Hulic Reit (3295) Q4 2026 earnings summary

Executive summary

• Portfolio exchanges and rent growth lifted 24th FP adjusted EPU to ¥3,647 and DPU to ¥4,050, achieving the two-year adjusted EPU target a year early and exceeding the DPU target.

• Strategy shifted from stability toward asset replacement to improve portfolio quality and growth potential, with average annual adjusted EPU growth targeted at 2%.

Financial highlights

• 24th FP operating revenue was ¥12,653mn, operating profit ¥7,008mn, ordinary profit ¥6,060mn and net profit ¥6,059mn; revenue declined 1.0% YoY while operating profit rose 1.0% and net profit rose 0.7%.

• DPU was ¥4,050, ¥50 above forecast and up from ¥4,000; adjusted EPU was ¥3,647, up ¥106 or 3.0% vs forecast.

• Real estate lease revenue was ¥11,416mn, including ¥1,237mn of property-sale gains; existing-property rent growth and reduced downtime supported lease revenue.

• Real estate leasing income increased to ¥7,566.7mn from ¥7,355.2mn; operating expenses declined to ¥5,644.9mn from ¥5,839.8mn.

• Hotel variable rent was ¥746mn, ¥80mn above forecast.

Outlook and guidance

• 25th and 26th FP forecasts set DPU at ¥4,000 each and adjusted EPU at ¥3,355 and ¥3,550, respectively.

• Medium-term targets include average annual adjusted EPU growth of 2%, average annual NOI growth of 3%, and ¥50bn–¥60bn+α of further asset replacements from 25th FP.

• Forecast occupancy is 99.4% for offices and 99.8% for the portfolio in 25th FP, rising to 99.6% and 99.9% in 26th FP; forecasts assume no portfolio changes from 62 properties as of the report date.

• Five Network Centers are scheduled for transfer in 25th FP, with forecast gains on sales of ¥1,113mn; fire-related insurance proceeds are forecast at ¥107mn in 25th FP and ¥69mn in 26th FP.