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

Worth reading

46Recurring

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

4730

¥ million (year-on-year increase in revenue)

Wording

Conditional

How definitive the wording is.

Contents of this document

Supplementary materials to the earnings reportSecond quarter (interim period) 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 Sales¥26,551 million+21.7%

Operating profit¥7,404 million+28.4%

Ordinary income¥6,193 million+28.2%

Net income¥4,595 million+5.7%

Full-year earnings forecast

Net Sales

¥63,800 million

Operating profit

¥15,800 million

Ordinary income

¥13,000 million

Profit attributable to owners of the parent

¥11,500 million

EPS

¥174.05

ROE

Approximately 9%

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 Sales41.6％

Operating profit46.9％

Ordinary income47.6％

Interim net income attributable to owners of the parent40.0％

EPS40.0％

Building Business revenue41.0％

Asset Management Business revenue48.5％

Building Business operating profit46.9％

Asset Management Business operating profit50.0％

Contract basis for property sale gains100％

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.

Increase in hotel revenueApproximately ¥800 million

Revenue growth from rent increases and other revisionsApproximately ¥200 million

Revenue growth from the contribution of acquired propertiesApproximately ¥200 million

Revenue decrease from lower income recognized during the period due to property sales, among other factorsApproximately ¥200 million

New initiatives

Decision to proceed with the Hilton lifestyle brand “Motto by Hilton Kyoto Shijo Karasuma” (target opening in fiscal 2029)
Announcement of the new medium-term management plan “Bazukuri Transformation 5 (BX5)”
Achievement of the GHG emissions reduction target
Achievement of 100% renewable energy use for purchased electricity

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

Consolidated building vacancy rate1.78％
Interim EPS¥69.56
Year on year against the same period last year+6.9%
Net debt-to-equity ratio2 times
GRESB Real Estate Assessment5-star
Renewable energy usage rate for purchased electricity100 ％

Segment results

Building Business

Net Sales

¥24,175 million+22.5%

Operating profit

¥7,177 million+28.2%

Rental revenue

¥15,212 million+8.4%

Hotel revenue

¥2,194 million+63.4%

Property-sale revenue

¥8,213 million+70.2%

Gains on property sales

¥2,224 million+110.1%

Asset Management Business

Net Sales

¥2,375 million+13.8%

Operating profit

¥1,450 million+13.6%

Asset-management revenue

¥1,762 million+10.8%

Brokerage commissions

¥613 million+23.5%

Medium-term management plan targets

Reduce GHG emissions80% reduction by fiscal 2025 compared with fiscal 2018 (Scope 1+2)

Actual resultsTarget achieved

Contents of this document
Item	Details
Document type	Supplementary materials to the earnings report
Fiscal Period Covered	Second quarter (interim period) of the fiscal year ending March 2027
Net Sales	¥26,551 million (YoY +21.7%)
Operating profit	¥7,404 million (YoY +28.4%)
Ordinary income	¥6,193 million (YoY +28.2%)
Net income	¥4,595 million (YoY +5.7%)
Full-year earnings forecast	Net Sales ¥63,800 million / Operating profit ¥15,800 million / Ordinary income ¥13,000 million / Profit attributable to owners of the parent ¥11,500 million / EPS ¥174.05 / ROE Approximately 9%
Progress against full-year forecast	Net Sales 41.6％ / Operating profit 46.9％ / Ordinary income 47.6％ / Interim net income attributable to owners of the parent 40.0％ / EPS 40.0％ / Building Business revenue 41.0％ / Asset Management Business revenue 48.5％ / Building Business operating profit 46.9％ / Asset Management Business operating profit 50.0％ / Contract basis for property sale gains 100％
Self-assessment against the plan	Progressing as planned
Segment results	Building Business Net Sales ¥24,175 million (YoY +22.5%) / Operating profit ¥7,177 million (YoY +28.2%) / Rental revenue ¥15,212 million (YoY +8.4%) / Hotel revenue ¥2,194 million (YoY +63.4%) / Property-sale revenue ¥8,213 million (YoY +70.2%) / Gains on property sales ¥2,224 million (YoY +110.1%) / Asset Management Business Net Sales ¥2,375 million (YoY +13.8%) / Operating profit ¥1,450 million (YoY +13.6%) / Asset-management revenue ¥1,762 million (YoY +10.8%) / Brokerage commissions ¥613 million (YoY +23.5%)
Breakdown of Factors Affecting the Change	Increase in hotel revenue Approximately ¥800 million / Revenue growth from rent increases and other revisions Approximately ¥200 million / Revenue growth from the contribution of acquired properties Approximately ¥200 million / Revenue decrease from lower income recognized during the period due to property sales, among other factors Approximately ¥200 million
Key KPIs	Indicator name Consolidated building vacancy rate / Value 1.78％ / Year on year against the same period last year Not disclosed, Indicator name Interim EPS / Value ¥69.56 / Year on year against the same period last year ¥6.9, Indicator name Net debt-to-equity ratio / Value 2 times / Year on year against the same period last year Not disclosed, Indicator name GRESB Real Estate Assessment / Value 5-star / Year on year against the same period last year Not disclosed, Indicator name Renewable energy usage rate for purchased electricity / Value 100 ％ / Year on year against the same period last year Not disclosed
Medium-term management plan targets	Reduce GHG emissions 80% reduction by fiscal 2025 compared with fiscal 2018 (Scope 1+2) / Actual results Target achieved
New initiatives	Decision to proceed with the Hilton lifestyle brand “Motto by Hilton Kyoto Shijo Karasuma” (target opening in fiscal 2029), Announcement of the new medium-term management plan “Bazukuri Transformation 5 (BX5)”, Achievement of the GHG emissions reduction target, Achievement of 100% renewable energy use for purchased electricity

Items this document does not state (17)

Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial 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.

Revenue and profit increased, driven by increased property sales in the Building Business, higher hotel revenue, rent increases and earnings contributions from acquired properties.

How to read this page

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