Nippon Logistics Fund, Inc. announced its results for the 42nd fiscal period, with distribution per investment unit rising 2.8% year on year to ¥2,365. The period-end portfolio comprised 54 properties, with assets totaling ¥296.5 billion.
Nippon Logistics Fund, Inc. announced its results for the 42nd fiscal period. It acquired 4 properties, including Funabashi Nishiura Logistics Center III, and sold 2 properties, including Urayasu Chidori Logistics Center III.
Profit increased 5.7% from the previous period, reflecting higher gains on property exchanges and lower repair expenses. Internal reserves were ¥276 million, while the number of investment units decreased 0.01% following the cancellation of treasury investment units. Distribution per investment unit increased 2.8% from the previous period to ¥2,365.
At period-end, the portfolio comprised 54 properties, with assets totaling ¥296.5 billion based on the aggregate acquisition price. The interest-bearing debt ratio was 44.8%.
For the 43rd fiscal period (fiscal year ending January 2027), the fund expects to acquire 3 properties, including additional interests in Funabashi Nishiura Logistics Center III, and sell 2 properties, including interests in Ichikawa Logistics Center II. Although contributions to earnings from new properties are expected, profit is forecast to decrease 12.7% from the previous period due to lower gains on property exchanges.
For the 44th fiscal period (fiscal year ending July 2027), the fund expects to acquire additional interests in Funabashi Nishiura Logistics Center III and sell 2 properties, including interests in Ichikawa Logistics Center II. The drawdown of internal reserves is expected to be ¥443 million, and distribution is forecast at ¥2,250. Revenue growth from new and existing properties is expected, although the fund anticipates an impact from lower gains on property exchanges.
Against a backdrop of declining vacancy rates and accelerating rent growth in central Tokyo, the fund projects average annual growth in FFO per investment unit of 2.2%, targeting FFO per investment unit of ¥2,500 and distribution of ¥2,300 for the 45th fiscal period.