Financial Summary for the Fiscal Year Ending November 2025 (REIT)

Overview of Performance

For the fiscal year ending November 2025, operating revenue was 28,180 million yen (up 2.9% YoY), operating income was 13,717 million yen (up 4.8% YoY), ordinary income was 12,288 million yen (up 3.8% YoY), and net income attributable to owners of parent was 12,287 million yen (up 3.8% YoY). Distributions per unit were 4,142 yen, representing a 3.3% increase over the previous period. The total distribution amount was 12,685 million yen. While the investment environment was influenced by the Bank of Japan's normalization of monetary policy, rising policy interest rates, yen depreciation, and inflation, the domestic economy maintained a moderate recovery trend, supported by increased inbound demand contributing to improved occupancy rates in hotels and other properties.

Asset Management and Financial Overview

During the fiscal year, three properties were acquired and three properties were disposed. The number of held properties stood at 142, with a total acquisition price of 705,869 million yen, and the occupancy rate remained at a high level of 99.2%. Interest-bearing debt decreased to 329,953 million yen compared to the previous period, and the equity ratio rose to 49.1%. The credit rating from Japan Credit Rating Agency, Ltd. was 'AA' for long-term issuer rating with a stable outlook. Capital was raised amounting to 23,312 million yen through issuance of new investment units, and repayment and refinancing of borrowings due were executed.

Outlook

For the fiscal periods ending May 2026 and November 2026, operating revenue is forecasted at 30,818 million yen (up 9.4% YoY) and 31,810 million yen (up 3.2% YoY) respectively; net income attributable to owners of parent is projected at 14,482 million yen (up 17.9% YoY) and 14,642 million yen (up 1.1% YoY) respectively. Distributions per unit are planned at 4,550 yen and 4,600 yen respectively. The portfolio will be enhanced in quality and expanded through asset replacement and external growth, aiming for stable management and improved profitability. From a financial perspective, efforts will continue to build a robust financial foundation while responding to the rising interest rate environment.

ESG and Sustainability Initiatives

The company has set targets to reduce total portfolio greenhouse gas emissions by 36% compared to fiscal 2024 by fiscal 2035 and to achieve net zero by 2050. The ratio of properties with environmental certifications exceeded the target at 88.6% as of the end of November 2025. The company received '4 Stars' and 'A Level' ratings in the GRESB assessment, supports the TCFD recommendations, and conducts scenario analysis of climate-related risks and opportunities.