ORIX JREIT Inc. decided to buy Hotel Universal Port at 1-1-111 Sakura-jima, Konohana-ku in Osaka-shi, Osaka, Japan, for ¥34 billion.
The diversified real estate investment trust is buying the hotel property at a net operating yield of 5.8% from ORIX Golf Management Corp. The building has a total registered area of 35,437.45 square meters. The 600-room hotel has 148 parking lots.
The company will fund the acquisition from proceeds from the issuance of new investment units through public offering and third-party allotment, and cash on hand.
In a separate release, the company announced revised earnings forecasts for two six-month periods ending Feb. 28 and Aug. 31.
For the 32nd fiscal period from Sept. 1, 2017, to Feb. 28, ORIX expects net income and ordinary income of roughly ¥8.88 billion and roughly ¥8.90 billion, up 4.8% from previous estimates. The operating income estimate for the period was increased to ¥10.39 billion, from approximately ¥9.96 billion, while operating revenues forecast was revised to ¥22.91 billion, from ¥22.55 billion.
For the subsequent half-year period, ORIX increased its forecast for net income to ¥8.94 billion from roughly ¥8.47 billion; ordinary income to ¥8.96 billion from roughly ¥8.49 billion; operating income to approximately ¥10.47 billion from roughly ¥9.99 billion; and operating revenues to ¥23.38 billion from approximately ¥22.68 billion.
As of Feb. 23, US$1 was equivalent to ¥106.64.