FT5/26 Results: Positive Impression on Higher Growth Targets

Research evidence excerpt

FT5/26 Results: Positive Impression on Higher Growth Targets

Update

July 16, 2026 09:44 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MActivia Properties (3279) | Japan Takuya Sato

Equity Analyst

FT5/26 Results: Positive Takuya.Sato@morganstanleymufg.comToshiyuki Anegawa +81 3 6836-8913

Toshiyuki.Anegawa@morganstanleymufg.com +81 3 6836-8914

Impression on Higher Growth

Targets

Reaction to earnings

Activia Properties (3279.T, 3279 JT)

Unchanged In-line Modest revision higher J-REIT | Japan

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS Stock Rating Overweight

Industry View Attractive

Source: Company data, Morgan Stanley Research Price target ¥166,000

Shr price, close (Jul 16, 2026) ¥137,400

Mkt cap, curr, basic (bn) ¥326.5

Key Takeaways Avg daily trading value (bn) ¥0.8

The appraised value of Tokyu Plaza Omotesando 'Omokado' rose to ¥79.5bn (up

¥6.8bn YoY), supported by higher rents driven by tenant turnover and

replacements.

Continues to expect tenant replacements of about ¥30bn, anticipate sales gains.

Results vs. expectations: FT5/26 actual DPS came in at ¥3,204 (+2.9% YoY),

exceeding both our forecast and consensus.

Surprises: While temporary downtime is expected to weigh on near-term EPS, the

company now anticipates significantly stronger rent growth going forward. As a

result, it raised its adjusted EPS growth target from 2.0% p.a. to above 3.0% p.a.

from F5/27. The DPS growth target was also increased from 3.0% p.a. to above 3.6%

p.a.

Recommended Action: Positive for the share price. We believe the market will

welcome the higher EPS and DPS targets, particularly given ongoing concerns

around the interest rate environment and rising utility costs.

Exhibit 1: Results Highlights

Sales OP RP NP EPS DPS