ORIX JREIT (8954) Q4 2026 earnings summary

Executive summary

• DPU was ¥2,414 for the period ended February 2026, ¥34 above forecast; the medium- to long-term annual DPU growth commitment remains 3% or more.

• Existing-property NOI grew 3.9% annualized period on period and rental earnings grew 3.2%; offices and hotels were key growth drivers.

• Acquisitions totaled ¥92.3bn and dispositions ¥35.1bn since FP25/8, with asset replacement supporting portfolio quality and future growth.

Financial highlights

• Operating revenue was ¥31,181m, operating income ¥16,250m and net income ¥14,404m; revenue rose ¥2,757m YoY period on period.

• NOI was ¥19,797m, FFO ¥15,978m and AFFO ¥13,875m; CAPEX was ¥2,103m.

• Rental revenue was ¥25,630m and gains on real estate sales were ¥2,744m.

• Distribution totaled ¥13,325m, or ¥2,414 per unit; payout ratio was 92.4%.

• DPU included a ¥228 increase from capital gains and a ¥201 decrease from internal reserves.

Outlook and guidance

• DPU is forecast at ¥2,450 for both the periods ending August 2026 and February 2027; 27/2 forecast NOI is ¥20,537m.

• Forecast revenue and net income are ¥31,621m and ¥14,606m for 26/8, and ¥28,508m and ¥12,718m for 27/2.

• Rent growth, acquisitions and capital management are potential DPU drivers; a modeled ¥10bn acquisition funded by borrowing adds ¥10 per unit under stated assumptions.

• Rent increases are expected to remain a key growth driver; LED-related repair costs are expected to decline in 27/2 after work largely concludes around August 2026.