Global One Real Estate Investment (8958) Q4 2024 earnings summary

Executive summary

• 42nd-period stabilized EPU was ¥2,447, exceeding the ¥2,400 target; DPU was ¥2,528, ¥128 above the initial forecast, with part of Otemachi sale gains reserved.

• Portfolio occupancy was 96.2% at September-end; priorities include rent growth, asset replacement, and portfolio expansion toward ¥250 billion by March 2026–March 2028.

• 42nd-period revenue and net income declined versus the prior six-month period; forecasts call for higher profit in March 2025, followed by lower results in September 2025, reflecting sale timing.

Financial highlights

• 42nd-period revenue was ¥6,486 million, operating profit ¥3,243 million, ordinary profit ¥2,817 million, and net income ¥2,816 million; revenue fell 9.4% and operating profit 14.1%.

• Property-related profit rose 2.9% to ¥3,511 million and NOI rose 1.4% to ¥4,428 million; lower utilities, repairs, and property-management expenses supported results versus forecast.

• Net income per unit was ¥2,774; DPU was ¥2,528, with total distributions of ¥2,535 million and a 90.0% payout ratio.

• Total assets were ¥205,756 million and net assets ¥101,921 million at September-end; operating cash flow was ¥5,701 million and period-end cash was ¥5,346 million.

Outlook and guidance

• March 2025 forecast: revenue ¥6,870 million, operating profit ¥3,660 million, ordinary profit and net income ¥3,231 million each, and DPU ¥3,238.

• September 2025 forecast: revenue ¥6,303 million, operating profit ¥3,281 million, ordinary profit ¥2,825 million, net income ¥2,824 million, and DPU ¥2,535.

• March 2025 guidance includes ¥910 million gain on the Arca Central transfer and ¥180 million on Otemachi First Square; September 2025 guidance includes ¥710 million Arca Central gain.

• Priorities include stabilized EPU above ¥2,400, rent increases above inflation, full occupancy at Yokohama, quality acquisitions, and portfolio growth toward ¥250 billion by March 2026–March 2028.

• Shinagawa’s scheduled tenant move-out is expected to reduce EPU by ¥200 from the 45th period; sale with alternative-property acquisition or retention with vacancy backfill are under consideration.