SAN FRANCISCO—Prologis Inc. on Tuesday reported an 8% year-over-year increase in funds from operations for the second quarter, among the factors in the industrial REIT's decision to raise its quarterly divided by 11%. Q2 also saw Prologis complete its $5.9-billion acquisition of the real estate assets and operating platform of KTR Capital Partners and its affiliates.

Prologis ended the quarter with 95.4% occupancy in its operating portfolio, up 80 basis points from the year prior, or 95.6% occupancy if the KTR assets are excluded from the equation. The company also set two performance records during Q2: a record 44.6 million square feet of leasing across its operating and development portfolio, and a record 14.4% increase in GAAP rental rates.

Core FFO per diluted share was $0.52 for Q2, compared with $0.48 for the same period in 2014. Accordingly, Prologis increased the midpoint of its full-year 2015 core FFO guidance and narrowed the range to $2.18 to $2.22 per diluted share from $2.16 to $2.22 per diluted share, representing expected Y-O-Y growth of 17%.

“The team delivered ahead of plan and our results reflect strong underlying performance across all three lines of our business,” says Hamid Moghadam, Prologis' chairman and CEO. “We see significant earnings potential from harvesting the gap between our in-place and market rents, the profitable build-out of our land bank and the efficient scaling of our global platform.”