Japan Hotel REIT Lifts Full-Year Forecasts Sharply on Asset Sale Gains

MT Newswires Live07-17

Japan Hotel REIT (TYO:8985) has raised its net income forecast for the year ending Dec. 31 to 51.9 billion yen from 27.9 billion yen previously, following a gain on property disposal.

Dividend per unit estimates were lifted to 5,580 yen from the previous forecast of 5,177 yen, while operating revenue projections were increased to 75.1 billion yen from nearly 51 billion yen initially, according to a bourse filing on Friday.

The upward revision is primarily driven by a 24.1 billion yen gain on the sale of The Beach Tower Okinawa, according to a separate disclosure on the same day.

Of the gains, 19.2 billion yen will be retained as a reserve for special tax treatment for replacement property and 4.8 billion yen to be distributed to unitholders.

At the same time, the REIT is also acquiring Candeo Hotels Osaka Namba for 14.3 billion yen, the filing read.

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