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Advance Residence Investment Corporation (JP:3269)
:3269

Advance Residence Investment (3269) AI Stock Analysis

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Advance Residence Investment

(OTC:3269)

Rating:68Neutral
Price Target:
¥162,450
▲(7.51%Upside)
Advance Residence Investment's overall stock score reflects strong technical momentum and solid financial performance, despite challenges with revenue decline and negative free cash flow. The stock's high P/E ratio indicates potential overvaluation, though the dividend yield offers some appeal to investors.

Advance Residence Investment (3269) vs. iShares MSCI Japan ETF (EWJ)

Advance Residence Investment Business Overview & Revenue Model

Company DescriptionAdvance Residence Investment Corporation (3269) is a Japanese real estate investment trust (REIT) primarily engaged in the acquisition, management, and leasing of residential properties. The company focuses on securing a robust portfolio of residential assets, including apartments and housing complexes, predominantly located in major urban areas across Japan. Its investment strategy is aimed at generating steady rental income and enhancing the long-term value of its properties.
How the Company Makes MoneyAdvance Residence Investment Corporation generates revenue primarily through the rental income received from its residential properties. As a REIT, it is structured to acquire and manage real estate assets, allowing it to earn consistent income from leasing its properties to tenants. The company benefits from Japan's strong rental market demand, particularly in metropolitan areas where housing needs are high. Additionally, the corporation may engage in property sales when strategically advantageous, contributing to its income. Given its structure as a REIT, it is also required to distribute a significant portion of its earnings as dividends to shareholders, which can attract investors seeking income.

Advance Residence Investment Financial Statement Overview

Summary
Advance Residence Investment shows strong profitability and operational efficiency with robust margins and a balanced capital structure. However, challenges such as recent revenue decline and negative free cash flow could impact future growth.
Income Statement
75
Positive
The company's gross profit margin is robust, consistently above 50% over the years. However, the net profit margin has slightly decreased from 40.8% in 2023 to 42.4% in 2024. Revenue growth has been inconsistent, with a decline of 4.7% in 2024. EBIT and EBITDA margins remain strong, indicating operational efficiency.
Balance Sheet
70
Positive
The debt-to-equity ratio is stable at around 0.97, reflecting a balanced approach to leverage. The return on equity is slightly improving, reaching 6.5% in 2024, which indicates efficient use of shareholder equity. The equity ratio is approximately 50%, indicating a solid capital structure.
Cash Flow
60
Neutral
Operating cash flow is strong, but free cash flow has turned negative in 2024 due to high capital expenditures. The free cash flow to net income ratio has decreased, showing reduced cash conversion efficiency. However, operating cash flow to net income remains healthy, indicating strong cash-generating ability.
BreakdownTTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue39.71B37.38B39.23B34.57B33.90B34.53B
Gross Profit19.16B21.63B19.13B20.86B20.48B20.87B
EBITDA24.55B24.13B23.69B22.45B21.99B22.44B
Net Income15.97B15.86B16.01B15.30B14.84B15.27B
Balance Sheet
Total Assets457.86B490.96B471.29B464.90B457.83B457.57B
Cash, Cash Equivalents and Short-Term Investments17.33B17.71B27.68B13.78B14.73B14.18B
Total Debt219.42B237.91B233.31B227.81B220.51B219.59B
Total Liabilities226.16B245.12B240.50B234.64B227.34B226.34B
Stockholders Equity231.70B245.84B230.78B230.25B230.49B231.23B
Cash Flow
Free Cash Flow7.70B-5.03B14.42B7.62B15.32B9.06B
Operating Cash Flow25.26B25.88B25.09B21.70B21.66B29.31B
Investing Cash Flow-19.53B-28.93B-12.68B-14.04B-6.44B-19.14B
Financing Cash Flow-4.76B3.28B-10.60B-8.43B-14.66B-9.62B

Advance Residence Investment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price151100.00
Price Trends
50DMA
148466.00
Positive
100DMA
145828.00
Positive
200DMA
147906.29
Positive
Market Momentum
MACD
963.57
Negative
RSI
58.30
Neutral
STOCH
50.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:3269, the sentiment is Positive. The current price of 151100 is above the 20-day moving average (MA) of 149765.00, above the 50-day MA of 148466.00, and above the 200-day MA of 147906.29, indicating a bullish trend. The MACD of 963.57 indicates Negative momentum. The RSI at 58.30 is Neutral, neither overbought nor oversold. The STOCH value of 50.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:3269.

Advance Residence Investment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥48.60B18.25
5.79%36.16%5.08%
74
Outperform
¥232.99B17.377.03%5.37%-5.13%14.49%
70
Outperform
¥298.31B26.25
3.82%-3.25%-2.56%
68
Neutral
¥433.05B28.596.09%3.95%-0.71%-7.24%
66
Neutral
¥226.07B24.55
4.08%14.22%5.98%
63
Neutral
$6.87B19.10-1.13%7.17%4.77%-25.03%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:3269
Advance Residence Investment
151,100.00
-4,881.66
-3.13%
JP:3226
Nippon Accommodations Fund Inc.
118,500.00
-4,332.78
-3.53%
JP:3282
Comforia Residential REIT, Inc.
289,700.00
-13,606.10
-4.49%
JP:8979
Starts Proceed Investment Corporation
178,400.00
-6,933.30
-3.74%
JP:8986
Daiwa Securities Living Investment
96,800.00
-1,235.43
-1.26%

Advance Residence Investment Corporate Events

Advance Residence Investment Corporation Announces Strategic Asset Disposition
Jun 25, 2025

Advance Residence Investment Corporation announced the strategic disposition of three real estate assets, aiming to optimize capital efficiency and enhance unitholder returns. The sale, valued at 3,154 million yen, exceeds both the book and appraisal values, generating a gain of approximately 1,155 million yen. The proceeds will be used to enhance unitholder value through distributions, investment unit acquisitions, and future property replacements.

The most recent analyst rating on (JP:3269) stock is a Buy with a Yen370000.00 price target. To see the full list of analyst forecasts on Advance Residence Investment stock, see the JP:3269 Stock Forecast page.

Advance Residence Investment Corporation Sets Interest Rate for Long-Term Loan
Jun 23, 2025

Advance Residence Investment Corporation has set the interest rate for a 2,300 million yen long-term loan, which will be drawn on June 25, 2025, at a fixed rate of 1.03880%. This strategic financial move is expected to support the company’s operations by securing favorable loan terms, reflecting its strong market position and commitment to financial stability.

The most recent analyst rating on (JP:3269) stock is a Hold with a Yen354000.00 price target. To see the full list of analyst forecasts on Advance Residence Investment stock, see the JP:3269 Stock Forecast page.

Advance Residence Investment Secures Debt Financing for Loan Repayment
Jun 16, 2025

Advance Residence Investment Corporation announced plans to secure debt financing to repay an existing loan due on June 25, 2025. The new loan, amounting to 2,300 million yen, will be drawn from the Development Bank of Japan and is scheduled for full repayment by June 26, 2028. This refinancing move is part of the company’s strategy to maintain financial stability and continue offering stable dividends, reinforcing its position as a defensive player in the J-REIT market.

The most recent analyst rating on (JP:3269) stock is a Hold with a Yen354000.00 price target. To see the full list of analyst forecasts on Advance Residence Investment stock, see the JP:3269 Stock Forecast page.

ITOCHU REIT Management Announces Board Changes
May 28, 2025

ITOCHU REIT Management Co., Ltd., the asset management company for Advance Residence Investment Corporation, announced a change in its board of directors. Toshiya Takamura is set to be elected as a part-time director, and Yasutomo Izutsu as a full-time auditor, replacing Hironori Izumi and Shoichi Suzuki, respectively. This change is scheduled for the Ordinary General Shareholders’ Meeting on June 18, 2025, and is expected to align with regulatory requirements.

The most recent analyst rating on (JP:3269) stock is a Hold with a Yen354000.00 price target. To see the full list of analyst forecasts on Advance Residence Investment stock, see the JP:3269 Stock Forecast page.

Advance Residence Investment Completes Strategic Unit Acquisition
May 1, 2025

Advance Residence Investment Corporation has completed the acquisition of its own investment units, purchasing a total of 13,698 units for approximately 1.999 billion yen between March 18 and April 30, 2025. This strategic move is expected to reduce the total number of issued investment units, potentially enhancing shareholder value by increasing the dividend per unit and reinforcing the company’s market position as a stable and defensive J-REIT.

Advance Residence Sets Interest Rate for Long-term Debt Financing
Apr 25, 2025

Advance Residence Investment Corporation has announced the interest rate for a portion of its planned long-term debt financing, specifically 800 million yen of a total 2,900 million yen loan, set at 1.09380% with a five-year term. This financial move is part of its strategic debt management, potentially enhancing its financial stability and reinforcing its position in the real estate investment market.

Advance Residence Investment Extends Loan Commitment for Enhanced Stability
Apr 22, 2025

Advance Residence Investment Corporation announced the extension of its existing term loan commitment agreement to enhance long-term and stable fund procurement. The agreement, involving lenders MUFG Bank Ltd., Sumitomo Mitsui Trust Bank, Limited, and Mizuho Bank, Ltd., extends the commitment period by one year, now ending on April 30, 2028. The funds will be used for property acquisitions, loan repayments, and bond redemptions. The company’s financial forecasts for the fiscal periods ending July 2025 and January 2026 remain unchanged, indicating a stable financial outlook.

Advance Residence Sets Interest Rate for Long-Term Loan
Apr 17, 2025

Advance Residence Investment Corporation has announced the interest rate for a portion of its planned long-term debt financing, setting a fixed rate of 1.11000% for a 1,000 million yen loan from The Joyo Bank, Ltd. This financial move is part of its broader strategy to maintain stable operations and ensure long-term dividend stability, reinforcing its position as a leading player in the residential J-REIT market.

Advance Residence Investment Corporation Secures Financial Stability with Interest Rate Swap Agreements
Apr 16, 2025

Advance Residence Investment Corporation announced its decision to enter into interest rate swap agreements to hedge against interest rate fluctuations on a 1,000 million yen loan. This strategic move is aimed at stabilizing the company’s financial operations and ensuring predictable costs, reinforcing its position as a stable and defensive investment option in the real estate market.

Advance Residence Investment Corporation Secures Debt Financing and Interest Rate Stability
Apr 10, 2025

Advance Residence Investment Corporation announced a debt financing initiative involving a 1,500 million yen long-term loan, with a fixed interest rate set for 500 million yen and an interest rate swap agreement to hedge against fluctuations for the remaining 1,000 million yen. This move is expected to stabilize the company’s financial operations and reinforce its position in the real estate investment sector, providing assurance to stakeholders regarding the management of interest rate risks.

Advance Residence Investment Corporation Announces New Debt Financing and Green Loan Initiatives
Apr 9, 2025

Advance Residence Investment Corporation announced new debt financing plans, including a green loan, to refinance existing loans and enhance its financial base. This move underscores the company’s commitment to sustainable finance and positions it to maintain its market standing while promoting environmental responsibility.

Advance Residence Investment Corporation Acquires Own Investment Units
Apr 1, 2025

Advance Residence Investment Corporation announced the acquisition of 4,108 of its own investment units in March 2025, amounting to 600,399,600 yen, through market purchases on the Tokyo Stock Exchange. This move is part of a broader strategy approved by the board to acquire up to 18,000 units by April 30, 2025, reflecting the company’s efforts to optimize its capital structure and potentially enhance shareholder value.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 12, 2025