NTT UD REIT Investment (8956) H2 2025 earnings summary

Executive summary

• FP 45 combined portfolio repositioning and unit buybacks; occupancy and rents improved, while large-scale renovations weighed on EPU. DPU rose to ¥3,104 from ¥2,939.

• Transfers of three offices and acquisition of two newer student residences supported portfolio-quality improvements; DPU is forecast at ¥3,140 in FP 46 and FP 47.

Financial highlights

• FP 45 operating revenue was ¥13,313 million, up 8.2%; operating income was ¥5,203 million, up 4.3%; ordinary income was ¥4,556 million and net income ¥4,555 million.

• Revenue included ¥1,201 million of gain on sale; operating expenses included ¥565 million of loss on sale, rising to ¥1,143 million in the FP 46 forecast.

• FP 45 DPU was ¥3,104, up ¥165 period on period; EPU was ¥2,671, down ¥268, reflecting transfer-related income loss and renovation costs.

• Real estate rental revenue was ¥12,112 million, excluding gain on sale; NOI including preferred-security dividend income was ¥7,113 million.

Outlook and guidance

• FP 46 forecast: revenue ¥13,103 million, operating income ¥4,536 million, net income ¥3,849 million, DPU ¥3,140 and EPU ¥2,557.

• FP 47 forecast: revenue ¥12,825 million, operating income ¥5,676 million, net income ¥4,989 million, DPU ¥3,140 and EPU ¥2,548.

• DPU forecasts include sale gains and reserve adjustments to offset concentrated renovation spending; EPU is expected to recover through external and internal growth from FP 48 onward.

• Average occupancy is forecast at 97.6% in FP 46 and 97.8% in FP 47; forecasts are based on current assumptions and distributions are not guaranteed.