Nippon Prologis REIT, Inc
SEMIANNUAL REPORT Fiscal Period Ended November 30, 2016 Message from the Executive Director SEMIANNUAL REPORT 1 Dear Fellow Unit Holders, We are pleased to present our Semiannual Report for the fiscal period ended For the full year, we delivered 2.6 percent rent growth. Going forward, however, we will November 30, 2016. continue to expect a significant supply of advanced logistics properties in our markets. To protect our occupancy, we are now beginning leasing negotiations with our customers In 2016, we conducted two accretive follow-on offerings and subsequent acquisitions earlier than before; this shift in strategy naturally slows down our expected rent growth. as well as a significant refinancing. This activity, combined with strong operating We intend to strive for positive rent changes on leases scheduled to expire over the next performance, resulted in significant growth in 2016, and we ended the year with an few years. even stronger balance sheet. Our DPU grew by 6.3 percent and our NAV per unit grew by 11.6 percent through accretive offerings, debt cost reduction from refinancing and For the fiscal period ended November 2016, our financial performance was strong. organic growth from rising rents. To illustrate, our operating revenue was 15,639 million yen, operating income was 7,712 We are truly confident about, and proud of, our positive and consistent growth story. million yen, ordinary income was 6,780 million yen and net income was 6,780 million yen. Since our inception, on a stabilized basis excluding one-time effects from actual results, Fifth Follow-on Offering and Acquisitions – NPR continues to receive strong sponsor our DPU has grown by 26 percent, which reflects our robust external growth through support from the Prologis Group.
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