Activia Properties (3279) Q2 2026 earnings summary

Executive summary

• H1 revenue was ¥17,732.9 million (+7.2% YoY), operating profit ¥9,740.8 million (+13.8%) and net profit ¥8,456.5 million (+14.4%); profit included a ¥1,529.4 million property-sale gain.

• H1 earnings per unit rose to ¥3,558 from ¥3,111; distributions were ¥3,204 per unit, up from ¥3,113.

• FP29 EPU was ¥2,969, 2.0% above forecast; EPU growth target was raised to CAGR of 3% or more from FP31 and the progressive DPU target to CAGR of 3.6% or more.

Financial highlights

• FP29 operating revenue was ¥17.732bn, operating profit ¥9.740bn and profit ¥8.456bn; profit increased ¥1.061bn from FP28, including a ¥1.529bn property-sale gain.

• Excluding sale gains, FP29 NOI was ¥11.244bn and post-depreciation NOI ¥9.562bn; DPU of ¥3,204 exceeded the ¥3,169 forecast.

• FP30 forecasts revenue of ¥18.434bn, operating profit ¥10.130bn, net profit ¥8.633bn and DPU ¥3,278; FP31 forecasts ¥17.899bn, ¥9.723bn, ¥8.053bn and ¥3,279, respectively.

• Operating cash flow was ¥14,890.9 million, versus ¥9,503.6 million in the prior period; investing and financing cash outflows were ¥7,306.0 million and ¥7,692.9 million.

Outlook and guidance

• FP31 EPU is forecast at ¥3,016, or ¥3,041 on a portfolio-strength basis; FY35 targets are EPU CAGR of 3% or more from FP31 and DPU CAGR of 3.6% or more.

• Strategic downtime, refurbishment, vacant-area losses and temporary borrowing costs weigh on near-term EPU; rent income is projected to increase by more than ¥170 per unit per period from the forecast period onward.

• Forecasts assume acquisition of A-FLAG KYOTO SHIJO in September 2026 and staged transfers of remaining Kobe Kyu Kyoryuchi 25Bankan interests; actual results may differ with portfolio, market and operating conditions.

• Interest and borrowing-related costs are forecast at ¥1,511 million for November 2026 and ¥1,685 million for May 2027; forecast LTV is ~47% in both periods.