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Nippon Building enters ¥175B property deals, revises H2'17 earnings forecast

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Nippon Building enters ¥175B property deals, revises H2'17 earnings forecast

Nippon Building Fund Inc. is buying two assets for a combined ¥82.30 billion and selling three more with hopes of reaping ¥92.70 billion.

The fund agreed to acquire the Roppongi T-CUBE and Celestine Shiba Mitsui Building for ¥62.80 billion and ¥19.50 billion, respectively, from Mitsui Fudosan Co. Ltd. The two properties, which were acquired through sale-and-leaseback deals, are in Tokyo and have respective rentable areas of 34,637.03 square meters and 21,095.47 square meters. Nippon Building said it will use cash on hand to settle the deal March 30, 2018.

Additionally, Nippon Building entered separate deals to sell the NBF Hibiya Building to Mitsui Fudosan for ¥64.00 billion, the GSK Building to Mitsui Fudosan Residential Co. Ltd. for ¥17.00 billion and the NBF Shin-Uruyasu Tower to an undisclosed buyer for ¥11.70 billion. Divestments of the NBF Hibiya and GSK assets are expected Dec. 26, while the NBF Shin-Uruyasu property will be transferred Dec. 20.

The NBF Hibiya and the GSK buildings are mixed-use properties in Tokyo, while the NBF Shin-Urayasu in Chiba is solely for office use.

Nippon Building also said it revised its operating results forecast for the period ending Dec. 31.

The company is expecting both its ordinary and net income to reach nearly ¥14.58 billion in the final six months of 2017, higher compared to its earlier prediction of a 0.8% year-over-year dip to ¥13.01 billion. For the second half of 2017, the company is expecting its operating revenues and operating income to respectively amount to an estimated ¥42.09 billion and roughly ¥16.46 billion.

Meanwhile, distribution for the period is predicted at ¥9,300 per unit, up from the ¥9,129 per unit declared for the six months ended June 30.

As of Dec. 15, US$1 was equivalent to ¥112.36.