Financial Summary for the Fiscal Year Ending February 2026 (REIT)

Performance Overview

For the fiscal year ending February 2026, operating revenue was 32,063 million JPY (YoY -6.5%), operating income was 14,205 million JPY (YoY -16.3%), ordinary income was 12,216 million JPY (YoY -18.7%), and net income attributable to owners of parent was 12,213 million JPY (YoY -18.7%). Total distributions amounted to 15,698 million JPY, with a distribution per unit of 3,458 JPY (including excess profit distributions). The number of outstanding investment units increased to 4,539,845 units compared to the same period last year.

Portfolio and Asset Management Status

At the end of the term, the portfolio comprised 231 properties with asset scale of 915.4 billion JPY. The portfolio includes diversified assets such as logistics facilities, residential properties, commercial facilities, and hotels, maintaining high occupancy rates. In September 2025, one logistics facility was sold for 9.3 billion JPY; one hotel property was acquired in November 2025 for 10.1 billion JPY; and one residential property was acquired in February 2026 for 2.6 billion JPY. The LTV stands at 43.5%, ensuring financial stability.

ESG and Sustainability Initiatives

Based on the Daiwa House Group’s fundamental stance, asset management is conducted with attention to Environmental, Social, and Governance (ESG) factors. Climate change initiatives include setting GHG emission reduction targets and disclosing information in accordance with TCFD recommendations. The Corporation has achieved the highest "A" rating for five consecutive years in the CDP Climate Change Program and received the GRESB "4-Star" rating. Additionally, it has been certified as a Health & Productivity Management Organization 2026 (Small and Medium Enterprise category) for four consecutive years, strengthening its human capital management.

Outlook

For the fiscal years ending August 2026 and February 2027, operating revenue and net income are projected at approximately 30.3 billion JPY and 11.2 billion JPY respectively. Distributions are expected to be approximately 2,920 to 2,950 JPY per unit. An acquisition plan includes a hotel property in Kumamoto scheduled for December 2026. The Corporation will continue to monitor financial and economic conditions closely while aiming to enhance asset quality and secure stable earnings.