Financial Data and Key Metrics Changes - Net income for the 9-month period was JPY 389.7 billion, an increase of JPY 117.9 billion year-over-year, marking the highest third-quarter cumulative net profit ever [2] - Pre-tax profits reached JPY 567.7 billion, up by JPY 184.3 billion year-over-year, with all three categories of finance, operation, and investments showing profit growth [3] - Shareholder returns were enhanced with an expansion of the share buyback program from JPY 100 billion to JPY 150 billion, with JPY 128.1 billion completed by the end of January [3] Business Line Data and Key Metrics Changes - Finance segment profits increased by 8% year-over-year to JPY 145.5 billion, driven by growth in investment income and finance revenues in Australia and Asia [4] - Operation segment profit rose by 17% to JPY 189.5 billion, supported by gains from airport concessions and real estate operations [4][5] - Investment segment profits surged by 100% year-over-year to JPY 261.4 billion, significantly boosted by gains from the sale of Greenko shares and other investments [6][7] Market Data and Key Metrics Changes - The environment energy segment profit increased by JPY 109.1 billion year-over-year, reaching JPY 122.2 billion, primarily due to gains on the sale of Greenko Energy Holdings [17] - The insurance segment profit rose by 20% year-over-year to JPY 74.1 billion, driven by expansion in investment assets and portfolio securities [18] - The banking and credit segment profit decreased by JPY 2.2 billion year-over-year to JPY 19.9 billion, impacted by rising funding costs and credit losses [19] Company Strategy and Development Direction - The company aims to drive sustainable growth and improve capital efficiency while maintaining its full-year net income forecast [8] - Organizational reforms were announced to restructure into three business divisions, although the current fiscal year will continue under the existing 10-segment framework [11] - The company is focusing on capital recycling, with JPY 196.6 billion in capital gains and ongoing investments in operations and PE investments [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the domestic economy's growth and the performance of various segments, including automotive and IT [42][43] - There is caution regarding the impact of rising interest rates and potential credit losses, with a focus on maintaining financial soundness [51][54] - The management is committed to evaluating business plans regularly to ensure alignment with capital efficiency and profitability goals [45][72] Other Important Information - The company has made significant investments in AI infrastructure and logistics facilities, indicating a strategic focus on technology and operational efficiency [10] - The impact of inbound tourism on earnings is being monitored, particularly concerning the decline in Chinese passenger numbers [24][25] - The company is actively managing its portfolio to mitigate risks associated with legacy assets and market fluctuations [21][22] Q&A Session Summary Question: Details on ORIX USA and Hilco Global integration - Management confirmed that valuation gains from ORIX Capital Partners were significant and that a 100-day plan for Hilco Global is being executed to enhance collaboration [35][36] Question: Overall progress and performance against the plan - Management highlighted strong performance in investments and operations, with expectations for continued growth despite potential challenges in the fourth quarter [41][44] Question: Clarification on U.S. valuation gains - Management indicated that the strong performance of U.S. investees, particularly in technology, contributed positively to the overall results [46][80] Question: Cost considerations for the fourth quarter - Management acknowledged potential credit costs and emphasized a cautious approach to project evaluations, particularly regarding Erawan [49][52] Question: Changes in employed capital ratio and risk appetite - Management explained that the employed capital ratio was recalibrated for more detailed risk assessment, with no direct impact on risk appetite [58][60] Question: Capital gains and base profit disclosures - Management clarified that capital gains were not incorporated in the same manner as before, focusing instead on base profit growth [66][67] Question: Future plans for profit growth and ROE targets - Management emphasized the importance of capital efficiency and the potential for continued profit growth, with a focus on high-quality investments [71][72]

Financial Data and Key Metrics Changes - Net income for the 9-month period was JPY 389.7 billion, an increase of JPY 117.9 billion year-over-year, marking the highest third-quarter cumulative net profit ever [2][3] - Pre-tax profits reached JPY 567.7 billion, up by JPY 184.3 billion year-over-year, with growth across all three categories: finance, operation, and investments [3][7] - Shareholder returns were enhanced with an expanded share buyback program from JPY 100 billion to JPY 150 billion, with JPY 128.1 billion completed by the end of January [3][4] Business Line Data and Key Metrics Changes - Finance segment profits increased by 8% year-over-year to JPY 145.5 billion, driven by growth in investment income and finance revenues in Australia and Asia [4][5] - Operation segment profit rose by 17% to JPY 189.5 billion, supported by gains from airport concessions and real estate operations [4][5] - Investment segment profits surged by 100% year-over-year to JPY 261.4 billion, significantly boosted by gains from the sale of Greenko shares and other investments [6][7] Market Data and Key Metrics Changes - The environment energy segment profit increased by JPY 109.1 billion year-over-year to JPY 122.2 billion, primarily due to gains on the sale of Greenko Energy Holdings [17] - The insurance segment profit rose by 20% year-over-year to JPY 74.1 billion, driven by expansion in investment assets and portfolio securities [18] - The banking and credit segment profit decreased by JPY 2.2 billion year-over-year to JPY 19.9 billion, impacted by rising funding costs and losses from selling long-term bonds [19] Company Strategy and Development Direction - The company aims to drive sustainable growth and improve capital efficiency while maintaining its full-year net income forecast [8][9] - Organizational reforms were announced to restructure into three business divisions, although the current fiscal year will continue under the existing 10-segment framework [11] - The company is focusing on capital recycling, with JPY 196.6 billion in capital gains and ongoing investments in operations and PE investments [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the domestic economy's growth and the performance of various sectors, including automotive and IT [42][44] - There is caution regarding the impact of rising interest rates and potential credit losses, with a focus on maintaining financial soundness [19][51] - The management is closely monitoring the situation in China, particularly regarding inbound tourism and its effects on earnings [24][25] Other Important Information - The total assets increased by JPY 1.2594 trillion compared to the end of last year, with significant contributions from the consolidation of Hilco Global [28] - The employed capital ratio was adjusted to 89%, reflecting improved risk management practices [58][60] - The company plans to maintain a payout ratio of 39% of net income per share, with flexibility in shareholder returns [30][72] Q&A Session All Questions and Answers Question: Details about ORIX USA and Hilco Global integration - Management confirmed that valuation profit within the portfolio was significant, and they are executing a 100-day plan for Hilco Global integration [33][35] Question: Overall progress and performance against the plan - Management highlighted strong performance in investments and operations, with expectations for continued growth despite potential challenges in the fourth quarter [40][41] Question: Clarification on U.S. valuation gains - Management indicated that the performance was within expectations, with strong growth in technology-related investees contributing to the results [46][47] Question: Cost considerations for the fourth quarter - Management acknowledged potential credit costs and emphasized a cautious approach to project evaluations, particularly regarding Elawan [49][51] Question: Changes in employed capital ratio and life insurance liabilities - Management explained that the employed capital ratio was recalibrated for better risk assessment, and discussions are ongoing regarding life insurance liabilities [58][62] Question: Capital gains and base profit disclosures - Management clarified that capital gains were not incorporated in the same manner as before, focusing instead on base profit growth [66][67] Question: Future investment strategies and ROE targets - Management emphasized the importance of capital efficiency and the potential for continued profit growth, with a focus on high-quality investments [71][72]

Financial Data and Key Metrics Changes - Net income for the 9-month period was JPY 389.7 billion, an increase of JPY 117.9 billion year-over-year, marking the highest third-quarter cumulative net profit ever [2][3] - Pre-tax profits reached JPY 567.7 billion, up by JPY 184.3 billion year-over-year, with all three categories of finance, operation, and investments showing profit growth [3][6] - Shareholder returns were enhanced with an expanded share buyback program from JPY 100 billion to JPY 150 billion, with JPY 128.1 billion completed by the end of January [3][4] Business Line Data and Key Metrics Changes - Finance segment profits increased by 8% year-over-year to JPY 145.5 billion, driven by growth in investment income and finance revenues in Australia and Asia [4][5] - Operation segment profit rose by 17% to JPY 189.5 billion, supported by gains from airport concessions and real estate operations [5][6] - Investment segment profits surged by 100% year-over-year to JPY 261.4 billion, significantly boosted by gains from the sale of Greenko shares and other investments [5][6] Market Data and Key Metrics Changes - The environment energy segment profit increased by JPY 109.1 billion year-over-year, reaching JPY 122.2 billion, primarily due to gains on the sale of Greenko Energy Holdings [16][17] - The ORIX USA segment showed a profit of JPY 14 billion for the 9-month period, reflecting a positive recovery despite previous credit losses [20][21] - The Asia and Australia segment profit increased by JPY 11.4 billion, a 41% rise year-over-year, driven by financial income from local operations [23] Company Strategy and Development Direction - The company aims to drive sustainable growth and improve capital efficiency while maintaining its full-year net income forecast [7][8] - Organizational reforms were announced to restructure into three business divisions, although the current fiscal year will continue under the existing 10-segment framework [10] - The company is focusing on capital recycling, with JPY 196.6 billion in capital gains and ongoing investments in operations and asset valuation businesses [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the impact of declining Chinese passenger numbers on earnings, particularly in the tourism sector [24][25] - The company anticipates a mixed outlook for the next fiscal year, with potential downside risks due to economic uncertainties and rising interest rates [39][43] - There is a focus on maintaining financial soundness while enhancing future profitability, especially in light of rising funding costs [18][31] Other Important Information - Total assets increased by JPY 1.2594 trillion compared to the end of last year, with significant contributions from the consolidation of Hilco Global [29][30] - The company reported a reduction in insurance contract liabilities by JPY 234.2 billion, attributed to a higher discount rate used for measurement [30][51] - The employed capital ratio was adjusted to reflect more detailed risk management, resulting in a decrease from 92% to 89% [49][50] Q&A Session Summary Question: Details on ORIX USA and Hilco Global integration - Management confirmed that valuation profit within the portfolio showed significant growth, and they are executing a 100-day plan for Hilco Global integration [32][34] Question: Progress against the business plan - Management noted strong progress in investments and operational performance, particularly in the divestiture of non-core businesses [37][38] Question: Credit costs and potential losses - Management acknowledged the potential for credit costs and losses but emphasized ongoing monitoring and proactive measures to address risks [41][42] Question: Changes in employed capital ratio and future investments - The employed capital ratio was recalibrated for more precise risk assessment, allowing for flexible investments while maintaining a conservative approach [49][50] Question: Outlook for next fiscal year - Management indicated that while the current fiscal year is performing well, they remain cautious about the next fiscal year due to economic uncertainties [56][58]

ORIX Corporation Consolidated Financial Results For the Nine-Month Period Ended December 31, 2025 Kazuki Yamamoto Operating Officer, Corporate Strategy and Management Unit, Responsible for Corporate Planning, Investor Relations and Sustainability February 9, 2026 1 Copyright © ORIX Corporation All rights reserved. ※ テンプレートデザインの個別編集禁止 Executive Summary (1) Net income (2) Pre-tax profits ‒ Q1-Q3 pre-tax profits were 567.7 Bln JPY (+184.3 Bln JPY), growth achieved in all three categories (profits higher even e ...

Core Viewpoint - Federal Realty Investment Trust has announced the sale of Misora Apartments for $148.5 million, marking its first significant asset disposition of 2026, contributing to a total of $475 million in recent capital recycling activities at attractive yields [1][2][3]. Group 1: Recent Transactions - The sale of Misora Apartments, a 212-unit Class A residential community, is part of Federal Realty's strategy to prune and reinvest in higher-return opportunities [1][2]. - In addition to Misora, the company sold Courthouse Center, a 33,000-square-foot shopping center in Rockville, Maryland, for $10 million [2]. - These transactions follow a series of asset sales in 2025, including Levare Apartments and Pallas at Pike & Rose, generating nearly $475 million in proceeds at a blended cap rate in the low 5% range [3]. Group 2: Company Strategy and Performance - The company emphasizes a disciplined approach to asset management, focusing on reinvesting in high-value opportunities while maintaining financial flexibility [4]. - Federal Realty is recognized for its long-term sustainable growth strategy, primarily investing in retail-based properties in major coastal markets and underserved regions [4]. - As of September 30, 2025, Federal Realty's portfolio includes 103 properties with approximately 3,600 tenants across 27.9 million commercial square feet and around 3,000 residential units [4]. Group 3: Dividend and Market Position - Federal Realty has a notable track record of increasing quarterly dividends for 58 consecutive years, the longest in the REIT industry [5]. - The company is a member of the S&P 500 index and trades on the NYSE under the symbol FRT [5].

Core Insights - JLL Income Property Trust has announced the sale of Kingston at McClean Crossing, a 319-unit apartment community in McClean, VA, for an undisclosed amount, aligning with its strategy of capital recycling and reinvestment into higher-performing properties [1][2]. Group 1: Company Strategy and Performance - The sale supports JLL Income Property Trust's long-term strategy of harvesting gains and reinvesting in property sectors that are better positioned for future returns [2]. - Over its 13-year history, the company has sold more than 50 properties totaling over $1.3 billion, maintaining a trading value within 1% of the most recent independent appraised value [3]. - The company aims to increase its capital available for new investments and redeploy into more core, stabilized assets during a new market cycle for real estate [3]. Group 2: Portfolio Composition - After the sale, JLL Income Property Trust's allocation to residential investments remains significant, with $2.5 billion in residential sector investments, which constitutes 38% of its total $6.9 billion diversified portfolio [4]. - The portfolio includes high-quality, income-producing residential, industrial, grocery-anchored retail, healthcare, and office properties located in the United States [5]. Group 3: Company Background - JLL Income Property Trust is an institutionally managed, daily NAV REIT with a growing portfolio of real estate investments, sponsored by a leading real estate services firm [5]. - LaSalle Investment Management, a subsidiary of JLL, manages $86.4 billion in assets globally, indicating the scale and reach of the investment management capabilities [6].

Core Insights - NewRiver REIT reported strong operational performance driven by rising demand in core markets, leading to increased leasing activity and occupancy across its portfolio [1] Consumer Spending Trends and Category Performance - Total in-store customer spending for the key Christmas quarter was consistent with the previous year, with the same trend observed for the year ending December 2025 [2] - Grocery, the largest spending segment, saw a year-over-year increase of 6.2%, while non-food discount increased by 7.2%, food and beverage by 4%, and health and beauty by 2.4%. However, value fashion experienced a decline of 1.1% [5] Business Rates Outlook and Tenant Affordability - NewRiver anticipates a 7% increase in rateable values across its portfolio effective April 1, 2026, but expects this to be offset by a new discount for retail, hospitality, and leisure properties [3] - The company projects an 11% reduction in rates payable for tenants, which is seen as supportive for tenant affordability [3] Capital Recycling and Disposals - The company is focused on disciplined capital recycling to enhance portfolio quality and strengthen its financial position [4] - NewRiver completed two disposals, generating total proceeds of GBP 12.6 million, including a retail park in Northern Ireland and a shopping center in Hemel Hempstead [4] - Additionally, the company exchanged contracts in January for the sale of another retail park in Dumfries for GBP 26.5 million, following the completion of a value-enhancing business plan [6]

Group 1 - The company reported strong operational performance with increasing demand in core markets, leading to heightened leasing activity and rising occupancy rates [1] - Total in-store customer spending during the Christmas quarter remained consistent with the previous year, with grocery spending rising by 6.2% compared to the same quarter last year [1] - Non-Food discount sales grew by 7.2%, while Food & Beverage and Health & Beauty segments increased by 4% and 2.4% respectively, despite a decline in Value Fashion by 1.1% [1] Group 2 - As of April 1, 2026, new ratable values across the portfolio are expected to increase by 7%, but this will be offset by an 11% reduction in rates payable for tenants due to a recently announced discount for retail, hospitality, and leisure properties [2] - The company has been disciplined in capital recycling, improving portfolio quality, and strengthening its financial position, having disposed of one retail park in Northern Ireland and one shopping center in Hemel Hempstead for a total of GBP 12.6 million [2] - A further retail park in Dumfries was exchanged for GBP 26.5 million following the execution of a value-enhancing business plan [2]

Financial Data and Key Metrics Changes - The company generated full-year Adjusted EBITDA of $2.4 billion, a decrease from $2.6 billion in 2024, reflecting lower ownership in three businesses following partial sales [17] - Adjusted EFO for the year was $1.2 billion, including $161 million of net gains during the year [17] - Excluding tax credits and the impact of acquisitions and dispositions, Adjusted EBITDA was $2.1 billion, compared to $2 billion in the prior year [17] Business Line Data and Key Metrics Changes - The industrial segment generated full-year Adjusted EBITDA of $1.3 billion, up from $1.2 billion last year, with a 10% increase excluding acquisitions and dispositions [17][18] - The business services segment generated full-year Adjusted EBITDA of $823 million, down from $832 million last year, but increased approximately 5% on a same-store basis [18][19] - The infrastructure services segment generated full-year Adjusted EBITDA of $436 million, down from $606 million last year, impacted by the sale of operations and lower terminal deliveries [19][20] Market Data and Key Metrics Changes - North America is benefiting from easing rates, steady consumer spending, and resilient labor markets, although growth remains challenging in certain end markets [10][11] - In Europe, conditions are more challenging with slower activity in cyclical and industrial end markets, but there are early signs of improvement supported by fiscal spending and stabilizing energy prices [11] Company Strategy and Development Direction - The company is close to completing a corporate reorganization to become a single, newly listed corporation, which is expected to improve trading liquidity and increase index-driven demand for shares [5][6] - The strategy focuses on operational excellence and capital recycling, with significant investments in growth acquisitions and stock repurchases [4][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the market backdrop, highlighting that the trading price is 50% higher than a year ago but still at a discount to NAV [8] - The company is well-positioned with capital and capabilities to continue building value in 2026, with a strong focus on operational improvements and cash generation [9][15] Other Important Information - The company ended the year with approximately $2.6 billion of pro forma liquidity at the corporate level, providing significant flexibility for growth and capital allocation [20][21] - The company has repurchased approximately $235 million of its units and shares, remaining committed to completing its $250 million buyback program [21] Q&A Session Summary Question: Clarios performance and monetization - Management indicated that Clarios is generating significant free cash flow and the 45X tax credits will enhance cash for reinvestment, with various options for returning cash to shareholders [23][24] Question: Scientific Games earnings trajectory - Management noted that while there is a strong pipeline for Scientific Games, it takes time for earnings to materialize, and they remain cautiously optimistic about the business [26][27] Question: Balance between reducing leverage and pursuing growth - Management emphasized that growing EBITDA will naturally reduce leverage, and they are focused on growth while managing debt levels [28][29] Question: Update on CDK operations - Management reported strong renewal activity and a focus on stabilizing churn through modernization and customer relationship solidification [42][43] Question: Deployment of capital and acquisitions - Management expressed confidence in continuing the momentum of acquisitions into 2026, with several opportunities being explored [45]

Core Insights - Brookfield Renewable Partners reported record financial results for 2025, highlighting its leadership in providing clean and reliable energy solutions to governments and corporations [2][3] - The company signed a Hydro Framework Agreement with Google to deliver up to 3,000 megawatts of hydro capacity, reflecting strong demand from hyperscalers for clean energy [4][7] Financial Performance - For the twelve months ended December 31, 2025, Brookfield Renewable reported Funds From Operations (FFO) of $1,334 million, or $2.01 per unit, representing a 10% increase year-over-year [3][4] - The net income attributable to unitholders for the same period was a loss of $19 million, compared to a loss of $464 million in 2024 [3][4] Operating Segments - The hydroelectric segment generated $607 million in FFO, up 19% year-over-year, driven by higher revenue and stronger generation in Canada and Colombia [4][7] - The wind and solar segments combined generated $648 million in FFO, benefiting from acquisitions and development activities [4][7] - The distributed energy, storage, and sustainable solutions segments contributed $614 million in FFO, nearly a 90% increase from the previous year [4][7] Strategic Initiatives - The company committed or deployed up to $8.8 billion across strategic technologies in core markets, enhancing its growth potential [5][6] - Brookfield Renewable executed a record ~$4.5 billion in asset recycling, generating expected proceeds that significantly exceeded invested capital [6][7] Capacity Expansion - The company delivered approximately 8,000 megawatts of new capacity globally in 2025, a 20% increase year-over-year, and expects to achieve a run-rate of ~10,000 megawatts per year by 2027 [7][8] - Brookfield Renewable's partnerships with leading corporates and governments are expected to drive further growth in large-scale clean energy solutions [5][7] Liquidity and Capital Structure - As of December 31, 2025, the company maintained $4.6 billion in available liquidity and completed over $37 billion in financings, optimizing its capital structure [9][14] - The company reaffirmed its BBB+ investment grade rating with major rating agencies during 2025 [14] Distribution Declaration - The next quarterly distribution is set at $0.392 per LP unit, reflecting a more than 5% increase, bringing the total annual distribution per unit to $1.568 [10][11]