Daiwa House REIT Investment Corporation (8984) plans to sell two build-to-suit logistics facilities for a combined ¥15.83bn, with an estimated gain of ¥4.19bn that it intends to pass to unitholders as distributions. The asset manager, Daiwa House Asset Management, decided on the sales on October 19, 2026. The REIT says it will stage the larger sale so the gain lands in two reporting periods rather than one.
Two assets, two buyers
The larger asset is D Project Tosu III, a five-storey warehouse and office building in Saga Prefecture that the REIT acquired for ¥9.2bn. It is to be sold for ¥11.1bn, matching its appraised value as of August 31, 2026. The smaller is DPL Inuyama in Aichi Prefecture, acquired for ¥3.94bn and to be sold for ¥4.73bn, also equal to its appraisal. Sale prices exclude transaction costs, tax settlements and consumption tax.
| Asset | Closing | Sale price | Estimated gain |
|---|---|---|---|
| D Project Tosu III (first 50%) | October 30, 2026 | ¥5.55bn | ¥1.48bn |
| D Project Tosu III (second 50%) | March 1, 2027 | ¥5.55bn | ¥1.5bn |
| DPL Inuyama | March 1, 2027 | ¥4.73bn | ¥1.21bn |
| Total | October 30, 2026 and March 1, 2027 | ¥15.83bn | ¥4.19bn |
The Tosu sale is split into two 50% quasi-co-ownership interests, with delivery and payment on October 30, 2026 and March 1, 2027. A sale contract is due to be signed on October 30. DPL Inuyama closes on March 1, 2027, with payment in one lump sum at delivery.
Who is buying
Daiwa House Industry is the buyer of DPL Inuyama. It owns all of the asset manager and held 5.8% of the REIT's units at August 31, 2026, so it counts as an interested party under the Investment Trust Act. The notice says the REIT's board approved the Inuyama sale under that law and the manager's internal related-party rules.
The Tosu buyer is a limited liability company set up on September 8, 2026 with ¥200,000 in capital. Daiwa House Industry plans to invest in it. The notice says the company is not an interested party under the Act, but does fall under the manager's own related-party rules. For both sales, the manager says it completed the deliberation and resolutions required under Article 201-2 of the Act and its internal rules, including board approval.
The distribution logic
The REIT says it is selling build-to-suit assets and other properties with limited internal growth prospects, and returning their large unrealised gains to investors. Build-to-suit leases run longer than multitenant leases, which the notice says offer more internal growth. Measured by acquisition price, build-to-suit facilities make up 71.5% of the logistics portfolio and multitenant 28.5%. After the sales, multitenant would reach 29.3%.
The sale gain is to go out as distributions, with remaining proceeds used for capital-efficiency measures that the notice does not itemise. Spreading the Tosu closings across the periods ending February 2027 and August 2027 is meant to smooth the gain and support a continuing rise in the distribution level. The notice gives no distribution-per-unit figures. It points to the forecasts in the separate results summary issued the same day.
On the planned March 1, 2027 portfolio, logistics would be 62 properties valued at ¥457.78bn by acquisition price, or 49.7% of a 231-property, ¥921.51bn portfolio.
The gain figures are rough reference numbers, calculated from sale price less assumed book value and estimated sale costs. The notice says actual gains may differ. Book values are assumed as of each planned closing date.