Japan Real Estate Investment (8952) Q4 2026 earnings summary

Executive summary

• H2 FY2026 revenue rose 3.3% to ¥42,443 million and profit rose 4.5% to ¥18,605 million versus the prior six-month period; DPU increased to ¥2,536.

• March 2026 occupancy improved 1.5 percentage points to 98.9%, supported by rent revisions, strong office demand and acquisitions.

• Total assets were ¥1,122,234 million at period-end; book-value LTV was 44.8%.

Financial highlights

• March 2026 operating revenue was ¥42,443 million, operating profit ¥20,594 million, ordinary profit ¥18,926 million and profit ¥18,605 million.

• Real estate sale gains totaled ¥5,627 million, including ¥3,946 million from Akasaka Park Building and ¥1,681 million from JRE Tenjin Crystal Building.

• EPU was ¥1,966 and DPU ¥2,536; DPU rose ¥25 from the prior period and was in line with forecast.

• NOI excluding property-sale gains was ¥23,808 million versus ¥23,895 million in September 2025.

Outlook and guidance

• September 2026 forecast: revenue ¥43,860 million, profit ¥19,130 million, EPU ¥1,980 and DPU ¥2,561; March 2027 forecast: revenue ¥42,360 million, profit ¥18,300 million, EPU ¥1,990 and DPU ¥2,586.

• Forecasts include property-sale gains of ¥5.7 billion for September 2026 and an Akasaka gain for March 2027; the latter DPU also assumes a ¥113-per-unit retained-earnings reversal.

• EPU is forecast to rise 4% across three periods from March 2026 to September 2027, averaging 2.7% annual growth; medium- to long-term targets are 3% annual EPU growth and 2% DPU growth.

• Rent growth from existing properties and acquisitions is expected to more than offset higher interest expense; occupancy is forecast at 98.5% in September 2026 and 99.0% in March 2027.