Invincible Investment (8963) Q4 2025 earnings summary

Executive summary

• Operating revenue rose 13.9% vs. the previous fiscal period to ¥28,591 million; net income increased 16.2% to ¥16,688 million, supported by hotel operations and acquisitions.

• Portfolio NOI rose 10.0% YoY to ¥25,800 million; NOI increased 12.6% vs. the previous fiscal period.

• DPU increased 15.4% to ¥2,186; annual DPU reached ¥4,081, the highest since February 2010.

• Ten domestic hotels acquired for ¥34,284 million expanded the portfolio to 156 properties, including 114 hotels, 41 residential properties and one retail facility.

Financial highlights

• Operating income increased 14.0% to ¥19,309 million; ordinary income rose 16.2% to ¥16,689 million vs. the previous period.

• Hotel rents rose 31.3% to ¥23,702 million; variable rents increased 36.8% and fixed rents 33.1% vs. the previous period, reflecting hotel strength and acquisitions.

• Operating expenses rose 13.6% to ¥9,282 million, including increases of 42.7% in taxes and public charges and 9.6% in depreciation expenses.

• Net income per unit was ¥2,182, up from ¥1,878; DPU was ¥2,186, including a ¥4 per-unit retained-earnings reversal.

• Operating cash flow was ¥19,864 million; investing cash outflow was ¥38,459 million, financing cash inflow ¥15,190 million and period-end cash ¥39,400 million.

Outlook and guidance

• June 2026 forecast: revenue ¥26,581 million, operating income ¥17,212 million, net income ¥14,354 million and DPU ¥1,895.

• December 2026 forecast: revenue ¥29,077 million, operating income ¥19,476 million, net income ¥16,369 million and DPU ¥2,186.

• DPU guidance includes retained-earnings reversals of ¥135 million for June and ¥345 million for December 2026 to support distribution stability.

• Forecasts assume 155 properties plus one TMK preferred equity interest, 7,646,453 units and ¥348,654 million of interest-bearing liabilities through December 2026.