Nomura Real Estate Master Fund (3462) Q2 2025 earnings summary

Executive summary

• Aug. 2024 FP delivered record DPU of ¥3,450, 4.5% above the initial forecast; portfolio replacement, rent increases and asset-sale gains supported results.

• Appraisal value reached ¥1,340.0bn and unrealized gains ¥268.2bn; period-end holdings totaled 293 properties.

Financial highlights

• Revenue was ¥45,081m, operating profit ¥19,941m and net income ¥17,688m; revenue rose 14.5% and net income 36.5% year over year.

• Property-sale gains were ¥5,293m, compared with ¥542m in the prior period; net income excluding realized gains was ¥12,395m versus ¥12,650m forecast.

• DPU was ¥3,450 versus ¥3,302 forecast; higher rent and common-area charges added ¥158 per unit, while higher taxes and public dues reduced DPU by ¥35.

• Cash from operating activities was ¥53,329m; investing and financing cash outflows were ¥29,592m and ¥23,164m, respectively, and ending cash was ¥45,673m.

Outlook and guidance

• Feb. 2025 FP forecasts revenue of ¥43,278m and net income of ¥16,026m; Aug. 2025 FP forecasts revenue of ¥40,187m and net income of ¥13,321m.

• Forecast DPU is ¥3,446 for Feb. 2025 FP and ¥3,509 total for Aug. 2025 FP, including ¥338 of excess distribution; no property-sale gain is assumed for Aug. 2025 FP.

• Feb. 2025 FP forecast includes a ¥3,276m gain on the planned sale of NMF Shinjuku Minamiguchi Building; forecast distributions include split sale-gain distributions across fiscal periods.

• Office strategy targets inflation resilience through fixed-term leases, shorter lease terms and sales- or CPI-linked rents.