Mitsui Fudosan Reit Investment Corporation (8966) announced on the 31st that Mitsui Fudosan Asset Management, an asset management company, has decided to transfer assets.

The property name is HF Ichikawa Residence, the type of assets to be transferred is beneficiary rights trust, the scheduled transfer price is 0.67 billion yen, the book value is 0.365 billion yen, and the expected transfer gain is 0.265 billion yen. The date of sale contract is October 31, 2024, the scheduled transfer (delivery) date is November 15, 2024, the transferee is undisclosed, settlement method is lump sum at the time of delivery, and whether there is mediation is yes.

The assets to be transferred this time are single-type residences acquired in 2004, which have contributed to the stable cash flow of this investment trust over the long term. On the other hand, the assets to be transferred are small-scale residences targeted for replacement as part of the external growth strategy of this investment trust, so the timing of the transfer has been carefully planned.

As of the end of May 2024, the appraisal value exceeds the book value by 0.244 billion yen, reaching 0.61 billion yen (including a gain rate of 66.9%), but the scheduled transfer price is expected to further exceed this amount, reaching 0.67 billion yen (the expected gain rate calculated from the book value and the expected transfer gain is 72.7%). This investment trust aims to use the realized gains from asset replacement as the source of value enhancement for the held properties, and aims to return investment to shareholders through rent increases and portfolio enhancement. This transfer, which exceeds both the appraisal value and the book value, is expected to contribute to the sustainable return to shareholders that the investment trust is aiming for.