Daiwa Office Investment (8976) Q4 2023 earnings summary

Executive summary

• 36th FP ended November 2023 with 97.7% occupancy across 58 properties and a ¥13,700-per-unit distribution, supported by an internal-reserve reversal.

• Rental operating gain excluding property-sale gains increased to ¥8,087 million from ¥7,543 million in the prior period.

Financial highlights

• Revenue was ¥13,646 million, operating income ¥6,748 million, ordinary income ¥6,152 million and net income ¥6,192 million.

• Revenue fell 9.3% YoY; the prior period included a ¥1,519 million property-sale gain, while no sale gain was recorded in the 36th FP.

• Total assets were ¥482.2 billion and net assets ¥247.5 billion at November 30, 2023.

Outlook and guidance

• 37th FP forecast: revenue ¥13,614 million, operating income ¥6,818 million, net income ¥6,169 million and distribution ¥13,700 per unit.

• 38th FP forecast: revenue ¥13,876 million, operating income ¥6,664 million, net income ¥5,930 million and post-split distribution ¥6,850 per unit.

• Forecasts assume acquisition of S-GATE FIT Nihonbashi Bakurocho by March 29, 2024, and completion of the Kandasudacho 2-Chome development in June 2024; results and distributions may vary.

• Forecast occupancy is 96.6% at 37th FP-end and 96.6% at 38th FP-end; 38th FP average occupancy is 94.3%, reflecting lease-up at Daiwa Akihabara.