Japan Logistics Fund (8967) investor relations material

Executive summary

• Achieved DPU target ahead of schedule, with strong rental growth and asset replacement driving earnings expansion.

• Operating revenue for the six months ended July 31, 2025, was ¥11,651 million, up 8.5% year-over-year, with net income of ¥6,099 million, up 12.9% from the previous period.

• Net income per unit was ¥2,214, and distributions per unit were ¥2,150, with a payout ratio of 96.8%.

• Focused on sustainable earnings growth through portfolio profitability and capital recycling, not relying on property sales.

• Maintains a high-quality portfolio concentrated in the Tokyo metropolitan area, supported by robust financials and diversified growth strategies.

Financial highlights

• DPU for FP 2025/7 grew 15.7% period-on-period to JPY 2,150; re-leasing spreads averaged 6.7%.

• Net income for FP 2025/7 was JPY 6,099M, up JPY 694M from the previous period.

• NOI yield for FP 2025/7 was 6.4%, with average occupancy at 99.2%.

• Operating income rose to ¥6,541 million (up 11.9%), and ordinary income reached ¥6,100 million (up 12.9%) compared to the previous period.

• Unrealized gain as a percentage of portfolio stands at 63.2%, among the highest in J-REITs.

Outlook and guidance

• DPU is forecasted to remain at JPY 2,150 through FP 2027/7, with a floor policy in place.

• FFOPU expected to grow at an average annual rate of 2.2%, targeting JPY 2,150 DPU as 85% of FFOPU.

• For the six months ending January 2026, operating revenue is forecast at ¥11,653 million, with net income of ¥6,080 million and dividends per unit of ¥2,150.

• For the six months ending July 2026, operating revenue is forecast to decrease by 6.5% to ¥10,900 million, with net income of ¥5,426 million and dividends per unit of ¥2,150.

• No distributions in excess of earnings are planned for the forecast periods due to internal reserves.