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Financial Results Presentation3299MUGEN ESTATE Co.,Ltd.Real Estate

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

The second quarter of the fiscal year ending December 2026 saw declines in revenue and profit due to sluggish sales of high-priced and large properties. In response, the company revised downward its full-year earnings forecast and year-end dividend forecast.

Worth reading
56In 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
-18.8
Year-on-year revenue growth (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial Results PresentationSecond 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 Sales26,743 Millions of yen-18.8%
Operating profit2,773 Millions of yen-49.4%
Ordinary income2,142 Millions of yen-56.6%
Net income1,320 Millions of yen-60.2%
Gross Profit Margin
Rate23.7%
Year-on-year change (points)-3.9
Operating profit margin
Rate10.4%
Full-year earnings forecast
Net Sales
61,599 Millions of yen
Gross profit
15,628 Millions of yen
Operating profit
8,588 Millions of yen
Ordinary income
7,237 Millions of yen
Net income for the current fiscal year
4,770 Millions of yen
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
Net Sales43.4%
Real Estate Sales43.0%
Rental and other businesses49.7%
Gross profit40.5%
Operating profit32.3%
Ordinary income29.6%
Profit attributable to owners of the parent27.7%
Segment revenue
Real Estate Sales43.0%
Purchase-and-resale business (investment properties)37.8%
Purchase-and-resale business (residential)52.9%
Real estate specified joint enterprise business24.2%
Rental and other businesses49.7%
Procurement plan by segment
Real Estate Sales51.1%
Purchase-and-resale business (investment properties)50.5%
Purchase-and-resale business (residential)50.8%
Real estate specified joint enterprise business100.0%
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
  • Decrease in selling, general and administrative expenses
  • Increase in interest expense230 Millions of yen
New initiatives
  • Strengthen sales to domestic investors and end-user demand segments
  • Strengthen cooperation with financial institutions, including regional banks, to expand sales channels
  • Strengthen leasing of completed properties and enhance their value as investment products
  • Expand sales activities and sales channels for sales of the Soka Project within the year
  • Acquisition of a hotel in Osaka City
Key KPIsA metric the company considers important as a management benchmark.
  • Percentage of revenue from overseas investorsApproximately 25%
    Year on year against the same period last yearDown
  • Equity ratio32.3 %
  • Net debt-to-equity ratio1.36 times
  • Average borrowing period for investment properties3 years 8 months
    Year on year against the same period last year6 months longer
  • Average borrowing period for residential properties1 year 0 months
    Year on year against the same period last yearNo change
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Real estate acquisition and resale
Number of sales
314 Engagements+2.6%
Average selling price
78.3 Millions of yen-23.5%
Number of investment properties sold
99 Engagements+3.1%
Average selling price of investment properties
126.5 Millions of yen-1.3%
Number of residential properties sold
215 Engagements+2.4%
Average selling price of residential properties
56.1 Millions of yen-38.0%
Number of properties sold to overseas investors
64 Engagements-22.9%
Average selling price to overseas investors
95 Millions of yen-44.4%
Segment results
Real Estate Sales
Net Sales
24,965 Millions of yen-20.9%
Operating profit
3,522 Millions of yen-44.3%
Rental and other businesses
Net Sales
1,777 Millions of yen+30.1%
Operating profit
456 Millions of yen+21.9%
Financial targets
Equity ratio
Target30.0%～35.0%
Actual results32.3%
Net debt-to-equity ratio
Target1.2x–1.5x
Actual results1.36 times
Number of employees
Consolidated523 People
Record date30 June 2026
Annual Dividend
Annual
¥104 per share
Interim
¥52 per share
End of period
¥52 per share
Payout ratio
51.3%
Contents of this document
ItemDetails
Document typeFinancial Results Presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending December 2026
Net Sales26,743 Millions of yen (YoY -18.8%)
Operating profit2,773 Millions of yen (YoY -49.4%)
Ordinary income2,142 Millions of yen (YoY -56.6%)
Net income1,320 Millions of yen (YoY -60.2%)
Gross Profit MarginRate 23.7% / Year-on-year change (points) -3.9
Operating profit marginRate 10.4% / Year-on-year change (points) Not disclosed
Full-year earnings forecastNet Sales 61,599 Millions of yen / Gross profit 15,628 Millions of yen / Operating profit 8,588 Millions of yen / Ordinary income 7,237 Millions of yen / Net income for the current fiscal year 4,770 Millions of yen
Progress against full-year forecastConsolidated Net Sales 43.4% / Real Estate Sales 43.0% / Rental and other businesses 49.7% / Gross profit 40.5% / Operating profit 32.3% / Ordinary income 29.6% / Profit attributable to owners of the parent 27.7% / Segment revenue Real Estate Sales 43.0% / Purchase-and-resale business (investment properties) 37.8% / Purchase-and-resale business (residential) 52.9% / Real estate specified joint enterprise business 24.2% / Rental and other businesses 49.7% / Procurement plan by segment Real Estate Sales 51.1% / Purchase-and-resale business (investment properties) 50.5% / Purchase-and-resale business (residential) 50.8% / Real estate specified joint enterprise business 100.0%
Segment resultsReal Estate Sales Net Sales 24,965 Millions of yen (YoY -20.9%) / Operating profit 3,522 Millions of yen (YoY -44.3%) / Rental and other businesses Net Sales 1,777 Millions of yen (YoY +30.1%) / Operating profit 456 Millions of yen (YoY +21.9%)
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 Decrease in selling, general and administrative expenses / Amount Not disclosed, Factors Increase in interest expense / Amount 230 Millions of yen
Key KPIsIndicator name Percentage of revenue from overseas investors / Value Approximately 25% / Year on year against the same period last year Down, Indicator name Equity ratio / Value 32.3 % / Year on year against the same period last year Not disclosed, Indicator name Net debt-to-equity ratio / Value 1.36 times / Year on year against the same period last year Not disclosed, Indicator name Average borrowing period for investment properties / Value 3 years 8 months / Year on year against the same period last year 6 months longer, Indicator name Average borrowing period for residential properties / Value 1 year 0 months / Year on year against the same period last year No change
Unit price and quantity metricsReal estate acquisition and resale Number of sales 314 Engagements (YoY +2.6%) / Average selling price 78.3 Millions of yen (YoY -23.5%) / Number of investment properties sold 99 Engagements (YoY +3.1%) / Average selling price of investment properties 126.5 Millions of yen (YoY -1.3%) / Number of residential properties sold 215 Engagements (YoY +2.4%) / Average selling price of residential properties 56.1 Millions of yen (YoY -38.0%) / Number of properties sold to overseas investors 64 Engagements (YoY -22.9%) / Average selling price to overseas investors 95 Millions of yen (YoY -44.4%)
Number of employeesConsolidated 523 People / Record date 30 June 2026 / Change during the period Not disclosed
Financial targetsEquity ratio Target 30.0%～35.0% / Actual results 32.3% / Net debt-to-equity ratio Target 1.2x–1.5x / Actual results 1.36 times
Annual DividendAnnual ¥104 per share / Interim ¥52 per share / End of period ¥52 per share
Payout ratio51.3%
New initiativesStrengthen sales to domestic investors and end-user demand segments, Strengthen cooperation with financial institutions, including regional banks, to expand sales channels, Strengthen leasing of completed properties and enhance their value as investment products, Expand sales activities and sales channels for sales of the Soka Project within the year, Acquisition of a hotel in Osaka City
Items this document does not state (12)
Selling, general and administrative expensesResults for the three months of the current quarterSelf-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.

Cautious purchasing attitudes persisted in Japan and overseas, resulting in sluggish sales of high-priced and large properties. Demand from overseas investors was also limited, reducing the number of highly profitable large properties sold. In addition, interest expenses increased due to higher interest-bearing debt and rising borrowing costs.

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.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Presentation for the Second Quarter of the Fiscal Year Ending December 2026 | MUGEN ESTATE Co.,Ltd. (3299) timely disclosure | Komori