Advance Residence Investment Corp
TSE:3269

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Advance Residence Investment Corp
TSE:3269
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Price: 172 700 JPY 0.76%
Market Cap: 492.2B JPY

Advance Residence Investment Corp
Investor Relations

In the bustling landscape of Japan's real estate investment realm, Advance Residence Investment Corp has carved its niche as a prominent player. This entity thrives in the realm of residential properties, particularly focusing on maintaining a robust portfolio of rental apartments primarily in urban areas across Japan. By investing strategically in high-demand locations, the company capitalizes on the growing need for housing in densely populated cities. Their approach is seasoned with meticulous selection criteria that emphasize regional dynamics, ensuring properties are not only accessible but also desirable. The company's operational model is built around the acquisition and efficient management of these residential assets, thus ensuring a steady stream of rental income that forms the backbone of their revenue engine.

Advance Residence Investment Corp’s financial vitality stems largely from its ability to consistently deliver returns to its investors through revenue generated by rental income. The company meticulously manages these properties to align with market trends, ensuring maximum occupancy rates and rental yield. Furthermore, they leverage scale efficiencies, employing a model that minimizes operational costs while maintaining high-quality property maintenance standards. This strategic focus allows them to generate and distribute steady dividends to their shareholders, making the company a reliable player in Japan's real estate investment trust (REIT) sector. This dynamic allows investors to benefit from the profitable residential markets without the complexities and risks associated with direct property ownership.

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Last Earnings Call
Fiscal Period
Q2 2026
Call Date
Sep 16, 2025
AI Summary
Q2 2026

Strong DPU Growth: Distributions per unit (DPU) rose 6.8% year-on-year to JPY 3,192, driven by gains on sales and core earnings growth.

Solid Earnings Performance: Earnings per unit (EPU) excluding gains on sales increased 2.6% year-on-year to JPY 2,619, while adjusted EPU climbed 1.9% to JPY 2,819.

Active Portfolio Management: The company sold eight properties and acquired three, with total property sales of about JPY 10.5 billion planned over two periods.

Rent Growth Prioritized: Management is shifting focus from occupancy rates to rent growth to boost portfolio profitability, with replacement rents up 16.2% and renewal rents up 3.1%.

Guidance for Declining DPU: DPU is forecast to decrease slightly to JPY 3,170 for January 2026 due to property transactions, with further stabilization projected for July 2026.

Remodeling Delivers Results: Remodeling projects led to a 32.1% rent increase on renovated units, with high application rates and expectations for profitability after 4.5 years.

New Fee Structure and Investment Flexibility: The company will revise its asset management fee structure to better align with unitholder interests and expand investment targets to possibly include overseas assets.

Key Financials
Earnings per Unit (EPU) excluding gain on sales
JPY 2,619
Adjusted Earnings per Unit (EPU)
JPY 2,819
Distributions per Unit (DPU)
JPY 3,192
Occupancy Rate
96.1%
Replacement Rent Increase
16.2%
Renewal Rent Increase
3.1%
Total Asset Loan-to-Value (LTV)
48.9%
Funding Interest Rate
1%
Average Remaining Duration
4.5 years
Fixed Interest Rate Ratio
93%
Remodeled Units
305
Remodeled Unit Replacement Rent Increase
32.1%
Other Earnings Calls
2026

Management

Mr. Wataru Higuchi
Executive Officer & Executive Director
No Bio Available
Mr. Hiromasa Yamamoto
Head of Compliance & Risk Management Office and Compliance Officer
No Bio Available
Isao Kudo
GM of Investment & Asset Management Division I and Alternate Executive Director
No Bio Available

Contacts

Address
TOKYO-TO
Chiyoda-ku
17F, Jimbocho Mitsui Bldg., 1-105, Kanda-Jimbocho
Contacts
+81335180480.0
www.adr-reit.com