Mitsui Fudosan Logistics Park (3471) Q2 2025 earnings summary

Executive summary

• H1 FY2025 revenue rose 4.8% YoY to ¥12.413bn; operating income increased 1.7% to ¥4.821bn, while ordinary income and net income each declined 1.1%.

• DPU reached ¥9,214, including ¥2,044 in distributions in excess of earnings, marking 15 consecutive periods of DPU growth; occupancy remained 100%.

• The 30-property portfolio had an acquisition price of ¥399.7bn; the planned merger is expected to expand it to 49 properties and ¥576.5bn, subject to approvals.

Financial highlights

• H1 FY2025 operating revenue was ¥12.413bn, operating income ¥4.821bn, ordinary income ¥4.360bn and net income ¥4.359bn.

• Revenue increased ¥567m from the prior period; NOI was ¥9.508bn and FFO ¥7.656bn, with a 73.2% payout ratio.

• Property leasing expenses rose to ¥6.202bn from ¥5.849bn YoY; net income decreased ¥46m from the prior period as merger-related and other expenses offset revenue growth.

• Total distributions were ¥9,214 per unit, including ¥2,044 per unit in excess of retained earnings; payout ratio was 100.0%.

• Merger expenses were ¥68.6m in H1 FY2025, versus ¥118.2m in the prior period.

Outlook and guidance

• Adjusted DPU forecasts are ¥9,314 for the 17th period, ¥9,624 for the 18th and ¥9,912 for the 19th; forecast net income is ¥4.128bn, ¥5.181bn and ¥6.096bn, respectively.

• For the three months ending October 31, 2024, forecast revenue is ¥6.408bn and net income ¥2.064bn; total forecast distribution is ¥4,657 per unit, including ¥1,261 in excess of retained earnings.

• Post-merger DPU is projected at ¥14,516 for the first nine-month period (six-month equivalent ¥9,624) and ¥9,912 for the next normal period, on a pre-unit-split basis.

• Forecasts assume merger completion on November 1, 2024; the 17th period is shortened to three months and the 18th period extended to nine months.

• The October forecast includes ¥187m of one-time merger expenses and ¥1.574bn of depreciation; repair costs may differ materially from estimates.