Mitsubishi Estate Logistics REIT Investment (3481) Q2 2025 earnings summary

Executive summary

• 17th FP DPU was ¥9,521 before the March 2025 split, ¥80 above forecast; NAV per unit rose 2.3% to ¥411,551 before split (¥137,183 after split).

• Strategy targets stabilized DPU growth above 3.5% annually and ~¥1bn in annual unrealized-gain distributions, aiming to exceed a 4.4–4.6% cost of equity at a 1x NAV multiple.

Financial highlights

• 17th FP revenue was ¥9,108mn, operating income ¥5,133mn and net income ¥4,794mn; revenue fell 0.7% and net income fell 0.8% from the prior period.

• Disposition gains were ¥1,366mn; distributions were ¥9,521 per unit before the split, with no surplus cash distribution.

• Appraised portfolio value was ¥316.7bn, with an unrealized gain of ¥51.6bn; NAV per unit was ¥411,551 before split, up ¥9,141 from 16th FP.

• Operating cash flow was ¥9,437mn, investing outflow ¥2,284mn and financing outflow ¥4,833mn; period-end cash and equivalents were ¥16,879mn.

Outlook and guidance

• Aug. 2025 forecast: revenue ¥8,011mn, net income ¥3,757mn and DPU ¥2,764 including SCD (¥2,487 excluding SCD); Feb. 2026 DPU forecast is ¥2,777 including SCD (¥2,497 excluding SCD).

• Forecasts assume Logicross Osaka Katano acquisition on Apr. 21, 2025 and no material portfolio changes otherwise; operating revenue excludes property-sale gains or losses.

• From 18th FP, disposition gains are absent; stabilized DPU growth forecast was 3.3%, with a target above 3.5% through rent growth and strategic initiatives.

• Short-term targets include annual unrealized-gain distributions of ~¥1bn; illustrative yield at NAV 1x rises from 4.1% to ~4.6% with additional returns.