Japan Excellent (8987) H2 2026 earnings summary

Executive summary

• Focused on sustained EPU growth (2%+ annually) and DPU increases through strategic property replacements and acquisitions, leveraging gains on transfers and internal reserves.

• Proactive rent revisions and high occupancy (98.1%) support stable internal growth.

• ESG initiatives and external certifications remain a priority, with strong GRESB ratings and ambitious CO2 reduction targets.

• Total revenues for the 40th period (Jan 1–Jun 30, 2026) were ¥11,604 million, slightly down from ¥11,672 million in the previous period.

• Net income for the 40th period was ¥4,399 million, up from ¥4,350 million in the 39th period.

Financial highlights

• 40th period (June 2026) operating revenue: ¥11,604 million, net income: ¥4,399 million, DPU: ¥3,070, NAV per unit: ¥178,272.

• Unrealized gain: ¥83.3 billion (29.9% of book value), asset size: ¥297.4 billion.

• LTV (total asset basis): 45.5%, fixed interest rate ratio: 74.7%.

• NOI: ¥7,043 million, EBITDA: ¥6,999 million, FFO: ¥5,519 million.

• Operating income for the 40th period was ¥5,265 million, up from ¥5,157 million in the 39th period.

Outlook and guidance

• 41st period (Dec 2026) forecast: operating revenue ¥13,123 million, net income ¥5,529 million, DPU ¥3,100.

• 42nd period (June 2027) forecast: operating revenue ¥11,080 million, net income ¥3,751 million, DPU ¥3,130.

• EPU expected to temporarily decline due to property transfers, but DPU to rise via gains on sale and reserve utilization.