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Presentation materials on financial results2993Choei Inc.Real estate

Supplementary Financial Results Information for the Fiscal Year Ending March 2026

For the fiscal year ending March 2026, revenue and operating profit increased due to higher management revenue, construction revenue and rental income, while ordinary profit and net income declined because of higher borrowing costs and the absence of the prior fiscal year's extraordinary gain. For the fiscal year ending March 2027, revenue and profit are expected to increase, although ordinary profit and net income are forecast to decline due to interest costs and the impact of the defense special corporate tax.

Worth reading
52Recurring
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
9.9
Year-on-year change in revenue (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFiscal year ending March 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥11,008 million+9.9%
Operating profit¥1,968 million+9.3%
Ordinary income¥1,417 million-2.8%
Net income¥996 million-51.8%
Selling, general and administrative expensesIncrease of ¥93 million
Full-year earnings forecast
Fiscal year ending March 2027
Net Sales
¥11,525 million
Operating profit
¥2,291 million
Ordinary income
¥1,384 million
Net income for the current fiscal year
¥925 million
Revenue from the property management business
¥4,523 million
Operating profit from the property management business
¥659 million
Real estate leasing business revenue
¥7,002 million
Operating profit from the property leasing business
¥1,631 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。
Fiscal year ending March 2026: actual results versus forecasts
Net Sales104.9%
Revenue from the property management business105.6%
Real estate leasing business revenue104.5%
Operating profit101.0%
Operating profit from the property management business132.6%
Operating profit from the property leasing business87.1%
Ordinary income103.7%
Net income for the current fiscal year107.7%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue and profit at each level exceeded 100% of plan
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net Sales
Increase in management revenue¥99 million
Increase in construction revenue¥198 million
Increase in brokerage revenue¥12 million
Increase in rental income¥589 million
Other¥92 million
Operating profit
Effect of higher sales¥990 million
Increase in direct costs¥-198 million
Increase in indirect costs¥-531 million
Increase in selling, general and administrative expenses¥-93 million
Net income for the fiscal year ending March 2027
Increase in management revenue and other revenue¥70 million
Increase in rental income and other revenue¥446 million
Increase in cost of sales¥-236 million
Decrease in SG&A expenses¥41 million
Decrease in non-operating income and expenses¥-355 million
Decrease in extraordinary income and expenses¥-3 million
Increase in income taxes¥-34 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Properties acquired in the previous fiscal yearFull-year operation
Managed propertiesIncreased
Borrowing interest rateConservatively factors in higher borrowing costs
Defense special corporate taxFactors in the impact
New initiatives
  • Extend eligibility for incentives for acquiring new management contracts to all employees
  • Share successful examples of acquiring management contracts in new areas
  • Planned renovations of the exterior walls and common areas of existing properties
  • Expand management locations into new areas
Key KPIsA metric the company considers important as a management benchmark.
  • Increase in managed properties1,492 units
    Year on year against the same period last yearIncreased
  • Increase in properties under management contracts744 units
    Year on year against the same period last yearIncreased
  • Increase in properties owned by the Company748 units
    Year on year against the same period last yearIncreased
  • Properties under management contracts22,131 units
    Year on year against the same period last yearIncreased
  • Properties owned by the Company7,148 units
    Year on year against the same period last yearIncreased
  • Occupancy rate of properties under management contracts98.7 %
  • Occupancy rate of properties owned by the Company99.1 %
  • Properties acquired11 buildings
    Year on year against the same period last year7 buildings in the previous fiscal year
  • Units in acquired properties751 units
    Year on year against the same period last year873 units in the previous fiscal year
Segment results
Property Management Business
Net Sales
¥4,452 million+9.4%
Profit
¥791 million+15.5%
Real Estate Leasing Business
Net Sales
¥6,555 million+10.2%
Profit
¥1,177 million+5.5%
Number of employees
Number of Employees261 People
Record date31 March 2026
Annual Dividend
Fiscal year ending March 2026
Annual¥125 per share
Regular dividend¥100 per share
Special dividend¥25 per share
Forecast for the fiscal year ending March 2027
Annual¥100 per share
Regular dividend¥100 per share
Payout ratio
Fiscal year ending March 202655.1 %
Forecast for the fiscal year ending March 202747.6 %
Contents of this document
ItemDetails
Document typeSupplementary materials to the earnings report
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥11,008 million (YoY +9.9%)
Operating profit¥1,968 million (YoY +9.3%)
Ordinary income¥1,417 million (YoY -2.8%)
Net income¥996 million (YoY -51.8%)
Selling, general and administrative expensesIncrease of ¥93 million
Full-year earnings forecastSubject Fiscal year ending March 2027 / Net Sales ¥11,525 million / Operating profit ¥2,291 million / Ordinary income ¥1,384 million / Net income for the current fiscal year ¥925 million / Revenue from the property management business ¥4,523 million / Operating profit from the property management business ¥659 million / Real estate leasing business revenue ¥7,002 million / Operating profit from the property leasing business ¥1,631 million
Progress against full-year forecastFiscal year ending March 2026: actual results versus forecasts Net Sales 104.9% / Revenue from the property management business 105.6% / Real estate leasing business revenue 104.5% / Operating profit 101.0% / Operating profit from the property management business 132.6% / Operating profit from the property leasing business 87.1% / Ordinary income 103.7% / Net income for the current fiscal year 107.7%
Self-assessment against the planRevenue and profit at each level exceeded 100% of plan
Segment resultsProperty Management Business Net Sales ¥4,452 million (YoY +9.4%) / Profit ¥791 million (YoY +15.5%) / Real Estate Leasing Business Net Sales ¥6,555 million (YoY +10.2%) / Profit ¥1,177 million (YoY +5.5%)
Breakdown of Factors Affecting the ChangeNet Sales Increase in management revenue ¥99 million / Increase in construction revenue ¥198 million / Increase in brokerage revenue ¥12 million / Increase in rental income ¥589 million / Other ¥92 million / Operating profit Effect of higher sales ¥990 million / Increase in direct costs ¥-198 million / Increase in indirect costs ¥-531 million / Increase in selling, general and administrative expenses ¥-93 million / Net income for the fiscal year ending March 2027 Increase in management revenue and other revenue ¥70 million / Increase in rental income and other revenue ¥446 million / Increase in cost of sales ¥-236 million / Decrease in SG&A expenses ¥41 million / Decrease in non-operating income and expenses ¥-355 million / Decrease in extraordinary income and expenses ¥-3 million / Increase in income taxes ¥-34 million
Key KPIsIndicator name Increase in managed properties / Value 1,492 units / Year on year against the same period last year Increased, Indicator name Increase in properties under management contracts / Value 744 units / Year on year against the same period last year Increased, Indicator name Increase in properties owned by the Company / Value 748 units / Year on year against the same period last year Increased, Indicator name Properties under management contracts / Value 22,131 units / Year on year against the same period last year Increased, Indicator name Properties owned by the Company / Value 7,148 units / Year on year against the same period last year Increased, Indicator name Occupancy rate of properties under management contracts / Value 98.7 % / Year on year against the same period last year Not disclosed, Indicator name Occupancy rate of properties owned by the Company / Value 99.1 % / Year on year against the same period last year Not disclosed, Indicator name Properties acquired / Value 11 buildings / Year on year against the same period last year 7 buildings in the previous fiscal year, Indicator name Units in acquired properties / Value 751 units / Year on year against the same period last year 873 units in the previous fiscal year
Number of employeesNumber of Employees 261 People / Record date 31 March 2026 / Change during the period Not disclosed / Hiring plan Not disclosed
Assumptions Underlying the Business OutlookProperties acquired in the previous fiscal year Full-year operation / Managed properties Increased / Borrowing interest rate Conservatively factors in higher borrowing costs / Defense special corporate tax Factors in the impact
Annual DividendFiscal year ending March 2026 Annual ¥125 per share / Regular dividend ¥100 per share / Special dividend ¥25 per share / Forecast for the fiscal year ending March 2027 Annual ¥100 per share / Regular dividend ¥100 per share / Interim Not disclosed / End of period Not disclosed
Payout ratioFiscal year ending March 2026 55.1 % / Forecast for the fiscal year ending March 2027 47.6 % / Total payout ratio Not disclosed / DOE Not disclosed
New initiativesExtend eligibility for incentives for acquiring new management contracts to all employees, Share successful examples of acquiring management contracts in new areas, Planned renovations of the exterior walls and common areas of existing properties, Expand management locations into new areas
Items this document does not state (13)
Gross Profit MarginOperating profit marginResults for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey 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.

For the fiscal year ending March 2026, management revenue remained solid, while various sources of revenue, including construction revenue, and rental income increased. The resulting revenue growth absorbed higher expenses such as repair and personnel costs, leading to an increase in operating profit. Ordinary profit declined due to higher interest expenses resulting from rising borrowing costs, while net income declined because the extraordinary gain recorded in the previous fiscal year was no longer recognized. For the fiscal year ending March 2027, the Company expects properties acquired in the previous fiscal year to operate for the full year and the number of managed properties to increase, while factoring in higher interest costs and the impact of the defense special corporate tax.

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Supplementary Financial Results Information for the Fiscal Year Ending March 2026 | Choei Inc. (2993) timely disclosure | Komori