Invincible Investment (8963) Q2 2026 earnings summary

Executive summary

• June 2026 FP revenue rose 6.7% YoY to ¥26,789 million, net income rose 2.5% to ¥14,729 million, and DPU increased 1.8% to ¥1,930, a June-period record above forecast.

• Portfolio NOI increased 6.4% YoY to ¥24,378 million, led by hotels; appraisal value rose 2.1% to ¥848,295 million.

• Hotel acquisitions since August 2025 and stronger Cayman results supported growth amid post-Expo demand normalization and fewer Chinese visitors.

• At June 30, 2026, the portfolio comprised 156 properties with an acquisition price of ¥684,165 million; there were no acquisitions or dispositions during the period.

• Mid-term target: average annual DPU growth of at least 3% from the 2026 base through 2029, led by internal growth and supported by asset recycling, retained earnings and external growth.

Financial highlights

• Operating revenue was ¥26,789 million, down 6.3% from the preceding period; operating income was ¥17,564 million, down 9.0%.

• Net income was ¥14,729 million, down 11.7% from the preceding period; net income per unit was ¥1,926.

• Operating income rose 3.7% YoY to ¥17.6bn; NOI after depreciation increased 4.2% to ¥18.5bn.

• DPU was ¥1,930 versus ¥1,895 forecast, including a ¥4-per-unit retained-earnings reversal.

• Operating cash flow was ¥24,415 million; investing and financing cash flows were negative ¥1,655 million and ¥16,860 million, respectively; closing cash was ¥45,299 million.

Outlook and guidance

• December 2026 forecast: revenue ¥28,045 million, operating income ¥18,382 million, net income ¥14,988 million and DPU ¥2,186; June 2027 forecast: ¥27,935 million, ¥18,417 million, ¥14,873 million and ¥1,949, respectively.

• December DPU includes a ¥1,726 million retained-earnings reversal to maintain the December 2025 distribution level; June 2027 DPU includes a ¥29 million reversal.

• June 2027 ICN 101-property RevPAR is forecast to rise 4.7% YoY and GOP 4.2%; Cayman GOP is forecast up 5.2%, supported by the reopened Sunshine restaurant.

• Strategic CAPEX planned for 2027–2029 totals ¥22.0bn; estimated NOI yield after depreciation is 7.0%, with annual DPU uplift of ¥200 when benefits are fully realized.

• Forecast assumes no portfolio or unit-count changes through June 2027; debt remains ¥348,654 million, with maturities refinanced or replaced by bonds in equal amounts.