Nippon Building Fund Inc. (NBFJF) Q4 2025 Earnings Call Prepared Remarks Transcript

Core Viewpoint - The office leasing market in Central Tokyo is showing strong signs of recovery, with vacancy rates dropping to levels not seen since before the COVID-19 pandemic, indicating a favorable environment for real estate investments. Group 1: Company Performance - Nippon Building Fund (NBF) successfully conducted a public offering, allowing for the acquisition of new properties, including one in the Nihonbashi area, which is expected to see further rent growth [1] - NBF has been steadily increasing real estate rental revenues, supported by strong corporate earnings and a solid office leasing market [2] - The company aims to accelerate Earnings Per Unit (EPU) and Distributions Per Unit (DPU) growth through both internal and external growth strategies, while being mindful of financial market conditions [2] Group 2: Industry Outlook - The office leasing market remains firm, with a reported vacancy rate in Central Tokyo of 2.15% as of the end of January, nearing the critical 2% threshold [1] - Leasing for properties scheduled for completion in 2026 is progressing well, with demand extending to large-scale new properties expected to be completed in 2028 and 2029 [2] - The positive outlook for the office leasing market is supported by strong corporate earnings, suggesting continued stability and growth in the sector [2]