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Earnings presentation5532REALGATE INC.Real Estate

Second-Quarter Financial Results Presentation Materials for the Fiscal Year Ending September 2026

Although revenue was below the year-earlier period, operating income and net income increased, mainly due to growth in recurring revenue. Progress against the full-year plan was 54% for revenue and 71% for operating income.

Worth reading
65In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
261
Millions of yen (year-on-year increase in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending September 202611 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥5,673 million-11.2%
Operating profit¥1,043 million+33.4%
Net income¥593 million+24.4%
Operating profit margin18.4 %
Results for the three months of the current quarter
Net Sales
¥1,721 million
Operating profit
¥130 million
Full-year earnings forecast
Net Sales
¥10,500 million
Operating profit
¥1,470 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 SalesApproximately 54%
Operating profitApproximately 71%
Forecast as of the third quarter
Net SalesApproximately 73%
Operating profitApproximately 80%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Above plan across all targets
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Questions Is revenue seasonal? / Answer Recurring revenue is not seasonal and accumulates as new properties are completed. Flow-based revenue may fluctuate depending on the timing of design and construction work and sales of properties held for sale.
  2. Questions What is the impact of interest rates? / Answer Income gains are the main source of returns, and the impact is limited because redevelopment projects have shorter completion periods and lower total project costs than new construction projects.
  3. Questions What is the property-holding policy? / Answer The acquisition category is determined based on the characteristics of each property and the financial balance, and properties may be sold to rebalance the portfolio. After a sale, the company seeks to generate recurring revenue through ML or PM contracts.
  4. Questions What are the growth metrics? / Answer The company focuses on improving operating income and the operating margin, increasing the number of profitable properties held and ML properties, and maintaining the occupancy rate.
  5. Questions Are dividends planned? / Answer No dividends are planned at present, and growth is being prioritized during the investment phase. The company intends to begin paying dividends before too long.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Gross profit from recurring revenueIncreased year on year (value shown in chart: ¥1,167 million in the second quarter of the fiscal year ending September 2026)
  • Fixed CostsValue shown in chart: ▲¥397 million
  • Flow gross profitValue shown in chart: ¥17 million
  • Upfront InvestmentValue shown in chart: ▲¥137 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • AssumptionsUtilization rate
    Figures95% or higher
  • AssumptionsNumber of new properties acquired
    FiguresApproximately 12 properties (initial plan: 8 properties)
  • AssumptionsSales of properties held
    Figures2 items
  • AssumptionsDesign and construction contracts
    Figures2 items
New initiatives
  • Establishment of HistoRy, a joint venture with Hulic Co.,Ltd.
  • HistoRy’s entry into the redevelopment business for medium-sized and larger older buildings
  • Expansion of JV projects and consideration of hotels, urban shopping malls, and fund formation
  • Development of a system using AI to prepare drawings and estimates
Key KPIsA metric the company considers important as a management benchmark.
  • Projects acquired76 Engagements
    Year on year against the same period last year73 projects in the year-earlier period
  • Properties under management66 Engagements
    Year on year against the same period last year64 properties in the year-earlier period
  • Managed floor area106,910 ㎡
    Year on year against the same period last year102,301㎡ in the year-earlier period
  • Utilization rate98.39 %
  • Leased tenant units1,094 Engagements
  • Free-desk contracts583 Engagements
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Average rent
¥27,162 /tsubo
Medium-term management plan targets
Operating profit
Fiscal year ending September 2026¥1,470 million
Fiscal year ending September 2027¥1,920 million
Fiscal year ending September 2028¥2,500 million
Operating profit margin
Fiscal year ending September 202614.0%
Fiscal year ending September 202716.7%
Fiscal year ending September 202819.2%
Long-term TargetsOperating income of ¥5 billion or more in 6 years
Financial targets
Operating profit margin
Fiscal year ending September 202614.0%
Fiscal year ending September 202716.7%
Fiscal year ending September 202819.2%
Equity ratio
Actual results15.8% (second quarter of the fiscal year ending September 2026)
Number of employees
Number of Employees95 people
Reference dateEnd of March 2026
Annual Dividend
No dividend planned at present
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending September 2026
Net Sales¥5,673 million (YoY -11.2%)
Operating profit¥1,043 million (YoY +33.4%)
Net income¥593 million (YoY +24.4%)
Operating profit margin18.4 %
Results for the three months of the current quarterNet Sales ¥1,721 million / Operating profit ¥130 million
Full-year earnings forecastNet Sales ¥10,500 million / Operating profit ¥1,470 million
Progress against full-year forecastNet Sales Approximately 54% / Operating profit Approximately 71% / Forecast as of the third quarter Net Sales Approximately 73% / Operating profit Approximately 80%
Self-assessment against the planAbove plan across all targets
Breakdown of Factors Affecting the ChangeFactors Gross profit from recurring revenue / Amount Increased year on year (value shown in chart: ¥1,167 million in the second quarter of the fiscal year ending September 2026), Factors Fixed Costs / Amount Value shown in chart: ▲¥397 million, Factors Flow gross profit / Amount Value shown in chart: ¥17 million, Factors Upfront Investment / Amount Value shown in chart: ▲¥137 million
Key KPIsIndicator name Projects acquired / Value 76 Engagements / Year on year against the same period last year 73 projects in the year-earlier period, Indicator name Properties under management / Value 66 Engagements / Year on year against the same period last year 64 properties in the year-earlier period, Indicator name Managed floor area / Value 106,910 ㎡ / Year on year against the same period last year 102,301㎡ in the year-earlier period, Indicator name Utilization rate / Value 98.39 % / Year on year against the same period last year Not disclosed, Indicator name Leased tenant units / Value 1,094 Engagements / Year on year against the same period last year Not disclosed, Indicator name Free-desk contracts / Value 583 Engagements / Year on year against the same period last year Not disclosed
Unit price and quantity metricsAverage rent Value ¥27,162 /tsubo / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees 95 people / Reference date End of March 2026
Assumptions Underlying the Business OutlookAssumptions Utilization rate / Figures 95% or higher, Assumptions Number of new properties acquired / Figures Approximately 12 properties (initial plan: 8 properties), Assumptions Sales of properties held / Figures 2 items, Assumptions Design and construction contracts / Figures 2 items
Medium-term management plan targetsOperating profit Fiscal year ending September 2026 ¥1,470 million / Fiscal year ending September 2027 ¥1,920 million / Fiscal year ending September 2028 ¥2,500 million / Operating profit margin Fiscal year ending September 2026 14.0% / Fiscal year ending September 2027 16.7% / Fiscal year ending September 2028 19.2% / Long-term Targets Operating income of ¥5 billion or more in 6 years
Financial targetsOperating profit margin Fiscal year ending September 2026 14.0% / Fiscal year ending September 2027 16.7% / Fiscal year ending September 2028 19.2% / Equity ratio Actual results 15.8% (second quarter of the fiscal year ending September 2026)
Annual DividendNo dividend planned at present
Key points of the Q&AQuestions Is revenue seasonal? / Answer Recurring revenue is not seasonal and accumulates as new properties are completed. Flow-based revenue may fluctuate depending on the timing of design and construction work and sales of properties held for sale., Questions What is the impact of interest rates? / Answer Income gains are the main source of returns, and the impact is limited because redevelopment projects have shorter completion periods and lower total project costs than new construction projects., Questions What is the property-holding policy? / Answer The acquisition category is determined based on the characteristics of each property and the financial balance, and properties may be sold to rebalance the portfolio. After a sale, the company seeks to generate recurring revenue through ML or PM contracts., Questions What are the growth metrics? / Answer The company focuses on improving operating income and the operating margin, increasing the number of profitable properties held and ML properties, and maintaining the occupancy rate., Questions Are dividends planned? / Answer No dividends are planned at present, and growth is being prioritized during the investment phase. The company intends to begin paying dividends before too long.
New initiativesEstablishment of HistoRy, a joint venture with Hulic Co.,Ltd., HistoRy’s entry into the redevelopment business for medium-sized and larger older buildings, Expansion of JV projects and consideration of hotels, urban shopping malls, and fund formation, Development of a system using AI to prepare drawings and estimates
Items this document does not state (11)
Ordinary incomeGross Profit MarginSelling, general and administrative expensesSegment resultsNumber of stores and locationsRisk amount incorporated into the outlookPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share

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 increase in operating income was driven by steady growth in gross profit from recurring revenue, which exceeded the increase in fixed costs. While flow gross profit included one completed and delivered project and one property sale in the first quarter, upfront investment reflected the costs of acquiring 6 projects in the first half. Revenue is affected by the timing of design and construction work and sales of properties held for sale, which can cause flow-based revenue to fluctuate, as well as by the status of openings and sales of newly acquired properties.

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.
Second-Quarter Financial Results Presentation Materials for the Fiscal Year Ending September 2026 | REALGATE INC. (5532) timely disclosure | Komori