FT5/26 Results: No Buybacks Announced Alongside Results

Research evidence excerpt

FT5/26 Results: No Buybacks Announced Alongside Results

Update

July 16, 2026 08:12 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MNippon Prologis REIT (3283) | Japan Takuya Sato

Equity Analyst

FT5/26 Results: No Buybacks Takuya.Sato@morganstanleymufg.comToshiyuki Anegawa +81 3 6836-8913

Toshiyuki.Anegawa@morganstanleymufg.com +81 3 6836-8914

Announced Alongside Results

Reaction to earnings

Unchanged Modest shortfall Largely unchanged

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS Nippon Prologis REIT (3283.T, 3283 JT)

Source: Company data, Morgan Stanley Research J-REIT | Japan

Stock Rating Equal-weight

Industry View Attractive

Key Takeaways Price target ¥98,000

Shr price, close (Jul 16, 2026) ¥88,500

Gap between market rent and current rent around 4-5% Mkt cap, curr, basic (bn) ¥742.4

Avg daily trading value (bn) ¥1.3

Introduced CPI-linked or step-up rent clauses in all leases over 3 years, as a

general rule

Results vs. forecasts: FT5/26 DPS was ¥1,928 (+0.4% ToT), trailing both our

forecast and the consensus.

Main surprises: The average rent change for FT5/26 was +7.0%, the highest since

listing and one notch above the roughly +6.0% projected at the previous results

announcement. The REIT is targeting at least +6.0% for all of 2026. Leases with

three years or less remaining account for 47% of all lease contracts.

Recommended action: We see the announcement as negative for the share price.

We believe the current share price had reflected expectations for share buybacks,

but no buyback was announced alongside results. That said, the February 2025

buyback was implemented in the month after the results announcement, so if the

share price declines sharply, we think investors are likely to focus again on prospects