Operating Profit Growth and Debt-to-Equity Ratio Improvement

「2027年３月期第１四半期　営業利益　46,593百万円　12.7％」

「For the fiscal year, consolidated revenue was ¥1,246.0 billion, up 8.3% year on year, operating profit was ¥166.9 billion, up 18.6%, ordinary profit was ¥147.8 billion, up 14.4%, and profit attributable to owners of the parent was ¥96.7 billion, up 24.7%. Revenue and profit increased for the fifth consecutive fiscal year, and revenue, operating profit, ordinary profit and profit attributable to owners of the parent were all record highs, including the period before the transition to a holding company structure.」

「５期連続で増収増益となり、売上高、営業利益、経常利益、親会社株主に帰属する当期純利益は、ホールディングス体制への移行前も含めて過去最高となりました。」

「For the six months ended the interim period, revenue increased due mainly to strong sales to investors and brokerage operations against a backdrop of firm real estate transaction markets, as well as improved operating performance at offices and commercial facilities, particularly properties in the Greater Shibuya area. Consolidated revenue was ¥591.3 billion, up 17.5% year on year, operating profit was ¥78.5 billion, up 55.3%, ordinary profit was ¥69.6 billion, up 55.2%, and interim profit attributable to owners of the parent was ¥52.2 billion, up 108.1%, resulting in higher revenue and higher profit.」

「For the fiscal year, consolidated revenue was ¥1,150.3 billion, up 4.3% year on year, operating profit was ¥140.8 billion, up 17.1%, ordinary profit was ¥129.2 billion, up 17.0%, and profit attributable to owners of the parent was ¥77.6 billion, up 13.2%, driven mainly by strong condominium development and brokerage operations against a backdrop of firm real estate transaction markets and strong hotel operations supported by robust inbound demand. Revenue, operating profit, ordinary profit and profit attributable to owners of the parent were all record highs, including the period before the transition to a holding company structure, resulting in higher revenue and higher profit.」

「For the six months ended the interim period, consolidated revenue was ¥503.3 billion, up 2.6% year on year, operating profit was ¥50.5 billion, down 12.9%, ordinary profit was ¥44.8 billion, down 16.2%, and interim profit attributable to owners of the parent was ¥25.1 billion, down 34.6%, resulting in higher revenue and lower profit.」

「Revenue, operating profit, ordinary profit and profit attributable to owners of the parent for the fiscal year were all record highs, including the period before the transition to a holding company structure. The company achieved, two years ahead of schedule, the medium-term management plan's operating profit target of ¥120.0 billion and net profit target of ¥65.0 billion for the fiscal year ending March 2026, the plan's final year.」

「For the nine months ended the third quarter, consolidated revenue was ¥717.8 billion, up 11.9% year on year, operating profit was ¥75.4 billion, up 21.5%, ordinary profit was ¥68.0 billion, up 24.7%, and profit attributable to owners of the parent was ¥45.5 billion, up 47.0%, due mainly to asset sales against a backdrop of firm real estate market conditions, strong brokerage operations and strong hotel operations accompanying the recovery in domestic and international demand, resulting in higher revenue and higher profit. Progress against the full-year forecast was 64.1% for revenue and 65.5% for operating profit, but operating conditions remained strong and progress toward the full-year forecast was steady.」

「For the six months ended the second quarter, consolidated revenue was ¥490.7 billion, up 10.3% year on year, operating profit was ¥58.0 billion, up 26.5%, ordinary profit was ¥53.5 billion, up 31.2%, and profit attributable to owners of the parent was ¥38.3 billion, up 42.4%, due mainly to asset sales against a backdrop of firm real estate market conditions, strong brokerage operations and strong hotel operations accompanying the recovery in domestic and international demand, resulting in higher revenue and higher profit.」

「For the three months ended the first quarter, consolidated revenue was ¥253.1 billion, up 14.9% year on year, operating profit was ¥34.5 billion, up 38.7%, ordinary profit was ¥32.6 billion, up 45.1%, and profit attributable to owners of the parent was ¥25.3 billion, up 75.4%, due mainly to asset sales against a backdrop of firm real estate market conditions, strong brokerage operations and strong hotel operations accompanying the recovery in domestic and international demand, resulting in higher revenue and higher profit.」

「Revenue, operating profit, ordinary profit and profit attributable to owners of the parent for the nine months ended the third quarter were all record highs, including the period before the transition to a holding company structure.」

「For the six months ended the second quarter, consolidated revenue was ¥445.0 billion, up 8.1% year on year, operating profit was ¥45.9 billion, up 36.9%, ordinary profit was ¥40.8 billion, up 51.9%, and profit attributable to owners of the parent was ¥26.9 billion, up 88.1%, due mainly to an increase in condominium units recognized on the back of firm underlying housing demand, strong brokerage operations and a partial recovery in hotel demand, resulting in higher revenue and higher profit. Revenue, operating profit, ordinary profit and profit attributable to owners of the parent for the six months ended the second quarter were all record highs, including the period before the transition to a holding company structure.」

「Revenue was ¥220.3 billion, up 17.6% year on year, operating profit was ¥24.9 billion, up 132.4%, ordinary profit was ¥22.5 billion, up 171.0%, and profit attributable to owners of the parent was ¥14.4 billion, up ¥14.3 billion, resulting in higher revenue and higher profit.」

「Operating profit for the fiscal year was a record high, including the period before the transition to a holding company structure.」

「For the six months ended the second quarter, despite a decline following the previous period's asset sale gains, revenue and profit increased due to an increase in operating renewable energy facilities, strong brokerage operations, and a rebound from the temporary closures and shortened operating hours implemented at commercial facilities, operated facilities and retail stores in the first quarter of the previous year. Consolidated revenue was ¥411.8 billion, up 7.3% year on year, operating profit was ¥33.5 billion, up 97.5%, ordinary profit was ¥26.8 billion, up 121.7%, extraordinary gains including gains on sales of fixed assets were ¥2.5 billion, compared with ¥2.1 billion in the same period of the previous year, and extraordinary losses including losses related to COVID-19 infection were ¥1.6 billion, compared with ¥6.8 billion in the same period of the previous year. Profit attributable to owners of the parent was ¥14.3 billion, up 2,283.9%, resulting in higher revenue and higher profit.」

「The fiscal 2017–2020 Value Frontier 2020 Stage 2 medium-term management plan, for which the current fiscal year is the final year, did not achieve its financial targets for the final year due to the spread of COVID-19.」

「For the nine months ended the third quarter, the Urban business reported higher revenue and profit due to increased gains from sales of buildings and other properties to investors. However, the Wellness and Hands businesses were affected mainly by the spread of COVID-19. Consolidated revenue was ¥592.6 billion, down 1.4% year on year, operating profit was ¥30.1 billion, down 32.2%, ordinary profit was ¥23.0 billion, down 36.3%, and after recording losses related to COVID-19 infection as extraordinary losses, profit attributable to owners of the parent was ¥10.7 billion, down 48.5%, resulting in lower revenue and lower profit.」

「For the six months ended the second quarter, the Urban business reported higher revenue and profit due to increased gains from sales of buildings and other properties to investors. However, the Wellness and Hands businesses were affected mainly by the spread of COVID-19, while the Housing business was affected by a decline following the concentrated recognition of large condominium projects in the second quarter of the previous year. Consolidated revenue was ¥383.9 billion, down 6.9% year on year, operating profit was ¥17.0 billion, down 46.4%, ordinary profit was ¥12.1 billion, down 53.5%, and after recording losses related to COVID-19 infection as extraordinary losses, profit attributable to owners of the parent was ¥0.6 billion, down 95.8%, resulting in lower revenue and lower profit.」

「For the three months ended the first quarter, consolidated revenue was ¥150.3 billion, down 19.4% year on year, operating loss was ¥3.5 billion, compared with operating profit of ¥11.2 billion in the same quarter of the previous year, and ordinary loss was ¥6.1 billion, compared with ordinary profit of ¥8.5 billion. After recording losses related to COVID-19 infection as extraordinary losses, the company reported a net loss attributable to owners of the parent of ¥14.0 billion, compared with net profit attributable to owners of the parent of ¥3.8 billion in the same quarter of the previous year, resulting in lower revenue and lower profit.」

「However, with the spread of the novel coronavirus pandemic, the Group's businesses, including commercial facilities, operated facilities and retail stores, have been significantly affected since the fourth quarter of fiscal 2019. As achieving the numerical targets for fiscal 2020 became difficult, the earnings forecast was set at operating profit of ¥50.0 billion and profit attributable to owners of the parent of ¥26.0 billion.」

「For the nine months ended the third quarter, consolidated revenue was ¥601.2 billion, up 2.9% year on year, operating profit was ¥44.3 billion, down 0.4%, ordinary profit was ¥36.2 billion, down 4.1%, and profit attributable to owners of the parent was ¥20.8 billion, down 12.8%. Although progress against the full-year forecast was low because sales of investor-oriented buildings and other properties in the Urban segment, condominium deliveries in the Housing segment and property sales in the Wellness segment are scheduled for the fourth quarter, the company judged that performance for the current period was progressing steadily against the full-year forecast.」

「For the six months ended the second quarter, consolidated revenue was ¥412.5 billion, up 2.5% year on year, operating profit was ¥31.7 billion, down 1.5%, ordinary profit was ¥26.1 billion, down 6.1%, and profit attributable to owners of the parent was ¥14.4 billion, down 13.6%.」

「For the three months ended the first quarter, consolidated revenue was ¥186.5 billion, up 7.0% year on year, operating profit was ¥11.2 billion, down 4.8%, ordinary profit was ¥8.5 billion, down 13.4%, and profit attributable to owners of the parent was ¥3.8 billion, down 29.5%.」

「We revised the numerical targets for fiscal 2020, the final year of this plan. In addition to the metrics disclosed previously, we added targets for EPS and ROE as measures of enhancing shareholder value from a capital policy perspective, and established the following numerical plan.」

「For the nine months ended the third quarter, revenue and profit declined due mainly to lower revenue in the Urban and Housing segments. However, with office and condominium market conditions remaining firm, performance for the current period is progressing steadily against the full-year forecast.」

「For the six months ended the second quarter, consolidated revenue was ¥402.6 billion, down 1.3% year on year, operating profit was ¥32.2 billion, down 8.1%, ordinary profit was ¥27.8 billion, down 9.6%, and profit attributable to owners of the parent was ¥16.7 billion, down 5.3%.」

「For the three months ended the first quarter, consolidated revenue was ¥174.3 billion, down 5.2% year on year, operating profit was ¥11.8 billion, down 32.2%, ordinary profit was ¥9.8 billion, down 36.7%, and profit attributable to owners of the parent was ¥5.4 billion, down 33.6%.」

「We set the following target metrics for fiscal 2020, the final year of this plan: operating profit of ¥93.0 billion, profit attributable to owners of the parent of ¥42.0 billion, a DE ratio of approximately 2.3x, and an EBITDA multiple (interest-bearing debt/EBITDA) of approximately 10x.」

「For the nine months ended the third quarter, consolidated revenue was ¥608.8 billion, up 21.4% year on year, operating profit was ¥55.0 billion, up 30.5%, ordinary profit was ¥48.4 billion, up 38.1%, and profit attributable to owners of the parent was ¥29.1 billion, up 34.0%.」

「For the six months ended the second quarter, consolidated revenue was ¥408.0 billion, up 27.8% year on year, operating profit was ¥35.0 billion, up 38.1%, ordinary profit was ¥30.7 billion, up 51.3%, and profit attributable to owners of the parent was ¥17.6 billion, up 70.4%.」

「Performance for the current period is progressing steadily against the full-year forecast.」

「The target metrics* were set at operating profit of ¥73.0 billion for fiscal 2016, the final year of the medium-term management plan, a DE ratio of 2.6x, and operating profit of ¥100.0 billion for fiscal 2020, when projects including the Shibuya redevelopment are scheduled for completion. We will seek profit growth while improving the DE ratio to the low 2x range and working to further strengthen our financial position.」