Mitsubishi Estate Logistics REIT Investment (3481) Q2 2026 earnings summary

Executive summary

• 19th FP revenue was ¥8,153mn, operating income ¥4,317mn and net income ¥3,860mn; DPU was ¥2,835, ¥3 above forecast, and NAV per unit rose 1.8% to ¥142,190.

• At Feb. 28, 2026, the portfolio comprised 37 properties with 99.9% occupancy; excluding two properties sold Mar. 31, it comprised 35 properties with ¥277.7bn in assets and 99.7% occupancy.

• Disposition gains and internal growth support higher Aug. 2026 distributions; Feb. 2027 DPU is forecast at ¥2,836 amid vacancies and higher financing costs.

Financial highlights

• 19th FP revenue rose 1.4% YoY to ¥8,153mn; operating income increased 2.4% to ¥4,317mn, ordinary income 1.4% to ¥3,861mn and net income 1.4% to ¥3,860mn.

• DPU was ¥2,835, including ¥235 SCD; excluding SCD, DPU was ¥2,600. AFFO per unit was ¥3,358 and AFFO payout ratio 84.4%.

• Net income exceeded forecast by ¥54mn, mainly due to lower expenses; DPU exceeded forecast by ¥3.

• Operating cash flow was ¥6,041mn, investing cash outflow ¥332mn and financing cash outflow ¥4,570mn; period-end cash and equivalents were ¥14,631mn.

Outlook and guidance

• Aug. 2026 forecast: revenue ¥8,718mn, including ¥671mn disposition gain; operating income ¥4,705mn, net income ¥4,201mn and distributions of ¥2,829 per unit excluding SCD plus ¥283 SCD.

• Feb. 2027 forecast: revenue ¥8,004mn, operating income ¥4,203mn, net income ¥3,650mn and distributions of ¥2,458 per unit excluding SCD plus ¥378 SCD; occupancy forecast at 98.0%.

• Feb. 2027 NOI target is +3.8% over two years; same-store NOI target is +2.4%, excluding leasing-focused assets, supported by vacancy backfilling and growth initiatives.

• Revised short-term target is average DPU of ¥2,936, supported by internal growth, reinvestment of free cash, appraisal-value LTV capped at 40% and unrealized-gain distributions.