Industrial & Infrastructure Fund Investment (3249) Q4 2025 earnings summary

Executive summary

• DPU reached a record high of 3,524 yen for January 2025, driven by NOI growth, new acquisitions, reduced leasing expenses, and gain on sales; NAV per unit also hit a record at 141,307 yen (+3.1% vs. previous period).

• Net income for the period was 8,810 million yen, with operating revenue at 21,268 million yen, both up from the previous period.

• Portfolio expanded to 110 properties, total acquisition price of 507.6 billion yen, and occupancy rate at 99.9%.

• Distribution policy revised to increase surplus cash distribution, especially for logistics assets, starting January 2026.

• Continued internal growth through rent increases, facility upgrades, and environmental initiatives.

Financial highlights

• Operating revenue for the 35th period was 21,268 million yen (+1.0% YoY), with operating income at 10,186 million yen (+2.1% YoY).

• Net income rose to 8,810 million yen (+1.4% YoY), and DPU (excluding special items) was 3,473 yen (+1.4% YoY).

• Cash distributions per unit were 3,524 yen, including 51 yen per unit in excess of profit.

• Net asset value per unit stood at 141,307 yen.

• Cash and cash equivalents at period end were 28,172 million yen.

Outlook and guidance

• DPU targets: 3,450 yen for July 2025 (36th), 3,210 yen for January 2026 (37th), aiming for 3,600–3,800 yen by January 2028.

• NOI growth target of +3.0% CAGR from 2026 to 2028, supported by rent revisions, pass-through structures, and asset enhancements.

• Surplus cash distribution to be increased from the 37th period, with a projected 154 yen/unit.

• Targeting DPU growth (excluding gain on sales) of 3% or more annually from January 2026, aiming for 3,400 yen per unit.

• Plans to return gains on property sales to unitholders, targeting DPU (including sales gains) of 3,600–3,800 yen by January 2028.