KDX Realty Investment (8972) H1 2026 earnings summary

Executive summary

• Achieved steady annual DPU growth and NOI improvement through asset reshuffle, internal growth initiatives, and high occupancy, with DPU at ¥4,166 and net income at ¥17,040 million for Apr. 2026.

• Operating revenues for the six months ended Oct. 31, 2025, rose 2.7% year-over-year to ¥39,877 million, with portfolio occupancy at 99.2%.

• Asset reshuffle included acquisitions of ¥34.9 billion and dispositions of ¥5.2 billion, generating a ¥1 billion gain on sales.

• Approved a unit buyback program up to ¥6 billion to enhance capital efficiency.

• Interest-bearing debt ratio stood at 45.1%, with a long-term fixed interest debt ratio of 92.9%.

Financial highlights

• Operating revenue for Apr. 2026 was ¥39,841 million; rental revenue rose by ¥836 million to ¥34,375 million.

• Net income increased by ¥64 million to ¥17,040 million; DPU rose by ¥61 to ¥4,166.

• NAV per unit increased by ¥2,000 to ¥189,000; unrealized gains reached ¥147.5 billion.

• Cash flows from operating activities were ¥40,909 million, with cash and cash equivalents at ¥79,374 million.

• Distributions per unit increased to ¥4,105, with a payout ratio of 97.7%.

Outlook and guidance

• Forecast DPU for Oct. 2026 and Apr. 2027 is ¥4,227, maintaining the growth trajectory.

• Rental revenue is expected to continue rising, with a focus on internal growth and asset reshuffle.

• For Apr. 2026, operating revenues are forecast at ¥38,936 million, net income at ¥15,734 million, and DPU at ¥4,166.

• Forecasts assume stable portfolio size, no major asset changes except for scheduled acquisitions, and continued high occupancy.

• Guidance includes continued use of retained earnings and gains on sales to support DPU.