Nippon Prologis (3283) Q4 2025 earnings summary

Executive summary

• Outperformed financial forecasts with high occupancy, achieving a 98.6% average occupancy rate and a 1.1% increase in DPU to JPY 1,920 compared to forecast for the 26th fiscal period.

• Achieved operating revenues of ¥35,080 million, up 1.5% year-over-year, and net income of ¥15,354 million, down 0.5% sequentially.

• Maintained strong rent growth with an average rent change of +3.5% and increasing adoption of CPI-linked rent clauses.

• Effective debt cost control and a robust balance sheet support progress toward a 3% annual DPU growth target.

• Completed the second phase of asset reshuffling, acquiring and disposing of logistics properties.

Financial highlights

• Net operating income (NOI) for the 26th FP was JPY 24,590 million, up 0.5% vs. forecast but down 0.4% from the previous period.

• Operating income was ¥16,833 million, ordinary income ¥15,287 million, and net income per unit ¥1,830.

• Distributions per unit (excluding SCD) were ¥1,830, with total distributions of ¥15,352 million.

• AFFO payout ratio was 81.7%, reflecting disciplined capital management.

• Market capitalization as of Nov. 30, 2025, stood at JPY 789.4 billion.

Outlook and guidance

• DPU forecast for the 27th FP (ending May 2026) is JPY 1,920, with a slight increase to JPY 1,934 for the 28th FP (ending Nov. 2026).

• Forecasts for the next two periods: operating revenues of ¥33,812 million and ¥34,590 million, net income of ¥14,324 million and ¥14,492 million, and distributions per unit (excluding SCD) of ¥1,708 and ¥1,727.

• SCD per unit forecasted at ¥212 and ¥207 for the next two periods.

• Continued focus on maintaining high occupancy and capturing further rent growth, with rent change for the next period expected at approximately 6%.

• Average occupancy rates expected to remain above 98%.