Financial Presentation Materials for the Fiscal Year Ending November 2025 (44th Term)

Fiscal Year Ending November 2025 Overview

In the fiscal year ending November 2025 (44th term), the annual distribution per unit (DPU) was 4,142 yen, representing a 3.3% increase YoY. Asset replacement involved property dispositions amounting to 62.4 billion yen, with gains on sales of 14.4 billion yen returned to investors. Seven new properties were acquired at a total purchase price of 52.6 billion yen, advancing portfolio quality enhancement. Rental business income rose 6.7% YoY to 30.3 billion yen, supported by increased rents from hotels and logistics facilities. Occupancy rates remained at a high level of 99.2%, reflecting strong property operations.

Medium-Term Growth Strategy and Outlook

Based on the medium-term growth strategy (2025–2027), 23.3 billion yen was raised through a public offering to acquire 7 properties with high growth and stability potential. Asset replacements are planned annually in the range of 20 to 30 billion yen, with a target of approximately 60 to 90 billion yen in asset replacement by the fiscal year ending November 2027. Value-up investments totaling 15 to 20 billion yen will be conducted over about three years to strengthen the revenue base. The annual DPU target is set to increase from over 8,000 yen to above 9,000 yen, aiming for sustainable NAV enhancement. Financially, LTV has been reduced to 44.4%, and approximately 80% of debt is fixed-rate to mitigate interest rate risk. Efforts on ESG include a medium-term goal to reduce GHG emissions by 36% by fiscal year 2035.