Japan Logistics Fund (8967) H2 2024 earnings summary

Executive summary

• Celebrated 20th anniversary by accelerating the “Develop the Value 2.0” strategy, targeting DPU of ¥2,100+ within a year through property reshuffling and acquisitions.

• Shifted distribution policy from net income to FFO basis to enhance dividend stability and sustainability.

• Implemented distributions in excess of earnings and reversal of internal reserves to maintain DPU without property sales.

• Operating revenue for the six months ended January 31, 2025 was ¥10,738 million, up 0.2% from the previous period; net income rose 1.6% to ¥5,404 million.

• Completed a buyback and cancellation of 9,979 investment units (1.1% of pre-buyback units) for ¥2,652 million to enhance unitholder value.

Financial highlights

• Asset size: ¥289.3B; Appraisal value: ¥413.3B; Number of properties: 52.

• FP 2025/1 actual DPU: ¥1,859; FP 2025/7 and FP 2026/1 forecast DPU: ¥2,150.

• NAVPU: ¥106,690; Unrealized gain: ¥158.9B (62.5% of portfolio).

• LTV based on appraisal value: 29.0%; Interest coverage ratio: 15.3x.

• Net assets at period-end were ¥140,839 million, with a net assets to total assets ratio of 51.7%.

Outlook and guidance

• DPU target of ¥2,150+ to be maintained, with FFOPU growth targeted at 2.2% CAGR.

• For the six months ending July 31, 2025, operating revenue is forecast at ¥11,594 million (+8.0%), net income at ¥6,107 million (+13.0%), and dividends per unit at ¥2,150.

• FFO payout ratio to be controlled around 80–85% after FP 2025/7.

• Guidance incorporates gains from property sales and swaps, with reserves for reduction entry applied for tax efficiency.

• Continued capital recycling and property acquisitions to drive future growth.