Nippon Prologis REIT has reported a DPU of JPY4,195 (USD37) for its 2H 2016 ended 30 November 2016, an increase of 6.3% over the preceding six-month period.

Operating revenue for the half came in at JPY15,639,813, an increase of 5.2% over 1H 2016, with an average rent growth of 2.1% across its portfolio of 36 properties.

The REIT’s average occupancy for the period was at 97.3%.

Nippon Prologis REIT has indicated that it remains optimistic on Japan’s logistics real estate market for the years ahead.

“Because the country’s current stock of modern logistics facilities is scarce, we believe the long-term outlook for logistics real estate is bright”, said the REIT, adding that demand is backed a rapidly growing e-tailing sector.

“While we continue to anticipate significant volume of new supply through 2018 in both the Tokyo and Osaka metropolitan areas, we believe the market will continue to be solid because of the fundamental scarcity of space, and that new supply will be absorbed within a reasonable time frame”, the REIT added.

Units of Nippon Prologis REIT last changed hands on the Tokyo Stock Exchange at JPY241,500.