Hoshino Resorts REIT (3287) Q4 2025 earnings summary

Executive summary

• 25th fiscal period ended October 2025: revenue ¥8,696m, operating profit ¥4,325m, ordinary profit ¥3,556.6m and profit ¥3,555.9m; results exceeded forecast.

• Distribution was ¥6,077 per unit, ¥77 above forecast; strong variable-rent performance contributed to the upside.

• Period-end portfolio comprised 70 properties with an acquisition price of ¥227,954m.

• Medium-term distribution targets are ¥7,000 and then ¥8,000 per unit, supported by portfolio expansion, operational improvements and tourism demand capture.

Financial highlights

• Revenue rose 13.9% and operating profit 25.8% versus the prior six-month period; revenue included a ¥158.6m gain on sale of real estate.

• Operating revenue was ¥8,696m versus ¥8,675m forecast; operating expenses were ¥4,370m versus ¥4,381m forecast, and operating profit was ¥31m above forecast.

• Ordinary profit of ¥3,556.6m and profit of ¥3,555.9m were each ¥45m above forecast; profit rose 27.3% versus the prior period.

• Operating cash flow was ¥11,664m, investing cash outflow ¥7,858m and financing cash outflow ¥2,714m; cash and equivalents ended at ¥13,985m.

• Rental NOI was ¥7,159m, ¥29m above forecast; 25th-period distribution was 1.2% above forecast.

Outlook and guidance

• April 2026 forecast: revenue ¥9,162m, operating profit ¥4,671m, ordinary profit ¥3,804m, profit ¥3,803m and distribution ¥6,500 per unit, up ¥300 from prior guidance.

• October 2026 forecast: revenue ¥9,302m, operating profit ¥4,790m, ordinary profit ¥3,898m, profit ¥3,897m and distribution ¥6,660 per unit, up ¥160 or 2.5% from the prior period.

• Osaka-area properties are expected to add ¥737 per unit from Expo demand; real-time-linked property seasonality is expected to reduce the April 2026 distribution by ~¥400.

• October 2026 outlook includes reductions of ¥85 per unit from KAI Enshu renovation closures and ¥93 from the end of OMO7 Osaka’s premium fixed-rent period; seasonality is expected to add ~¥400.

• Forecast distributions assume a partial reversal of the reserve for tax purpose reduction entry; actual results and distributions may vary.