NTT UD REIT Investment (8956) H2 2026 earnings summary

Executive summary

• FP 47 EPU was ¥2,640, up ¥54 QoQ, while DPU remained ¥3,140, including ¥500 supported by retained property-sale gains.

• Average portfolio occupancy was 98.2%; NAV per unit increased ¥2,457 to ¥150,663.

• Medium-term target remains EPU of ¥3,100 by FP 52 (October 2028), supported by rent increases, selective acquisitions and financial discipline.

Financial highlights

• FP 47 operating revenue was ¥12,975mn, down 1.8% QoQ; operating income rose 26.3% to ¥5,762mn, ordinary income to ¥5,117mn and net income to ¥5,115mn.

• NOI increased ¥61mn to ¥6,973mn; real estate rental income rose ¥76mn to ¥5,320mn, while rental expenses fell ¥328mn.

• FP 47 property-sale gains were ¥1,239mn; net income per unit was ¥3,484, distinct from EPU of ¥2,640.

• Operating cash flow was ¥8,644mn, investing cash flow was negative ¥2,833mn and financing cash flow was negative ¥4,609mn; period-end cash was ¥28,105mn.

Outlook and guidance

• FP 48 forecast: revenue ¥12,080mn, NOI ¥7,613mn, net income ¥4,448mn, EPU ¥3,029 and DPU ¥3,100; average occupancy forecast at 98.2%.

• FP 49 forecast: revenue ¥11,938mn, NOI ¥7,557mn, net income ¥4,286mn, EPU ¥2,919 and DPU ¥3,100; average occupancy forecast at 98.0%.

• FP 48 EPU benefits from rent increases and completion of a major repair cycle; FP 49 is affected by Akihabara UDX renovation costs shifted from FP 48.

• DPU forecasts use reserve reversals of ¥102mn in FP 48 and ¥264mn in FP 49.