Hoshino Resorts REIT (3287) Q4 2024 earnings summary

Executive summary

• Oct. 2024 period operating revenue was ¥7,496m and profit was ¥2,735m; distribution was ¥9,218/unit, 1.3% above forecast.

• Assets totaled ¥248,856m across 69 properties; acquisition price was ¥226,650m. A planned KAI Poroto acquisition would bring acquisition-price assets to ¥229.7bn and Hoshino Resorts-operated assets to 49.9%.

• Medium- to long-term goals are assets of ¥300bn or more and over 50% of assets operated by Hoshino Resorts.

Financial highlights

• Operating revenue rose 12.4% YoY to ¥7,496m; operating profit increased 22.4% to ¥3,486m, ordinary profit rose 18.6% to ¥2,735m and profit increased 16.9% to ¥2,735m.

• Leasing revenue was ¥7,312m and gain on sale of real estate properties was ¥161m; rental NOI reached ¥6,055m, ¥42m above forecast, at a 5.3% yield.

• Distributions totaled ¥2,700m, or ¥9,218/unit; payout ratio was 98.7%, with no distribution in excess of earnings.

• Revenue mix: fixed rent ¥4,973m (66.4%), variable rent ¥1,818m (24.3%) and other revenue ¥704m (9.4%).

Outlook and guidance

• Post-split distribution forecasts are ¥4,610/unit for Apr. 2025 and ¥5,000/unit for Oct. 2025.

• Oct. 2025 forecast revenue is ¥8,041m, operating profit ¥3,728m, ordinary profit ¥2,926m and profit ¥2,925m.

• Oct. 2025 forecast rent after the KAI Poroto acquisition is ¥8,040m, including ¥2,893m variable rent; acquisition is scheduled for Jan. 8, 2025.

• Distribution forecasts assume a partial reserve reversal and are not guaranteed; results may vary with circumstances.