Daiwa Office Investment (8976) Q4 2025 earnings summary

Executive summary

• 40th FP ended Nov. 30, 2025, with operating revenue of ¥16,056m (+5.6% YoY), operating income of ¥8,593m and net income of ¥7,496m.

• DPU rose to ¥8,020 from ¥6,920; EPU excluding property-sale gains grew ¥472 YoY, or 4.9% annualized.

• Occupancy reached 98.9%, with record internal rent growth; asset replacement included property sales and acquisition of Shinjuku Maynds Tower silent partnership equity.

Financial highlights

• 40th FP operating revenue was ¥16,056m, operating income ¥8,593m, ordinary income ¥7,497m and net income ¥7,496m; each increased YoY.

• Revenue included ¥14,758m of rent revenue, ¥1,226m of property-sale gains and ¥33m of dividend income; prior-period sale gain was ¥928m.

• Earnings per unit was ¥7,996, up from ¥7,348; average units outstanding declined to 937,471 from 945,736.

• Versus forecast, operating revenue exceeded plan by ¥947m and net income by ¥959m; DPU exceeded the ¥7,000 forecast by ¥1,020.

Outlook and guidance

• 41st FP forecast: revenue ¥15,672m, operating income ¥8,410m, net income ¥7,172m and DPU ¥7,250; includes a ¥852m property-sale gain and ¥97m dividend income.

• 42nd FP forecast: revenue ¥15,131m, operating income ¥7,818m, net income ¥6,440m and DPU ¥7,070; includes ¥66m dividend income and a ¥168m reserve reversal, or ¥180 per unit.

• Forecasts assume the remaining 50% interest in Daiwa Sarugakucho is sold by May 29, 2026; no replacement-asset income is included, and the property count declines from 58 to 57.

• 44th FP EPU target is ¥7,130; modeled internal growth adds ~¥155 per unit, while a 10 bps base-rate rise is estimated to reduce DPU by ~¥54 per unit.