Japan Prime Realty Investment (8955) Q4 2025 earnings summary

Executive summary

• Dec. 2025 DPU reached a third consecutive record of ¥2,111, up ¥104 period-on-period and ¥76 above forecast.

• Revenue, operating income and net income declined as property-sale gains fell, while rental revenue and rents increased.

• Strategy targets annual average EPU growth of 2.4% + α and DPU growth of 3% + α through rent increases, external growth, cost control and selective use of gains.

Financial highlights

• Dec. 2025 revenue was ¥20,346m, operating income ¥10,547m and net income ¥9,446m; revenue fell 2.2% YoY and operating and net income each declined.

• Rental revenue rose to ¥18,460m from ¥17,924m, while gains on property sales fell from ¥2,879m to ¥1,886m.

• NOI rose ¥352m to ¥11,930m; average concluded-contract occupancy increased 0.2pt to 99.0%.

• Cash distributions totaled ¥8,546m, or ¥2,111 per unit; this included a ¥46m reserve reversal, while ¥946m was retained as a reserve for reduction entry.

• Net income per unit was ¥2,387 versus ¥2,602 in the prior period; comparison reflects the four-for-one unit split effective July 1, 2025.

Outlook and guidance

• 49th-period forecast: revenue ¥20,746m, operating income ¥10,731m, net income ¥9,573m and DPU ¥2,139; 50th-period forecast: ¥19,382m, ¥9,234m, ¥7,962m and ¥2,120, respectively.

• Rental income-real estate is forecast at ¥10,040m in Jun. 2026 and ¥10,317m in Dec. 2026; the latter assumes reserve drawdown and excludes property-sale gains.

• Forecasts assume no acquisitions or sales after Feb. 16, 2026; the 49th-period sale gain is forecast at ¥1,796m, with ¥962m internally reserved.

• Rent growth is forecast at 2.3% from Dec. 2025 to Dec. 2026, above the 1.8% medium-term annual target; further rent increases are expected to outpace interest and other cost growth.

• Forecast results and distributions are assumption-based, not guarantees, and may vary with rents, tenant turnover, transactions, repairs, economic conditions and financial markets.