Comforia Residential REIT (3282) Q2 2025 earnings summary

Executive summary

• H1 ended July 31, 2024, with revenue of ¥11,389M, operating profit of ¥5,332.8M and net profit of ¥4,572.1M; each increased YoY.

• 28th FP DPU was ¥5,714, up ¥64 (1.1%) QoQ; EPU excluding property-sale gains rose ¥57 (1.0%) to ¥5,564.

• Portfolio reached 165 properties and ¥316.7B AUM, with 96.8% average occupancy and record 9.9% rent change on tenant turnover.

• Tokyo-focused acquisitions, rent increases and investment in existing properties support an annual EPU growth target of 2% or more.

Financial highlights

• Revenue was ¥11,389M, operating profit ¥5,332.8M, ordinary profit ¥4,581M and net profit ¥4,572.1M; YoY growth was 6.8%, 8.5%, 9.5% and 9.5%, respectively.

• Distributions totaled ¥4,330M, or ¥5,714 per unit; EPU was ¥6,032 including sale gains and ¥5,564 excluding them.

• Actual revenue, operating profit, net profit and DPU exceeded the March forecast; property sales and rent increases supported results.

• Property-sale gain was ¥354M in 28th FP; ¥280M was retained as reserves.

Outlook and guidance

• DPU is forecast at ¥5,750 for 29th FP (Jan. 2025) and ¥5,730 for 30th FP (Jul. 2025); adjusted EPU excluding sale gains is forecast at ¥5,500 and ¥5,580.

• Forecast revenue is ¥11,308M for the period ending Jan. 31, 2025, and ¥11,357M for the period ending Jul. 31, 2025; operating profit is forecast at ¥5,214M and ¥5,190M, respectively.

• Forecast average occupancy is 96.3% in 29th FP and 96.5% in 30th FP, compared with 96.8% actual in 28th FP.

• Adjusted EPU is expected to dip temporarily due to unfinished or unoccupied acquisitions and mechanical-parking demolition, then recover with leasing progress; internal rent growth target is 1% or more annually.