Activia Properties (3279) Q2 2025 earnings summary

Executive summary

• FP27 EPU reached ¥8,731 before the June 1 unit split, meeting the ¥8,700 target 18 months early; split-adjusted EPU was ¥2,910.

• From FP28, strategy targets average annual EPU growth of at least 2% through FP35, supported by active property management and portfolio replacement.

• Portfolio ended the period with 45 properties, ¥541.8bn acquisition value and 99.5% occupancy across 443,875 m² of leasable area.

Financial highlights

• FP27 operating revenue was ¥15.881bn, operating profit ¥8.028bn, ordinary profit ¥6.915bn and net profit ¥6.914bn; revenue and all profit measures increased YoY.

• Real estate leasing NOI was ¥9.288bn, up from ¥9.050bn; NOI after depreciation was ¥9.287bn, ¥237mn above forecast.

• Revenue exceeded forecast by ¥172mn, with rent and common-service fees up ¥91mn and leasing business revenue up ¥170mn.

• NAV per unit was ¥467,042 before the split, up ¥9,446 from the prior period; portfolio unrealized gain rose ¥7.9bn to ¥102.6bn.

• Cash distributions totaled ¥6,916m, or ¥8,731 per unit before the split; the period-end payout ratio was 100.0%.

Outlook and guidance

• Forecast distributions are ¥3,000 per unit for each of the next two periods; forecast EPU is ¥3,000 in FP28 and ¥2,902 in FP29.

• Annual EPU is forecast to grow 2.7%, from ¥5,748 for FP26–FP27 results to ¥5,902 for FP28–FP29 forecasts.

• By FP35, the target is average annual EPU growth of at least 2%; progressive DPU is planned to increase at least 2% annually, or 1% per period, from ¥3,000 in FP29 to ¥3,200 or more.

• Forecast assumptions include average annual NOI-after-depreciation growth of 2.5%, general administrative expense growth of 1.7%, interest expense growth of 6.8%, and a 1.5% long-term rate.

• Forecasts assume 45 properties and three silent partnership interests, ~47% LTV at both period-ends, and refinancing of all debt due in each period.