The BREW: Prologis Drops the Green Flag on REIT Earnings; Previewing Week 2

Research evidence excerpt

The BREW: Prologis Drops the Green Flag on REIT Earnings; Previewing Week 2

July 19, 2026 | 23:57 ET~

US Real Estate

The BREW: Prologis Drops the Green Flag on REIT US Real Estate

Earnings; Previewing Week 2 John P. Kim Analyst

JohnP.Kim@bmo.com (212) 885-4115

Juan C. Sanabria AnalystBottom Line:

juan.sanabria@bmo.com (312) 845-4074

Prologis kicked off 2Q26 REIT earnings with a bang, raising 2026 Core FFOps, occupancy,

Ari Klein Analystand Cash SSNOI guidance, with a record-high 67 msf leasing quarter. E-commerce,

ari.klein@bmo.com (212) 885-4103

advanced manufacturing, and digital infrastructure customers are growing: PLD

Eric Borden Analystestimates each $1T of data center CapEx will generate 30-40 msf incremental logistics

eric.borden@bmo.com (347) 213-9706

demand. PLD reached $2.1B DC development starts YTD, although '26 guidance

Regan Sweeney, CPA Senior Associatesurprisingly implies none more this year. Management commentary regarding a broad-

regan.sweeney@bmo.com (347) 831-2406

based SoCal recovery and limited availability of large-box space is auspicious for REXR,

Robin Haneland Senior AssociateTRNO, EGP, and LXP. We increase our 2026/27 Core FFOps estimates to $6.30/$6.81

robin.haneland@bmo.com (646) 901-2282

(+8.5%/+8.0% growth), and our target price to $163 (+$5). There was no news on

Legal Entity: BMO Capital Markets Corp.

the SEGRO front, but management mentioned UK/EU industrial demand is equal to or

better than the U.S., with "stringent" barriers to new supply. Prologis has until 7/22/26 What's Inside

to announce a formal offer for SEGRO; we believe PLD will moderately raise its offer,

with a cash component. Global REIT PerformanceYTD 1 Week Chart

-10.0% -5.0% +0.0% +5.0% +10.0% +15.0% +20.0%

Key Points

Global Real Estate 2.2% 9.4%