Notice Regarding Revision of Operational Status and Dividend Forecast (No Dividend) and Recording of Impairment Loss for the Fiscal Year Ending February 2026

Details of Operational Status and Dividend Forecast Revision

Operating revenues for the fiscal year ending February 2026 (September 1, 2025 to February 28, 2026) are expected to be 2,882 million yen, a slight decrease from the previous forecast. However, operating income has significantly deteriorated from a projected profit of 1,573 million yen to a loss of 3,323 million yen. Likewise, ordinary income and net income are also expected to record large deficits. The dividend per unit has been revised from the previous forecast of 2,773 yen to 0 yen. This is attributable to recording an impairment loss of 4,933 million yen due to a significant decline in the recoverable amount caused by delays in renovation work from lease contract cancellations of Fukuoka Green Building, increased construction costs, and material and labor shortages.

Future Outlook and Impact

The absence of dividends will have a significant impact on investors, and efforts will be made to resume dividend payments as soon as possible. The disclosure of the financial summary originally scheduled for April 15, 2026, has been postponed to April 28. Additionally, 445 million yen has been recorded as corporate tax, with no expectation of re-tenanting completion or property sales during the fiscal year ending February 2027. The number of units outstanding remains unchanged at 467,099 units. Interest-bearing debt amounts to 49,500 million yen, with a loan-to-value (LTV) ratio estimated at 49.8%. Earnings forecasts may fluctuate in response to changes in asset conditions and market environment.