ORIX JREIT (8954) Q2 2026 earnings summary

Executive summary

• Six months ended Aug. 31, 2025: operating revenue ¥28,423m, operating income ¥14,147m and net income ¥12,496m; 25/8 DPU was ¥2,270.

• Portfolio occupancy was 99.0% across 119 properties; acquisition cost was ¥765,895m and appraisal value was ¥945,936m at Aug. 31, 2025.

• Acquisitions and dispositions since 25/2 totaled ¥74.6bn and ¥18.0bn, respectively; acquired assets are expected to add ¥3.3bn to annual NOI versus disposed assets.

Financial highlights

• Operating revenue rose ¥2,781m, operating income ¥1,908m and net income ¥1,481m versus the six months ended Feb. 28, 2025.

• Rental revenue was ¥24,100m, compared with ¥22,966m; other operating revenue was ¥2,829m, compared with ¥2,665m.

• 25/8 NOI was ¥18,721m, FFO ¥15,190m and AFFO ¥13,659m; CAPEX was ¥1,530m.

• Rental revenue rose ¥1,134m period-on-period, including ¥661m from offices, ¥270m from hotels and ¥472m from acquired/disposed properties.

Outlook and guidance

• Forecast DPU is ¥2,380 for 26/2 and ¥2,400 for 26/8; forecast operating revenue is ¥31,063m and ¥31,416m, respectively.

• Forecast net income is ¥13,978m for 26/2 and ¥14,091m for 26/8; NOI forecasts are ¥19,454m and ¥20,061m, respectively.

• Rent growth, acquired-property contributions and capital gains support DPU; higher financing costs, repairs, internal reserves and disposed-property income reduce forecast distributions.

• Further NOI growth is expected from office rent increases, hotel demand, residential leasing and full-period contributions from acquisitions.