Nippon Prologis’ follow-on to benefit from Japan’s negative interest rates

Nippon Prologis REIT’s (NPR) [TYO: 3283] up to JPY 23.5bn (USD 206m) global follow-on offer is likely to attract strong demand from investors due to a steady rise in its distribution payments (DPU) and pipeline of acquisitions, fund managers said. NPR will use the proceeds to finance part of the acquisition of four properties worth JPY 42.1bn.

The introduction of negative interest rates by the Bank of Japan should work company’s favour as it would push up its DPU, said a fund manager.

NPR has raised DPU estimate for 1H16 to JPY 3,958 from the previous estimate of JPY 3,946.