Daiwa Office Investment Corporation
Financial Presentation Materials for the Fiscal Year Ending November 2025 (40th Term)
For the fiscal year ending November 2025, operating revenue reached 16,056 million yen, net income attributable to owners of parent was 7,496 million yen, and distribution per unit was 8,020 yen, achieving year-over-year growth in both revenue and profit.
Key Figures
- Operating Revenue: 16,056 million yen (Year-over-Year +848 million yen)
- Net Income Attributable to Owners of Parent: 7,496 million yen (Year-over-Year +547 million yen)
- Distribution Per Unit: 8,020 yen (Year-over-Year +1,100 yen)
AI要約
Overview of Performance
In the fiscal year ending November 2025 (40th term), Daiwa Office Investment Corporation recorded operating revenue of 16,056 million yen, operating income of 8,593 million yen, and net income attributable to owners of parent of 7,496 million yen, achieving year-over-year growth in both revenue and profit. Distribution per unit was 8,020 yen, up 1,100 yen year-over-year, and the occupancy rate at fiscal year-end remained at a high level of 98.9%. Growth was supported by the return of gains from asset sales and rental increases for existing properties.
Asset Management and Financial Strategy
To improve portfolio quality, the company continued selling low-growth assets and acquiring high-growth assets, completing the sale of Daiwa Sarugakucho Building in the fiscal year ending November 2025. The book value LTV is 44.6% and the market value LTV is 34.2%, maintaining financial discipline while securing approximately 50 billion yen in borrowing capacity by leveraging effective LTV. The average borrowing interest rate is 0.87%, and financial stability is ensured through the diversification of repayment timing and the extension of loan maturities.
Trends in Leasing Business
High occupancy rates are maintained mainly in five major Tokyo wards, with rental unit prices showing the highest-ever level of increase. For the fiscal year ending November 2025, the rent increase rate on turnover was 45%, and the renewal increase rate was 14.6%, continuing to expand net operating income through rent hikes. The target contract rental unit price was revised upward to exceed 40,000 yen, with plans to proactively promote further rent increases.
Sustainability Initiatives
We procured 28.3 billion yen in funds through green loans and green bonds and obtained SBT certification and Eco Action 21 certification. We are promoting environmental load reduction through installation of LED lighting, high-efficiency heat source equipment, and rooftop greening, resulting in a CO2 emission reduction of approximately 29.47% compared to the baseline year. For 14 consecutive years, we have earned '4 Stars' and 'Green Star' in the GRESB evaluation, maintaining a high level of assessment in environmental, social, and governance aspects.
