Nomura Real Estate Master Fund (3462) Q4 2025 earnings summary

Executive summary

• 19th fiscal period revenue was ¥43,117m and net income ¥15,986m; distribution was ¥3,453 per unit, including ¥72 from sale gains.

• Period-end occupancy was 99.2%; 294 properties had a total acquisition price of ¥1,102,555m.

• Appraisal gains reached ¥273.8bn, or 25.5% of portfolio value.

Financial highlights

• Operating revenue fell 4.4% YoY to ¥43,117m; operating profit declined 8.0% to ¥18,336m and ordinary income fell 9.6% to ¥15,986m.

• Net income declined 9.6% to ¥15,986m as property-sale gains fell to ¥3,275m from ¥5,293m.

• Rental revenue increased to ¥36,632m from ¥36,444m; property-related revenue rose to ¥39,843m from ¥39,789m.

• Net income excluding realized gains rose ¥315m to ¥12,711m; FFO was ¥21,079m and AFFO ¥17,072m, with a 94.0% AFFO payout ratio.

Outlook and guidance

• Forecast distributions are ¥3,555 per unit for Aug. 2025 FP and ¥3,578 for Feb. 2026 FP, both projected as record highs.

• Forecast revenue, operating profit and net income are ¥42,970m, ¥18,027m and ¥15,512m for Aug. 2025 FP; respective Feb. 2026 FP forecasts are ¥40,973m, ¥15,991m and ¥13,378m.

• Feb. 2026 FP distribution includes ¥601 per unit in excess of net income; forecasts assume a ¥2,486m property-sale gain in Aug. 2025 FP and none in Feb. 2026 FP.

• Three-year targets include ~5% growth in cruising distributions and 8%–9% growth in DPU; cruising distributions are expected to bottom in Aug. 2026 FP.

• Planned dispositions total ¥60bn–¥90bn over three years; forecasts assume a 1.5% 10-year JGB yield and ¥65,994m of maturities refinanced.