KDX Realty Investment (8972) H1 2025 earnings summary

Executive summary

• Strategically reshuffled assets, realizing gains to raise DPU and implemented unit buybacks, improving portfolio quality across asset types.

• Operating revenues for the six months ended October 31, 2024, were ¥39,405 million, up 1.9% period-on-period, with net income at ¥17,008 million, a 13.0% increase year-over-year.

• DPU exceeded initial forecast due to asset reshuffling and internal growth, with a new target DPU of 4,200 yen.

• The portfolio comprised 355 properties, with an overall occupancy rate of 99.0%.

• Major capital expenditures during the period totaled ¥2,776 million, with repairs and maintenance at ¥903 million.

Financial highlights

• Operating revenue for Oct. 2024 FP was 39,405 mn yen, up 2.1% year-over-year; NOI reached 26,874 mn yen.

• DPU for Oct. 2024 FP was 4,030 yen, up 2.7% vs forecast; NAV per unit rose to 184,000 yen.

• Net income (excluding negative goodwill) increased by 1,958 mn yen year-over-year.

• Net assets at period end were ¥635,859 million, with total assets at ¥1,241,982 million.

• Interest-bearing debt stood at ¥548,400 million, with an LTV of 44.2%.

Outlook and guidance

• Plan to dispose of 30–50 bn yen in properties annually, using proceeds for unit buybacks and debt repayment.

• Apr. 2025 FP NOI expected to decrease temporarily, but Oct. 2025 FP NOI projected to recover to Oct. 2024 FP levels through internal growth.

• For the fiscal period ending April 30, 2025, operating revenues are forecast at ¥38,129 million, with net income of ¥16,123 million and distributions per unit of ¥3,930.

• For the period ending October 31, 2025, operating revenues are forecast at ¥37,786 million, net income at ¥15,337 million, and distributions per unit at ¥3,943.

• Gain on sale of real estate of ¥853 million is expected in the next period.