Mitsui Fudosan Accommodations Fund (3226) Q2 2024 earnings summary

Executive summary

• 35th Period (six months ended Aug. 31, 2023) revenue was ¥13,049 million, operating income ¥6,256 million and net income ¥5,892 million; average occupancy was 96.9%.

• DPU was ¥10,645, including ¥533 million reserved from the Dormy Ashiya sale gain; total distributions were ¥5,359 million, with a 91.0% payout ratio.

Financial highlights

• Revenue increased 5.7% to ¥13,049 million, operating income rose 7.2% to ¥6,256 million and net income increased 8.6% to ¥5,892 million.

• Net income per unit was ¥11,703; DPU was ¥10,645 versus ¥10,778 in the prior period and ¥10,330 forecast.

• Rental revenue increased ¥156 million from the prior period; the Dormy Ashiya sale contributed ¥548 million to operating results.

• Portfolio comprised 133 properties and 13,146 rentable units, with total acquisition price of ¥339,038 million at period end.

Outlook and guidance

• Feb. 2024 forecast: revenue ¥12,533 million, operating income ¥5,990 million, DPU ¥11,040 and average occupancy 97.2%.

• Aug. 2024 forecast: revenue ¥12,632 million, operating income ¥5,859 million, DPU ¥10,700 and average occupancy 97.0%.

• Forecasts assume ¥167,500 million of debt, refinancing of due loans, no new unit issuance and no property transfers through Aug. 31, 2024; no excess-earnings distribution is planned.