Financial Summary for the Fiscal Year Ending December 2025 (REIT)

Summary of Performance

In the fiscal year ending December 2025, Frontier Real Estate Investment Corporation recorded operating revenue of JPY 12,094 million (3.1% YoY increase), operating income of JPY 6,390 million (1.5% YoY increase), ordinary income of JPY 5,908 million (0.4% YoY increase), and net income attributable to owners of parent of JPY 5,907 million (0.4% YoY increase). The distribution per unit was maintained at JPY 2,200, unchanged from the previous period. Total assets stood at JPY 343,926 million with an equity ratio of 51.0%, reflecting a stable financial base. The occupancy rate remained high at 100.0%, securing stable income through long-term fixed lease contracts with creditworthy tenants.

Outlook and Asset Acquisitions

For the operating periods ending June and December 2026, the company plans to acquire new assets including 'M Building Naha Kokusai-dori I' and 'M Building Naha Kokusai-dori II', aiming to expand and enhance the quality of the portfolio. The distribution per unit for the operating period ending June 2026 is projected at JPY 2,200, with no intention of excess profit distributions. Financially, the company maintains an LTV of approximately 43%, managing risks through the use of long-term fixed-rate borrowings and interest rate swaps as hedges. Overall, the focus remains on maintaining and growing stable distributions while leveraging the sponsor’s expertise in asset management.