Comforia Residential REIT (3282) Q2 2026 earnings summary

Executive summary

• 30th FP (Jul 2025) delivered record EPU of ¥5,745 excluding property-sale gains and record DPU of ¥5,957; both exceeded the prior period.

• Revenue, operating profit, ordinary profit and profit increased versus 29th FP; total assets were ¥357,131M and net assets ¥161,910M at period-end.

• Depreciation-adjusted NOI at existing properties rose ¥103M versus an ¥83M increase in interest expenses, a net ¥20M benefit.

• Strategy prioritizes rent growth, selective portfolio replacement and balance-sheet control amid inflation and rising interest rates.

Financial highlights

• Operating revenue was ¥12,212M, up 6.6%; operating profit was ¥5,760M, up 8.8%.

• Ordinary profit was ¥4,864M, up 7.9%; profit was ¥4,853M, up 7.8%.

• EPU excluding property-sale gains was ¥5,745, up ¥114 or 2.0% vs. 29th FP and 3.3% annually; DPU rose 4.3% annually.

• Results exceeded the Mar 2025 forecast: net profit by ¥459M and DPU by ¥207; property sales, rent increases and high occupancy supported outperformance.

• Operating cash flow was ¥7,323M; investing cash flow was an outflow of ¥13,905M and financing cash flow was ¥8,078M.

Outlook and guidance

• Forecast DPU is ¥6,105 for 31st FP (Jan 2026) and ¥6,166 for 32nd FP (Jul 2026); EPU excluding gains on sale is forecast at ¥5,865 and ¥5,918.

• Jan 2026 forecast: revenue ¥12,348M, operating profit ¥5,961M, ordinary profit ¥4,960M and profit ¥4,950M; Jul 2026 forecast: ¥12,590M, ¥6,221M, ¥5,124M and ¥5,115M, respectively.

• EPU target is ¥6,000 as a short-term milestone and ¥6,700 by 40th FP (Jul 2030), with medium-term EPU CAGR targeted at 3%.

• Rate assumptions: policy rate 0.75% in Oct 2025 and 1.00% in Jun 2026; long-term assumptions reach 1.25% in Aug 2027 if inflation and wage growth continue.

• Internal growth is expected to exceed rate impacts; occupancy assumptions are 97.0% for 31st FP and 96.8% for 32nd FP, with turnover rent gains of 8.9% and 9.7%.