Presentation Materials for the Fiscal Year Ending December 2025 (49th Period) Financial Results

Performance Overview

Operating revenue for the fiscal year ending December 2025 (49th period) was 48,547 million yen, a 5.2% decrease compared to the same period last year. The main factor was a decrease in gains on sales of real estate and others (▲4,847 million yen); however, rental income from real estate increased by 3.8% YoY, reaching 44,809 million yen. Operating expenses rose 4.5% to 27,329 million yen, resulting in operating income of 21,217 million yen, down 15.4%. Net income attributable to owners of parent was 19,299 million yen, down 18.0% YoY. The number of investment units issued at period end increased 1.7% to 8,650,000 units, maintaining an average occupancy rate of 98.5% during the period.

Operational Performance and Earnings Guidance

Earnings guidance for the June 2026 period (50th period) and December 2026 period (51st period) forecasts operating revenue of 53,924 million yen (up 11.1%) and 50,639 million yen (down 6.1%), respectively. Net income is expected to be 24,064 million yen (up 24.7%) and 19,963 million yen (down 17.0%), respectively. Occupancy rates are projected to remain at a high level in the 98% range, with revenue expansion expected due to increased rental income and rent revisions. Properties scheduled for acquisition total 60.7 billion yen, with planned dispositions of 11.9 billion yen. On the financing front, interest-bearing debt balance decreased to 628,000 million yen YoY, and the increase in long-term borrowings has strengthened the financial base.