Nippon Building Fund, Inc. announced results for its 50th fiscal period, reporting an actual distribution of ¥2,489 per unit. Profit increased substantially from the previous period, supported by acquisitions of new properties, rent revisions at existing properties and gains on property sales.
During the 50th fiscal period, funds were raised through an additional issuance, and 3 office properties, including Nihombashi-Honcho M-SQUARE, were acquired, while Sumitomo Densetsu Building was sold. Rental income from the new properties and rent revisions at existing properties led to a substantial increase in overall profit, including gains on property sales, from the previous period.
The period-end portfolio comprised 70 properties, with total acquisition costs of ¥1.5608 trillion and an interest-bearing debt ratio of 42.6%.
For the 51st fiscal period (fiscal year ending December 2026), NBF Sapporo Minami-Nijo Building is expected to be sold. Rental income from existing properties is expected to increase, but profit is forecast to decline from the previous period due to lower gains on property sales. The investment corporation plans to draw down internal reserves and expects a distribution of ¥2,465 per unit.
For the 52nd fiscal period (fiscal year ending June 2027), rental income from existing properties is expected to continue increasing, and the forecast distribution has been revised upward to ¥2,541 per unit. In response to the widening gap with market rents, the targets for rental income and distributions will be revised upward.