Supplementary Explanatory Materials for the First Quarter of the Fiscal Year Ending March 2027 Results | HEIWA REAL ESTATE CO.,LTD. (8803) timely disclosure

Worth reading

76Important

Scored from 4 of 6 sections

Direction

Mixed performance

Direction inferred from the company’s description.

Scale

-2102

¥ million (year-on-year change in consolidated revenue)

Wording

Conditional

How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportFirst quarter of the fiscal year ending March 20276 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales11,021 Millions of yen-16.0%

Operating profit2,787 Millions of yen-18.9%

Ordinary income2,372 Millions of yen-23.8%

Net income¥1,618 million -28.3%profit attributable to owners of the parent

Results for the three months of the current quarter

Net Sales

11,021 Millions of yen

Operating profit

2,787 Millions of yen

Ordinary income

2,372 Millions of yen

Net income

1,618 Millions of yen

EPS

¥24.5

Full-year earnings forecast

Net Sales

63,800 Millions of yen

Operating profit

15,800 Millions of yen

Ordinary income

13,000 Millions of yen

Net income

¥11,500 million net income attributable to owners of the parent

EPS

¥174.06

ROE

8% or higher

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 Sales17.3%

Building Business revenue17.2%

Asset Management Business revenue17.6%

Operating profit17.6%

Building Business operating profit18.9%

Asset Management Business operating profit14.6%

Ordinary income18.2%

Net income14.1%

EPS14.1%

Property sales on a contracted basisApproximately 95% (scheduled)

What the company explained in this material

Self-assessment against the planThe company's self-assessment against its own plan.

Progressing as planned

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Building Business rental revenue

Increase in hotel revenue700 Approximately ¥ million

Other Building Business rental revenue

Revenue growth from property acquisitions100 Approximately ¥ million

Revenue growth from upward revisions and other factors100 Approximately ¥ million

Revenue decrease from lower income recognized during the period due to property sales, among other factors100 Approximately ¥ million

Building Business full-year rental revenue forecast

Increase in hotel revenue1,400 Approximately ¥ million

Revenue increase from rent increases500 Approximately ¥ million

Revenue growth from the contribution of acquired properties400 Approximately ¥ million

Revenue decrease from lower income recognized during the period due to property sales, among other factors400 Approximately ¥ million

New initiatives

Commercialization of the hotel development project “Avani Kyoto” (tentative name), using the former Kyoto Shimbun headquarters building, jointly with Taisei Corporation and MINOR INTERNATIONAL PCL.
Provided growth support through property sales in connection with the public offering by Heiwa Real Estate REIT Investment Corporation.
Launched the service office business “FinGATE” in Sapporo.
Obtained LEED GOLD preliminary certification and a CASBEE Real Estate S rating for the office portion of SAPPORO ONE.
Introduced an off-site corporate PPA at the Osaka Securities Exchange Building.

Key KPIsA metric the company considers important as a management benchmark.

EPS¥24.5
Year on year against the same period last year-27.6%
Consolidated vacancy rate2.24 %
Net debt-to-equity ratio2 times
ROE7.9 %
ROA3.2 %
Equity ratio28.1 %

Segment results

Building Business

Net Sales

10,156 Millions of yen-18.2%

Operating profit

2,897 Millions of yen-20.8%

Rental revenue

7,908 Millions of yen+11.9%

Hotel revenue

1,445 Millions of yen+84.6%

Property-sale revenue

1,823 Millions of yen-62.2%

Gains on property sales

124 Millions of yen-88.3%

Asset Management Business

Net Sales

864 Millions of yen+22.9%

Operating profit

422 Millions of yen+32.4%

Asset-management revenue

651 Millions of yen+20.0%

Brokerage commissions

213 Millions of yen+32.6%

Financial targets

Net debt-to-equity ratio

2 x actual as of the end of June 2026

ROE

8% or higherfull-year forecast

Equity ratio

28.1 % FY2026/3 actual results

Contents of this document
Item	Details
Document type	Supplementary materials to the earnings report
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Net Sales	11,021 Millions of yen (YoY -16.0%)
Operating profit	2,787 Millions of yen (YoY -18.9%)
Ordinary income	2,372 Millions of yen (YoY -23.8%)
Net income	¥1,618 million (profit attributable to owners of the parent) (YoY -28.3%)
Results for the three months of the current quarter	Net Sales 11,021 Millions of yen / Operating profit 2,787 Millions of yen / Ordinary income 2,372 Millions of yen / Net income 1,618 Millions of yen / EPS ¥24.5
Full-year earnings forecast	Net Sales 63,800 Millions of yen / Operating profit 15,800 Millions of yen / Ordinary income 13,000 Millions of yen / Net income ¥11,500 million (net income attributable to owners of the parent) / EPS ¥174.06 / ROE 8% or higher
Progress against full-year forecast	Net Sales 17.3% / Building Business revenue 17.2% / Asset Management Business revenue 17.6% / Operating profit 17.6% / Building Business operating profit 18.9% / Asset Management Business operating profit 14.6% / Ordinary income 18.2% / Net income 14.1% / EPS 14.1% / Property sales on a contracted basis Approximately 95% (scheduled)
Self-assessment against the plan	Progressing as planned
Segment results	Building Business Net Sales 10,156 Millions of yen (YoY -18.2%) / Operating profit 2,897 Millions of yen (YoY -20.8%) / Rental revenue 7,908 Millions of yen (YoY +11.9%) / Hotel revenue 1,445 Millions of yen (YoY +84.6%) / Property-sale revenue 1,823 Millions of yen (YoY -62.2%) / Gains on property sales 124 Millions of yen (YoY -88.3%) / Asset Management Business Net Sales 864 Millions of yen (YoY +22.9%) / Operating profit 422 Millions of yen (YoY +32.4%) / Asset-management revenue 651 Millions of yen (YoY +20.0%) / Brokerage commissions 213 Millions of yen (YoY +32.6%)
Breakdown of Factors Affecting the Change	Building Business rental revenue Increase in hotel revenue 700 Approximately ¥ million / Other Building Business rental revenue Revenue growth from property acquisitions 100 Approximately ¥ million / Revenue growth from upward revisions and other factors 100 Approximately ¥ million / Revenue decrease from lower income recognized during the period due to property sales, among other factors 100 Approximately ¥ million / Building Business full-year rental revenue forecast Increase in hotel revenue 1,400 Approximately ¥ million / Revenue increase from rent increases 500 Approximately ¥ million / Revenue growth from the contribution of acquired properties 400 Approximately ¥ million / Revenue decrease from lower income recognized during the period due to property sales, among other factors 400 Approximately ¥ million
Key KPIs	Indicator name EPS / Value ¥24.5 / Year on year against the same period last year ¥-27.6, Indicator name Consolidated vacancy rate / Value 2.24 % / Year on year against the same period last year Not disclosed, Indicator name Net debt-to-equity ratio / Value 2 times / Year on year against the same period last year Not disclosed, Indicator name ROE / Value 7.9 % / Year on year against the same period last year Not disclosed, Indicator name ROA / Value 3.2 % / Year on year against the same period last year Not disclosed, Indicator name Equity ratio / Value 28.1 % / Year on year against the same period last year Not disclosed
Financial targets	Net debt-to-equity ratio 2 x (actual as of the end of June 2026) / ROE 8% or higher / Equity ratio 28.1 % (FY2026/3 actual results)
New initiatives	Commercialization of the hotel development project “Avani Kyoto” (tentative name), using the former Kyoto Shimbun headquarters building, jointly with Taisei Corporation and MINOR INTERNATIONAL PCL., Provided growth support through property sales in connection with the public offering by Heiwa Real Estate REIT Investment Corporation., Launched the service office business “FinGATE” in Sapporo., Obtained LEED GOLD preliminary certification and a CASBEE Real Estate S rating for the office portion of SAPPORO ONE., Introduced an off-site corporate PPA at the Osaka Securities Exchange Building.

Items this document does not state (16)

Gross Profit MarginOperating profit marginSelling, general and administrative expensesUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsAnnual DividendPayout ratioAcquisition 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 reason for the decline in revenue and profit was the decrease in property sales in the Building Business. The Company explained that this was in line with its plan at the beginning of the fiscal year. Meanwhile, rental revenue increased due to higher hotel revenue and upward rent revisions, while the Asset Management Business posted increases in both revenue and profit, mainly due to higher asset management revenue.

How to read this page

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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.