Industrial & Infrastructure Fund Investment (3249) Q4 2026 earnings summary

Executive summary

• DPU for the 37th period reached JPY 4,506, a record high, with forecasts of JPY 4,000 and JPY 3,750 for the 38th and 39th periods, driven by internal growth, asset recycling, and new acquisitions.

• Realized JPY 3.5 billion in gains on sales, including disposition of leased land properties, enhancing portfolio inflation resilience.

• Maintained high occupancy rate of 99.4% across 110 properties, with a total acquisition price of JPY 517.7 billion and appraisal value of JPY 642.0 billion.

• Financial statements for the six months ended January 31, 2026, were audited and present fairly in accordance with Japanese GAAP.

• The company operates as a real estate investment corporation focused on industrial and infrastructure properties in Japan.

Financial highlights

• Operating revenue for the 37th period rose 5.8% year-over-year to JPY 24,023 million; operating income increased 16.7% to JPY 12,488 million.

• Net income grew 18.0% year-over-year to JPY 10,965 million; DPU (excluding gains on sales) was JPY 3,246.

• NAV per unit increased to JPY 144,121, despite property sales.

• Six properties were sold for JPY 26.6 billion and three acquired for JPY 17.5 billion.

• Cash and cash equivalents at period end were JPY 24,483 million.

Outlook and guidance

• DPU forecasts for the 38th and 39th periods are JPY 4,000 and JPY 3,750, with targeted annual NOI growth of 3.0% (2026–2028) and steady distribution of disposal gains.

• DPU excluding gains on sales is targeted at JPY 3,180 for the 38th and 39th periods, with a medium-term goal of JPY 3,400 within one to two years.

• Pipeline acquisitions of JPY 85 billion and a disposal pipeline of JPY 60 billion are expected over two to three years.

• The company intends to continue making distributions in excess of profit as unit capital refunds, distributing over 90% of distributable profit.

• New accounting standards for leases and subsequent events will be adopted from the six months ending January 31, 2028.