J-REIT: FT5/26 Results Update & Current J-REIT Market

Research evidence excerpt

M

Idea

August 5, 2026 06:30 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+

J-REIT | Japan

Takuya Sato

Equity Analyst

FT5/26 Results Update &

Current J-REIT Market

Toshiyuki Anegawa

Equity Analyst

What’s Changed

Japan Hotel REIT Investment (8985.T)

From

To

Price Target

¥90,000

¥96,000

With fundamentals strong across asset types, we now anticipate

improvement in the relatively soft logistics facilities market.

J-REIT

Japan

Industry View

Attractive

Key Takeaways

We are positive on Daiwa Office Investment and Activia Properties, which revised

up adjusted EPS forecasts in the current interest rate environment.

Non-macro catalysts appear limited, but TSE REIT Index still looks undervalued.

FT5/26 results update: Daiwa Office Investment (8976.T) & Activia Properties

(3279.T): With rents steadily rising on owned properties, both raised adj. EPS

forecasts (excl. sales gains) in the current interest rate environment, which we view

positively. United Urban (8960.T): We see a likelihood of continued property sales

of ~¥20-30bn/year beyond FT11/27, the final period of the current mid-term

strategy. We expect the REIT to maintain a high DPS through the return of sales

gains, and make effective use of sales proceeds. Nippon Prologis (3283.T): The REIT

did not announce any property sales or share buybacks with results, but indicated a

positive stance on sales at the briefing. Its 2027 outlook was more constructive than

before, providing reassurance over logistic facility market conditions.

Big sales gains: Japan Hotel REIT (8985.T) announced a property sale on Jul 17. It

expects to record ~¥24bn in sales gains in FT12/26 and raised its DPS plan +7.8%.

This has no real impact on our price target since our base term is FT12/27, but while

we had previously seen downside risk to FT12/26 DPS guidance given demand

uncertainty in the hotel market, we believe sales gains greatly reduce this risk.

TSE REIT Index: The TSE REIT Index ended Jul at 1,851pt, +2.6% MoM,

outperforming TOPIX (+0.2%) & the TOPIX Real Estate Index (+0.4%). We

previously highlighted 3 J-REIT industry features: 1) rising long-term interest rates,

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