Japan Prime Realty Investment Corporation (8955): Steady progress in new tenant leasing and positive rent revisions led to DPU hike for 10 consecutive periods in the 34th financial period.
◎Result highlights and forecast
・Operating revenues and operating profit recorded 15.6 billion yen (+440 million yen vs previous period) and 7.58 billion yen (+250 million yen), respectively.
・Distribution per unit (DPU) and NAV have been on constant increase over long term.
・DPU marked 7,326 yen (+81 yen), outpacing forecast due to increase in rental revenues and cancellation charges.
・Plan for December 2018 period was in good progress and stable growth was continued on the back of the thriving office leasing market.
・New tenant leasing and positive rent revisions resulted in continuous increase in rental income.
・Absence of non-operating revenues booked in the previous period was absorbed. DPU growth for 10 consecutive periods was attained.
・Forecasts for operating revenues, operating profit and DPU in the 35th period are 15.58 billion yen, 7.53billion yen and 7,350 yen (+24yen vs the 34th period), respectively.
・Despite increase in property and city planning taxes, DPU increase is expected driven by factors such as rental income growth in the 35th period.
・Further ramp-up in profit will be pursed taking advantage of strong leasing market in the 35th period.
・Forecasts for operating revenues, operating profit and DPU in the 36th period are 15.71 billion yen, 7.59 billion yen and 7,380 yen (+30 yen vs forecast for the 35th period), respectively
・Increase in DPU in the 36th period is expected.
・Continuous rent increase, debt cost reduction and cost control will lead to stable growth in the 36th period.
・Medium term DPU target (7,300 yen driven by internal growth and financial strategy) was achieved sooner than originally planned.
・DPU of 7,500 yen will be targeted driven by continuous internal growth as well as external growth.