DAIWA HOUSE REIT INVESTMENT CORPORATION October 15, 2021
Financial Results for the Fiscal Period Ended August 31, 2021
(March 1, 2021 - August 31, 2021)
Real estate investment trust unit issuer: Daiwa House REIT Investment Corporation ("DHR")
Listing: | Tokyo Stock Exchange |
Securities code: | 8984 |
URL: | https://www.daiwahouse-reit.co.jp/en/ |
Representative: | Toshiharu Asada, Executive Director |
Asset manager: | Daiwa House Asset Management Co., Ltd. |
Representative: | Koichi Tsuchida, President and CEO |
Inquiries: | Koyu Asahina, General Manager, Fund Management Department, Daiwa House REIT |
Division | |
TEL: +81-3-3595-1265 |
Scheduled date of submitting Securities Report: | November 25, 2021 |
Scheduled date of starting distribution payments: | November 15, 2021 |
Supplementary materials for the financial results provided: Yes | |
Results briefing for the period: | Yes (for institutional investors and analysts) |
(Amounts are rounded down to the nearest million yen)
1. Financial results for the fiscal period ended August 31, 2021 (March 1, 2021 - August 31, 2021)
(1) Operating results
(Percentage figures represent period-on-period changes)
Operating revenues | Operating profit | Ordinary profit | Profit | |||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |
Fiscal period ended | 29,571 | 5.2 | 13,116 | 4.3 | 11,619 | 4.7 | 11,619 | 4.7 |
August 31, 2021 | ||||||||
Fiscal period ended | 28,097 | 5.6 | 12,571 | 8.6 | 11,099 | 11.7 | 11,098 | 11.7 |
February 28, 2021 | ||||||||
Basic earnings | Return on equity | Ordinary profit to | Ordinary profit to | |||||
per unit | (ROE) | total assets ratio | operating revenues ratio | |||||
Yen | % | % | % | |||||
Fiscal period ended | 5,291 | 2.4 | 1.3 | 39.3 | ||||
August 31, 2021 | ||||||||
Fiscal period ended | 5,054 | 2.3 | 1.2 | 39.5 | ||||
February 28, 2021 | ||||||||
(Note) Please refer to "Per Unit Information" on pages 27 to 28 for the number of investment units used as the basis for calculating basic earnings per unit.
(2) Distributions
Distributions | Distributions | Total | Total | |||||
per unit | per unit | |||||||
Distributions | distributions | distributions | Total | Distributions | ||||
(including | (excluding | |||||||
in excess of | (including | (excluding | distributions | Payout ratio | to net assets | |||
distributions | distributions | |||||||
earnings | distributions | distributions | in excess of | ratio | ||||
in excess of | in excess of | |||||||
per unit | in excess of | in excess of | earnings | |||||
earnings per | earnings per | |||||||
earnings) | earnings) | |||||||
unit) | unit) | |||||||
Yen | Yen | Yen | Millions of | Millions of | Millions of | % | % | |
yen | yen | yen | ||||||
Fiscal period | 6,118 | 5,347 | 771 | 13,435 | 11,742 | 1,693 | 101.1 | 2.4 |
ended August | ||||||||
31, 2021 | ||||||||
Fiscal period | 5,856 | 5,101 | 755 | 12,859 | 11,201 | 1,657 | 100.9 | 2.3 |
ended February | ||||||||
28, 2021 | ||||||||
(Note) Total distributions in excess of earnings fully relate to allowance for temporary difference adjustments.
Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended August 31, 2021
(3) Financial position | ||||
Total assets | Net assets | Equity ratio | Net assets per unit | |
Millions of yen | Millions of yen | % | Yen | |
As of August 31, 2021 | 900,310 | 489,467 | 54.4 | 222,890 |
As of February 28, 2021 | 901,386 | 490,586 | 54.4 | 223,400 |
(4) Cash flows
Net cash provided by | Net cash provided by | Net cash provided by | Cash and | |
(used in) operating | (used in) investing | (used in) financing | cash equivalents | |
activities | activities | activities | at end of period | |
Millions of yen | Millions of yen | Millions of yen | Millions of yen | |
Fiscal period ended | 19,398 | (7,825) | (12,877) | 47,322 |
August 31, 2021 | ||||
Fiscal period ended | 24,776 | (5,600) | (9,932) | 48,626 |
February 28, 2021 | ||||
2. Forecasts of operating results for the fiscal period from September 1, 2021 to February 28, 2022 and for the fiscal period from March 1, 2022 to August 31, 2022
(Percentage figures represent period-on-period changes)
Distributions | Distributions | ||||||||||
Operating | Operating | Ordinary | per unit | per unit | Distributions | ||||||
Profit | (including | (excluding | in excess of | ||||||||
revenues | profit | profit | distributions in | distributions in | earnings | ||||||
excess of earnings | excess of earnings | per unit | |||||||||
per unit) | per unit) | ||||||||||
Millions | % | Millions | % | Millions | % | Millions | % | Yen | Yen | Yen | |
of yen | of yen | of yen | of yen | ||||||||
Fiscal period | |||||||||||
ending | 30,142 | 1.9 | 13,301 | 1.4 | 11,520 | (0.9) | 11,520 | (0.9) | 5,750 | 4,966 | 784 |
February 28, | |||||||||||
2022 | |||||||||||
Fiscal period | |||||||||||
ending | 29,145 | (3.3) | 12,660 | (4.8) | 11,011 | (4.4) | 11,010 | (4.4) | 5,600 | 4,751 | 849 |
August 31, | |||||||||||
2022 | |||||||||||
(Reference) Forecasted basic earnings per unit | |||||||||||
For the fiscal period ended February 28, 2022: | ¥4,965 | ||||||||||
For the fiscal period ending August 31, 2022: | ¥4,746 |
Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended August 31, 2021
- Other
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to amendment of accounting standards and other regulations: None
- Changes in accounting policies due to reasons other than a. above: None
- Changes in accounting estimates: None
- Retrospective restatement: None
- Total number of investment units issued
a. Total number of investment units issued at the end of the period (including treasury investment units)
As of August 31, 2021 | 2,196,000 units |
As of February 28, 2021 | 2,196,000 units |
b. Number of treasury investment units at the end of the period
As of August 31, 2021 | 0 units |
As of February 28, 2021 | 0 units |
(Note) Please refer to "Per Unit Information" on pages 27 to 28 for the number of investment units used as the basis for calculating basic earnings per unit.
- Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
-
Special notes
The forward-looking statements, including operating results forecasts, contained in these materials are based on information currently available to DHR and on certain assumptions deemed reasonable by DHR. The actual operating and other results may differ significantly from those presented herein as a consequence of numerous factors. These forecasts also do not guarantee the amount of distributions. Please refer to "Assumptions for Forecasts of Operating Results for the Fiscal Periods Ending February 28, 2022 and August 31, 2022" on pages 9 to 10 for information on assumptions for the forecasts of operating results.
Disclaimer:
This English translation has been prepared for general reference purposes only. DHR shall not be responsible for any consequence resulting from the use of the English translation in place of the original Japanese text. In any legal matter, readers should refer to and rely upon the original Japanese text released on October 15, 2021.
Daiwa House REIT Investment Corporation (8984) | ||
Financial Results for the Fiscal Period Ended August 31, 2021 | ||
Index | ||
(2) | Investment Risk................................................................................................................................... | 8 |
2. Financial Statements ................................................................................................................................. | 11 | |
(1) | Balance Sheets................................................................................................................................... | 11 |
(2) | Statements of Income ........................................................................................................................ | 14 |
(3) | Statements of Unitholders' Equity .................................................................................................... | 15 |
(4) | Statements of Cash Distributions ...................................................................................................... | 18 |
(5) | Statements of Cash Flows ................................................................................................................. | 19 |
(6) | Notes on Assumption of Going Concern........................................................................................... | 21 |
(7) | Notes on Important Accounting Policies........................................................................................... | 21 |
(8) | Notes to Financial Statements ........................................................................................................... | 23 |
(9) | Changes in Number of Investment Units Issued ............................................................................... | 31 |
3. Reference Information .............................................................................................................................. | 32 | |
(1) | Portfolio List ..................................................................................................................................... | 32 |
(2) | Summary of Major Tenants............................................................................................................... | 44 |
(3) | Status of Portfolio Diversification..................................................................................................... | 45 |
(4) | Capital Expenditures for Properties Held.......................................................................................... | 46 |
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Daiwa House REIT Investment Corporation (8984)
Financial Results for the Fiscal Period Ended August 31, 2021
1. Operating Results
- Operating Results
- Summary of results for the current fiscal period A. Transition of the Investment Corporation
DHR is a real estate investment trust (J-REIT) whose sponsor is Daiwa House Industry Co., Ltd. (hereinafter referred to as "Daiwa House") and whose asset manager is Daiwa House Asset Management Co., Ltd. (hereinafter referred to as the "Asset Manager"), a wholly owned subsidiary of Daiwa House.
DHR was listed on the Real Estate Investment Trust (REIT) Market of the Tokyo Stock Exchange, Inc. (hereinafter referred to as the "Tokyo Stock Exchange") on March 22, 2006, and then later merged with New City Residence Investment Corporation (hereinafter referred to as "NCR") on April 1, 2010 (hereinafter referred to as "the merger with NCR"). Subsequently on December 1, 2011, the corporate name was changed to Daiwa House Residential Investment Corporation (the corporation prior to change of corporate name to "Daiwa House REIT Investment Corporation" is hereinafter referred to as the "former DHI"), and accordingly changed its investment targets to residential properties.
The former Daiwa House REIT Investment Corporation (the Daiwa House REIT Investment Corporation, which was dissolved upon having merged with DHR as of September 1, 2016, is hereinafter referred to as the "former DHR") was established on September 14, 2007, whose asset manager was Daiwa House REIT Management Co., Ltd., a wholly owned subsidiary of Daiwa House. The former DHR was listed on the Tokyo Stock Exchange Real Estate Investment Trust (REIT) Market on November 28, 2012, as a REIT that targets investment in logistics and retail properties.
On September 1, 2016, the former DHI and the former DHR (hereinafter collectively referred to as the "Investment Corporations") conducted an absorption-type merger (hereinafter referred to as the "Merger") whereby the former DHI was the surviving corporation and the former DHR was the absorbed corporation, shifted to a diversified portfolio strategy that targets investment in new asset classes such as hotel and office properties, in addition to those that the Investment Corporations had targeted for investment in the past, and changed its corporate name from Daiwa House Residential Investment Corporation to Daiwa House REIT Investment Corporation.
B. Performance for the current fiscal period
In March 2021, DHR sold one residential property at a disposition price of ¥3.5 billion. Furthermore, as property replacement, DHR acquired one logistics property for an acquisition price(Note 1) of ¥5.9 billion through the Daiwa House Group(Note 2)'s pipeline in April 2021 with funds in hand. As a result, DHR's portfolio as of the end of the current fiscal period consists of 227 properties with an asset value of ¥824.2 billion(Note 3).
(Note 1) "Acquisition price" is the purchase price stipulated in the respective purchase agreements of assets owned by DHR (not including expenses pertaining to acquisitions, settlement money such as taxes and public dues, consumption taxes, or leasehold guarantee deposits, etc.), except as otherwise noted. However, the acquisition prices of properties previously owned by NCR have been presented as the appraisal values as of February 28, 2010, which were the prices received at the time of the merger with NCR, and the acquisition prices of properties previously owned by the former DHR have been presented as the appraisal values as of August 31, 2016, which were the prices received at the time of the merger with the former DHR. The "total acquisition price" has been rounded down to the nearest unit. The same shall apply hereinafter.
(Note 2) The Daiwa House Group comprises Daiwa House, which is the parent company, 396 consolidated subsidiaries, 59 equity-method affiliates and one non-equity-method affiliate as of June 30, 2021. The Asset Manager is a member of the group. The same shall apply hereinafter.
(Note 3) "Asset value" is the aggregate total of the acquisition prices of respective assets owned by DHR at respective points in time, except as otherwise noted. The same shall apply hereinafter.
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Daiwa House REIT Investment Corporation published this content on 15 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 October 2021 06:41:07 UTC.
