Fiscal Year Ending February 2026 Financial Summary (REIT)

Performance Overview

For the fiscal year ending February 2026, operating revenue was 12,653 million yen (1.0% decrease YoY), operating income was 7,008 million yen (1.0% increase YoY), ordinary income was 6,060 million yen (0.7% increase YoY), and net income attributable to owners of parent was 6,059 million yen (0.7% increase YoY). Net income per unit was 4,207 yen, and distributions per unit were 4,050 yen, representing a payout ratio of 96.2%. The number of issued investment units remained unchanged at 1,440,000 units. Total assets stood at 419,598 million yen, and the equity ratio was 48.1%, maintaining a stable financial foundation.

Asset Management and Financial Position

During the period, asset replacements were conducted including acquisition of Asakusa View Hotel and transfer of quasi-co-ownership interest in Hulic Kamiyacho Building, with the total number of properties held reaching 67 and a total acquisition price of 421,530 million yen. The portfolio occupancy rate remained high at 99.8%. On the financing side, some borrowings were repaid before maturity, and refinancing of investment corporation bonds was implemented, resulting in an LTV of 46.9%. Moving forward, efforts will focus on enhancing growth potential by adjusting investment allocation toward offices and commercial facilities mainly in the Tokyo metropolitan area, as well as hotels and fee-based nursing homes, while continuing stable financial management.

Outlook

Operating revenue is forecasted to decline to 12,141 million yen in the August 2026 term and 11,493 million yen in the February 2027 term, with net income also expected to decrease. Distributions per unit are planned at 4,000 yen. Due to fluctuations in the market environment and asset acquisitions and disposals, figures may vary, and distribution amounts are not guaranteed. Continuing efforts will be made to maintain an appropriate LTV and extend borrowing periods, aiming for stable operations.