Comforia Residential REIT (3282) Q2 2027 earnings summary

Executive summary

• DPU reached a record ¥2,102 in the 32nd FP, up 3.1% from the prior period; rent growth and asset-sale gains supported distributions despite growth-investment costs weighing on EPU.

• Strategy is shifting from portfolio expansion to quality enhancement, with asset replacement, inflation-focused investment and a planned transition to steady growth after a three-year investment phase.

Financial highlights

• For the six months ended July 31, 2026, revenue was ¥12,975M, up 5.3%; operating profit was ¥6,405M, up 7.5%; ordinary profit was ¥5,278M and profit was ¥5,269M, each up 6.0%.

• Earnings per unit excluding property-sale gains was ¥1,943, down ¥21 or 1.1%; underlying EPU rose ¥16 to ¥2,027.

• Profit per unit was ¥2,259; cash distributions totaled ¥4,901M, or ¥2,102 per unit, up ¥64 or 3.1% from the 31st FP.

• Total assets were ¥356,406M and net assets were ¥161,748M at period-end.

Outlook and guidance

• Forecast revenue, operating profit, ordinary profit and profit are ¥13,526M, ¥6,779M, ¥5,510M and ¥5,500M for Jan. 2027; ¥13,528M, ¥6,974M, ¥5,687M and ¥5,677M for Jul. 2027.

• DPU is forecast at ¥2,139 in both upcoming periods; forecast profit per unit is ¥2,249 for Jan. 2027 and ¥2,322 for Jul. 2027.

• Planned 33rd FP investments total ¥526M, including ¥240M in growth investments and ¥286M in front-loaded projects; 34th FP growth investments total ¥225M.

• Underlying EPU is expected to grow in line with medium-term targets; normalization of temporary investment costs is expected to support faster internal growth.

• The roadmap targets asset replacement of at least 10% of AUM over three years, prioritizing portfolio rejuvenation and investments that reduce future costs and support rent growth.