Mitsui Fudosan Logistics Park Inc. announced results for its 20th fiscal period and outlined plans to acquire and reshuffle properties, including co-ownership interests. It also disclosed expected gains on property sales in upcoming fiscal periods.
Mitsui Fudosan Logistics Park Inc. announced results for the 20th fiscal period (fiscal year ending July 2026). Rental income is expected to increase following the acquisition of 4 properties, including a 41% co-ownership interest in 「MFLPつくばみらい」, but earnings are expected to decline 35% year on year as gains on property sales recorded in the previous period fall away.
At period-end, the portfolio will comprise 49 properties, with total assets of ¥572.5 billion based on aggregate acquisition prices and an interest-bearing debt ratio of 39.9%. After drawing down ¥2,215 million from the reserve for adjustment of temporary differences and other items, distribution is expected to be ¥2,503 per unit, down 23.6% year on year. The REIT also announced a portfolio reshuffling.
The 3 new properties to be acquired include 「on-L旭志伊坂」, with a total acquisition price of ¥35.69 billion. The property to be sold is 「MFLP横浜大黒」, with a sale price of ¥11.9 billion. The sale will be made to Mitsui Fudosan Private REIT Inc. in 2 installments over 2 fiscal periods.
In the 21st fiscal period (fiscal year ending January 2027), the REIT is expected to acquire 「on-L旭志伊坂」 and a 59% co-ownership interest in 「MFLPつくばみらい」, and sell a 30% quasi-co-ownership interest in 「MFLP横浜大黒」. Gains on the sale are expected to contribute ¥1,415 million, with earnings projected to increase 19.9% year on year. Distribution is expected to rise 4.7% year on year to ¥2,620 per unit.
In the 22nd fiscal period (fiscal year ending July 2027), the REIT plans to acquire 「MFLP一宮」 and 「MFIP海老名&forest」 and sell the remaining 20% interest in 「MFLP横浜大黒」. Rental income is expected to increase, but earnings are projected to decline 7.5% year on year as gains on property sales decrease from the previous period. Distribution is expected to remain unchanged at ¥2,620 per unit.
Despite the expected increase in interest costs, the REIT is expected to achieve ahead of schedule its medium-term target of distribution of ¥2,620 per unit in the 23rd fiscal period (fiscal year ending January 2028). It outlined a policy of enhancing distributions through portfolio reshuffling and the recognition of gains on property sales.