Japan Logistics Fund (8967) H1 2026 earnings summary

Executive summary

• FFO per unit for FP 2026/7 reached JPY 2,415, up 2.9% year-over-year, with DPU at JPY 2,365, a 10% increase over the initial forecast and 2.8% above the previous period.

• Operating revenue for the six months ended July 31, 2026, was ¥12,159 million, up 1.9% year-over-year, with operating income at ¥7,281 million (+5.9%) and net income at ¥6,770 million (+5.7%).

• Portfolio comprised 54 logistics properties, concentrated in major Japanese metropolitan areas, with high unrealized gains and a strong acquisition pipeline.

• Asset management focuses on sustainable growth, leveraging favorable leasing conditions and inflation resilience.

• The period saw property acquisitions, a property sale, and a buyback and cancellation of 294 investment units to enhance unitholder value.

Financial highlights

• AUM (appraisal value) stands at JPY 420.5 billion across 54 properties; market capitalization is JPY 271.5 billion.

• Net income for FP 2026/7 was JPY 6,770 million, up JPY 363 million period-on-period.

• Distributions per unit were JPY 2,365, with a payout ratio of 95.9%.

• NOI yield after depreciation is 5.1%; occupancy rate at period-end was 96.7%.

• LTV was 44.8% (total assets basis), and credit ratings remained AA-/AA (stable outlook).

Outlook and guidance

• FFOPU is forecast to reach JPY 2,440 in FP 2027/1 and JPY 2,450 in FP 2027/7; DPU is forecast at JPY 2,200 and JPY 2,250, respectively.

• For the six months ending January 2027, operating revenue is forecast at ¥11,544 million (-5.1%), net income at ¥5,913 million (-12.7%), and distributions per unit at ¥2,200.

• Medium-term targets include FFO per unit growth of +2.2% per year and DPU of ¥2,300 by January 2028.

• Guidance assumes continued property acquisitions/dispositions and no distributions in excess of earnings due to internal reserves.

• Re-leasing spread for FP 2027/1 expected at +7.8%, maintaining strong rent growth momentum.