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Presentation materials for financial results3299MUGEN ESTATE Co.,Ltd.Real estate

Financial Results Presentation for the First Quarter of the Fiscal Year Ending December 2026

Sales of high-priced and large properties remained sluggish, while demand from overseas investors also weakened, resulting in lower revenue and profit in Q1. Meanwhile, sales in regional areas, the rental and other businesses, and the real estate specified joint enterprise business grew.

Worth reading
70In 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
-4630
¥ million (year-on-year change in revenue)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst quarter of the fiscal year ending December 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥12,523 million-27.0%
Operating profit¥1,014 million-66.0%
Ordinary income¥731 million-72.5%
Net income¥440 million-75.5%
Gross Profit Margin22.5 %
Operating profit margin8.1 %
Selling, general and administrative expenses¥1,800 million
Results for the three months of the current quarter
Net Sales
¥12,523 million
Operating profit
¥1,014 million
Ordinary income
¥731 million
Net income
¥440 million
Full-year earnings forecast
Net Sales
¥79,286 million
Gross profit
¥21,446 million
Operating profit
¥12,398 million
Ordinary income
¥11,058 million
Net income
¥7,595 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。
Net Sales15.8%
Real estate sales business revenue15.5%
Revenue from rental and other businesses21.5%
Gross profit13.1%
Operating profit8.2%
Ordinary income6.6%
Net income5.8%
Revenue from the resale business (investment)14.0%
Revenue from the resale business (residential)18.6%
Real estate specified joint enterprise business revenue13.9%
Real estate sales business acquisitions18.1%
Purchase of properties for the resale business (investment)17.7%
Purchase of properties for the resale business (residential)18.4%
Real estate specified joint enterprise business acquisitions37.1%
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Gross profit decline due to lower sales
  • Difference in gross profit margin
  • Increase in Selling, General and Administrative Expenses

The company identifies the factors but does not state the amount attributable to each one.

New initiatives
  • Obtained BELS certification and began sales of a sectional-ownership property in Nakano-ku, Tokyo
  • Started sales of the Soka project
  • Started demolition of existing buildings and design work for new development at 5 development sites
Key KPIsA metric the company considers important as a management benchmark.
  • Equity ratio31.8 %
  • Net debt-to-equity ratio1.4 times
  • Number of individual meetings74 Meetings cumulative for FY2025
    Year on year against the same period last yearHighest ever
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • Number of sales145 Engagements+4.3%
  • Average selling price¥77.9 million-34.2%
  • Number of investment properties sold35 Engagements-20.5%
  • Average selling price of investment properties¥157.9 million+107.6%
  • Number of residential properties sold110 Engagements+15.8%
  • Average selling price of residential properties¥52.5 million-62.0%
  • Number of properties sold to overseas investors21 Engagements-41.7%
  • Average selling price to overseas investors¥108.6 million-44.6%
Segment results
  • Real Estate Sales
    Net Sales¥11,661 million
    Revenue_yoy_pct-29.3
    Operating profit¥1,436 million
    Operating profit_yoy_pct-57.7
  • Rental and other businesses
    Net Sales¥862 million
    Revenue_yoy_pct32.9
    Operating profit¥222 million
    Operating profit_yoy_pct13.8
Financial targets
Equity ratio
KPI30.0%～35.0%
Actual results31.8%
Net debt-to-equity ratio
KPI1.2x–1.5x
Actual results1.4x
Number of employees
Consolidated497 People
Standalone452 People
Record date31 March 2026
Annual Dividend
Annual¥130
Interim¥52
End of period¥78
Payout ratio
40 %
TargetConsolidated payout ratio of at least 40% over the medium to long term
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending December 2026
Net Sales¥12,523 million (YoY -27.0%)
Operating profit¥1,014 million (YoY -66.0%)
Ordinary income¥731 million (YoY -72.5%)
Net income¥440 million (YoY -75.5%)
Gross Profit Margin22.5 %
Operating profit margin8.1 %
Selling, general and administrative expenses¥1,800 million
Results for the three months of the current quarterNet Sales ¥12,523 million / Operating profit ¥1,014 million / Ordinary income ¥731 million / Net income ¥440 million
Full-year earnings forecastNet Sales ¥79,286 million / Gross profit ¥21,446 million / Operating profit ¥12,398 million / Ordinary income ¥11,058 million / Net income ¥7,595 million
Progress against full-year forecastNet Sales 15.8% / Real estate sales business revenue 15.5% / Revenue from rental and other businesses 21.5% / Gross profit 13.1% / Operating profit 8.2% / Ordinary income 6.6% / Net income 5.8% / Revenue from the resale business (investment) 14.0% / Revenue from the resale business (residential) 18.6% / Real estate specified joint enterprise business revenue 13.9% / Real estate sales business acquisitions 18.1% / Purchase of properties for the resale business (investment) 17.7% / Purchase of properties for the resale business (residential) 18.4% / Real estate specified joint enterprise business acquisitions 37.1%
Segment resultsSegment Real Estate Sales / Net Sales ¥11,661 million / Revenue_yoy_pct -29.3 / Operating profit ¥1,436 million / Operating profit_yoy_pct -57.7, Segment Rental and other businesses / Net Sales ¥862 million / Revenue_yoy_pct 32.9 / Operating profit ¥222 million / Operating profit_yoy_pct 13.8
Breakdown of Factors Affecting the ChangeFactors Gross profit decline due to lower sales / Amount Not disclosed, Factors Difference in gross profit margin / Amount Not disclosed, Factors Increase in Selling, General and Administrative Expenses / Amount Not disclosed
Key KPIsIndicator name Equity ratio / Value 31.8 % / Year on year against the same period last year Not disclosed, Indicator name Net debt-to-equity ratio / Value 1.4 times / Year on year against the same period last year Not disclosed, Indicator name Number of individual meetings / Value 74 Meetings (cumulative for FY2025) / Year on year against the same period last year Highest ever
Unit price and quantity metricsIndicator name Number of sales / Value 145 Engagements / yoy_pct 4.3 Engagements, Indicator name Average selling price / Value ¥77.9 million / yoy_pct ¥-34.2 million, Indicator name Number of investment properties sold / Value 35 Engagements / yoy_pct -20.5 Engagements, Indicator name Average selling price of investment properties / Value ¥157.9 million / yoy_pct ¥107.6 million, Indicator name Number of residential properties sold / Value 110 Engagements / yoy_pct 15.8 Engagements, Indicator name Average selling price of residential properties / Value ¥52.5 million / yoy_pct ¥-62 million, Indicator name Number of properties sold to overseas investors / Value 21 Engagements / yoy_pct -41.7 Engagements, Indicator name Average selling price to overseas investors / Value ¥108.6 million / yoy_pct ¥-44.6 million
Number of employeesConsolidated 497 People / Standalone 452 People / Record date 31 March 2026
Financial targetsEquity ratio KPI 30.0%～35.0% / Actual results 31.8% / Net debt-to-equity ratio KPI 1.2x–1.5x / Actual results 1.4x
Annual DividendAnnual ¥130 / Interim ¥52 / End of period ¥78
Payout ratio40 %
New initiativesObtained BELS certification and began sales of a sectional-ownership property in Nakano-ku, Tokyo, Started sales of the Soka project, Started demolition of existing buildings and design work for new development at 5 development sites
Items this document does not state (10)
Self-assessment against the planNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan 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.

The main factors were slower sales progress for high-priced and large properties and some weakening in demand from overseas investors against a backdrop of heightened geopolitical tensions and other factors. The gross profit margin declined by 5.2 percentage points due to a decrease in sales of highly profitable large properties, while interest expenses increased by ¥120 million year on year due to higher interest-bearing debt and borrowing rates.

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Financial Results Presentation for the First Quarter of the Fiscal Year Ending December 2026 | MUGEN ESTATE Co.,Ltd. (3299) timely disclosure | Komori