One REIT Investment Corporation February 2026 Term (25th Period) Financial Presentation Materials

Performance Overview

Operating revenue for the February 2026 term was 4,690,444 thousand yen and net income was 1,922,064 thousand yen. While operating revenue slightly declined compared to the same period last year, net income exceeded forecasts. Distribution per unit was 2,386 yen, up 7.5% from the forecast, strengthening returns to investors. Increased rental income and gains from property sales contributed positively.

Asset Scale and Portfolio Expansion

In March 2026, five hotel properties and one office property were acquired, pushing the asset scale beyond 150 billion yen. The hotel portfolio aims to improve profitability through regional diversification and expanded inbound demand. Office buildings maintain rent increases and high occupancy rates to promote qualitative enhancements. The LTV remained stable at 48.5%.

Financial Condition and Fundraising

Leveraging the strengths of financial sponsors, short-term maturities and variable interest rate borrowings are actively utilized. For the March 2026 property acquisitions, funds were raised via public offering of 12.9 billion yen and borrowings of 15 billion yen. Although the average interest rate rose to 1.067%, the fixed interest ratio is maintained at a high level of 80.5%. Maturity dates are also diversified.

Outlook

The earnings forecast for the August 2026 and February 2027 terms anticipates impacts from declines in gains on property sales and rental income decreases. However, contributions from newly acquired properties and the use of retained earnings are expected to result in a distribution per unit of 2,170 yen. Profit maximization will be pursued through hotel rebranding and investments targeting upside potential.