Stable Earnings|Features|Nippon Prologis REIT, Inc.

Nippon Prologis REIT, Inc.

Stable Earnings

We believe that the longer lease terms generally associated with logistics facilities, as well as the superior design features of Class-A logistics buildings, will provide substantial stability in earnings and opportunities for earnings growth.

  • Further, the rising demand and current supply imbalance for Class-A logistics facilities also supports earnings stability and provides an opportunity for earnings growth.

We will seek to maximize earnings stability through an optimal balance between multitenant logistics facilities, which provide customer diversification, and build-to-suits, which provide for comparatively longer lease terms with a single customer. We will maintain a well-balanced portfolio of multitenant and build-to-suit facilities in accordance with our investment guidelines. Even as we continue to grow our portfolio, we will continue to look for ways to further improve earnings stability.

Overview of Lease Contract in Our Portfolio(1)

As of November 30, 2018

  • Number of Tenants(1)
    142
  • Top 20 Tenants Leased Area(2)
    49.4
  • Fixed Term Lease(3)
    100.0
  • WALE
    4.3
  • Calculated based on the contracted floor area. Figures are including Prologis Park Tsukuba 1-A.
  • Excludes leases to which the Act on Land and Building Leases does not apply.
  • WALE stands for Weighted Average Lease Expiry. Calculated based on anticipated annual rent.
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