Mitsui Fudosan Accommodations Fund (3226) Q4 2024 earnings summary

Executive summary

• 36th Period (Sep 2023–Feb 2024) DPU was ¥11,459, ¥419 above forecast; average occupancy was 97.1%.

• Portfolio comprised 136 properties with acquisition price of ¥342,138m, focused on rental apartments and steady AUM growth.

Financial highlights

• Revenue was ¥12,586m, operating income ¥6,170m and net income ¥5,769m; down ¥462m, ¥85m and ¥122m YoY, respectively.

• Property-leasing NOI was ¥9,485m versus ¥9,101m in the prior period; NOI yield was 5.6% versus 5.3%.

• DPU rose ¥814 YoY; the prior period included a ¥548m property-sale gain, of which ¥533m was retained as internal reserves.

• Operating cash flow was ¥7,307m, investing cash flow -¥4,665m and financing cash flow -¥5,359m.

Outlook and guidance

• 37th Period forecast: revenue ¥12,711m, operating income ¥5,910m, net income ¥5,467m and DPU ¥10,860; average occupancy forecast at 97.0%.

• 38th Period forecast: revenue ¥12,668m, operating income ¥6,113m, net income ¥5,644m and DPU ¥11,210; average occupancy forecast at 97.1%.

• 37th Period DPU decline reflects seasonality and higher expenses, including repairs and real estate taxes; the 38th Period forecast assumes seasonal income growth and lower expenses.

• Forecasts assume 136 properties, no acquisitions or disposals, 503,472 units outstanding and unchanged debt of ¥167,500m; no excess-earnings distributions are planned.