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Results presentation3242URBANET CORPORATION CO.,LTD.Real Estate

Financial Results Briefing Materials for the First Quarter of the Fiscal Year Ending June 2027

In the first quarter of the fiscal year ending June 2027, there were no new completions or handovers of urban rental apartments, resulting in substantial year-on-year declines in net sales and profit. Meanwhile, Kenain's detached houses, apartments and other properties performed well and are progressing in line with the full-year plan.

Worth reading
60In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-9307
¥ million (year-on-year change in consolidated revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Results presentationFirst quarter of the fiscal year ending June 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥4,927 million-65.3%
Operating profit¥25 million-99.1%
Ordinary income¥-260 million-110.7%
Net income¥-277 million-116.7%
Gross Profit Margin20.3%
Operating profit margin0.5%
Selling, general and administrative expenses¥974 million
Results for the three months of the current quarterNet sales of ¥4,927 million, operating profit of ¥25 million, ordinary loss of ¥260 million, and quarterly net loss attributable to owners of the parent of ¥277 million
Full-year earnings forecast
Net Sales
¥43,500 million
Operating profit
¥4,200 million
Ordinary income
¥3,150 million
Profit attributable to owners of the parent
¥2,150 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。
Consolidated revenue11.3%
Consolidated operating profit0.6%
ケーナイン revenue40.6%
ケーナイン operating income46.5%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress in the first quarter was in line with the initial plan. Sales progressed as planned, and procurement was also smooth. Kenain is progressing smoothly toward the full-year plan.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Decrease in urban rental apartment sales¥-9,865 million
  • Decrease in land-sale revenue¥-810 million
  • Increase in Kenain detached-house sales¥272 million
  • Increase in Kenain apartment sales¥1,008 million
  • Increase in Kenain townhouse sales¥107 million
  • Increase in Kenain land-sale revenue¥894 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Construction, material and labor costs remain elevated
  • Domestic interest rates are on an upward trend
  • Rents in Tokyo's 23 wards are trending upward, particularly in central areas and near train stations
  • Inbound demand varies by country and region, but lodging demand remains at a certain level
New initiatives
  • Commenced development of an apartment hotel in Akasaka, Minato-ku, Tokyo
  • Commenced the "Former Karuizawa Project," a shared-equity time-share vacation home project
  • Commenced the "Asile Art Project," which uses temporary construction fences at building sites
Key KPIsA metric the company considers important as a management benchmark.
  • Urban rental apartment sales plan12 buildings, 602 units
  • Urban rental apartment sales recorded in the current quarter2 buildings, 20 units
    Year-earlier period229 units in the same period of the previous year
  • Properties under development27 Deals
  • Early offering of time-share vacation homes20 units, 10 additional units sold
  • Kenain inventory¥11,562 million
    Year on year against the same period last year+¥1.688 billion and +17.1% from the end of the previous fiscal year
Segment results
Real estate business
Net Sales
¥4,873 million
yoy_change-9,307
Segment profit
¥435 million
yoy_change-2,552
Hotel Business
Net Sales
¥53 million
yoy_change0
Segment profit
¥9 million
yoy_change-1
ケーナイン
Net Sales
¥4,108 million+119.9%
Operating profit
¥529 million+108.1%
Ordinary income
¥453 million+115.4%
Medium-term management plan targets
Fiscal year ending June 2028
Consolidated revenue¥50.0 billion
Consolidated operating profit¥4.5 billion
ContrastThe forecast for the fiscal year ending June 2027 exceeds the medium-term plan, with operating profit to be achieved one year ahead of schedule
Number of employees
Number of Employees59 employees, 5 contract and other personnel, 45 subsidiary employees, 120 in total
Annual Dividend
Annual dividend per share24 Yen
Breakdown
Interim12
End of period12
Payout ratio
40% paid as dividends (forecast payout ratio for the fiscal year ending June 2027: 41.2%)
Contents of this document
ItemDetails
Document typeResults presentation
Fiscal Period CoveredFirst quarter of the fiscal year ending June 2027
Net Sales¥4,927 million (YoY -65.3%)
Operating profit¥25 million (YoY -99.1%)
Ordinary income¥-260 million (YoY -110.7%)
Net income¥-277 million (YoY -116.7%)
Gross Profit Margin20.3%
Operating profit margin0.5%
Selling, general and administrative expenses¥974 million
Results for the three months of the current quarterNet sales of ¥4,927 million, operating profit of ¥25 million, ordinary loss of ¥260 million, and quarterly net loss attributable to owners of the parent of ¥277 million
Full-year earnings forecastNet Sales ¥43,500 million / Operating profit ¥4,200 million / Ordinary income ¥3,150 million / Profit attributable to owners of the parent ¥2,150 million
Progress against full-year forecastConsolidated revenue 11.3% / Consolidated operating profit 0.6% / ケーナイン revenue 40.6% / ケーナイン operating income 46.5%
Self-assessment against the planProgress in the first quarter was in line with the initial plan. Sales progressed as planned, and procurement was also smooth. Kenain is progressing smoothly toward the full-year plan.
Segment resultsReal estate business Net Sales ¥4,873 million / Segment profit ¥435 million / Hotel Business Net Sales ¥53 million / Segment profit ¥9 million / ケーナイン Net Sales ¥4,108 million (YoY +119.9%) / Operating profit ¥529 million (YoY +108.1%) / Ordinary income ¥453 million (YoY +115.4%)
Breakdown of Factors Affecting the ChangeFactors Decrease in urban rental apartment sales / Amount ¥-9,865 million, Factors Decrease in land-sale revenue / Amount ¥-810 million, Factors Increase in Kenain detached-house sales / Amount ¥272 million, Factors Increase in Kenain apartment sales / Amount ¥1,008 million, Factors Increase in Kenain townhouse sales / Amount ¥107 million, Factors Increase in Kenain land-sale revenue / Amount ¥894 million
Key KPIsIndicator name Urban rental apartment sales plan / Value 12 buildings, 602 units / Year on year against the same period last year Not disclosed, Indicator name Urban rental apartment sales recorded in the current quarter / Value 2 buildings, 20 units / Year-earlier period 229 units in the same period of the previous year, Indicator name Properties under development / Value 27 Deals / Year on year against the same period last year Not disclosed, Indicator name Early offering of time-share vacation homes / Value 20 units, 10 additional units sold / Year on year against the same period last year Not disclosed, Indicator name Kenain inventory / Value ¥11,562 million / Year on year against the same period last year +¥1.688 billion and +17.1% from the end of the previous fiscal year
Number of employeesNumber of Employees 59 employees, 5 contract and other personnel, 45 subsidiary employees, 120 in total / Changes during the period and hiring plan Not disclosed
Assumptions Underlying the Business OutlookConstruction, material and labor costs remain elevated, Domestic interest rates are on an upward trend, Rents in Tokyo's 23 wards are trending upward, particularly in central areas and near train stations, Inbound demand varies by country and region, but lodging demand remains at a certain level
Medium-term management plan targetsFiscal year ending June 2028 Consolidated revenue ¥50.0 billion / Consolidated operating profit ¥4.5 billion / Contrast The forecast for the fiscal year ending June 2027 exceeds the medium-term plan, with operating profit to be achieved one year ahead of schedule
Annual DividendAnnual dividend per share 24 Yen / Breakdown Interim 12 / End of period 12
Payout ratio40% paid as dividends (forecast payout ratio for the fiscal year ending June 2027: 41.2%)
New initiativesCommenced development of an apartment hotel in Akasaka, Minato-ku, Tokyo, Commenced the "Former Karuizawa Project," a shared-equity time-share vacation home project, Commenced the "Asile Art Project," which uses temporary construction fences at building sites
Items this document does not state (9)
Unit price and quantity metricsNumber of stores and locationsRisk amount incorporated into the outlookFinancial 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.

There were no new completions or handovers of urban rental apartments, and there was a comparison effect from the sale of high-margin properties in the same period of the previous year. Selling, general and administrative expenses increased due to personnel expenses associated with business expansion and amortization of goodwill related to a real estate M&A transaction by a subsidiary, while non-operating expenses increased due to higher interest expenses resulting from an increase in borrowings and rising interest rates.

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Financial Results Briefing Materials for the First Quarter of the Fiscal Year Ending June 2027 | URBANET CORPORATION CO.,LTD. (3242) timely disclosure | Komori