Nippon REIT Investment Corp. will spend ¥40.20 billion on the acquisition of 21 residential, office and retail properties in Japan.
The properties, located across the Japanese cities of Tokyo, Osaka and Nagoya, were divested to the trust by various buyers, including Godo Kaisha Nicolas Capital 10, Godo Kaisha Nicolas Capital 11, Godo Kaisha NRT Growth 12 and Godo Kaisha NRT Growth 13. All 21 assets are to change hands July 3.
The transactions will be funded using the maximum estimated ¥17.53 billion net proceeds from a public offering of 55,400 new investment units and the issue of 2,770 units via a third-party allotment; six MUFG Bank Ltd.-arranged loans totaling ¥20.00 billion from a syndicate of banks; and cash on hand.
Separately, the trust altered its forecast for the six-month fiscal period ending Dec. 31 and provided guidance for the six months ending June 30, 2019.
For the six months ending Dec. 31, the company projects both net income and ordinary income to come in at approximately ¥3.74 billion, up 16.1% from the previous forecasts. It also expects its operating income to weigh in at about ¥4.56 billion and operating revenues at roughly ¥8.37 billion, up 20.7% and 16.5%, respectively, from the earlier projections.
For the six months to June 30, 2019, the trust expects net income and ordinary income of about ¥3.82 billion, operating income of roughly ¥4.45 billion and operating revenues of approximately ¥8.41 billion.
The forecast for the per-unit distribution for the period ending Dec. 31 was increased to ¥8,303 from ¥8,211, while the distribution for the subsequent period is expected at ¥8,488.
As of June 7, US$1 was equivalent to ¥109.99.
