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Presentation materials for financial results3489FaithNetwork Co.,LtdReal Estate

Financial Results Presentation for the Fiscal Year Ending March 2026

For the fiscal year ended March 2026, revenue, operating profit, ordinary profit and net income reached record highs, driven by initiatives to enhance property value and other measures. For the fiscal year ending March 2027, the company expects higher revenue and profits as it advances sales promotion, new brands and the development of luxury rental residences.

Worth reading
60In focus
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
12.4
% (year-on-year change in forecast revenue for the fiscal year ending March 2027)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFiscal year ending March 202613 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥32,916 million+10.0%
Operating profit¥5,632 million+24.6%
Ordinary income¥5,165 million+25.8%
Net income¥3,586 million+29.5%
Selling, general and administrative expensesPersonnel expenses up ¥166 million, advertising expenses up ¥85 million, land and rent expenses up ¥35 million, brokerage fees up ¥28 million, and other SG&A expenses up ¥149 million
Gross Profit Margin
Rate26.9%
Year-on-year change (points)Up 2.6 percentage points from 24.3%
Operating profit margin
Rate17.1%
Year-on-year change (points)Up 2.0 percentage points from 15.1%
Full-year earnings forecast
Net Sales
¥37,000 million
Operating profit
¥6,300 million
Ordinary income
¥5,800 million
Profit attributable to owners of the parent
¥3,800 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Generally in line with plan (NEXT VISION 2026)
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Gross profit from the real estate investment support business+¥1,524 million
Gross profit from the real estate management business+¥53 million
Brokerage commissions-¥28 million
Advertising expenses-¥85 million
Personnel Expenses-¥166 million
Land and rent expenses-¥35 million
Other SG&A expenses-¥149 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Properties scheduled for sale23 real estate products and 9 construction products, for a total of 32 properties
Number of buildings completed23 buildings planned
Completed total floor area1Q 5,833.03㎡、2Q 3,533.92㎡、3Q 1,276.86㎡、4Q 6,710.37㎡
Revenue plan¥37,000 million
New initiatives
  • Launch of the TOKYO MODULE brand
  • Launch of the MIDHOUSE brand
  • Advancement of the development of THE GRANDUO luxury rental residences
  • Development and introduction of original-brand kitchens by 株式会社Madre
  • Holding of the Faith Design Competition 2026
  • Consolidation of locations through the relocation of the head office
  • Improving operational efficiency through the use of AI and DX
Key KPIsA metric the company considers important as a management benchmark.
  • Occupancy Rate98.6 %
  • Units under management2,598 units
    Year on year against the same period last yearDown 176 units
  • Buildings under management219 buildings
    Year on year against the same period last yearDown 2 buildings
  • Number of projects in progress42 Projects
  • Number of properties sold · Real estate products22 Engagements
    Year on year against the same period last year21 cases in the previous fiscal year
  • Number of properties sold · Construction products4 Engagements
    Year on year against the same period last year7 cases in the previous fiscal year
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Includes trends in average selling prices and selling prices per tsubo
Segment results
Real estate investment support business
Net Sales
¥31,993 million+10.1%
Segment profit
¥5,433 million+25.0%
Real estate management business
Net Sales
¥923 million+6.1%
Segment profit
¥199 million+16.4%
Medium-term management plan targets
NEXT VISION 2029
Net Sales¥50 billion for the fiscal year ending March 2029
Ordinary income¥7.5 billion for the fiscal year ending March 2029
ROEAt least 30% during the medium-term plan period
Payout ratio35% or more
Annual number of completed buildings25 buildings
Average property price¥1.9 billion
Gross Margin25% or higher
Comparison with NEXT VISION 2026 resultsRevenue ¥32.9 billion, ordinary profit ¥5.1 billion, ROE 32.4%, dividend ¥42.5, market capitalization ¥23 billion
Financial targets
ROE
Actual results32.4%
TargetAt least 30%
Equity ratio
TargetAt least 30%
Market Size / Share
Includes the scale of net financial assets, number of households and inheritance tax payments of high-net-worth and ultra-high-net-worth individuals. Company's market share: Not disclosed
Number of stores and locations
Consolidated operations at a single location following the relocation of the head office
Annual Dividend
Annual dividend per share¥42.5 per share (forecast for the fiscal year ending March 2026)
Payout ratio
Target: 35%
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFiscal year ending March 2026
Net Sales¥32,916 million (YoY +10.0%)
Operating profit¥5,632 million (YoY +24.6%)
Ordinary income¥5,165 million (YoY +25.8%)
Net income¥3,586 million (YoY +29.5%)
Gross Profit MarginRate 26.9% / Year-on-year change (points) Up 2.6 percentage points from 24.3%
Operating profit marginRate 17.1% / Year-on-year change (points) Up 2.0 percentage points from 15.1%
Selling, general and administrative expensesPersonnel expenses up ¥166 million, advertising expenses up ¥85 million, land and rent expenses up ¥35 million, brokerage fees up ¥28 million, and other SG&A expenses up ¥149 million
Full-year earnings forecastNet Sales ¥37,000 million / Operating profit ¥6,300 million / Ordinary income ¥5,800 million / Profit attributable to owners of the parent ¥3,800 million
Self-assessment against the planGenerally in line with plan (NEXT VISION 2026)
Segment resultsReal estate investment support business Net Sales ¥31,993 million (YoY +10.1%) / Segment profit ¥5,433 million (YoY +25.0%) / Real estate management business Net Sales ¥923 million (YoY +6.1%) / Segment profit ¥199 million (YoY +16.4%)
Breakdown of Factors Affecting the ChangeGross profit from the real estate investment support business +¥1,524 million / Gross profit from the real estate management business +¥53 million / Brokerage commissions -¥28 million / Advertising expenses -¥85 million / Personnel Expenses -¥166 million / Land and rent expenses -¥35 million / Other SG&A expenses -¥149 million
Key KPIsIndicator name Occupancy Rate / Value 98.6 % / Year on year against the same period last year Not disclosed, Indicator name Units under management / Value 2,598 units / Year on year against the same period last year Down 176 units, Indicator name Buildings under management / Value 219 buildings / Year on year against the same period last year Down 2 buildings, Indicator name Number of projects in progress / Value 42 Projects / Year on year against the same period last year Not disclosed, Indicator name Number of properties sold · Real estate products / Value 22 Engagements / Year on year against the same period last year 21 cases in the previous fiscal year, Indicator name Number of properties sold · Construction products / Value 4 Engagements / Year on year against the same period last year 7 cases in the previous fiscal year
Unit price and quantity metricsIncludes trends in average selling prices and selling prices per tsubo
Number of stores and locationsConsolidated operations at a single location following the relocation of the head office
Assumptions Underlying the Business OutlookProperties scheduled for sale 23 real estate products and 9 construction products, for a total of 32 properties / Number of buildings completed 23 buildings planned / Completed total floor area 1Q 5,833.03㎡、2Q 3,533.92㎡、3Q 1,276.86㎡、4Q 6,710.37㎡ / Revenue plan ¥37,000 million
Medium-term management plan targetsNEXT VISION 2029 Net Sales ¥50 billion for the fiscal year ending March 2029 / Ordinary income ¥7.5 billion for the fiscal year ending March 2029 / ROE At least 30% during the medium-term plan period / Payout ratio 35% or more / Annual number of completed buildings 25 buildings / Average property price ¥1.9 billion / Gross Margin 25% or higher / Comparison with NEXT VISION 2026 results Revenue ¥32.9 billion, ordinary profit ¥5.1 billion, ROE 32.4%, dividend ¥42.5, market capitalization ¥23 billion
Financial targetsROE Actual results 32.4% / Target At least 30% / Equity ratio Actual results Not disclosed / Target At least 30%
Annual DividendAnnual dividend per share ¥42.5 per share (forecast for the fiscal year ending March 2026) / Interim and Year-End Breakdown Not disclosed
Payout ratioTarget: 35%
Market Size / ShareIncludes the scale of net financial assets, number of households and inheritance tax payments of high-net-worth and ultra-high-net-worth individuals. Company's market share: Not disclosed
New initiativesLaunch of the TOKYO MODULE brand, Launch of the MIDHOUSE brand, Advancement of the development of THE GRANDUO luxury rental residences, Development and introduction of original-brand kitchens by 株式会社Madre, Holding of the Faith Design Competition 2026, Consolidation of locations through the relocation of the head office, Improving operational efficiency through the use of AI and DX
Items this document does not state (8)
Results for the three months of the current quarterProgress against full-year forecastNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey 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.

For the fiscal year ended March 2026, initiatives to enhance property value proved effective, resulting in a higher gross profit margin. Gross profit from the real estate investment support business increased, while personnel expenses rose due to an increase in headcount and advertising expenses increased as a result of active PR activities. For the fiscal year ending March 2027, the company will focus on sales promotion, the launch of new brands, maximizing property value, the development of luxury rental residences, securing and developing human resources, and improving operational efficiency.

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Financial Results Presentation for the Fiscal Year Ending March 2026 | FaithNetwork Co.,Ltd (3489) timely disclosure | Komori