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Sekisui House Reit, Sekisui House Residential complete merger

Sekisui House Reit Inc. and Sekisui House Residential Investment Corp. completed and implemented their absorption-type merger May 1, with Sekisui House Reit remaining the surviving entity.

The total issued and outstanding units increased to 3,762,091 units from 969,000 units because of the split of investment units and the post-split allotment of the surviving company's investment units.

The REITs' management companies also completed their merger May 1, with Sekisui House Reit's manager, Sekisui House Investment Advisors Ltd., designated as the surviving company. The diversified trust's manager changed its name to Sekisui House Asset Management Ltd.

Sekisui House Reit also revised its operating result forecast for the fiscal periods running from May 1 to Oct. 31, and the six months to April 30, 2019.

The trust said it now expects net income to come in at ¥7.24 billion for the six months to Oct. 31, up from its previous forecast of roughly ¥4.98 billion. It made a 0.1% increase on its projections for operating and ordinary income, as well as its distribution per unit.

The company also increased by 0.1% its forecasts across its operating metrics for the six-month period to April 30, 2019, other than operating revenue, which it is keeping stable at about ¥12.14 billion.

Separately, the company completed the ¥25.30 billion purchase of beneficiary interests in six residential properties from Sekisui House Ltd. and closed the ¥16.40 billion sale of 12 residential assets.

As of May 9, US$1 was equivalent to ¥109.74.