The headline upgrade is real, but it is not operating-driven. Adjusted FFO guidance increased to $1.26–$1.32 per share from $1.20–$1.30 previously, while interest-expense guidance fell to $155–$160 million from $170–$175 million. That benefit more than offsets the expected dilution from the EQT joint venture, but the core operating outlook was cut: same-store warehouse NOI fell to $660–$695 million from $760–$800 million, total company NOI to $775–$815 million from $810–$850 million, and Core EBITDA to $570–$600 million from $605–$635 million (Annual guidance table). With no reliable published consensus for Adjusted FFO identified, the filing's prior guidance is the cleanest expectation anchor.
| Metric | Q2 2026 | Q2 2025 | Change | Updated 2026 guidance | Prior guidance |
|---|---|---|---|---|---|
| Adjusted FFO per share | $0.35 | $0.36 | -$0.01 | $1.26–$1.32 | $1.20–$1.30 |
| Total revenue | $662.9M | $650.7M | +1.9% | — | — |
| Total company NOI | $212.7M | $211.7M | +0.5% | $775M–$815M | $810M–$850M |
| Warehouse segment NOI | $201.7M | $202.9M | -0.6% | — | — |
| Same-store warehouse NOI, constant currency | $196.8M | $201.1M | -2.2% | $660M–$695M | $760M–$800M |
| Core EBITDA | $159.1M | $159.1M | flat | $570M–$600M | $605M–$635M |
| Net debt / pro forma Core EBITDA | 7.3x | — | — | — | — |
The quarter itself was roughly in line on cash earnings, not a clean beat. Adjusted FFO was $0.35 per diluted share versus $0.36 a year earlier, while Core EBITDA was flat at $159.1 million and total NOI rose only 0.5% (Reconciliation of Net Loss to Adjusted FFO; Reconciliation of Net Loss to Core EBITDA; Revenues and Contribution by Segment). The sharp GAAP loss of $342.8 million was largely caused by a $309.6 million impairment tied to winding down two customer facilities, so it is not the best measure of recurring performance (Condensed Consolidated Statements of Operations; Impairment discussion).
The underlying warehouse trend remains weak despite better occupancy. Constant-currency same-store revenue rose 1.1% in the quarter, but costs increased 2.9%, producing a 2.2% decline in same-store NOI and a 110-basis-point margin contraction to 34.3% (Same Store Warehouse). Physical occupancy improved to 69.1% from 66.2%, and same-store revenue per economic occupied pallet rose 0.5% on a constant-currency basis, but economic occupancy was essentially flat and rent-and-storage revenue per physical occupied pallet fell 3.4% (Same Store Warehouse). In plain English, the company is filling more available space, but pricing and cost control are not yet converting that occupancy into higher profit.
The balance-sheet improvement is still prospective, while current leverage is heavy. Liquidity was approximately $719.8 million, cash was only $40.5 million, and net debt to pro forma Core EBITDA stood at about 7.3x (Liquidity and Capital Resources; Condensed Consolidated Balance Sheets). The EQT joint venture is expected to improve financial flexibility, but it had not closed as of June 30, 2026; the filing therefore asks investors to credit a future capital benefit while accepting weaker same-store and Core EBITDA expectations today. Net read: the higher full-year Adjusted FFO range is better than the old company outlook, but the deterioration in property-level economics makes the overall update mixed rather than clearly positive.
Read the original 8-K on SEC EDGAR ↗