Industrial & Infrastructure Fund Investment (3249) Q2 2025 earnings summary

Executive summary

• Achieved steady revenue and income growth, with DPU rising 3.5% year-over-year to ¥3,510 per unit for July 2024, including ¥86 per unit as distribution in excess of profit, and further increases forecasted.

• Operating revenue for the six months ended July 31, 2024, was ¥21,065 million, up ¥2,898 million from the previous period, driven by the acquisition of 29 new properties and internal growth.

• Portfolio expanded to 108 properties with a total acquisition price of ¥498.7 billion and a 99.9% occupancy rate.

• Asset size increased significantly through a major public offering and strategic acquisitions, including 28 logistics facilities from LOGISTEED.

• Portfolio strategy emphasizes inflation resistance, with CPI-linked rents and asset value enhancement through CRE carve-outs and redevelopment.

Financial highlights

• Operating revenue for July 2024 rose 16% year-over-year to ¥21,065 million, with net income up 20% to ¥8,690 million.

• NAV per unit increased 1.3% to ¥137,519, and stabilized DPU is projected at ¥3,280 (+4.0%).

• FFO and AFFO grew 17.3% and 12.3% year-over-year, respectively.

• Total assets reached ¥555,437 million as of July 31, 2024.

• Cash distributions declared: ¥8,902 million, or ¥3,510 per unit, including ¥86 per unit in excess of profit.

Outlook and guidance

• DPU forecasted at ¥3,440 for January 2025 and ¥3,450 for July 2025, with stabilized DPU at ¥3,280 after adjusting for non-recurring items.

• Revenue growth expected from new acquisitions, redevelopment, and CPI-linked rent adjustments.

• Management expects continued growth through CRE carve-out strategies, CPI-linked rents, and redevelopment projects.

• LTV to be managed around 50% (book value) and 40% (appraisal value) to maintain financial stability.

• Forecast for the period ending July 31, 2025: operating revenue ¥22,569 million, net income ¥9,229 million, distribution per unit ¥3,450.