Raised over $2.6 billion of third-party equity aligning capital with growing investment opportunities in a more accretive format. - Energy pipeline includes 5.6 gigawatts of secured or advanced stages power, with potential investment well over $15 billion based on $3M per megawatt. - Continued scaling solar and storage business, completing 42 projects in the quarter, totaling 1.3 gigawatts installed capacity.

- Raised $5.5 billion in new financing during the quarter at a weighted average rate of ~3.75%, including a $3 billion recast of a credit facility with a low spread of 63 basis points—the lowest of any REIT. - Closed commitments for 3 additional strategic capital vehicles recently: • New venture with GIC focused on U.S. build-to-suit developments • Expanded relationship with La Caisse via a pan-European venture for development and acquisitions • New acquisition vehicle in Japan - Launched 5 new vehicles in the last 2 quarters across geographies, formats, and risk appetites to address growing development volumes and data center opportunities. - Raised over $2.6 billion of third-party equity in strategic capital ventures recently, aligning capital with expanding investment opportunities and capital-efficient formats.

- The leasing pipeline has not only replenished but reached new highs, reflecting strong ongoing demand. (Page 3) - There is diversity in lease proposal pipelines, with growth seen in various unit sizes (both above and below 100,000 sq ft), organizational types (international and local scale), and both renewals and new requirements. (Page 8) - Data center build-to-suit pipeline is strong with 1.3 gigawatts of deals under LOI (letters of intent). (Page 9) - Overall data center power pipeline stands at 5.6 gigawatts secured or in advanced stages, representing a sizable development and investment opportunity. (Page 3, Page 9) - Logistics development starts are increased to $4.5 billion to $5.5 billion on an owned and managed basis, with approximately 40% allocated to data center build-to-suits. (Page 3) - Customers have been deferring growth but are now responding to business growth, driving the robust pipeline. (Page 8)