Hoshino Resorts REIT (3287) Q2 2025 earnings summary

Executive summary

• Nov. 2024–Apr. 2025 operating revenue was ¥7,633m and profit was ¥2,793m; DPU reached ¥4,615, ¥5 above forecast.

• Forecast distributions rise to ¥6,000 for Oct. 2025 and ¥6,200 for Apr. 2026, supported by lease changes, asset transactions and revised variable-rent timing.

Financial highlights

• Revenue was ¥7,633m, operating profit ¥3,437m, ordinary profit ¥2,691m and profit ¥2,793m; revenue was ¥12m below forecast and profit ¥96m above.

• Profit rose 2.1% YoY while operating profit fell 1.4%; distributions totaled ¥2,704m, or ¥4,615 per unit, with a 96.8% payout ratio.

• Rental NOI was ¥6,310m versus ¥6,329m forecast, with a 5.5% yield; revenue comprised fixed rent of ¥5,176m, variable rent of ¥2,235m and other revenue of ¥221m.

Outlook and guidance

• Oct. 2025 forecast: revenue ¥8,675m, operating profit ¥4,293m, ordinary profit ¥3,511m, profit ¥3,510m and DPU ¥6,000.

• Apr. 2026 forecast: revenue ¥8,853m, operating profit ¥4,433m, ordinary profit ¥3,628m, profit ¥3,627m and DPU ¥6,200.

• Revised variable-rent periods from Apr. 2026 are expected to add ~¥700 per unit, including ~¥560 from Grand Prince Hotel Osaka Bay; Osaka Bay rent benefit is expected to be ~¥360m.

• Oct. 2026 DPU is expected to exceed the pre-COVID level of ¥6,651; forecasts assume a partial reversal of the reserve for tax-purpose reduction entry and are not guaranteed.