January 2026 Term Financial Summary (REIT)

Performance Overview

For the January 2026 term, operating revenue was 3,032 million yen, operating income was 1,615 million yen, ordinary income was 1,304 million yen, and net income attributable to owners of parent was 1,303 million yen, all decreased Year-over-Year. Distribution per unit was 3,615 yen, down 3.2% Year-over-Year. Total assets amounted to 80,999 million yen, and the equity ratio was 50.0%, a decrease compared to the same period last year; however, occupancy rate was maintained at a high level of 99.0%.

Asset Management and Financial Condition

At the end of the term, 39 properties were held with a total acquisition price of 74,218 million yen. Newly acquired was the central Tokyo hotel "nine hours woman Shinjuku" purchased for 2,700 million yen. Regarding financing, short-term borrowings of 2,700 million yen and long-term borrowings of 7,797 million yen were executed, resulting in interest-bearing debt balance of 36,951 million yen and an LTV of 45.6%. The credit rating was maintained at "A- (Stable)".

Outlook

Operating revenue is projected at 3,139 million yen for the July 2026 term and 3,152 million yen for the January 2027 term, with net income attributable to owners of parent expected to be 1,273 million yen and 1,285 million yen respectively. Distribution per unit is forecasted at 3,530 yen and 3,565 yen. The strategy includes incorporating asset acquisitions and disposals while aiming to strengthen inflation resistance and improve profitability.

Governance Framework

The asset management company operates as a company with an Audit and Supervisory Committee, establishing compliance declarations and management philosophies while thoroughly managing operational flows and conflict of interest controls. The Board of Directors, including the Audit and Supervisory Committee, Compliance Committee, and Investment Management Committee are actively engaged.