Worth reading
61In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
-53.3
Operating income; year-on-year change (%)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings presentation materialsThird quarter of the fiscal year ending December 20268 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥25,172 million-18.3%
Operating profit¥2,633 million-53.3%
Ordinary income¥1,431 million-69.7%
Net income¥941 million-70.4%
Gross Profit Margin20.7%
Operating profit margin10.5%
Full-year earnings forecast
Net Sales
¥61,000 million
Operating profit
¥17,500 million
Ordinary income
¥16,700 million
Profit attributable to owners of the parent
¥11,600 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。
Company-wide
Net Sales41.3%
Gross profit23.9%
DX new-build real estate business
Net Sales39.1%
Gross profit56.2%
DX property redevelopment business
Net Sales74.6%
Gross profit47.1%
DX real estate value enhancement business
Net Sales22.4%
Gross profit10.0%
Real Estate Leasing Business
Net Sales102.4%
Gross profit122.5%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
The gross profit margin in the DX new-build real estate business has been above the assumption underlying the full-year plan. Both net sales and gross profit in the real estate leasing business have exceeded the full-year plan. Overall, the company expects to achieve its full-year plan.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Lower gross profit due to lower revenue¥-1,459 million
- Lower gross profit due to a change in the gross profit margin¥-1,297 million
- Higher sales commissions¥-54 million
- Higher personnel expenses¥-184 million
- Higher other SG&A expenses¥-15 million
New initiatives
- Introduction of a new shareholder benefit program
- Full-scale development of residential hotels
- DX new-build real estate development in Tokyo and Nagoya, with completion scheduled from 2027 onward
- Hotel development pipeline of 7 projects
Key KPIsA metric the company considers important as a management benchmark.
- Inventories¥744 100 million
- Number of hotels under development7 cases
- Total assets¥1,053 100 million
Segment results
DX new-build real estate business
Sales
¥6,849 million-46.5%
Gross profit
¥2,021 million-58.7%
DX property redevelopment business
Sales
¥11,184 million-1.4%
Gross profit
¥1,060 million-38.3%
DX real estate value enhancement business
Sales
¥6,175 million+6.0%
Gross profit
¥1,547 million+81.4%
Real Estate Leasing Business
Sales
¥921 million+14.2%
Gross profit
¥551 million+12.5%
Market Size / Share
Transaction price per sq. m. for used condominiums in Tokyo¥1.2313 million per sq. m. (March 2026 peak)
Number of affluent and ultra-affluent households1.653 million households (2023)
Income-producing real estate asset market size¥352.1 trillion (2025)
Annual Dividend
Annual dividend per share¥174.00 per share
Interim¥59.00
End of period¥115.00
Payout ratio
34.3%; target payout ratio of 40%; DOE floor of 6%| Item | Details |
|---|---|
| Document type | Earnings presentation materials |
| Fiscal Period Covered | Third quarter of the fiscal year ending December 2026 |
| Net Sales | ¥25,172 million (YoY -18.3%) |
| Operating profit | ¥2,633 million (YoY -53.3%) |
| Ordinary income | ¥1,431 million (YoY -69.7%) |
| Net income | ¥941 million (YoY -70.4%) |
| Gross Profit Margin | 20.7% |
| Operating profit margin | 10.5% |
| Full-year earnings forecast | Net Sales ¥61,000 million / Operating profit ¥17,500 million / Ordinary income ¥16,700 million / Profit attributable to owners of the parent ¥11,600 million |
| Progress against full-year forecast | Company-wide Net Sales 41.3% / Gross profit 23.9% / DX new-build real estate business Net Sales 39.1% / Gross profit 56.2% / DX property redevelopment business Net Sales 74.6% / Gross profit 47.1% / DX real estate value enhancement business Net Sales 22.4% / Gross profit 10.0% / Real Estate Leasing Business Net Sales 102.4% / Gross profit 122.5% |
| Self-assessment against the plan | The gross profit margin in the DX new-build real estate business has been above the assumption underlying the full-year plan. Both net sales and gross profit in the real estate leasing business have exceeded the full-year plan. Overall, the company expects to achieve its full-year plan. |
| Segment results | DX new-build real estate business Sales ¥6,849 million (YoY -46.5%) / Gross profit ¥2,021 million (YoY -58.7%) / DX property redevelopment business Sales ¥11,184 million (YoY -1.4%) / Gross profit ¥1,060 million (YoY -38.3%) / DX real estate value enhancement business Sales ¥6,175 million (YoY +6.0%) / Gross profit ¥1,547 million (YoY +81.4%) / Real Estate Leasing Business Sales ¥921 million (YoY +14.2%) / Gross profit ¥551 million (YoY +12.5%) |
| Breakdown of Factors Affecting the Change | Factors Lower gross profit due to lower revenue / Amount ¥-1,459 million, Factors Lower gross profit due to a change in the gross profit margin / Amount ¥-1,297 million, Factors Higher sales commissions / Amount ¥-54 million, Factors Higher personnel expenses / Amount ¥-184 million, Factors Higher other SG&A expenses / Amount ¥-15 million |
| Key KPIs | Indicator name Inventories / Value ¥744 100 million / Year on year against the same period last year Not disclosed, Indicator name Number of hotels under development / Value 7 cases / Year on year against the same period last year Not disclosed, Indicator name Total assets / Value ¥1,053 100 million / Year on year against the same period last year Not disclosed |
| Annual Dividend | Annual dividend per share ¥174.00 per share / Interim ¥59.00 / End of period ¥115.00 |
| Payout ratio | 34.3%; target payout ratio of 40%; DOE floor of 6% |
| Market Size / Share | Transaction price per sq. m. for used condominiums in Tokyo ¥1.2313 million per sq. m. (March 2026 peak) / Number of affluent and ultra-affluent households 1.653 million households (2023) / Income-producing real estate asset market size ¥352.1 trillion (2025) |
| New initiatives | Introduction of a new shareholder benefit program, Full-scale development of residential hotels, DX new-build real estate development in Tokyo and Nagoya, with completion scheduled from 2027 onward, Hotel development pipeline of 7 projects |
Items this document does not state (13)
Selling, general and administrative expensesResults for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition 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.A decline in gross profit due to lower revenue, changes in the sales mix and gross profit margin by business, cautious buyer sentiment in the DX property redevelopment business in response to higher interest rates and the review of selling prices for certain properties, and higher SG&A expenses, mainly personnel expenses. Revenue from a large project in the DX real estate value enhancement business is scheduled to be recorded in the fourth quarter.
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.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.