Advance Residence Investment (3269) Q2 2027 earnings summary

Executive summary

• FP 07-2026 DPU reached ¥3,225, up ¥5 from the prior period and marking an 11th consecutive increase; FFOPU rose 3.0% YoY to ¥4,017.

• Rent growth remained the primary earnings driver, supported by a favorable residential leasing market and 95.9% average occupancy.

Financial highlights

• FP 07-2026 operating revenue was ¥20,560.6M, operating income ¥9,892.4M and net income ¥8,715.2M; revenue fell 0.5% and net income 5.5% YoY.

• Excluding property-sale gains, operating revenue was ¥19,547M, operating income ¥8,879M and net income ¥7,701M, up from ¥7,545M in FP 01-2026.

• FFO increased to ¥11,458M from ¥11,262M in the prior period; EPU excluding property-sale gains rose ¥55 to ¥2,700.

• Actual DPU and FFOPU exceeded forecasts: ¥3,225 versus ¥3,162 and ¥4,017 versus ¥4,004, respectively.

Outlook and guidance

• FP 01-2027 forecasts DPU of ¥3,253 and FFOPU of ¥4,055; FP 07-2027 forecasts DPU of ¥3,258 and FFOPU of ¥4,098.

• Annual FFOPU growth target is at least 2.0%; forecast growth from FP 07-2026 to FP 07-2027 is 2.0%.

• FP 07-2027 forecasts operating revenue of ¥20,521M, NOI of ¥15,701M and net income excluding property-sale gains of ¥7,838M.

• Forecast occupancy is 95.7% in FP 01-2027 and 95.9% in FP 07-2027; occupancy is expected to remain stable.