SANKEI REAL ESTATE Inc. Financial Summary for Fiscal Period Ended August 2026

Overview of Financial Results

Operations during the fiscal period were steady. Operating revenue amounted to 3,729 million yen, operating income to 2,084 million yen, ordinary income to 1,795 million yen, and net income to 1,719 million yen. Distributions were 3,680 yen per unit, totaling approximately 1,718 million yen, and distributions to unitholders were made without including distributions in excess of retained earnings. As part of external growth, the sale of Fukuoka Green Building was completed on October 13, 2026, and the gain on sale is scheduled to be recorded in the fiscal period ending February 2027. Financially, interest-bearing debt stands at 49,500 million yen and LTV is 48.9%, maintaining stable operations. Going forward, the policy is to balance external growth and internal growth while considering market conditions.

Outlook and Impact for Investors

The outlook assumes a gradual recovery of the Japanese economy and continued rent increases, with the real estate market expected to remain firm. However, attention is paid to geopolitical risks, interest rate trends, and changes in the financing environment. As continued external growth following this period, the strategy includes acquisitions and dispositions of third-party properties, while enhancing revenue stability through improved tenant satisfaction and appropriate risk management. The dividend policy aims to maintain stable distributions while utilizing tax advantages.