Prologis Named BTIG's Top Industrial REIT Pick on Strong Q2 Earnings and Raised Guidance

BTIG analyst Thomas Catherwood has named industrial real estate investment trust Prologis (NYSE: PLD) as the firm's top pick for the second half of 2026. The designation follows a strong second-quarter performance that surpassed analyst expectations and led the company to raise its full-year guidance.

A 'Robust Beat and Raise'

Prologis reported second-quarter 2026 Core Funds From Operations (FFO) per share of $1.63, beating both BTIG's estimate by $0.09 and the consensus estimate by $0.08. The company's revenue for the quarter was $2.43 billion, also exceeding expectations.

In response to the strong results, Prologis management raised its full-year 2026 Core FFO guidance. The new range is $6.22 to $6.30 per share, up from the previous range of $6.07 to $6.23. BTIG maintains a Buy rating on the stock with a $170 price target.

Key Operating Metrics Underscore Strength

The positive quarterly results were driven by record leasing and solid operational performance, according to BTIG's note. Key metrics from the second quarter include:

Ad

• Record Leasing: The company signed leases for more than 67 million square feet, a new quarterly record.
• Occupancy: Period-end occupancy rose 20 basis points sequentially to 95.5%.
• NOI Growth: Cash same-store net operating income (NOI) grew by 8.5%.
• Leasing Spreads: Spreads on new and renewal leases remained robust at 36.9% on a GAAP basis.

BTIG noted that tenant retention fell to 72.7%, the lowest in 12 quarters. The firm interpreted this not as a sign of weakness, but as an indication that Prologis is successfully pushing for higher rental rates in a market where demand for Class A industrial space remains high.

Expanding Development Pipeline

Prologis is also ramping up its investment in new properties, increasing its planned development starts for the year by $1.0 billion to $5.0 billion. During the second quarter, the company initiated $1.3 billion in new projects, including $540 million in industrial facilities and a significant $802 million in data centers, at an estimated stabilized yield of 7.2%.

This expansion reflects a growing forward pipeline that now stands at 129 million square feet, which BTIG reports is 50% above the company's long-term average. The updated guidance implies Prologis will begin approximately $2.0 billion in additional projects through the end of the year.