Mori Hills REIT Investment Corporation announced its results for the 40th fiscal period. Distribution per unit was ¥3,100, while the portfolio comprised 11 properties at period-end, with total assets of ¥414.9 billion and an interest-bearing debt ratio of 46.4%.
In the 40th fiscal period, the fund made an additional sale of its 5% co-ownership interest in the land beneath Laforet Harajuku. Although the interest in Toranomon Hills Mori Tower acquired in the previous period contributed for the full period, profit declined 5.2% from the previous period due to lower gains on property sales and higher interest expenses. After drawing down part of its internal reserves, the fund maintained the distribution at ¥3,100 per unit, unchanged from the previous period.
The portfolio comprised 11 properties at period-end, with total acquisition price of ¥414.9 billion and an interest-bearing debt ratio of 46.4%.
In the 41st fiscal period (fiscal year ending January 2027), the fund is expected to continue making additional sales of the land beneath Laforet Harajuku. Rental revenue from residential and office properties is expected to increase, but profit is forecast to decline 4.5% from the previous period due to higher property management fees and interest expenses. The fund plans to draw down ¥280 million from internal reserves and is expected to maintain the distribution at ¥3,100 per unit.
In the 42nd fiscal period (fiscal year ending July 2027), the fund plans an additional sale, although no contract has yet been signed, and expects an upward revision to the fixed rent under the master lease. However, profit is forecast to decline 4.0% from the previous forecast due to higher management fees, repair expenses and interest expenses. The fund plans to draw down ¥505 million from internal reserves and is expected to maintain the distribution at ¥3,100 per unit.