On the 17th, Heiwa Real Estate Reit Investment Corporation <8966> announced its 2024 May financial results (December 23 to May 24). Business revenue was JPY 8.735 billion, up 0.9% from the previous year, operating profit was JPY 4.483 billion, down 0.3% YoY, ordinary profit was JPY 3.939 billion, down 1.4% YoY and net income was JPY 3.938 billion, down 1.4% YoY. The distribution per investment unit (excluding excess profit distribution) was JPY 3,380.
With the aim of improving the profitability and quality of the portfolio in terms of external growth in operational results, a unit of Residence 1 (Re-108 HF Kita-Senju Residence (Real estate, acquisition price: JPY 2.51 billion)) was acquired on February 29, 2024 and a unit of Residence 1 (Re-109 HF Hikifune Residence (Trust beneficiary rights, acquisition price: JPY 1.38 billion)) was acquired on March 29, 2024. In addition, 50% of the quasi-co-ownership interests in a unit of Residence 1 (Re-45 HF Nakanoshima Residence (Trust beneficiary rights, acquisition price: JPY 0.453 billion)) and a unit of Office 1 (Of-31 HF Nihonbashi Hamacho Building (Trust beneficiary rights, acquisition price: JPY 1.9 billion)) were sold on December 22, 2023 and April 12, 2024 respectively. As a result, the operating assets at the end of the period consist of a total of 127 properties (with a total acquisition price of JPY 230.981 billion), consisting of 43 office properties (with a total acquisition price of JPY116.002 billion) and 84 residence properties (with a total acquisition price of JPY 114.979 billion).
Regarding internal growth, we have been striving to improve profitability by maintaining and improving our occupancy rates, but also engaged in tenant leasing activities aimed at shortening vacancy periods and planned value-up investments that take into account tenant needs and property characteristics. As a result of these efforts, there have been achievements in maintaining and improving the competitiveness of the properties, with a total occupancy rate of all operating assets reaching 97.7% at the end of the period, which has been steadily high throughout the period from the end of the previous period of 97.7%, with an average occupancy rate of 97.8% at the end of each month. In addition, we are promoting ESG initiatives with a focus on environmental and energy conservation, as well as contributions to the local community.
Regarding the expected operational status for the 2024 November period, we anticipate business revenue of JPY 8.771 billion, up 0.4% from the previous year, operating profit of JPY 4.445 billion, down 0.8% YoY, ordinary profit of JPY 3.859 billion, down 2.0% YoY and net income of JPY 3.858 billion, down 2.0% YoY. The distribution per unit (excluding excess profit distribution) is JPY 3,440.