Prologis Posts Record Second-Quarter Earnings as Data Centre Push Surpasses Full-Year Guidance — and Eyes Segro Acquisition
Key Takeaways
- Prologis signed a record 67 million square feet of leases in Q2 2026 with core FFO reaching $1.56 billion and net income hitting $1.06 billion.
- Data center construction starts have already surpassed full-year guidance, establishing power and energy infrastructure as core growth drivers.
- Prologis is nearing a deadline on an unsolicited bid for Segro, Britain's largest warehouse REIT, to expand its European industrial footprint.
Prologis has signed a record 67 million square feet of leases in the second quarter of 2026, its fourth leasing record in seven quarters, according to the company's own second-quarter results release. Year-to-date data centre starts have already surpassed the REIT's full-year guidance.
Strong Financial Performance Across Key Metrics
Core funds from operations reached $1.56 billion, up from $1.4 billion a year earlier. Net income hit $1.06 billion for the quarter — nearly double the $570 million reported in the same period of 2025. Total revenue climbed year-over-year from $2.18 billion to $2.43 billion, up almost 6 percent quarter-on-quarter. Between April and June, Prologis acquired $1.8 billion of new real estate and broke ground on $1.6 billion of new projects, based on figures confirmed in the company's official earnings release and corroborated by Commercial Observer's coverage of the call.
Executive Commentary on Data Centre Growth
CEO Dan Letter told analysts on the earnings call that the same land, customer relationships and operating capabilities that built Prologis's logistics leadership are now powering its data centre and energy businesses — two additional long-term growth engines for the company.
Impending Segro Acquisition Decision
The bigger story may be what happens next. The results land just six days before Prologis faces a decision: make a formal offer for Segro, Britain's largest warehouse REIT and its chief international rival, or walk away from its unsolicited bid. A completed acquisition would significantly extend Prologis's European logistics footprint at a moment when nearshoring, data centre demand, and industrial supply constraints are combining to create one of the strongest landlord markets in a generation.
Power Infrastructure Dominates Market Dynamics
Power infrastructure continues to dominate industry conversation. JLL senior vice president Abigail Sievers has described power as "a big, big, big conversation right now" — a view echoed across nearly every major industrial market, as detailed in JLL's 2026 Global Data Center Outlook.
The takeaway from this quarter's numbers is straightforward: the world's largest industrial landlord opened 2026 with record leasing and an accelerating push into data centres. In 2026, the most valuable real estate asset isn't a postcode — it's a power connection.
Frequently Asked Questions
How did Prologis perform in Q2 2026?
Prologis reported record leasing of 67 million square feet, core FFO of $1.56 billion, and net income of $1.06 billion, while year-to-date data center starts surpassed full-year guidance.
Why is Prologis pursuing an acquisition of Segro?
Acquiring Segro would significantly expand Prologis's European logistics footprint amid strong demand driven by nearshoring and data center development.
