Invincible Investment (8963) Q2 2025 earnings summary

Executive summary

• H1 2025 portfolio comprised 146 properties: 104 hotels, 41 residential properties and one retail facility; no acquisitions or disposals occurred during the period.

• H1 portfolio NOI rose 16.7% YoY to JPY 22,916 million, while revenue and net income declined 1.8% and 5.1% HoH, respectively.

• June-end appraisal value across 145 properties was JPY 775,647 million, up JPY 8,100 million from December 2024.

Financial highlights

• June 2025 FP revenue was JPY 25,107 million, up 18.8% YoY but down 1.8% HoH; net income was JPY 14,366 million, up 11.4% YoY but down 5.1% HoH.

• Operating income was JPY 16,935 million; NOI was JPY 22,916 million, up 16.7% YoY and down 2.3% HoH.

• DPU was JPY 1,895, including a JPY 17-per-unit retained-earnings reversal; it fell 1.1% YoY as the prior-year period included six additional months of SGTB dividend income.

Outlook and guidance

• December 2025 forecast: revenue JPY 28,145 million, operating income JPY 19,051 million, net income JPY 16,237 million and DPU JPY 2,127; DPU is 3.5% above prior guidance.

• June 2026 forecast: revenue JPY 26,315 million, operating income JPY 17,192 million, net income JPY 14,314 million and DPU JPY 1,895.

• Forecasts assume the August 2025 acquisition of 10 hotels and a 155-property portfolio thereafter; DPU forecasts include retained-earnings reversals of JPY 26 million for December 2025 and JPY 175 million for June 2026.

• Domestic hotel demand is expected to remain generally strong, with Osaka Expo-related demand fading after the event; June 2026 Cayman revenue is forecast to decline in JPY due to yen appreciation.