Worth reading
45Recurring
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
2.6
Year-on-year change in revenue from the hotel operations business (%)Wording
Conditional
How definitive the wording is.Contents of this document
Summary of Q&AFirst quarter of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Results for the three months of the current quarter
Hotel operations business revenue¥588.5 million (up 2.6% year on year)
Hotel occupancy rate76.4% (79.3% in the same quarter of the previous year)
Average room rate¥58,000 (¥55,000 in the same quarter of the previous year)
New condominium units contracted181 units
Number of shared-office locations223 locations
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。New condominium contract progress: 61.8% (181 units contracted against 293 units scheduled for delivery during the full fiscal year)
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Generally in line with planKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- First-quarter performance was generally in line with the full-year plan. The decline in profit was due to the reaction to the delivery of high-margin properties in the same quarter of the previous year and the concentration of deliveries in the fourth quarter of the current fiscal year.
- New condominiums were generally in line with plan, with contract progress of 61.8% and 181 units contracted.
- Hotel revenue increased 2.6%. The decline in occupancy was offset by higher average room rates, but profit declined due to pre-opening costs.
- There is currently no direct impact on MIMARU from the decline in Chinese tourists.
- The contribution from the consolidation of WOOC is generally in line with plan. Revenue from the leasing and operations business increased 56.4%, while segment profit increased 51.0%.
- Interest rate trends are within the expected range, and the full-year earnings forecast was left unchanged because no material impact on the forecast is expected.
- Under the Medium-Term Management Plan 2028, the company will expand asset-light? Actually stock-type businesses such as hotel operations and leasing and operations, and review its business segments.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Income-generating real estate sales business: the reaction to the delivery of high-margin properties in the same quarter of the previous year, and the concentration of deliveries in the fourth quarter of the current fiscal year. Hotel operations business: higher average room rates and pre-opening costs for new facilities.
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Interest rate trends are generally within the expected range. Deliveries of income-generating real estate and other properties are expected to be concentrated in the fourth quarter.New initiatives
- Launch of business segment management that distinguishes between flow-based and stock-based businesses
- Opening of new facilities in the hotel operations business
- Focused investment in people and digital capabilities
- Creation of business synergies by combining Cosmos Initia's and WOOC's expertise in real estate development and operations with their shared-office management expertise
Key KPIsA metric the company considers important as a management benchmark.
- New condominium contract progress61.8%
- Number of shared-office locations223 locations
Unit price and quantity metricsThese figures show sales broken down by price and volume.
- Room occupancy rate76.4%Prior-year period79.3%
- Average room rate¥58,000Prior-year period¥55,000
- Number of new condominium units contracted181 unitsFull-year scheduled deliveries293 units scheduled for delivery during the full fiscal year
Segment results
- Hotel Operations BusinessNet Sales¥588.5 millionYear on year against the same period last yearUp 2.6% year on yearProfitBelow the same quarter of the previous year (profit amount not disclosed)
- Leasing and operations businessNet SalesUp 56.4% year on yearProfitUp 51.0% year on year
Medium-term management plan targets
Under the Medium-Term Management Plan 2028, the company aims to stabilize earnings and maximize growth opportunities by restructuring its business portfolio. Numerical targets: not disclosedNumber of stores and locations
223 shared-office locations. Openings and closures during the period: not disclosed| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Results for the three months of the current quarter | Hotel operations business revenue ¥588.5 million (up 2.6% year on year) / Hotel occupancy rate 76.4% (79.3% in the same quarter of the previous year) / Average room rate ¥58,000 (¥55,000 in the same quarter of the previous year) / New condominium units contracted 181 units / Number of shared-office locations 223 locations |
| Progress against full-year forecast | New condominium contract progress: 61.8% (181 units contracted against 293 units scheduled for delivery during the full fiscal year) |
| Self-assessment against the plan | Generally in line with plan |
| Segment results | Segment Hotel Operations Business / Net Sales ¥588.5 million / Year on year against the same period last year Up 2.6% year on year / Profit Below the same quarter of the previous year (profit amount not disclosed), Segment Leasing and operations business / Net Sales Up 56.4% year on year / Profit Up 51.0% year on year |
| Breakdown of Factors Affecting the Change | Income-generating real estate sales business: the reaction to the delivery of high-margin properties in the same quarter of the previous year, and the concentration of deliveries in the fourth quarter of the current fiscal year. Hotel operations business: higher average room rates and pre-opening costs for new facilities. |
| Key KPIs | Indicator New condominium contract progress / Value 61.8% / Year on year against the same period last year Not disclosed, Indicator Number of shared-office locations / Value 223 locations / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Indicator Room occupancy rate / Value 76.4% / Prior-year period 79.3%, Indicator Average room rate / Value ¥58,000 / Prior-year period ¥55,000, Indicator Number of new condominium units contracted / Value 181 units / Full-year scheduled deliveries 293 units scheduled for delivery during the full fiscal year |
| Number of stores and locations | 223 shared-office locations. Openings and closures during the period: not disclosed |
| Assumptions Underlying the Business Outlook | Interest rate trends are generally within the expected range. Deliveries of income-generating real estate and other properties are expected to be concentrated in the fourth quarter. |
| Medium-term management plan targets | Under the Medium-Term Management Plan 2028, the company aims to stabilize earnings and maximize growth opportunities by restructuring its business portfolio. Numerical targets: not disclosed |
| Key points of the Q&A | First-quarter performance was generally in line with the full-year plan. The decline in profit was due to the reaction to the delivery of high-margin properties in the same quarter of the previous year and the concentration of deliveries in the fourth quarter of the current fiscal year., New condominiums were generally in line with plan, with contract progress of 61.8% and 181 units contracted., Hotel revenue increased 2.6%. The decline in occupancy was offset by higher average room rates, but profit declined due to pre-opening costs., There is currently no direct impact on MIMARU from the decline in Chinese tourists., The contribution from the consolidation of WOOC is generally in line with plan. Revenue from the leasing and operations business increased 56.4%, while segment profit increased 51.0%., Interest rate trends are within the expected range, and the full-year earnings forecast was left unchanged because no material impact on the forecast is expected., Under the Medium-Term Management Plan 2028, the company will expand asset-light? Actually stock-type businesses such as hotel operations and leasing and operations, and review its business segments. |
| New initiatives | Launch of business segment management that distinguishes between flow-based and stock-based businesses, Opening of new facilities in the hotel operations business, Focused investment in people and digital capabilities, Creation of business synergies by combining Cosmos Initia's and WOOC's expertise in real estate development and operations with their shared-office management expertise |
Items this document does not state (17)
Net SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesFull-year earnings forecastNumber of employeesRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout 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 primary reasons for the decline in profit were the reaction to the delivery of high-margin properties in the income-generating real estate sales business in the same quarter of the previous year, and the expected concentration of deliveries of income-generating real estate and other properties in the fourth quarter of the current fiscal year. In the hotel operations business, higher average room rates contributed to increased revenue, while pre-opening costs for new facilities reduced segment profit.
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