Invincible Investment (8963) Q4 2024 earnings summary

Executive summary

• Dec. 2024 FP operating revenue reached JPY 25,555 million and net income JPY 15,138 million; versus the prior fiscal period, they rose 20.9% and 17.3%, respectively.

• On a YoY basis, operating revenue rose 35.8% and net income 37.2%, driven by domestic hotel results and July acquisitions.

• Annual 2024 DPU was JPY 3,899, above the JPY 3,700 target and the highest since February 2010; Dec. 2024 DPU was JPY 1,982.

• July acquisitions added 12 domestic hotels for JPY 104.4 billion; the portfolio reached 146 properties with JPY 653,066 million in acquisition value.

Financial highlights

• Dec. 2024 FP operating income was JPY 17,751 million, up 21.3% from the prior FP; NOI rose 19.4% to JPY 23,451 million and NOI after depreciation rose 20.7% to JPY 18,461 million.

• Real estate rental revenue rose 55.4% from the prior FP to JPY 23,205 million; variable hotel rent increased 77.1% and fixed hotel rent 44.2%.

• Management contract revenue declined 65.3% from the prior FP to JPY 1,657 million, mainly due to Sunshine Suites Resort renovation-related closures and seasonality.

• Net income per unit was JPY 1,980; DPU excluding excess-profit distribution was JPY 1,982, with a 100.1% payout ratio.

• Operating cash flow was JPY 17,473 million; investing cash outflow was JPY 108,506 million and financing cash inflow was JPY 93,756 million.

Outlook and guidance

• June 2025 FP forecast: revenue JPY 24,570 million, operating income JPY 16,336 million, net income JPY 13,818 million and DPU JPY 1,895.

• December 2025 FP forecast: revenue JPY 27,103 million, operating income JPY 18,393 million, net income JPY 15,704 million and DPU JPY 2,056.

• Forecasts assume stronger domestic hotel performance, full-period contribution from July 2024 acquisitions, Cayman contract revenue recovery after renovations, and a temporary Osaka Expo demand uplift.

• June 2025 DPU includes a JPY 671 million retained-earnings reversal to offset renovation-related sales stoppage and higher financing costs; the forecast assumes 145 properties plus one TMK preferred equity interest and 7,646,453 units.