Hulic Reit (3295) Q2 2026 earnings summary

Executive summary

• Asset exchanges totaling ¥50.3bn, or 12.7% of the portfolio, advanced the replacement strategy and improved portfolio profitability, growth potential and quality.

• Aug. 2025 revenue rose 2.6% to ¥12,782mn and profit increased 1.5% to ¥6,016mn; DPU remained ¥4,000.

Financial highlights

• 23rd FP operating profit was ¥6,942mn and ordinary profit ¥6,016mn; adjusted EPU was ¥3,509, 2.0% above forecast.

• Real estate leasing income rose to ¥7,355mn from ¥7,115mn; the Chiba Network Center sale generated a ¥1,347mn gain.

• Internal reserves totaled ¥949mn, or ¥659 per unit.

• Total assets were ¥423,654mn and net assets ¥201,460mn at Aug. 31, 2025.

Outlook and guidance

• DPU forecast at ¥4,000 for Feb. 2026 and Aug. 2026; revenue forecasts are ¥12,535mn and ¥11,922mn, respectively.

• Adjusted EPU forecasts are ¥3,541 for Feb. 2026 and ¥3,375 for Aug. 2026; the target is ¥3,550 for Feb. 2027.

• Forecasts assume transfer of five Network Centers in Aug. 2026; discussions are ongoing and the transfers may not occur.

• Asakusa View Hotel guest-room, entrance and top-floor bar renovations are scheduled to finish in autumn 2026; renovated hotel revenue is expected to support progress toward the EPU target.