Advance Residence Investment Corporation (ADZZF) Q2 2027 Earnings Call Prepared Remarks Transcript

Isao Kudo
GM of Investment & Asset Management Division I

My name is Kudo, and I’m from ITOCHU REIT Management. Thank you very much for watching this video on the financial results of Advance Residence Investment Corporation. I would also like to take this opportunity to extend my sincere appreciation to unitholders and all other stakeholders for your continued and invaluable support.

With that, I will now present the financial results for the fiscal period ended July 2026. Today, we will cover 6 themes in the following order: strategy and financial highlights, cash allocation and distribution outlook, internal growth, property acquisitions and dispositions, finance and sustainability. First, let’s look at strategy and financial highlights. There are no changes in management policy going forward. Through the 3 main pillars of internal growth, external growth and financial and capital strategy, the Investment Corporation will continue pursuing stable and sustainable distributions.

First is internal growth. We aim to achieve ongoing enhancements to the Corporation’s earnings power, primarily centered on rent growth. A key driver of this growth is the living room remodeling project. In addition to generating added value through remodeling, we also promote asset value enhancement initiatives that incorporate ESG perspectives. Next is external growth. We promote selective acquisitions through asset replacement. With an eye toward medium- to long-term growth, we will enhance the overall quality of the Corporation’s portfolio through asset replacement while steadily returning value to unitholders through gains on sales.

Now let’s look at the financial and capital strategy. The Corporation will maintain a solid foundation by balancing financial stability and financing flexibility while containing increases in financial costs. We will also