Advance Residence Investment (3269) Q4 2026 earnings summary

Executive summary

• Stable distribution policy, internal growth, selective asset replacement and flexible financing; annual FFOPU growth target of at least 2%, with actual FFOPU growth of 3.8% from FP 1-2025 to FP 1-2026.

• FP 1-2026 ended with 287 properties, ¥500.1B AUM and 95.7% occupancy; appraisal value was ¥757.2B, including ¥291.3B in unrealized gains.

Financial highlights

• FP 1-2026 operating revenue was ¥20.654B, including ¥1.673B from property sales; rental revenue was ¥18.981B and NOI was ¥14.401B.

• Net income was ¥9.219B and operating income ¥10.256B; excluding sale gains, net income was ¥7.545B and operating income ¥8.583B.

• DPU was ¥3,220, up ¥28 period over period; FFOPU was ¥3,948, up ¥48, and FFO payout ratio was 75.1%.

• Jan 2026 FFO-based DPU was ¥2,966, with ¥254 from sale gains and similar items; total DPU is forecast to decline as sale-related distributions fall.

Outlook and guidance

• FP 7-2026 forecast: FFOPU ¥4,004, DPU ¥3,162 and occupancy 95.8%; FP 1-2027 forecast: FFOPU ¥4,026, DPU ¥3,090 and occupancy 95.8%.

• FFO per unit growth is forecast at 2.7% YoY for Jul 2026 and 2.0% YoY for Jan 2027; FFO-based DPU forecasts are ¥2,993 and ¥2,986, respectively.

• Forecast revenue is ¥20.262B for FP 7-2026 and ¥19.686B for FP 1-2027; net income excluding sale gains is ¥7.672B and ¥7.673B, respectively.

• Mid- to long-term targets include annual FFOPU growth of 2%, replacement rent growth of at least 15% and renewal rent growth of at least 4%; annual NOI growth is projected at 4.2%.