Mitsubishi Estate Logistics REIT Investment (3481) Q4 2025 earnings summary

Executive summary

• 18th FP results beat forecast: DPU was ¥2,829 and stabilized DPU growth reached the 3.5% first-year target.

• Portfolio comprised 37 properties with ¥280,623M total acquisition price and 99.6% occupancy; one TK equity interest was also held.

• Strategy centers on rent growth, disciplined acquisitions and buybacks, asset sales to realize gains, and balancing DPU growth with NAV per unit.

Financial highlights

• 18th FP revenue was ¥8,041M versus ¥9,108M, down 11.7%; the prior period included a ¥1,366M real estate sale gain.

• Operating income was ¥4,218M, ordinary income ¥3,807M and net income ¥3,806M, down 17.8%, 20.6% and 20.6%, respectively.

• Property-related revenue was ¥8,030M and property leasing NOI was ¥6,637M.

• DPU was ¥2,829: ¥2,563 from earnings and ¥266 in SCD; total DPU fell ¥344 from 17th FP as disposition gains declined ¥1,365M.

• Operating cash flow was ¥4,505M; investing and financing cash outflows were ¥9,768M and ¥4,833M, respectively.

Outlook and guidance

• Feb. 2026 forecast: revenue ¥8,137M, operating income ¥4,249M, ordinary income ¥3,783M, net income ¥3,782M and DPU ¥2,832 including SCD.

• Aug. 2026 forecast: revenue ¥8,191M, operating income ¥4,274M, ordinary income ¥3,784M, net income ¥3,783M and DPU ¥2,835 including SCD.

• Target stabilized DPU growth of at least 3.5% in the next year, or ¥100+ to ¥2,936, using rent increases, free cash flow, sales proceeds and LTV capacity.

• Two-year NOI outlook to Aug. 2026 is +6.2% versus Aug. 2024, including +2.2% same-store growth; negotiated leasing areas offer upside.

• Rent growth is expected for the 16th consecutive period through 19th FP; forecast average rent growth is 8.0% for 19th FP and 7.0% for 20th FP.