Ichigo Office REIT Investment Corporation (TSE: 8975) now expects to pay ¥5,552 per unit for the six months to April 2027, up from the ¥2,010 it forecast in June, a rise of 176.2%. The driver is a one-time sale gain, not higher rents.
What is being sold
The REIT's asset manager decided on 27 October to sell five mid-size offices in central Tokyo. Agreed prices total ¥19bn, against appraisals totalling ¥13.88bn. The notice puts the price at 2.2 times assumed book value and 1.4 times the latest appraisal. The buyers are two different domestic operating companies, neither named. Each is to pay 10% of the price as a deposit at signing and the balance on delivery, which is set for 27 November 2026.
The REIT gives its reasons: three of the buildings are more than 30 years old and face rising repair and capital spending, while 58.8% of one building's land and all of another's is leased, so ground rent is expected to rise.
From gain to payout
The REIT expects a gain of about ¥7.93bn, calculated after assumed book value, brokerage and fees. It plans to hold ¥2.52bn in a reserve under a tax provision for replacing specified assets, and ¥101mn in a dividend reserve. The notice says ¥5.309bn goes to unitholders.
The revised forecast distributes ¥8.394bn of retained earnings across 1,511,926 units. Operating revenue is forecast at ¥15.64bn, against ¥8.26bn before, and net income at ¥10.91bn, against ¥2.97bn.
The forecast assumes no property changes through 30 April 2027 beyond the sale of a separate building on 28 October and these five. The REIT calls the figures a forecast, not a guarantee of the payout. The gain is expected, not yet booked, and will move with the final sale costs.