Prologis' (PLD) Q2 core FFO beat and full-year guidance increase were driven by record leasing that surpassed the previous quarter's signings, Truist Securities said Thursday in a report.

The results extend the momentum in the industrial sector over recent quarters, with the guidance increase tied to lower bonus costs and better occupancy and rent-growth expectations.

Truist lifted its full-year core FFO estimate to match Prologis' updated range, partly citing stronger strategic capital income and additional FFO from joint ventures as the main drivers of the quarter's upside versus its prior model.

Truist also raised its assumptions for development starts, acquisitions, joint-venture contributions and property sales following management's updated guidance across those categories.

Truist maintained its buy rating on Prologis stock with a $154 price target.

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