FT4/26 Results: Announcement of Investment Unit Repurchases

Research evidence excerpt

FT4/26 Results: Announcement of Investment Unit Repurchases

Update

June 17, 2026 09:14 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MKDX Realty Investment (8972) | Japan Takuya Sato

Equity Analyst

FT4/26 Results: Announcement Takuya.Sato@morganstanleymufg.comToshiyuki Anegawa +81 3 6836-8913

Toshiyuki.Anegawa@morganstanleymufg.com +81 3 6836-8914

of Investment Unit Repurchases

Reaction to earnings

Unchanged In-line Largely unchanged

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS KDX Realty Investment (8972.T, 8972 JT)

Source: Company data, Morgan Stanley Research J-REIT | Japan

Stock Rating Equal-weight

Industry View Attractive

Key Takeaways Price target ¥194,000

Shr price, close (Jun 17, 2026) ¥155,400

KDXR announced buybacks of up to ¥6bn or 50,000 investment units (1.2% of Mkt cap, curr, basic (bn) ¥627.7

the issued base). Avg daily trading value (bn) ¥1.6

It aims to increase investment exposure to hotels from 4.6% to 10% or higher.

Results vs. forecasts: FT4/26 DPS was below consensus but broadly in line with our

forecast at ¥4,166 (+1.5% YoY).

Surprises: KDXR aims for annual average DPS growth of +3.0% or higher but is

planning a flat payout for FT4/27. It said its policy has not changed and that it

intends to take another look based on the situation with investments at the next

results release. We also understand that it is considering whether essentially to

position investment unit buyback effects as additional to the +3.0%/higher

framework.

Recommended action: Our impression of the release in terms of the share price is

neutral. We would expect the use of negative goodwill to make a drop below the

DPS growth rate target exceedingly unlikely, but taken together with effects of