Japan Excellent Investment Corporation announced results for the 40th fiscal period (fiscal year ending June 2026) and decided to sell 3 properties in total, including Daiba Garden City Building. It also indicated a policy of additionally selling Daiba Garden City Building, Sapporo Otemachi Building and part of the site of Urawa SH Building.
Japan Excellent Investment Corporation announced its results for the 40th fiscal period. At period-end, the portfolio comprised 33 properties, total assets stood at ¥297.4 billion and the interest-bearing debt ratio was 45.5%. It also announced the sale of Daiba Garden City Building, Sapporo Otemachi Building and part of the site of Urawa SH Building. Total sale proceeds will amount to ¥15.555 billion.
The reasons given for the sales were that Daiba Garden City Building has a low yield and limited potential for future earnings improvement, while Sapporo Otemachi Building, which is 42 years old, is expected to become less competitive as new supply enters the area. Part of the site of Urawa SH Building will be sold to Saitama City because it is designated for an urban planning road.
For the 21st fiscal period (fiscal year ending December 2026), the forecast includes ¥2.13 billion in gains on the sale of Daiba Garden City Building and BIZECORE Akasaka-Mitsuke, resulting in higher earnings than in the previous period. As part of the breakdown, ¥1.529 billion of the sale gains will be retained, and distributions are expected to be ¥3,100 per unit, up 1% from the previous period.
For the 22nd fiscal period (fiscal year ending June 2027), the corporation plans to sell Sapporo Otemachi Building and part of the site of Urawa SH Building. Earnings are expected to decline 32% from the previous-period forecast due to lower gains on property sales. The corporation expects to draw down ¥287 million from retained earnings, with distributions forecast at ¥3,130 per unit, up 1% from the previous-period forecast.