Frontier Real Estate Investment Corporation (FOTRF) Q2 2026 Earnings Call Prepared Remarks Transcript

SA Transcripts158.52K FollowersFollow5ShareSaveCommentsPlay Earnings CallPlay Earnings Call Frontier Real Estate Investment Corporation (FOTRF) Q2 2026 Earnings Call February 16, 2026 7:00 PM EST Company Participants Shigekazu Yokochi - President- Mitsui Fudosan Frontier REIT Management Inc Presentation Shigekazu YokochiPresident- Mitsui Fudosan Frontier REIT Management Inc Hello, everyone. My name is Yokochi from Mitsui Fudosan Frontier REIT Management. First, I would like to express my sincere appreciation for your continued support. Today, I will explain the financial results of Frontier Real Estate Investment Corporation for the fiscal period ended December 2025, the 43rd fiscal period. Thank you for your attention. Please turn to Page 3 of the presentation materials. Although this is our constant objective, we strive to increase investor value through stable EPU growth. Specifically, we have set targets of over JPY 2,200 in EPU for the 47th period ending December 2027 and over JPY 2,400 for the 50th period ending June 2029. To achieve this, we will pursue initiatives from 4 perspectives. For external growth, in addition to leveraging the sponsor pipeline, we will also invest selectively in properties other than sponsored properties by identifying cash flow growth potential and the likelihood of achieving potential while remaining mindful of yield after depreciation and the implied capitalization rate. For internal growth, we will focus on pursuing rent upside and incorporate sales-linked rent and rent revision deliberation terms and long-term leases to achieve future internal growth. For asset replacement, we will consider selling properties where profitability decline is a concern due to aging or uncertainty in the future and strategically replace them with properties that have higher profitability. For financial strategy, while using long-term fixed interest loans as a base, we will respond flexibly and strategically, including increasing the use of long-term variable rate loans, et cetera, in accordance with the interest rate environment. We will also consider utilizing our low LTV while maintaining