Daiwa House REIT Investment Corporation announces results for the 40th fiscal period, sale of two properties including D Project Tosu III, and repurchase of its own investment units

Daiwa House REIT Investment Corporation announced results for its 40th fiscal period, the fiscal year ending August 2026. During the period, it sold a 10% interest in Naha Shintoshin Center Building, while lower gains on property sales resulted in a 0.6% year-on-year decline in profit. Although part of goodwill amortization is added to distributions in excess of earnings, the distribution per unit fell 10% year on year to ¥3,113 because the provision for adjustments related to temporary differences arising from the sale of D Project Machida decreased.

At period-end, the portfolio comprised 231 properties, with total assets of ¥913.9 billion based on aggregate acquisition cost and an interest-bearing debt ratio of 43.7% including goodwill. The company also announced the sale of D Project Tosu III and DPL Inuyama, with total proceeds from the 2 properties expected to be ¥15.83 billion and total gains on sale expected to be ¥4.193 billion. Tosu III is scheduled to be sold in 2 phases.

The company will also buy back its own investment units. This will be its fourth buyback, 1 year after the previous one. The number of units to be acquired is capped at 10,000, equivalent to 0.22% of units outstanding, and the total acquisition cost is capped at ¥1 billion. The acquired units will be cancelled during the fiscal year ending February 2027.

For the 41st fiscal period, the fiscal year ending February 2027, the company expects to acquire 3 properties, including MIMARU Tokyo Ikebukuro, and sell 4 properties, including 50% of D Project Tosu III. While repair expenses and interest payments are expected to increase, a gain on sale of ¥2,910 million is expected to contribute to a 13% year-on-year increase in profit.