Nippon Building Fund (8951) H1 2026 earnings summary

Executive summary

• Achieved strong financial performance in 1H 2026, with operating revenues up 10.9% and net income up 26.2% year-over-year, driven by high occupancy rates above 98% and strategic asset replacements.

• Enhanced portfolio quality through acquisitions in Tokyo and Sapporo and notable property dispositions.

• Continued focus on sustainability, earning top ESG ratings and progressing toward GHG reduction targets.

Financial highlights

• 1H 2026 total operating revenues: ¥53,858 million (+10.9% YoY); operating income: ¥26,694 million (+25.8% YoY); net income: ¥24,354 million (+26.2% YoY).

• Distribution per unit: ¥2,489 (+1.4% from prior period); EPU: ¥2,173; payout ratio: 90.0%.

• NOI from property leasing: ¥31,809 million (+2.1% YoY); NOI yield: 4.48%.

• LTV at 42.6%; long-term fixed interest rate ratio: 76.9%; average interest rate 0.82%.

• NAV per unit: ¥125,533; market cap: ¥1,109.8 billion; total assets: ¥1,475,730 million.

Outlook and guidance

• 2H 2026 forecast: operating revenues ¥50,502 million, net income ¥19,968 million, DPU ¥2,465.

• 1H 2027 forecast: operating revenues ¥51,016 million, net income ¥20,363 million, DPU ¥2,541.

• Portfolio expected to remain highly occupied (98.5%–98.6%) with stable rental demand.