Star Asia Investment (3468) Q4 2025 earnings summary

Executive summary

• FP18 DPU was ¥1,701, 10.6% above forecast; the ¥1,600 Mid-Term Plan target was achieved ahead of schedule.

• Operating revenue rose 19.4% YoY to ¥9,690mn and net income rose 23.3% to ¥4,522mn; portfolio occupancy was 98.2% at Jan. 31, 2025.

• Hotel rents, particularly at the 12 Polaris-operated hotels, materially exceeded forecast; FP19/FP20 DPU guidance remains above ¥1,600.

Financial highlights

• Lease business revenue was ¥9,284mn, NOI ¥7,057mn, operating income ¥5,472mn and net income ¥4,522mn; net income was 12.1% above forecast.

• Hotel rent was ¥3,174mn, 18.9% above forecast; total lease revenue exceeded forecast by ¥526mn.

• FFO per unit was ¥1,988, 9.8% above forecast; AFFO per unit was ¥1,679, 13.1% above forecast.

• FP18 DPU was ¥1,701, including ¥18 from internal reserves; EPU was ¥1,683, 12.1% above forecast.

• Real estate sale gains were ¥322.7mn; total distributions were ¥4,571mn, with a 101.1% payout ratio.

Outlook and guidance

• FP19/FP20 DPU forecasts are ¥1,625/¥1,644, including ¥33 per unit from internal reserves in each period; forecast net income is ¥4,278mn/¥4,330mn.

• Revenue is forecast at ¥9,423mn for Jul. 2025 and ¥9,668mn for Jan. 2026; forecast NOI is ¥7,145mn and ¥7,392mn, respectively.

• GOP for 12 Polaris-operated hotels is forecast at ¥3.3bn in FP19 (+15.4% YoY) and ¥3.4bn in FP20 (+3.2% YoY).

• Hotel KPI assumptions for FP19/FP20: OCC 89.2%/89.1%, ADR ¥15,030/¥15,336 and RevPAR ¥13,406/¥13,660.

• No acquisitions or sales are assumed through Jan. 2026; longer-term targets remain ¥300bn asset size and DPU of at least ¥1,600.