Takeaways from Post-FT5/26 Results Contact

Research evidence excerpt

Takeaways from Post-FT5/26 Results Contact

Update

July 22, 2026 08:26 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MUnited Urban Investment (8960) | Japan Takuya Sato

Equity Analyst

Takeaways from Post-FT5/26 Takuya.Sato@morganstanleymufg.comToshiyuki Anegawa +81 3 6836-8913

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

Results Contact

Key Takeaways

Our impression is that high DPS levels will be sustained as gains on property

sales continue beyond FT11/27, the final period in UUI's current medium-term United Urban Investment (8960.T, 8960 JT)

growth strategy. J-REIT | Japan

Stock Rating Equal-weight

Focus now shifts to the potential impact of growth investments through FT5/29.

Industry View Attractive

Price target ¥188,000

Property sales: UUI's share price has remained weak even amid steady growth in Shr price, close (Jul 22, 2026) ¥163,600

Mkt cap, curr, basic (bn) ¥501.0

NAV per share, and it is pursuing proactive efforts to return unrealized gains to Avg daily trading value (bn) ¥1.4

shareholders. UUI is likely to sell properties where there are concerns regarding

future profitability, but is likely to generate decent gains as the assets have been

held for long periods and book values are low. There is still about ¥27bn to go to

reach the upper end of the target for sales gains to be achieved through FT11/27

(based on about ¥20-30bn in annual sales), but we understand candidate properties

with potential for sales of about ¥103bn, with unrealized gains of approximately

¥18bn, have already been selected. It is possible that disposals will continue for

around two more years even after FT11/27.

Growth investments: Refurbishment of the Loisir Hotel and Spa Tower Naha will

take time, given that it will be carried out while the hotel continues to operate, with