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Presentation materials for financial results2970GLC GROUP,INC.Real estate

Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending December 2026

In the first half of the fiscal year ending December 2026, revenue increased 14.1% year on year as the core business expanded. However, operating income and all profit lines below it declined due to higher SG&A expenses and lower margins on large projects. Progress against the full-year plan for revenue, operating income and other items was generally in line with the plan, according to the company.

Worth reading
81Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
1617
¥ million
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsSecond quarter of the fiscal year ending December 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥13,092 million+14.1%
Operating profit¥997 million-32.2%
Ordinary income¥936 million-36.1%
Net income¥596 million-36.7%
Operating profit margin7.6 %
Selling, general and administrative expenses¥840 million
Full-year earnings forecast
Net Sales
¥27,500 million
Operating profit
¥2,200 million
Ordinary income
¥2,100 million
Net income
¥1,400 million
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales47.6%
Cost of sales47.5%
Gross profit48.0%
Selling, general and administrative expenses51.6%
Operating profit45.4%
Ordinary income44.6%
Net income42.6%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing smoothly in line with the plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Revenue increase¥1,617 million
  • Increase in costs of sales¥1,899 million
  • Decrease in gross profit¥-281 million
  • Increase in SG&A expenses¥191 million
  • Continued operating profit decline¥-472 million
  • Decrease in ordinary profit¥-530 million
  • Decrease in interim net income¥-345 million
New initiatives
  • Appointed Kotaro Koizumi (小泉孝太郎) as a GLC brand partner
  • Completed the acquisition settlement for the fourth property in Higashinippori, Tokyo
  • Changed the corporate name to GLC COMPASS Co., Ltd. and launched the hotel business in earnest
  • Signed a hotel operations franchise agreement with SQUEEZE
  • Scheduled to open Minn Naha Miebashi in October 2026
  • Developing a 60-room hotel in Haruyoshi, Fukuoka, scheduled to open in spring 2028
Key KPIsA metric the company considers important as a management benchmark.
  • Number of projects (pipeline)41 Engagements
  • Pipeline units1,715 units
  • Cumulative number of completed buildings202 buildings
  • Occupancy Rate97.8 %
  • Equity ratio32 %
    Year on year against the same period last year+1.8%
Segment results
  • Asset Creation Business
    Net Sales¥12,060 million (YoY +13.8%)
    Segment profit¥922 million (YoY -30.3%)
  • Asset Management Business
    Net Sales¥1,059 million (YoY +17.3%)
    Segment profit¥419 million (YoY +13.2%)
  • Property Management
    Net Sales¥812 million (YoY +16.2%)
    Segment profit¥387 million (YoY +10.9%)
  • Energy
    Net Sales¥247 million (YoY +21.1%)
    Segment profit¥39 million (YoY +85.7%)
Medium-term management plan targets
Target fiscal yearFY2028
Net Sales
36,000～40,000
Operating profit
¥4,500 million
Operating income CAGR20.4%
Market Size / Share
  • 2026 average change rate in roadside land prices and standard land prices (Tokyo)9.4 %
  • 2026 average change rate in roadside land prices and standard land prices (Okinawa Prefecture)6.6 %
  • FY2025 number of visitors to Okinawa Prefecture1,093 10,000 people
Number of employees
Number of Employees188 People
As ofEnd of June 2026
Annual Dividend
Not disclosed (the company has not paid dividends to date, and the possibility and timing of dividend payments have not been determined)
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredSecond quarter of the fiscal year ending December 2026
Net Sales¥13,092 million (YoY +14.1%)
Operating profit¥997 million (YoY -32.2%)
Ordinary income¥936 million (YoY -36.1%)
Net income¥596 million (YoY -36.7%)
Operating profit margin7.6 %
Selling, general and administrative expenses¥840 million
Full-year earnings forecastNet Sales ¥27,500 million / Operating profit ¥2,200 million / Ordinary income ¥2,100 million / Net income ¥1,400 million
Progress against full-year forecastNet Sales 47.6% / Cost of sales 47.5% / Gross profit 48.0% / Selling, general and administrative expenses 51.6% / Operating profit 45.4% / Ordinary income 44.6% / Net income 42.6%
Self-assessment against the planProgressing smoothly in line with the plan
Segment resultsSegment Asset Creation Business / Net Sales ¥12,060 million (YoY +13.8%) / Segment profit ¥922 million (YoY -30.3%), Segment Asset Management Business / Net Sales ¥1,059 million (YoY +17.3%) / Segment profit ¥419 million (YoY +13.2%), Segment Property Management / Net Sales ¥812 million (YoY +16.2%) / Segment profit ¥387 million (YoY +10.9%), Segment Energy / Net Sales ¥247 million (YoY +21.1%) / Segment profit ¥39 million (YoY +85.7%)
Breakdown of Factors Affecting the ChangeFactors Revenue increase / Amount ¥1,617 million, Factors Increase in costs of sales / Amount ¥1,899 million, Factors Decrease in gross profit / Amount ¥-281 million, Factors Increase in SG&A expenses / Amount ¥191 million, Factors Continued operating profit decline / Amount ¥-472 million, Factors Decrease in ordinary profit / Amount ¥-530 million, Factors Decrease in interim net income / Amount ¥-345 million
Key KPIsIndicator name Number of projects (pipeline) / Value 41 Engagements / Year on year against the same period last year Not disclosed, Indicator name Pipeline units / Value 1,715 units / Year on year against the same period last year Not disclosed, Indicator name Cumulative number of completed buildings / Value 202 buildings / Year on year against the same period last year Not disclosed, Indicator name Occupancy Rate / Value 97.8 % / Year on year against the same period last year Not disclosed, Indicator name Equity ratio / Value 32 % / Year on year against the same period last year 1.8 %
Number of employeesNumber of Employees 188 People / As of End of June 2026 / Changes during the period and hiring plan Not disclosed
Medium-term management plan targetsTarget fiscal year FY2028 / Net Sales 36,000～40,000 / Operating profit ¥4,500 million / Operating income CAGR 20.4%
Annual DividendNot disclosed (the company has not paid dividends to date, and the possibility and timing of dividend payments have not been determined)
Market Size / ShareIndicator name 2026 average change rate in roadside land prices and standard land prices (Tokyo) / Value 9.4 %, Indicator name 2026 average change rate in roadside land prices and standard land prices (Okinawa Prefecture) / Value 6.6 %, Indicator name FY2025 number of visitors to Okinawa Prefecture / Value 1,093 10,000 people
New initiativesAppointed Kotaro Koizumi (小泉孝太郎) as a GLC brand partner, Completed the acquisition settlement for the fourth property in Higashinippori, Tokyo, Changed the corporate name to GLC COMPASS Co., Ltd. and launched the hotel business in earnest, Signed a hotel operations franchise agreement with SQUEEZE, Scheduled to open Minn Naha Miebashi in October 2026, Developing a 60-room hotel in Haruyoshi, Fukuoka, scheduled to open in spring 2028
Items this document does not state (12)
Gross Profit MarginResults for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The decline in profit was attributable to higher SG&A expenses to support business expansion and the impact on margins from certain large projects. SG&A expenses increased because the company implemented initiatives and investments already incorporated into its full-year plan, including the transition to a holding company structure, higher personnel expenses accompanying organizational expansion, and the costs of introducing shareholder benefits.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Briefing Materials for the Second Quarter of the Fiscal Year Ending December 2026 | GLC GROUP,INC. (2970) timely disclosure | Komori