NTT UD REIT Investment (8956) H1 2024 earnings summary

Executive summary

• FP 42 (May 1–October 31, 2023) delivered DPU of ¥3,239 and EPU of ¥2,544; both rose from FP 41, supported by leasing and lower repair costs despite a property transfer.

• A ¥9,516m public offering supported two office acquisitions; FP 43 and FP 44 forecasts target EPU of ¥2,580 and ¥2,615.

Financial highlights

• FP 42 operating revenue was ¥12,181m, operating income ¥5,490m, ordinary income ¥5,042m and net income ¥5,039m.

• Rental revenue was ¥10,706m; the Rokubancho Building transfer generated a ¥1,475m gain on sale.

• Total distribution was ¥4,539m; DPU was ¥3,239 versus ¥3,216 in FP 41, and net income per unit was ¥3,595 versus ¥3,572.

Outlook and guidance

• FP 43 forecast: revenue ¥11,251m, operating income ¥4,349m, net income ¥3,823m, DPU ¥2,680 and EPU ¥2,580.

• FP 44 forecast: revenue ¥11,474m, operating income ¥4,433m, net income ¥3,875m, DPU ¥2,700 and EPU ¥2,615.

• Forecast occupancy averages 96.3% in FP 43 and 96.2% in FP 44; office occupancy is expected near 96%, with residential occupancy stable.

• Acquisitions, leasing and cost control underpin forecast EPU growth; DPU includes reserve reversals of ¥148m in FP 43 and ¥127m in FP 44.