Hulic Reit (3295) Q2 2025 earnings summary

Executive summary

• 21st FP ended Aug. 31, 2024, with operating revenue of ¥11,504 million, operating profit of ¥6,066 million, profit of ¥5,256 million, DPU of ¥3,654 and adjusted EPU of ¥3,442.

• Portfolio comprised 67 properties valued at ¥392.7 billion, with 99.5% occupancy and ¥74.7 billion in unrealized gains.

• Revised guidelines prioritize portfolio growth, targeting ~70% office and retail, ~20% hotels and ~10% assets for other uses.

Financial highlights

• Operating revenue rose 1.6%; operating profit increased 1.8% to ¥6,066 million, ordinary profit was ¥5,257 million and profit was ¥5,256 million.

• DPU of ¥3,654 exceeded forecast by ¥74, or 2.1%; adjusted EPU of ¥3,442 exceeded forecast by ¥68, or 2.0%.

• Gains on property sales were ¥430 million; real estate lease revenue was ¥11,074 million.

• Net cash from operating activities was ¥10,932 million; investing activities used ¥3,108 million and financing activities used ¥5,675 million.

Outlook and guidance

• 22nd FP forecast: revenue ¥10,948 million, operating profit ¥5,669 million, profit ¥4,824 million and DPU ¥3,500; adjusted EPU ¥3,350.

• 23rd FP forecast: revenue ¥11,003 million, operating profit ¥5,691 million, profit ¥4,824 million and DPU ¥3,500; adjusted EPU ¥3,350.

• Average occupancy is forecast at 99.3% in both periods; assumptions hold the portfolio at 67 properties, with no acquisitions or dispositions through August 2025.

• Hotel variable rent is forecast at ¥171 million across the next two periods; forecasts also assume refinancing debt maturities and may vary with rents, repairs and market conditions.