Japan Real Estate Investment (8952) Q4 2025 earnings summary

Executive summary

• March 2025-period revenue rose 0.8% to ¥42,908 million and profit rose 0.1% to ¥18,863 million; occupancy reached 97.6%, EPU was ¥1,955 and DPU was ¥2,487.

• Medium- to long-term targets are average annual EPU growth of 3% and DPU growth of 2%, supported by leasing, rent revisions, acquisitions and staged asset replacement.

Financial highlights

• March 2025 operating profit was ¥20,789 million and ordinary profit was ¥19,657 million; NOI excluding property-sale gains was ¥22,976 million.

• DPU of ¥2,487 exceeded the prior ¥2,450 forecast by ¥37; profit of ¥18,863 million was ¥133 million above forecast.

• Operating revenue included a ¥6,564 million gain on sale of the 49% quasi-co-ownership interest in JRE Dojima Tower.

• A 5-for-1 unit split took effect on January 1, 2025; prior-period EPU and DPU figures are presented on a post-split basis.

Outlook and guidance

• September 2025 and March 2026 EPU forecasts are ¥1,986 and ¥1,959; DPU forecasts are ¥2,511 and ¥2,536, respectively.

• Occupancy is forecast at 97.4% in September 2025 and 98.0% in March 2026; Shinjuku Eastside Square is expected to reach 99.8% occupancy by March 2026.

• March 2026 EPU faces pressure from Shinjuku Eastside Square’s tenant cancellation and the absence of a prior-period lump-sum payment; replacement-space rents are expected to be 20% higher from March 2027.

• Akasaka Park Building disposition gains of ¥3,870 million and ¥3,900 million are assumed in September 2025 and March 2026 forecasts.