Prologis Inc. (PLD) stock traded lower in Thursday's session after the warehouse-focused real estate investment trust reported mixed third-quarter results and narrowed its full-year outlook.

Prologis Earnings Beat Estimates, Revenue Falls Short

Prologis reported third-quarter rental and other revenue of $2.224 billion, missing Wall Street's estimate of $2.285 billion.

Total expenses rose to $1.45 billion from $1.32 billion a year earlier. However, operating income increased to $1.04 billion from $940 million.

Core funds from operations (FFO) climbed to $1.60 per share from $1.49 a year earlier, beating the consensus estimate of $1.56.

Leasing Activity and Occupancy Remain Strong

Prologis reported average occupancy of 95.1% across its owned and managed properties. Its share of average occupancy also stood at 95.1%.

Meanwhile, its share of same-store property net operating income rose 5.9% year over year on a cash basis.

The company ended September with $2.27 billion in cash and cash equivalents.

CEO Daniel S. Letter said Prologis signed leases covering 60 million square feet and announced nearly $2.3 billion in transactions during the quarter.

Letter noted that customers continue to maintain lean inventories and have largely absorbed excess distribution network capacity.

Meanwhile, e-commerce, advanced manufacturing and data center supply chains continue to support demand for warehouse space.

He also highlighted shareholder approval of the SEGRO transaction, which would strengthen Prologis' presence in Europe.

Prologis Narrows 2026 Earnings Outlook

Prologis tightened its fiscal 2026 core FFO guidance to $6.25 to $6.29 per share, compared with its previous forecast of $6.22 to $6.30.

The revised outlook compares with Wall Street's consensus estimate of $6.25 per share.

The company also narrowed its average occupancy forecast to 95.25% to 95.50%, from its previous range of 95.25% to 95.75%.

CEO Commentary

Prologis CEO Daniel S. Letter said the company signed 60 million square feet of leases and announced nearly $2.3 billion in transactions during the quarter.

He said customers continue to maintain lean inventories, while excess capacity across their networks has largely eased. Demand remains healthy, supported by e-commerce, advanced manufacturing and the expansion of data center supply chains.

Letter also highlighted shareholder approval of the SEGRO transaction as a key milestone. He said the deal would expand Prologis' European presence and strengthen its ability to serve customers across the region.

Meanwhile, CFO Timothy D. Arndt said strong operating results and disciplined capital allocation supported the quarter's financial performance.

He added that the company's solid balance sheet provides flexibility to pursue growth investments despite elevated interest rates.

PLD Price Action: Prologis shares were down 1.86% at $128.03 at the time of publication on Thursday, according to market data.