To Our Unitholders
-
Executive Director
Daiwa House REIT
Investment Corporation -
President and CEO
Daiwa House Asset
Management Co., Ltd.
We would like to report on the financial results and give an overview of operations of Daiwa House REIT Investment Corporation (hereinafter referred to as “DHR”) in the 38th fiscal period ended February 28, 2025.
DHR disposed of one logistics property for a disposition price of ¥10.1 billion in September 2024 and one residential property for a disposition price of ¥0.6 billion in January 2025. As a result, DHR’s portfolio as of the end of the current fiscal period consisted of 229 properties with an asset size of ¥914.1 billion (total acquisition price). Our occupancy rate at the end of the current fiscal period was 99.0%. In addition, DHR disposed of one retail property at a disposition price of ¥5.6 billion and acquired one residential property for an acquisition price of ¥1.0 billion in March 2025, which falls in the following fiscal period.
Looking ahead, the Japanese economy as a whole is growing at a moderate pace, despite some signs of weakness in areas such as housing investment. This is because, even with the current rise in prices, personal consumption is on a moderate upward trend, driven by continuous rises in wages. In addition, capital investment is also showing a gradual increase, backed by improving corporate earnings. Meanwhile, we must be aware of the future impact on Japanese economic activities from such risk factors as trends in monetary policy at the Bank of Japan and other central banks around the world, economic and price developments overseas, trends in the commercial real estate market in the United States, the direction of trade policies in various countries, and trends in resource prices and foreign exchange markets.
DHR will work to continuously improve unitholder value by ensuring stable revenue and steady growth of its portfolio over the medium to long term through full utilization of its sponsor Daiwa House Group’s comprehensive strengths and knowhow regarding real-estate development.
In closing, we ask for the continued support of our unitholders and the investment community as we move forward.
Financial Highlights
Distributions
-
Distributions per Unit (Note 1)
- 38th Fiscal Period
-
¥ 7,078
(From September 1, 2024 to February 28, 2025)
*Distribution payments start date is May 12, 2025. -
Forecast Distributions per Unit (Note 2)
- 39th period
-
¥ 6,200
(From March 1, 2025 to August 31, 2025)
- 40th period
-
¥ 5,750
(From September 1, 2025 to February 28, 2026)
- Distributions per unit for the fiscal period ended February 28, 2025 include distributions in excess of earnings of ¥1,342 (which do not apply to return of capital).
- Forecast distributions per unit are as of April 16, 2025, and actual distributions per unit may vary from the forecast. These forecasts also do not guarantee the amount of distributions.
In addition, distributions per unit for the fiscal period ending February 28, 2026, which include distributions in excess of earnings, are expected to be ¥863 (including return of capital of ¥24).
Distributions per Unit
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Operating Results
| Fiscal period ended August 31, 2024 |
Fiscal period ended February 28, 2025 |
|
|---|---|---|
| Operating revenues | ¥32,253million | ¥32,412million |
| Operating income | ¥11,923million | ¥15,022million |
| Net income | ¥10,055million | ¥13,165million |
-
- Asset size
(acquisition price basis) -
¥ 914.1 billion
- Asset size
-
- Period-end occupancy rate
-
99.0 %
-
- LTV
(excluding goodwill) -
45.4 %
- LTV
-
- Credit rating
-
JCR : AA (Stable)R&I : AA- (Stable)
Portfolio Highlights
Summary
-
- Number of properties
-
229 properties
-
- Asset size
(acquisition price basis) -
¥ 910.6 billion
- Asset size
-
- Logistics
- 65 properties ¥ 482.2 billion
-
- Residential
- 129 properties ¥ 240.7 billion
-
- Retail
- 22 properties ¥ 118.6 billion
-
- Hotel
- 7 properties ¥ 27.3 billion
-
- Other assets
- 6 properties ¥ 41.6 billion
By asset class
By area
By property age
Trends of Asset Size (Acquisition Price Basis) and Occupancy Rate at the End of the Fiscal Period
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Investor Information
Unitholders Data
- Ratios in parentheses are rounded to the nearest tenth.
Total figures may not match due to the rounding of ratios.
Outline of the Asset Manager
| Corporate Name | Daiwa House Asset Management Co., Ltd. |
|---|---|
| Location | 7th Floor, Nissei Nagatacho Building, 2-4-8, Nagatacho, Chiyoda-ku, Tokyo 100-0014 |
| Established | September 1, 2004 |
| Paid-in Capital | ¥300 million |
| Shareholder | Daiwa House Industry Co., Ltd. (100%) |
Note for Unitholders
| Account closing date | Last day of February and August of each year |
|---|---|
| Date for determining distribution payments | Last day of February and August of each year (Distributions are to be paid within three months of each date.) |
| Unitholders’ Meeting | To be held at least once every two years |
| Date for finalizing general meeting voting rights |
Date set forth in Section 16.1 in the Articles of Incorporation by DHR |
| Listing | REIT section of the Tokyo Stock Exchange (Securities code: 8984) |
| Public notices | The “Nikkei” newspaper (Nihon Keizai Shimbun) |
| Transfer agent | 4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8233, JAPAN Sumitomo Mitsui Trust Bank, Limited |
| Inquiries |
8-4, Izumi 2-chome, Suginami-ku, Tokyo 168-0063, JAPAN Stock Transfer Agency Business Planning Dept. of Sumitomo Mitsui Trust Bank, Limited TEL: 0120-782-031 (toll-free, available within Japan only) Weekdays 9 a.m. to 5 p.m. |
Procedures for Changes of Address, etc.
Please submit changes of address, name, etc., to your securities company, etc. For procedures regarding investment units registered in special accounts, please contact: Stock Transfer Agency Business Planning Dept. of Sumitomo Mitsui Trust Bank, Limited.
Receipt of Distributions
You can receive distributions when you bring your receipt for distributions to the local office of the Japan Post Bank in Japan or to a post office (bank agent). If the period for receiving distributions has elapsed, please contact the transfer agent Sumitomo Mitsui Trust Bank, Limited.
If you would like to specify an account to which future distributions will be transferred, please follow the procedures of your securities company, etc.
We will not pay and have no obligation to pay cash distributions not claimed within three years of the distribution date, as stipulated in our Articles of Incorporation. Please receive your distributions as soon as possible.
Distribution Statement
The “Distribution Statement” delivered upon payment of distributions includes the “Payment Notice,” referred to in the provisions of the Act on Special Measures Concerning Taxation. This document may be used as a document when declaring income for tax purposes. However, for unitholders who have selected the system of dividend allotment to securities company accounts in proportion to the number of shares held, the amount of withholding tax will be calculated by your securities company, etc. For supporting documents when declaring income for tax purposes, please confirm with your securities company, etc. Furthermore, unitholders who receive distributions by way of a receipt for distributions also receive a “Distribution Statement” enclosed with it.
Outline of the Social Security and Tax Number System Nicknamed “My Number System” with Regard to Investment Units
Residents in Japan are notified of their Social Security and Tax Number (nicknamed “My Number”) by their city, town or village. My Number is required when performing tax-related procedures with regard to investment units.
Use of the My Number for Investment Unit Related Business
As stipulated by laws and regulations, it is now required to state the My Number of the unitholder on payment records that are submitted to the tax office.
Unitholders are therefore requested to submit their My Number to their securities company, etc.
[Contact address for inquiries on submitting My Number]
- Unitholders whose investment units are managed by a securities account
Please direct your inquiries to your securities company, etc. - Unitholders not conducting transactions via a securities companyPlease call the following toll-free phone number.
Stock Transfer Agency Business Planning Dept. of Sumitomo Mitsui Trust Bank, Limited
TEL: 0120-782-031
