Mitsui Fudosan Logistics Park (3471) Transition period summary

Executive summary

• The 17th fiscal period covered Aug. 1–Oct. 31, 2024, a shortened three-month transition period; the merger with Advance Logistics Investment Corporation took effect Nov. 1.

• The merger expanded the portfolio from 30 to 49 properties and assets to ¥576.4bn, creating a dual-sponsor platform with Mitsui Fudosan and the Itochu Group.

• Revenue and distribution growth continued for the 16th consecutive period on a six-month comparison basis.

Financial highlights

• Actual 17th-period revenue was ¥6,498m, operating income ¥2,369m, ordinary income ¥2,127m and net income ¥2,126m.

• On an adjusted six-month basis, 17th-period revenue was ¥12,996m, operating income ¥4,739m, net income ¥4,253m and FFO ¥7,557m; DPU was ¥2,328.

• Actual distribution was ¥4,657 per unit, comprising ¥3,498 from earnings and ¥1,159 in excess of retained earnings; adjusted DPU grew 4.7% YoY, including a ¥29 temporary distribution for merger-related expenses.

• NAV per unit was ¥122,474 at the end of the 17th period; portfolio unrealized gains were ¥87.9bn.

Outlook and guidance

• Adjusted DPU forecasts are ¥2,406 for the 18th period and ¥2,478 for the 19th, supported by acquisitions, rent growth and merger-related reserves.

• The 18th-period forecast includes ¥17,193m of negative-goodwill gain in net income; estimated negative-goodwill income of ¥25,932m is forecast for the period ending July 2025.

• Strategy targets continued DPU and NAV growth through acquisitions, positive rent reversions, inflation-responsive leases and selective asset turnover; projected post-merger NAV per unit is ¥126,316 at the end of the 18th period.