ヒューリックリート投資法人 announces results for the 25th fiscal period, with actual distribution of ¥4,000 per unit

ヒューリックリート投資法人 announced results for the 25th fiscal period (the fiscal year ended August 2026). Profit declined 5% from the previous period, due to factors including a seasonal decline in variable hotel rents, lower revenue from properties sold, a decrease in gains on exchanges and higher interest expense. The distribution was ¥4,000 per unit, down 1.2% from the previous period.

The period-end portfolio comprised 63 properties, with total acquisition cost of approximately ¥424.1 billion. The interest-bearing debt ratio was 46.6% (38.4% on a market-value basis), according to the disclosure. Cash reserves drawn down amounted to ¥6 million, and the distribution was maintained.

In the 26th fiscal period (the fiscal year ending February 2027), the company plans to acquire 2 properties, including QUARTZ SHINSAIBASHI, and sell 3 properties, including ヒューリック麹町ビル. Variable hotel rents are expected to increase due to seasonal factors, but profit is expected to decline 8.3% from the previous period because of lower gains on sales and higher interest expense. The distribution is expected to remain at ¥4,000 per unit, while the interest-bearing debt ratio is expected to rise to approximately 49%.

In the 27th fiscal period (the fiscal year ending August 2027), the company plans to sell properties, although no contracts have been signed at this time. Gains on sales are expected to amount to ¥65.2 million, but profit is expected to decline 0.4% from the previous forecast due to a seasonal decline in variable hotel rents and higher interest expense. The company plans to draw down ¥503 million from retained reserves and maintain the distribution at ¥4,000. It also plans to pursue average annual NOI growth of 3%, utilise available headroom in market-value-based LTV and target average annual growth of 2% in recurring earnings per unit.