Mitsui Fudosan Retail Fund Investment (8964) Q2 2025 earnings summary

Executive summary

• 41st-period revenue rose 1.0% YoY to ¥12.288bn; operating income increased 1.4% to ¥6.879bn, ordinary income 1.1% to ¥6.502bn and net income 1.1% to ¥6.501bn.

• Post-split distribution was ¥2,200 per unit; forecasts remain ¥2,200 for the 42nd and 43rd periods.

• Strategy focuses on sponsor-led acquisitions, rent growth and asset replacement, targeting stable ordinary-basis EPU and ¥2,400 per unit by the 50th period, with average annual growth of 3%.

Financial highlights

• 41st-period operating revenue was ¥12.288bn, including ¥11.532bn in real estate rent revenue and a ¥733m gain on property sales; operating expenses were ¥5.408bn.

• Cash from operating activities was ¥9.692bn; investing activities used ¥3.720bn and financing activities used ¥5.966bn.

• Distribution was ¥11,000 per unit before the split, ¥30 below the prior period and ¥70 above forecast; post-split equivalent was ¥2,200.

Outlook and guidance

• 42nd-period forecast: revenue ¥11.685bn, operating income ¥6.219bn, ordinary income ¥5.790bn, net income ¥5.789bn and distribution ¥2,200 per unit.

• 43rd-period forecast: revenue ¥12.040bn, operating income ¥6.304bn, ordinary income ¥5.805bn, net income ¥5.804bn and distribution ¥2,200 per unit.

• Forecast distributions include reserve-for-reduction-entry reversals of ¥161m and ¥146m, respectively; forecast LTV is ~46% for both periods.

• Medium-term distribution target: at least ¥2,200 per unit as a stable base, with potential to reach ¥2,400 or more by the 50th period (June 2029).