Nippon Prologis (3283) Q2 2026 earnings summary

Executive summary

• Achieved historically high rent change and maintained strong occupancy, positioning for further upside in FY2026.

• Portfolio of 60 Class-A logistics facilities with stable income and high occupancy, supported by strong sponsor backing and strategic asset reshuffling transactions.

• Achieved 98.0% occupancy and 7.0% average rent growth during the period, benefiting from improved supply-demand balance in logistics real estate.

• Financial position remains resilient, with capacity to absorb rising interest rates.

• Continued progress toward a 3% annual DPU growth target.

Financial highlights

• NOI for May 2026 fiscal period: JPY 24,351 million (+0.4% vs. forecast, +0.4% vs. previous period).

• DPU: JPY 1,928 (+0.1% vs. forecast, +1.0% vs. previous period).

• Operating revenues for the period ended May 31, 2026: ¥33,710 million, down 3.9% from previous period.

• Net income: ¥14,395 million, down 6.2% from previous period; net income per unit: ¥1,715.

• AFFO for May 2026: JPY 18,762 million; payout ratio: 86.2%.

Outlook and guidance

• Forecast DPU for Nov. 2026: JPY 1,938 (+0.5% vs. previous period).

• NOI expected to grow to JPY 24,690 million by May 2027.

• Forecast for Nov. 30, 2026: operating revenues ¥35,086 million (+4.1%), net income ¥14,503 million (+0.7%), distributions per unit (excluding SCD) ¥1,729.

• Average occupancy rates expected at 98.4% and 98.6% for the next two periods.

• Roadmap in place to achieve stabilized 3% annual DPU growth.