Mitsui Fudosan Retail Fund Investment (8964) Q4 2024 earnings summary

Executive summary

• 40th period (Jan–Jun 2024) revenue was ¥12.162bn, up 10.2%; operating income was ¥6.785bn, up 12.9%.

• Ordinary income was ¥6.431bn and net income ¥6.430bn, each up 12.8%; DPU rose to ¥11,030 from ¥10,549.

Financial highlights

• Revenue increased ¥1.129bn period-on-period, supported by acquisitions and ¥624.376m in property-sale gains.

• Operating expenses totaled ¥5.376bn, including ¥4.602bn in rent-business expenses; real estate rent revenue was ¥11.512bn.

• Total distributions were ¥5.967bn, up ¥260m; DPU was ¥180 above forecast.

• Property NOI was ¥8.933bn, up ¥278m; leasing operating income was ¥6.935bn, up ¥183m.

Outlook and guidance

• 41st-period forecast: revenue ¥12.268bn, operating income ¥6.832bn, net income ¥6.448bn and DPU ¥10,930.

• 42nd-period forecast: revenue ¥11.476bn, operating income ¥6.103bn, net income ¥5.712bn and DPU ¥10,600.

• 42nd-period forecast includes a ¥734m lower property-sale gain than the 41st period; DPU is forecast to decline 3.0%.

• Forecasts assume 41 properties remain held through June 2025, with LTV of 44% at both Dec. 2024 and June 2025.