Ichigo Office REIT Investment Corporation has decided to sell 5 office properties in Tokyo, including Ichigo Jimbocho Building, for a total expected sale price of ¥19.0 billion and an expected gain on sale of ¥7.93 billion. It will also revise its earnings forecasts for the 43rd fiscal period, with distributions per investment unit expected to be ¥5,552.
Ichigo Office REIT Investment Corporation will sell 5 office properties in Tokyo, including Ichigo Jimbocho Building. The reasons cited for the sale include the risk of rising future repair costs for buildings more than 30 years old and the inclusion of leasehold land. The purchaser has not been disclosed. The total sale price is expected to be ¥19.0 billion, with a gain on sale of ¥7.93 billion.
Following the sale, the earnings forecasts for the 43rd fiscal period (fiscal year ending April 2027) were revised. The REIT expects to record gains on the sale of the 5 properties totaling ¥7.93 billion, resulting in expected profit growth of approximately 267% compared with the previously announced forecasts.
As a financial adjustment, ¥105 million will be withdrawn from the reserve for adjustment of temporary differences and other items, while ¥2.621 billion will be recorded as retained earnings. In addition, the number of investment units is expected to decline 1.0% due to the cancellation of treasury investment units, and distributions per investment unit are expected to rise 176% to ¥5,552.
Details of the purchaser and additional financial grounds have not been disclosed, and attention is expected to focus on future disclosures.