Healthcare & Medical Investment Corporation, a Tokyo-listed real estate trust focused on senior-care and hospital properties, is buying 14 properties for a combined ¥21.7bn, agreed on August 19, with 12 properties acquired on September 1 and the remaining two scheduled to close September 30. The purchases add 13 senior-living facilities run by established Japanese care operators, plus the ground lease under a 99-bed hospital in Shinjuku, Tokyo.
To pay for it, the trust raised ¥8.8bn through a public offering of 92,858 new units at ¥95,160 each, completed September 1, with a further 4,642 units worth ¥427mn earmarked for a third-party allotment due September 29. The trust also executed ¥8.0bn of new unsecured bank loans on August 28 to help fund the September 1 tranche: term loans of ¥5.0bn and ¥3.0bn tied to one-month yen TIBOR plus 0.25 and 0.35 percentage points, maturing in 2029 and 2030. A further ¥2.5bn term loan and a ¥0.6bn short-term facility on similar terms were arranged on August 26 for the September 30 tranche, which had not yet closed as of the disclosure date.
| Instrument | Amount | Rate or price | Maturity or date |
|---|---|---|---|
| Public offering (92,858 units) | ¥8.84bn | ¥95,160/unit | Paid September 1, 2026 |
| Third-party allotment (4,642 units) | ¥427mn | ¥91,939/unit | Due September 29, 2026 |
| Term loan (executed Aug 28) | ¥5.0bn | TIBOR+0.25% | July 2029 |
| Term loan (executed Aug 28) | ¥3.0bn | TIBOR+0.35% | July 2030 |
| Term loan (arranged Aug 26, undrawn) | ¥2.5bn | TIBOR+0.35% | July 2030 |
| Short-term loan (arranged Aug 26, undrawn) | ¥0.6bn | TIBOR+0.25% | September 2027 |
The acquisitions, combined with a planned disposal of one older property, lift the REIT's cumulative purchase-price base from ¥86.6bn to roughly ¥106.5bn, a figure the manager says makes it the largest holder of healthcare property among Japan's listed REITs on that measure. That is a different yardstick from the ¥88.5bn of total assets on the REIT's balance sheet at the close of the fiscal year in July, which reflects depreciated book value rather than purchase cost, so the two figures are not directly comparable. Either way, the portfolio grows from 57 properties to 70, and the newly acquired assets carry an average age of 14.1 years against 20.2 years for the existing book, a swap of older stock for younger buildings that management says should smooth future capital-spending timing.
The deal also coincides with a change to how the trust pays unitholders beyond taxable profit. On the same August 19 date, the manager raised the cap on "excess" distributions, funded from depreciation rather than earnings, to 30% of the prior period's depreciation charge from 20% previously. That gives the REIT more room to hold payouts steady as the newly acquired properties add depreciation expense.
The effect shows up in guidance. For the period through January 2027, net income is projected to rise 60% to ¥1,625mn and the distribution to ¥3,440 per unit with no excess component, helped by a planned December sale of a senior-care property in Tokyo's Shinagawa ward that is expected to add a one-off ¥344mn gain. Net income is then forecast to fall 26% to ¥1,204mn in the following half-year, with the distribution held near ¥3,170 per unit by drawing on a roughly ¥53mn reserve set aside from that sale gain, plus a ¥417 excess-distribution component. The most recently completed period, ended July 2026, produced net income of ¥1,015mn and a per-unit distribution of ¥3,174, before any of the new properties or financing were in place.