Nomura Real Estate Master Fund (3462) Q4 2024 earnings summary

Executive summary

• 17th fiscal period revenue was ¥39,375 million and net income ¥12,958 million; portfolio occupancy was 98.9% across 291 properties at period-end.

• DPU was ¥3,414, including ¥524 per unit in excess of net income; asset replacement shifted the portfolio toward hotels and away from offices.

Financial highlights

• Operating revenue fell 9.8% YoY to ¥39,375 million; operating profit declined 19.9% to ¥15,172 million, and ordinary income and net income fell 22.5% and 22.6%, respectively, to ¥12,958 million.

• Property-sale gains were ¥542 million versus ¥4,706 million in the prior period; rental revenue was ¥35,631 million versus ¥35,801 million.

• Net income per unit was ¥2,748, down from ¥3,551; total assets were ¥1,187,285 million and net assets ¥611,611 million at period-end.

• Operating cash flow was ¥22,414 million, investing cash outflow ¥12,267 million and financing cash outflow ¥16,082 million; ending cash and equivalents were ¥45,099 million.

Outlook and guidance

• 18th-period forecast: revenue ¥40,541 million, operating profit ¥15,513 million, net income ¥13,272 million and DPU ¥3,302.

• 19th-period forecast: revenue ¥39,850 million, operating profit ¥15,361 million, net income ¥13,042 million and DPU ¥3,378; forecasts include planned split distributions of sale gains.

• 18th-period revenue forecast includes ¥622 million in property-sale gains; forecasts assume no further portfolio changes through the 19th period beyond specified acquisitions and disposals.

• Strategy targets external growth through acquisition pipelines and internal growth through property management and brand strengthening; forecasts remain subject to market, tenant, repair and portfolio changes.