Prologis (PLD), known as the 'landlord of e-commerce,' is evolving into a significant player in the data center market, aiming to scale its capacity to 10 gigawatts over the next decade. This shift is reflected in its strong Q1 2026 performance, with revenues increasing to $2.30 billion and net income rising 66% to $980 million.
The company has also raised its full-year development guidance to $4.5–$5.5 billion, with 40% allocated to data centers. Meanwhile, Simon Property Group (SPG), the largest retail REIT in the U.S., reported a solid Q1 2026, with FFO growing 7.5% to $3.17 per share and occupancy rates at 96%.
SPG's stock recently reached all-time highs, demonstrating strong momentum and a robust recovery from earlier market pressures. Both companies are navigating the challenges posed by higher interest rates, with Prologis showing a year-to-date increase of 14% and Simon maintaining a strong growth trajectory, making them noteworthy investments in the current market landscape