Industrial & Infrastructure Fund Investment (3249) Q2 2026 earnings summary

Executive summary

• Achieved record-high DPU of JPY 3,477 for July 2025, with forecasts of JPY 4,310 for Jan. 2026 and JPY 3,600 for July 2026, driven by gain on sales and NOI growth.

• Financial statements for the six months ended July 31, 2025, were audited and present fairly in accordance with Japanese GAAP.

• Realized significant gains on sale of two properties, with proceeds allocated to buybacks, acquisitions, and debt repayment.

• The company is a real estate investment corporation focused on industrial and infrastructure properties in Japan, with a portfolio of 109 properties as of July 31, 2025.

• Asset rotation and CPI-linked rent contracts are central to building an inflation-resistant portfolio.

Financial highlights

• Operating revenue for July 2025 was JPY 22,708mn (+6.8% YoY), with net income at JPY 9,295mn (+5.5% YoY).

• DPU for July 2025 was JPY 3,477 (+0.8% vs. forecast), with a record gain on sales of JPY 4.9bn.

• Total assets as of July 31, 2025, were JPY 554,125mn.

• NAV per unit reached JPY 141,920, up from JPY 141,420 in Jan. 2025.

• NOI yield for July 2025 was 5.5%, with an average rent fluctuation rate of +5.6% over five periods.

Outlook and guidance

• DPU forecast for Jan. 2026 is JPY 4,310 (including gain on sales), and JPY 3,600 for July 2026.

• Targeting annual NOI growth of 3% from 2026 to 2028, with DPU growth (excluding gain on sales) of 3% or more per year.

• Disposition pipeline of JPY 50-60bn (approx. 10% of portfolio) to fund further growth and returns.

• The company continues to focus on enhancing unitholder value through property acquisitions and selective unit buybacks.

• Dispositions of properties are scheduled through 2026, with proceeds partially allocated to unit repurchases.