Nomura Real Estate Master Fund (3462) Q4 2026 earnings summary

Executive summary

• Feb. 2026 DPU rose 2.6% to ¥3,634, supported by internal growth and distributions from asset-sale gains; portfolio NOI was ¥28,476 mln.

• Portfolio appraisal value reached ¥1,374,366 mln, with unrealized gains of ¥306,929 mln, or 28.8% of portfolio value.

• Revenue was ¥41,186 mln and net income ¥13,355 mln; both declined against the previous period, which included property-sale gains.

• The 285-property portfolio had 98.9% occupancy; forecasts call for DPU of ¥3,695 in Aug. 2026 and ¥3,719 in Feb. 2027.

• Medium-term policy targets 3% annual cruising-distribution growth; the three-year target from Feb. 2025 is 8%–9% total distribution growth.

Financial highlights

• Feb. 2026 operating revenue was ¥41,186 mln, operating profit ¥15,858 mln, ordinary income ¥13,355 mln and net income ¥13,355 mln; revenue fell 5.8% and net income 17.1%.

• Rental revenue was ¥36,997 mln, nearly flat YoY; other rental revenue rose to ¥4,189 mln from ¥3,399 mln.

• Previous-period revenue included ¥3,324 mln of property-sale gains; no such gain was recorded in Feb. 2026.

• DPU rose ¥92 to ¥3,634 from ¥3,542; rental factors included ¥206 mln higher other income, partly offset by repair costs and interest expense.

• Total distributions were ¥16,885 mln, comprising ¥3,112 per unit from earnings and ¥522 per unit in excess distributions; FFO was ¥21,837 mln and capex ¥3,889 mln.

Outlook and guidance

• Aug. 2026 forecasts: revenue ¥43,116 mln, operating profit ¥17,904 mln, ordinary income ¥16,535 mln and net income ¥15,052 mln; Feb. 2027 forecasts: ¥41,120 mln, ¥15,053 mln, ¥13,456 mln and ¥13,455 mln, respectively.

• Forecast DPU is ¥3,695 for Aug. 2026, including ¥458 excess distribution, and ¥3,719 for Feb. 2027, including ¥824 excess distribution.

• Forecast NOI is ¥28,429 mln for Aug. 2026 and ¥29,259 mln for Feb. 2027; forecasts assume the portfolio remains unchanged through Feb. 2027.

• Three-year target from Feb. 2025 is 8%–9% distribution growth, including ~5% cruising-distribution growth; Feb. 2028 target DPU is ¥3,740–¥3,770.

• Longer-term policy targets 3% annual cruising-distribution growth, including 2% annual internal growth; forecasts assume a 25 bps policy-rate increase in FY2026.