Daiwa House REIT Investment Corporation will rotate its property portfolio and revise its earnings forecasts for the 41st and 42nd fiscal periods through a combination of acquisitions and disposals. The property to be acquired is the apartment hotel MIMARU Tokyo Ikebukuro in Ikebukuro, while the planned sale of 3 properties, including Naha Shintoshin Center Building, will proceed as scheduled.
Daiwa House REIT Investment Corporation will acquire MIMARU Tokyo Ikebukuro, an apartment hotel a 5-minute walk from Ikebukuro Station, while selling 3 properties: Naha Shintoshin Center Building, 1 hotel, 1 logistics facility and the land underlying 1 retail property. The acquisition price is ¥11.502 billion and total sale proceeds are ¥14.71 billion. The sale will be structured as co-ownership with ORIX JREIT Inc. and carried out over 5 fiscal periods.
In connection with this transaction, the earnings forecast for the 41st fiscal period has been revised. The first sale of the interest in Naha Shintoshin Center Building is expected to generate a gain on sale of ¥764 million. Profit is expected to be 6.1% higher than the previously announced forecast, and distribution per unit is expected to be ¥3,070, including distributions in excess of profit.
In the 42nd fiscal period, the company will acquire Amanek Kumamoto and MIMARU Tokyo Ikebukuro, while carrying out the second sale of its interest in Naha Shintoshin Center Building and selling the land underlying D Project Inuyama and Hapias Kaida. A gain on sale of ¥1,431 million is expected to be recorded, with profit forecast to be 8.0% higher than the previous forecast. Distribution per unit is expected to increase 6.8% to ¥3,150.
The remaining 30% interest in Naha Shintoshin Center Building is scheduled to be sold in 10% increments during the 43rd through 45th fiscal periods, with the gains on sale to be distributed.