Earnings Presentation Materials for the Fiscal Year Ending February 2026 (40th Term)

Summary of Performance

Operating revenue for the fiscal year ending February 2026 decreased by 2,245 million yen YoY to 32,063 million yen; however, internal growth centered on residential facilities drove an increase in distribution per unit to 3,458 yen (up 170 yen YoY). Operating income was 14,205 million yen and net income attributable to owners of parent was 12,213 million yen, both down YoY. Although property sale gains declined, portfolio quality was enhanced through increased rental income and advancing repair work. LTV was stably managed at 45.5%.

Asset Management and Growth Strategy

The diversified portfolio includes logistics facilities, residential facilities, commercial facilities, and hotels, maintaining a high occupancy rate of 99.1%. Property replacement continues with acquisition of high-growth potential assets and selective disposal of assets with limited growth. Approximately 7 billion yen was used for treasury unit acquisitions to improve capital efficiency. The corporation aims for an average annual distribution growth of 2% through fiscal August 2028, promoting both external and internal growth.

Financial Condition and ESG Initiatives

Interest-bearing debt stands at approximately 408 billion yen, with refinancing and utilization of variable interest rates reducing interest costs. Sustainable finance accounts for 14.8% of borrowings. In ESG evaluations, the corporation achieved the highest CDP Climate Change rating 'A' for five consecutive years and received '4 Stars' from the GRESB Real Estate Assessment for eight consecutive years. Environmental certification covers 73.7% of total floor area, maintaining a high standard.

Outlook

Earnings forecasts for the fiscal periods ending August 2026 and February 2027 indicate expected decreases in operating revenue, although revenue contributions from residential facilities and hotels are anticipated. Distributions are forecasted at 2,920 yen for the August 2026 period and 2,950 yen for the February 2027 period (on a normalized basis). The corporation continues to drive growth acceleration through property acquisitions that increase DPU and ongoing treasury unit acquisitions.