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Financial results presentation5532REALGATE INC.Real Estate

Financial Results Presentation for the Third Quarter of the Fiscal Year Ending September 2026

In the third quarter of the fiscal year ending September 2026, revenue and net income were below the year-earlier period, while operating income increased as the company shifted toward more profitable businesses, including owned properties. Progress against the full-year operating income forecast was 79%, and the company said achievement of its full-year forecast is certain.

Worth reading
78Important
Scored from 5 of 6 sections
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
181
Millions of yen (year-on-year increase in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Financial results presentationQ3 FY202610 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥7,709 million-5.5%
Operating profit¥1,160 million+18.5%
Net income¥567 million-1.9%
Operating profit margin
Rate15.1
Year-on-year change (points)2.9
Results for the three months of the current quarter
Operating profit
¥116 million
NotesQuarterly operating income: ¥237 million in Q1, ¥130 million in Q2 and ¥116 million in Q3
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 73%
Operating profitApproximately 79%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Full-year forecast achievement is certain / nearly certain
Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
  1. Revenue seasonality: Recurring revenue has no seasonality, while project-based revenue may be concentrated depending on the timing of design and construction work or property sales.
  2. Interest rate impact: Income gains are the main source of returns, and the impact of interest rates is limited because redevelopment projects have shorter completion periods and lower total project costs than new construction.
  3. Property ownership policy: The acquisition category is determined according to property characteristics and the company's financial balance, and properties may be sold as part of portfolio rotation.
  4. Growth metrics: The company focuses on operating income, operating margin, the number of owned and ML properties, and occupancy rate.
  5. Dividends: No dividend is planned at this time. As the company is in an investment phase, it is prioritizing share price appreciation driven by growth.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Gross profit from recurring revenue
    Third quarter of the fiscal year ended September 2025¥1,550 million
    Third quarter of the fiscal year ending September 2026¥1,748 million
  • Fixed Costs
    Third quarter of the fiscal year ended September 2025–¥1,084 million
    Third quarter of the fiscal year ending September 2026–¥1,259 million
  • Flow gross profit
    Third quarter of the fiscal year ended September 2025¥632 million
    Third quarter of the fiscal year ending September 2026¥852 million
  • Upfront Investment
    Third quarter of the fiscal year ended September 2025–¥118 million
    Third quarter of the fiscal year ending September 2026–¥181 million
  • Operating profit
    Third quarter of the fiscal year ended September 2025¥979 million
    Third quarter of the fiscal year ending September 2026¥1,160 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Utilization rate
    AssumptionsMaintain approximately 98%
  • Sales of properties held
    Assumptions2 items
  • Design and construction contracts
    Assumptions3 items
  • New property acquisitions
    AssumptionsApproximately 12 properties
New initiatives
  • Joint acquisition and redevelopment of medium- to large-sized older properties through HistoRy, a joint venture with Hulic
  • Raising approximately ¥2.5 billion through a public offering and third-party allotment, and strengthening property acquisitions
  • Considering new businesses, including 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 acquired77 Engagements
    Year on year against the same period last year75 projects in the year-earlier period
  • Properties under management68 Engagements
    Year on year against the same period last year66 properties in the year-earlier period
  • Managed floor area109,186 ㎡
    Year on year against the same period last year105,532㎡ in the year-earlier period
  • Utilization rate98.86 %
  • Leased units1,117 Engagements
  • Free-desk contracts576 Engagements
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Average rent
¥27,799 /tsubo
Utilization rate
98.86 %
Medium-term management plan targets
Plan nameMedium-Term Management Plan 2028
Target fiscal yearFiscal year ending September 2028
Net Sales
¥13,000 million
Operating profit
¥2,500 million
Operating profit margin19.2%
Number of employees
Number of Employees105 people
As ofEnd of June 2026
Annual Dividend
Not disclosed (no dividend planned at this time)
Contents of this document
ItemDetails
Document typeFinancial results presentation
Fiscal Period CoveredQ3 FY2026
Net Sales¥7,709 million (YoY -5.5%)
Operating profit¥1,160 million (YoY +18.5%)
Net income¥567 million (YoY -1.9%)
Operating profit marginRate 15.1 / Year-on-year change (points) 2.9
Results for the three months of the current quarterOperating profit ¥116 million / Notes Quarterly operating income: ¥237 million in Q1, ¥130 million in Q2 and ¥116 million in Q3
Full-year earnings forecastNet Sales ¥10,500 million / Operating profit ¥1,470 million
Progress against full-year forecastNet Sales Approximately 73% / Operating profit Approximately 79%
Self-assessment against the planFull-year forecast achievement is certain / nearly certain
Breakdown of Factors Affecting the ChangeFactors Gross profit from recurring revenue / Third quarter of the fiscal year ended September 2025 ¥1,550 million / Third quarter of the fiscal year ending September 2026 ¥1,748 million, Factors Fixed Costs / Third quarter of the fiscal year ended September 2025 –¥1,084 million / Third quarter of the fiscal year ending September 2026 –¥1,259 million, Factors Flow gross profit / Third quarter of the fiscal year ended September 2025 ¥632 million / Third quarter of the fiscal year ending September 2026 ¥852 million, Factors Upfront Investment / Third quarter of the fiscal year ended September 2025 –¥118 million / Third quarter of the fiscal year ending September 2026 –¥181 million, Factors Operating profit / Third quarter of the fiscal year ended September 2025 ¥979 million / Third quarter of the fiscal year ending September 2026 ¥1,160 million
Key KPIsIndicator name Projects acquired / Value 77 Engagements / Year on year against the same period last year 75 projects in the year-earlier period, Indicator name Properties under management / Value 68 Engagements / Year on year against the same period last year 66 properties in the year-earlier period, Indicator name Managed floor area / Value 109,186 ㎡ / Year on year against the same period last year 105,532㎡ in the year-earlier period, Indicator name Utilization rate / Value 98.86 % / Year on year against the same period last year Not disclosed, Indicator name Leased units / Value 1,117 Engagements / Year on year against the same period last year Not disclosed, Indicator name Free-desk contracts / Value 576 Engagements / Year on year against the same period last year Not disclosed
Unit price and quantity metricsAverage rent Value ¥27,799 /tsubo / Year on year against the same period last year Not disclosed / Utilization rate Value 98.86 % / Year on year against the same period last year Not disclosed
Number of employeesNumber of Employees 105 people / As of End of June 2026
Assumptions Underlying the Business OutlookItem Utilization rate / Assumptions Maintain approximately 98%, Item Sales of properties held / Assumptions 2 items, Item Design and construction contracts / Assumptions 3 items, Item New property acquisitions / Assumptions Approximately 12 properties
Medium-term management plan targetsPlan name Medium-Term Management Plan 2028 / Target fiscal year Fiscal year ending September 2028 / Net Sales ¥13,000 million / Operating profit ¥2,500 million / Operating profit margin 19.2%
Annual DividendNot disclosed (no dividend planned at this time)
Key points of the Q&ARevenue seasonality: Recurring revenue has no seasonality, while project-based revenue may be concentrated depending on the timing of design and construction work or property sales., Interest rate impact: Income gains are the main source of returns, and the impact of interest rates is limited because redevelopment projects have shorter completion periods and lower total project costs than new construction., Property ownership policy: The acquisition category is determined according to property characteristics and the company's financial balance, and properties may be sold as part of portfolio rotation., Growth metrics: The company focuses on operating income, operating margin, the number of owned and ML properties, and occupancy rate., Dividends: No dividend is planned at this time. As the company is in an investment phase, it is prioritizing share price appreciation driven by growth.
New initiativesJoint acquisition and redevelopment of medium- to large-sized older properties through HistoRy, a joint venture with Hulic, Raising approximately ¥2.5 billion through a public offering and third-party allotment, and strengthening property acquisitions, Considering new businesses, including hotels, urban shopping malls and fund formation, Development of a system using AI to prepare drawings and estimates
Items this document does not state (12)
Ordinary incomeGross Profit MarginSelling, general and administrative expensesSegment resultsNumber of stores and locationsRisk amount incorporated into the outlookFinancial targetsPayout 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 main reasons cited for the increase in operating income were reducing the less profitable PM business, building revenue from more profitable businesses such as owned properties, and growth in recurring gross profit. The company also said it was strengthening recruitment and training in line with expanded acquisitions and making upfront investments when acquiring 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.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
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 Third Quarter of the Fiscal Year Ending September 2026 | REALGATE INC. (5532) timely disclosure | Komori