Prologis (PLD) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 16, 2026 astatine 12:00 PM CDT 12 min read

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Thursday, April 16, 2026 astatine 12 p.m. ET

• President — Dan Letter

• Chief Financial Officer — Tim Arndt

• Investor Relations — Justin Meng

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Dan Letter: Thank you, Justin. Good morning, and convey you for joining us. We entered 2026 with coagulated momentum, and we saw that proceed successful our archetypal 4th results. While the geopolitical backdrop has go much uncertain successful caller weeks, our concern continues to execute astatine a precise precocious level supported by resilient demand, disciplined execution, and the spot and standard of our planetary platform. Last quarter, we outlined our apical 3 priorities for the business. Let maine item however our strategy is translating into results crossed operations, worth creation, and superior formation. First, we delivered different 4th of grounds leasing with 64 cardinal quadrate feet of signings, supported by some beardown retention and steadfast caller leasing activity.

Occupancy exceeded our expectations, and we are raising our full-year outlook. Second, we are putting our onshore slope to enactment crossed logistics and information centers with $2.1 cardinal of starts successful the quarter, of which $1.3 cardinal was information halfway build-to-suits. The extent of lawsuit involvement for our information halfway offerings is significant, and we judge our quality to bring unneurotic land, power, and improvement expertise is simply a cardinal differentiator for our concern and positions america to seizure a increasing stock of this opportunity. And third, we are expanding our strategical superior platform. We announced a $1.6 cardinal associated task with GIC and, consequent to 4th end, a $1.2 cardinal associated task with Laquette.

These partnerships bespeak beardown capitalist request for our level and our quality to deploy superior into high-quality opportunities worldwide. Taken together, these initiatives reenforce a elemental point. We are gathering a broader, much resilient platform, 1 that is positioned to compound maturation implicit time. Before I walk the telephone to Tim, fto maine concisely code the geopolitical backdrop. The struggle successful the Middle East has introduced yet different root of economical uncertainty, astir straight done higher vigor prices and renewed unit connected ostentation and involvement rates. Rather than speculate, I volition absorption connected what we are seeing successful our data, what we are proceeding from our customers, and however we are operating the business.

Our lease signings, connection volume, and build-to-suit pipeline constituent to continued spot successful underlying demand. In fact, March was a precise progressive period for caller leasing. By comparison, erstwhile our concern faced abrupt tariff-related uncertainty successful April 2025, the intermission successful leasing enactment was comparatively contiguous earlier thawing retired successful the pursuing weeks and months. At the aforesaid time, our lawsuit insights are grounded successful direct, ongoing engagement with hundreds of real-time interactions each quarter. Seven weeks into this conflict, astir are actively monitoring the concern and they are telling america 2026 concern plans are unchanged. The hazard contiguous is that uncertainty slows lawsuit decision-making. We person not seen meaningful grounds of that to date.