GLP J-REIT (3281) Q4 2024 earnings summary

Executive summary

• Six-month revenue rose 6.3% to ¥27,448m, operating income 8.7% to ¥14,754m, ordinary income 9.3% to ¥13,112m and net income 10.2% to ¥14,003m.

• August 2024 DPU was ¥3,158, 16.7% above the October 2023 forecast; February 2025 DPU is forecast at ¥3,308.

• Portfolio occupancy was 99.5%, with rental increases achieved for 24 consecutive fiscal periods.

Financial highlights

• August 2024 NOI was ¥21.595bn, 4.4% above forecast; average occupancy was 99.9% versus 98.3% forecast.

• August DPU was ¥3,158 versus ¥2,706 initially forecast; asset dispositions contributed ¥191 per unit and internal growth ¥82 per unit versus the April forecast.

• Net income per unit was ¥2,859; distributions from retained earnings were ¥2,859 per unit, plus ¥299 per unit in OPDs.

• Operating cash flow was ¥21,036m, investing cash outflow ¥7,365m and financing cash outflow ¥13,531m; period-end cash and equivalents were ¥38,708m.

• Current-period property sales generated ¥1,112m in gains; rental revenues were ¥24,416m and other rental revenues ¥1,920m.

Outlook and guidance

• February 2025 forecast: revenue ¥28,889m, operating income ¥16,283m, ordinary income ¥14,586m and net income ¥14,772m; DPU is ¥3,016 excluding OPDs, plus ¥292 OPDs.

• August 2025 forecast: revenue ¥25,920m, operating income ¥13,460m, ordinary income ¥11,612m and net income ¥11,802m; DPU is ¥2,409 excluding OPDs, plus ¥293 OPDs.

• Lower August 2025 revenue and income mainly reflect the absence of gains from GLP Koriyama I and GLP Nara sales assumed in February 2025.

• February 2025 lease renewals cover 236,000 sqm; expected rent increases are 5%–6%, with 90% of area secured; CPI-linked renewals are also expected at 5%–6%.

• Medium-term goals include DONAV of 4.5% versus 3.9% currently, annual DPU of ¥7,000 versus ¥5,918, and steady NAV-per-unit growth from ¥153,854; annual dispositions target ¥20bn from 2025 onward.