Worth reading
89Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
97.6
¥X billion (cumulative Q3 operating profit)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationThird quarter of the fiscal year ending November 202614 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales652.2 Hundreds of millions of yen+34.4%
Operating profit97.6 Hundreds of millions of yen+67.4%
Ordinary income88.9 Hundreds of millions of yen+78.0%
Net income60.7 Hundreds of millions of yen+77.3%
Selling, general and administrative expenses¥44.3 100 million; selling, general and administrative expenses as a percentage of revenue: not_disclosed
Results for the three months of the current quarterOperating profit of ¥2.95 billion (as shown in the chart)
Full-year earnings forecast
Net Sales¥89.16 billion
Gross profit¥16.89 billion
Operating profit¥10.44 billion
Ordinary income¥8.77 billion
Net income for the current fiscal year¥6.03 billion
EPS¥167.62
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 Sales73.2%
Operating profit93.5%
Ordinary income101.4%
Net income for the current fiscal year100.8%
Renovated Condominium Business Sales_OC Other103%
Renovated Condominium Business Sales_OC Renovation85%
Renovated Condominium Business Sales_Vacant Unit Renovation77%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
OC other achieved its full-year sales plan as of Q3. OC renovation and vacant-unit renovation are progressing broadly in line with the forecast revised in May. The medium-term management plan targets remain within reach.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Renovated condominium business (rental): +¥20 million
- Renovated condominium business (sales): +¥4.45 billion
- Investment and advisory businesses: +¥590 million
- Selling, general and administrative expenses: -¥1.14 billion
- Personnel expenses: -¥190 million
- Consumption tax: -¥620 million
- Other SG&A expenses: -¥310 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
The company is closely monitoring current market conditions and other factors. The number of existing condominiums sold in Tokyo is below the same month of the previous year, following a sharp increase in 2025. Quantified assumptions for foreign exchange rates, raw material prices and other factors: Not disclosedNew initiatives
- Formation of the second asset-securitization fund with Development Bank of Japan (the sixth fund in total)
- Use of syndicated loans and recruitment of new participating banks as the business expands
- Consideration of additional investment in properties held for sale to support profit growth from FY2027 onward
- Strengthening construction capacity for high-priced properties and developing cost-management methods
Key KPIsA metric the company considers important as a management benchmark.
- Units sold: 497 OC renovation units (up 47.9% year on year), 360 OC other units (up 11.1%), and 581 vacant-unit renovation units (up 4.9%)
- OC renovation gross profit margin: 27.7% (+4.9 percentage points)
- OC other gross profit margin: 16.9% (+3.1 percentage points)
- Vacant-unit renovation gross profit margin: 11.7% (+1.2 percentage points)
- Equity ratio: 28.3% (+2.7 percentage points from the previous fiscal year-end)
Unit price and quantity metricsThese figures show sales broken down by price and volume.
- OC renovation: 497 units sold, average selling price of ¥41.3 million, gross profit margin of 27.7%
- OC other: 360 units sold, average selling price of ¥25.3 million, gross profit margin of 16.9%
- Vacant-unit renovation: 581 units sold, average selling price of ¥49.7 million, gross profit margin of 11.7%
Segment results
Renovated Condominium Business
Net Sales¥62.56 billion (up 33.0% year on year)
Gross profit¥12.89 billion (up 53.3% year on year)
Revenue from Property Sales¥58.99 billion (up 35.5%)
Gross Profit from Property Sales¥11.05 billion (up 67.6%)
Rental revenue¥3.56 billion (up 1.8%)
Gross Profit from Leasing¥1.84 billion (up 1.4%)
Investment
Net Sales¥1.39 billion (up 79.5%)
Gross profit¥200 million (up 16.6%)
Advisory Business
Net Sales¥1.27 billion (up 80.1%)
Gross profit¥1.11 billion (up 103.1%)
Medium-term management plan targets
ROEAt least 12.0% (outlook at completion: 17.1%)
Operating profit marginAt least 10.0% (outlook at completion: 11.7%)
EPS growth rateFY23-26 CAGR of at least +14.0% (outlook: +28.2%)
Sales business cycle-1.5 months versus FY23 (unchanged)
Owner-change turnover period-18 months versus FY23 (outlook: -16 to -18 months)
Balance of properties held for saleAt least ¥100.0 billion (outlook: approximately ¥120.0-130.0 billion)
Equity ratioAt least 25.0% (outlook: approximately 26-28%)
Total payout ratio40.0% (unchanged)
PBR1.0x (unchanged)
Financial targets
ROE target of at least 12.0%, equity ratio of at least 25.0%, and total payout ratio of 40.0%. Actual and forecast figures are ROE of 17.1% and an equity ratio of 28.3% (at the end of Q3)Market Size / Share
The transaction completion rate for Tokyo existing condominiums priced at ¥200 million or more has halved. Our group is the only Prime Market-listed company whose main business is renovated condominiumsAnnual Dividend
¥51.0 (interim and year-end breakdown: Not disclosed)Payout ratio
Approximately 30%. Total payout ratio: 40.0%Acquisition of treasury shares
The policy is to conduct share buybacks flexibly when shares are deemed undervalued, such as when the PBR is below 1.0x. The amount, number of shares and period for the repurchase authorization: Not disclosedGross profit
¥14.20 billion, up 55.6% year on year. Gross profit margin was 18.8% (excluding valuation losses in the renovated condominium business), with business-specific disclosures including a 3.1 percentage-point year-on-year increase in the gross profit margin| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | Third quarter of the fiscal year ending November 2026 |
| Net Sales | 652.2 Hundreds of millions of yen (YoY +34.4%) |
| Operating profit | 97.6 Hundreds of millions of yen (YoY +67.4%) |
| Ordinary income | 88.9 Hundreds of millions of yen (YoY +78.0%) |
| Net income | 60.7 Hundreds of millions of yen (YoY +77.3%) |
| Gross profit | ¥14.20 billion, up 55.6% year on year. Gross profit margin was 18.8% (excluding valuation losses in the renovated condominium business), with business-specific disclosures including a 3.1 percentage-point year-on-year increase in the gross profit margin |
| Selling, general and administrative expenses | ¥44.3 100 million; selling, general and administrative expenses as a percentage of revenue: not_disclosed |
| Results for the three months of the current quarter | Operating profit of ¥2.95 billion (as shown in the chart) |
| Full-year earnings forecast | Net Sales ¥89.16 billion / Gross profit ¥16.89 billion / Operating profit ¥10.44 billion / Ordinary income ¥8.77 billion / Net income for the current fiscal year ¥6.03 billion / EPS ¥167.62 |
| Progress against full-year forecast | Net Sales 73.2% / Operating profit 93.5% / Ordinary income 101.4% / Net income for the current fiscal year 100.8% / Renovated Condominium Business Sales_OC Other 103% / Renovated Condominium Business Sales_OC Renovation 85% / Renovated Condominium Business Sales_Vacant Unit Renovation 77% |
| Self-assessment against the plan | OC other achieved its full-year sales plan as of Q3. OC renovation and vacant-unit renovation are progressing broadly in line with the forecast revised in May. The medium-term management plan targets remain within reach. |
| Segment results | Renovated Condominium Business Net Sales ¥62.56 billion (up 33.0% year on year) / Gross profit ¥12.89 billion (up 53.3% year on year) / Revenue from Property Sales ¥58.99 billion (up 35.5%) / Gross Profit from Property Sales ¥11.05 billion (up 67.6%) / Rental revenue ¥3.56 billion (up 1.8%) / Gross Profit from Leasing ¥1.84 billion (up 1.4%) / Investment Net Sales ¥1.39 billion (up 79.5%) / Gross profit ¥200 million (up 16.6%) / Advisory Business Net Sales ¥1.27 billion (up 80.1%) / Gross profit ¥1.11 billion (up 103.1%) |
| Breakdown of Factors Affecting the Change | Renovated condominium business (rental): +¥20 million, Renovated condominium business (sales): +¥4.45 billion, Investment and advisory businesses: +¥590 million, Selling, general and administrative expenses: -¥1.14 billion, Personnel expenses: -¥190 million, Consumption tax: -¥620 million, Other SG&A expenses: -¥310 million |
| Key KPIs | Units sold: 497 OC renovation units (up 47.9% year on year), 360 OC other units (up 11.1%), and 581 vacant-unit renovation units (up 4.9%), OC renovation gross profit margin: 27.7% (+4.9 percentage points), OC other gross profit margin: 16.9% (+3.1 percentage points), Vacant-unit renovation gross profit margin: 11.7% (+1.2 percentage points), Equity ratio: 28.3% (+2.7 percentage points from the previous fiscal year-end) |
| Unit price and quantity metrics | OC renovation: 497 units sold, average selling price of ¥41.3 million, gross profit margin of 27.7%, OC other: 360 units sold, average selling price of ¥25.3 million, gross profit margin of 16.9%, Vacant-unit renovation: 581 units sold, average selling price of ¥49.7 million, gross profit margin of 11.7% |
| Assumptions Underlying the Business Outlook | The company is closely monitoring current market conditions and other factors. The number of existing condominiums sold in Tokyo is below the same month of the previous year, following a sharp increase in 2025. Quantified assumptions for foreign exchange rates, raw material prices and other factors: Not disclosed |
| Medium-term management plan targets | ROE At least 12.0% (outlook at completion: 17.1%) / Operating profit margin At least 10.0% (outlook at completion: 11.7%) / EPS growth rate FY23-26 CAGR of at least +14.0% (outlook: +28.2%) / Sales business cycle -1.5 months versus FY23 (unchanged) / Owner-change turnover period -18 months versus FY23 (outlook: -16 to -18 months) / Balance of properties held for sale At least ¥100.0 billion (outlook: approximately ¥120.0-130.0 billion) / Equity ratio At least 25.0% (outlook: approximately 26-28%) / Total payout ratio 40.0% (unchanged) / PBR 1.0x (unchanged) |
| Financial targets | ROE target of at least 12.0%, equity ratio of at least 25.0%, and total payout ratio of 40.0%. Actual and forecast figures are ROE of 17.1% and an equity ratio of 28.3% (at the end of Q3) |
| Annual Dividend | ¥51.0 (interim and year-end breakdown: Not disclosed) |
| Payout ratio | Approximately 30%. Total payout ratio: 40.0% |
| Acquisition of treasury shares | The policy is to conduct share buybacks flexibly when shares are deemed undervalued, such as when the PBR is below 1.0x. The amount, number of shares and period for the repurchase authorization: Not disclosed |
| Market Size / Share | The transaction completion rate for Tokyo existing condominiums priced at ¥200 million or more has halved. Our group is the only Prime Market-listed company whose main business is renovated condominiums |
| New initiatives | Formation of the second asset-securitization fund with Development Bank of Japan (the sixth fund in total), Use of syndicated loans and recruitment of new participating banks as the business expands, Consideration of additional investment in properties held for sale to support profit growth from FY2027 onward, Strengthening construction capacity for high-priced properties and developing cost-management methods |
Items this document does not state (7)
Operating profit marginNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookCapital 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.Profit growth was driven by a return to owner-change properties, sales of mid- to high-priced properties in urban areas, increased unit sales and profit margins from shorter turnaround times for OC renovation, the formation of an OC other asset-securitization fund, and higher sales prices for vacant-unit renovations. Selling, general and administrative expenses were a ¥1.14 billion drag on profit, due to increases in personnel expenses, consumption tax and other expenses. Below ordinary profit, one-off gains on the valuation of interest rate swaps and other factors contributed to earnings.
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