SAN FRANCISCO—Industrial giant Prologis Inc. on Tuesday posted second-quarter results that beat analysts’ estimates. The REIT reported core funds from operations of 48 cents per share, compared to the Zacks Consensus Estimate of 46 cents per share and Q2 2013′s figure of 41 cents per share. Its same-store NOI was up 3.8% from a year ago on the strength of higher occupancy and rental rates.

Occupancy as Q2 ended was up 90 basis points year over year to 94.6%. With 29 million square feet of leases signed during the quarter, Prologis saw GAAP rental rates increase by 6.6%, compared to 4% the year prior.

“We’re pleased to report a very strong quarter of financial and operating performance,” says Hamid R. Moghadam, Prologis’ chairman and CEO. “Our results reflect high occupancy levels with strong growth in rental rates, above average development margins and increased earnings from our strategic capital business.”

Accordingly, Prologis is raising its full-year 2014 core FFO guidance range to $1.82 to $1.86 per diluted share, up from $1.76 to $1.82 per diluted share. The company also expects to recognize net earnings, for GAAP purposes, of $0.20 to $0.24 per share for the year.

In a REIT sector report issued on Monday, before Prologis reported its Q2 results, Barclays Capital maintained an “overweight” rating on the REIT’s stock, while also projecting a favorable long-term outlook for industrial real estate trusts. “According to CBRE, US industrial availability tightened 30 bps sequentially to 10.8% in 2Q14, marking the 16th consecutive quarter of improvement,” the report states. “Looking ahead, we think demand for industrial space will continue to be driven by steady economic growth, reconfiguration of the supply chain to cater to e-commerce/same-day delivery, acceleration in global trade, property obsolescence and limited supply,” especially for facilities that are larger and taller.