Worth reading
52Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
287.2
Year-on-year change in net income attributable to owners of the parent (%)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationThird quarter of the fiscal year ending November 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥12,782 million-7.0%
Operating profit¥2,939 million
Ordinary income¥2,308 million+149.5%
Net income¥2,554 million+287.2%
Results for the three months of the current quarterOperating profit for the facility operations business was ¥19 million in 3Q alone, compared with a loss of ¥44 million in the same period of the previous year.
Full-year earnings forecast
Net Sales
¥17,730 million
Gross profit
¥6,500 million
Operating profit
¥4,150 million
Ordinary income
¥2,920 million
Profit attributable to owners of the parent
¥2,620 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 Sales72.1%
Gross profit73.3%
Investment management business40.7%
Investment Banking Business72.9%
Facility operations business85.1%
Other Businesses72.5%
Operating profit70.8%
Ordinary income79.0%
Profit attributable to owners of the parent97.5%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing steadilyBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Increase in gains on property sales in the investment banking business
- Gains on the transfer of fixed assets
- Loss of MC contract income following hotel sales
- Higher interest expense due to rising interest rates
The company identifies the factors but does not state the amount attributable to each one.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Cost of capital based on CAPM and other methodsApproximately 7–9%
- Increase in interest expense during the fiscal year ending November 2026+0.75 pt
New initiatives
- Acquisition of all shares of 株式会社サワラシティ
- Capital investment and operational optimisation after the acquisition
- Portfolio management incorporating the cost of capital into the hurdle rate
Key KPIsA metric the company considers important as a management benchmark.
- Number of leased real estate properties91 EngagementsYear on year against the same period last yearIncreased from 89 at the previous fiscal year-end
- NOI yield7.1 %Year on year against the same period last yearDown from 7.6% at the previous fiscal year-end
- Unrealized gains on real estate¥16,311 millionYear on year against the same period last yearDown ¥3,059 million year on year
- Balance of assets under management¥14,562 millionYear on year against the same period last yearSame amount as in the same period of the previous year
- Borrowings outstanding¥48,011 millionYear on year against the same period last yearDecreased from ¥49,753 million at the previous fiscal year-end
- Leverage74.3 %Year on year against the same period last yearDown from 75.8% at the previous fiscal year-end
- Percentage of interest rates fixed12.3 %Year on year against the same period last yearDown from 17.4% at the previous fiscal year-end
Segment results
Investment management business
Gross profit
¥11 million
Year on year against the same period last year-68.4%
Investment Banking Business
Gross profit
¥4,472 million
Facility operations business
Gross profit
¥251 million
Year on year against the same period last year+0.8%
Annual Dividend
¥67 per share
Breakdown
Interim Dividend33
Year-end dividend34
Payout ratio
DOE of 2.0% as a benchmarkGross profit
¥4,764 million+38.5%
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | Third quarter of the fiscal year ending November 2026 |
| Net Sales | ¥12,782 million (YoY -7.0%) |
| Operating profit | ¥2,939 million |
| Ordinary income | ¥2,308 million (YoY +149.5%) |
| Net income | ¥2,554 million (YoY +287.2%) |
| Gross profit | ¥4,764 million (YoY +38.5%) |
| Results for the three months of the current quarter | Operating profit for the facility operations business was ¥19 million in 3Q alone, compared with a loss of ¥44 million in the same period of the previous year. |
| Full-year earnings forecast | Net Sales ¥17,730 million / Gross profit ¥6,500 million / Operating profit ¥4,150 million / Ordinary income ¥2,920 million / Profit attributable to owners of the parent ¥2,620 million |
| Progress against full-year forecast | Net Sales 72.1% / Gross profit 73.3% / Investment management business 40.7% / Investment Banking Business 72.9% / Facility operations business 85.1% / Other Businesses 72.5% / Operating profit 70.8% / Ordinary income 79.0% / Profit attributable to owners of the parent 97.5% |
| Self-assessment against the plan | Progressing steadily |
| Segment results | Investment management business Gross profit ¥11 million / yoy_pct -68.4 / Investment Banking Business Gross profit ¥4,472 million / Facility operations business Gross profit ¥251 million / yoy_pct 0.8 |
| Breakdown of Factors Affecting the Change | Factors Increase in gains on property sales in the investment banking business / Amount Not disclosed, Factors Gains on the transfer of fixed assets / Amount Not disclosed, Factors Loss of MC contract income following hotel sales / Amount Not disclosed, Factors Higher interest expense due to rising interest rates / Amount Not disclosed |
| Key KPIs | Number of leased real estate properties 91 Engagements, NOI yield 7.1 %, Unrealized gains on real estate ¥16,311 million, Balance of assets under management ¥14,562 million, Borrowings outstanding ¥48,011 million, Leverage 74.3 %, Percentage of interest rates fixed 12.3 % |
| Assumptions Underlying the Business Outlook | Cost of capital based on CAPM and other methods Approximately 7–9%, Increase in interest expense during the fiscal year ending November 2026 +0.75 pt |
| Annual Dividend | ¥67 per share |
| Payout ratio | DOE of 2.0% as a benchmark |
| New initiatives | Acquisition of all shares of 株式会社サワラシティ, Capital investment and operational optimisation after the acquisition, Portfolio management incorporating the cost of capital into the hurdle rate |
Items this document does not state (13)
Operating profit marginSelling, general and administrative expensesUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk 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.The main factors behind the increase in profit were higher gains on property sales in the investment banking business and the recognition of gains on the transfer of fixed assets as extraordinary income. Rental income declined because income from MC contracts fell away following the sale of hotels.
How to read this page
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