Advance Residence Investment (3269) Q2 2026 earnings summary

Executive summary

• For the six months ended July 31, 2025, operating revenue rose 11.8% and net income rose 24.9% versus the prior period; DPU was ¥3,192, up 6.8%.

• EPU excluding sale gains increased 2.6% to ¥2,619 and adjusted EPU rose 1.9% to ¥2,819, supported by portfolio rent growth and sale gains.

• January 2026 forecasts are broadly stable, while July 2026 forecasts show lower revenue, income and distributions.

Financial highlights

• Operating revenue was ¥20,539 million, including ¥1,665 million in property-sale gains; operating income was ¥10,140 million and net income ¥9,136 million.

• Excluding sale gains, operating revenue was ¥18,874 million, operating income ¥8,475 million and net income ¥7,472 million; NOI was ¥14,189 million, up 2.3% sequentially.

• DPU was ¥3,192, including ¥150 per unit from sale gains; EPU excluding gains was ¥2,619 and adjusted EPU ¥2,819.

• FFO per unit was ¥3,900, up 2.6%; NAV per unit was ¥181,650, up 1.9%, with unrealized gains of ¥283.0 billion, or 61.6% of book value.

• Operating cash flow was ¥17,050 million, investing cash flow ¥425 million, financing cash flow -¥7,861 million and ending cash ¥24,611 million.

Outlook and guidance

• January 2026 forecast: DPU ¥3,170, including ¥150 per unit from sale gains; EPU excluding gains ¥2,589 and adjusted EPU ¥2,797.

• July 2026 forecast: DPU ¥3,042, EPU excluding gains ¥2,629 and adjusted EPU ¥2,819; adjusted EPU excluding acquisitions and dispositions is projected to grow ~1.0% annually through internal growth.

• Forecast occupancy is 95.8% in both periods; the absence of planned sale gains reduces July 2026 DPU by ¥128 versus January 2026.

• Distribution policy targets adjusted EPU plus fixed reserve drawdowns, with retained earnings supporting stable distributions of ~¥100 per unit when needed.

• January 2026 forecast revenue is ¥20,550 million and net income ¥9,059 million; July 2026 forecast revenue is ¥19,287 million and net income ¥7,499 million.