ORIX JREIT (8954) Q2 2024 earnings summary

Executive summary

• FP43 ended Aug. 31, 2023, with operating revenue of ¥25,698 million, net income of ¥7,904 million and DPU of ¥3,744; results included a ¥3,251 million loss on the Hotel Nikko Himeji sale.

• Portfolio comprised 112 properties with ¥695,873 million in acquisition value and 98.3% occupancy; acquisitions and dispositions reshaped the asset mix.

Financial highlights

• FP43 operating revenue increased ¥27 million from FP42 to ¥25,698 million; operating income fell to ¥8,999 million from ¥12,218 million, and net income to ¥7,904 million from ¥11,149 million.

• DPU was ¥3,744 versus ¥4,068 in FP42; total distribution was ¥10,333 million, payout ratio 130.7%, with ¥2,429 million allocated from internal reserves.

• Rental revenue rose ¥90 million from FP42 to ¥21,884 million; disposition gains were ¥1,121 million, alongside the ¥3,251 million Himeji disposition loss.

Outlook and guidance

• FP44 forecast: revenue ¥26,006 million, operating income ¥12,200 million, net income ¥11,107 million and DPU ¥3,900, including internal reserve allocation.

• FP45 forecast: revenue ¥24,830 million, operating income ¥10,789 million, net income ¥9,662 million and DPU ¥3,530; forecast assumptions include no disposition gain, higher utility costs and lower hotel revenue.

• FP44 DPU guidance rose to ¥3,900 from ¥3,820 six months earlier on stronger rental revenue; FP45 guidance declined to ¥3,530 from ¥3,900.