Nippon Prologis REIT Beats DPU Forecast; Rent Growth Hits Record 7%

Nippon Prologis REIT (NPONF) beat its DPU forecast by 40 basis points for the fiscal period ended May 2026, aided by record rent growth and high occupancy. The company reported a 7.0% average rent change on lease renewals and re-leasing, the highest since its inception. Average occupancy for the period was 98.0%, in line with the company's forecast.

Portfolio appraisals continued to rise, and the appraisal-based loan-to-value ratio stayed below 29%, the REIT said. The company maintained a "resilient financial position" that it said lets it manage debt costs more flexibly than peers in a rising interest rate environment.

For the next two fiscal periods, Nippon Prologis expects average occupancy of 98.4% and 98.6%, reflecting stronger demand and portfolio competitiveness. The company reiterated its target of 3% annual stabilized DPU growth.