Worth reading
80Important
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
359
¥ billions (operating income)Wording
Conditional
How definitive the wording is.Contents of this document
Earnings briefing transcriptFiscal year ending March 202614 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥4,448 100 million+3.0%
Operating profit¥359 100 million+23.0%
Ordinary income¥348 100 million
Net income¥149 100 million
Selling, general and administrative expenses¥1.1 billion below plan, up ¥5.1 billion year on year
Full-year earnings forecast
Fiscal year ending March 2026
Net Sales¥444.8 billion
Operating profit¥35.9 billion
Ordinary income¥34.8 billion
Net income¥14.9 billion
Fiscal year ending March 2027
Net Sales¥465.0 billion
Operating profit¥38.5 billion
Ordinary income¥38.1 billion
Net income¥22.2 billion
Fiscal year ending March 2028
Net Sales¥477.8 billion
Operating profit¥43.1 billion
Ordinary income¥42.7 billion
Net income¥25 billion
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。Versus the plan for the fiscal year ended March 2026: revenue +0.2%, operating income +3.4%, and net income +14.9%. In the development business, orders were 133.8% of the target by number of buildings, 138.5% by number of units, and 142.0% by order value.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Plan achieved. Orders in the development business significantly exceeded the plan.Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Issues Shareholder Returns / Answer The 30% payout ratio target for the fiscal year ending March 2028 will be maintained, with the company intending to reach it in stages.
- Issues Cap on specified skilled workers / Answer Customers in the food service and lodging industries account for approximately 8% of the customer base, so the company recognizes the impact as limited.
- Issues Potential upside in rent increases / Answer The plan has been kept unchanged rather than slowed. For individual properties, the company will continue seeking higher rents when recruiting tenants after move-outs.
- Issues Gross profit in the development business / Answer The gross margin for the current fiscal year is expected to range from 10% to 15%.
- Issues Decline in the number of managed units / Answer At the expiration of basic agreements, the company proposes rebuilding or extending the contracts, and the pace of decline has slowed somewhat from before.
- Issues Middle East situation and materials risk / Answer Materials for the first quarter have already been secured. If shortages continue for more than a year, there could be an impact, but the risk is currently contained.
- Issues Use of technology / Answer The company will pilot AI-based rent setting and aims to reduce personnel and SG&A expenses by improving efficiency in areas such as document preparation.
- Issues Tax assumptions for the fiscal year ending March 2027 / Answer No extraordinary gains or losses are assumed, and a corporate tax rate of approximately 35% is used as the assumption.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Higher rent levelsDetailsFactor contributing to higher revenue
- Higher property maintenance costsDetailsFactor contributing to higher cost of sales
- Decrease in the number of managed units and reversal of the provision for vacancy lossesDetailsLimited the increase in cost of sales
- Control of advertising expenses and sales commissions¥1.1 billion below plan for SG&A expenses
- Increase in personnel expensesDetailsFactor contributing to the year-on-year increase in SG&A expenses
- Loss on cancellation of treasury stock acquisition rights¥10.0 billionDetailsFactor contributing to the year-on-year decline in net income
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
A corporate tax rate of approximately 35% is assumed. The forecast incorporates the impact of inflation, increases in maintenance, personnel and other costs, and the effects of refinancing. Other numerical assumptions were not disclosed.New initiatives
- Pilot implementation of AI-based rent setting
- Expansion of sales offices for the development business to Osaka, Hiroshima and Fukuoka
- Continuation of well-being management
- Improving occupancy in regional areas through dynamic pricing
Key KPIsA metric the company considers important as a management benchmark.
- Contracted rent index114 IndexYear on year against the same period last yearAbove the previous fiscal year
- Average occupancy during the period85.78 %Year on year against the same period last yearImproved by 0.22 points
- Occupancy at period-end88.78 %Year on year against the same period last yearImproved by 1.21 points
- Share of corporate users66.5 %Year on year against the same period last yearUp 1.9 points
- Number of units used by foreign nationals65,858 unitsYear on year against the same period last yearRecord-high level
- Share of foreign-national users13.7 %Year on year against the same period last yearRecord-high level
- Share of corporate contracts among foreign-national users58 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
- Contracted rent index114 Index
- Number of units used65,858 Units units used by foreign nationals
- Number of buildings ordered, number of units ordered, and order value107 buildings, 1,524 units, and ¥14.198 billion
Medium-term management plan targets
- Target30% payout ratio for the fiscal year ending March 2028Actual and forecast22.2% for the fiscal year ended March 2026; 21.5% forecast for the fiscal year ending March 2027
- Target534,000 managed units for the fiscal year ending March 2028ChangeUp 1,000 units from the previous plan
- Fiscal years ending March 2027 and March 2028TargetContracted rent index of 116
Orders received and order backlog
Order value was ¥14.198 billion. The amount of the order backlog was not disclosed.Number of stores and locations
Sales offices will be expanded to Osaka, Hiroshima and Fukuoka in the fiscal year ending March 2027. The total number of locations at period-end and the number of openings and closures during the period were not disclosed.Number of employees
The company stated that the number of employees increased, but the number was not disclosed.Annual Dividend
¥10 for the fiscal year ended March 2026 (¥5 interim and ¥5 year-end). ¥15 is planned for the fiscal year ending March 2027 (¥5 interim and ¥10 year-end).Payout ratio
22.2% outlook for the fiscal year ended March 2026, 21.5% forecast for the fiscal year ending March 2027, and a 30% target for the fiscal year ending March 2028.Acquisition of treasury shares
A tender offer for treasury shares will be conducted by the second quarter. The purchase amount, number of shares and period were not disclosed. The company stated that it does not intend to execute additional purchases immediately.| Item | Details |
|---|---|
| Document type | Earnings briefing transcript |
| Fiscal Period Covered | Fiscal year ending March 2026 |
| Net Sales | ¥4,448 100 million (YoY +3.0%) |
| Operating profit | ¥359 100 million (YoY +23.0%) |
| Ordinary income | ¥348 100 million |
| Net income | ¥149 100 million |
| Selling, general and administrative expenses | ¥1.1 billion below plan, up ¥5.1 billion year on year |
| Full-year earnings forecast | Fiscal year ending March 2026 Net Sales ¥444.8 billion / Operating profit ¥35.9 billion / Ordinary income ¥34.8 billion / Net income ¥14.9 billion / Fiscal year ending March 2027 Net Sales ¥465.0 billion / Operating profit ¥38.5 billion / Ordinary income ¥38.1 billion / Net income ¥22.2 billion / Fiscal year ending March 2028 Net Sales ¥477.8 billion / Operating profit ¥43.1 billion / Ordinary income ¥42.7 billion / Net income ¥25 billion |
| Progress against full-year forecast | Versus the plan for the fiscal year ended March 2026: revenue +0.2%, operating income +3.4%, and net income +14.9%. In the development business, orders were 133.8% of the target by number of buildings, 138.5% by number of units, and 142.0% by order value. |
| Self-assessment against the plan | Plan achieved. Orders in the development business significantly exceeded the plan. |
| Breakdown of Factors Affecting the Change | Factors Higher rent levels / Details Factor contributing to higher revenue, Factors Higher property maintenance costs / Details Factor contributing to higher cost of sales, Factors Decrease in the number of managed units and reversal of the provision for vacancy losses / Details Limited the increase in cost of sales, Factors Control of advertising expenses and sales commissions / Amount ¥1.1 billion below plan for SG&A expenses, Factors Increase in personnel expenses / Details Factor contributing to the year-on-year increase in SG&A expenses, Factors Loss on cancellation of treasury stock acquisition rights / Amount ¥10.0 billion / Details Factor contributing to the year-on-year decline in net income |
| Key KPIs | Indicator name Contracted rent index / Value 114 Index / Year on year against the same period last year Above the previous fiscal year, Indicator name Average occupancy during the period / Value 85.78 % / Year on year against the same period last year Improved by 0.22 points, Indicator name Occupancy at period-end / Value 88.78 % / Year on year against the same period last year Improved by 1.21 points, Indicator name Share of corporate users / Value 66.5 % / Year on year against the same period last year Up 1.9 points, Indicator name Number of units used by foreign nationals / Value 65,858 units / Year on year against the same period last year Record-high level, Indicator name Share of foreign-national users / Value 13.7 % / Year on year against the same period last year Record-high level, Indicator name Share of corporate contracts among foreign-national users / Value 58 % / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Indicator name Contracted rent index / Value 114 Index, Indicator name Number of units used / Value 65,858 Units (units used by foreign nationals), Indicator name Number of buildings ordered, number of units ordered, and order value / Value 107 buildings, 1,524 units, and ¥14.198 billion |
| Number of stores and locations | Sales offices will be expanded to Osaka, Hiroshima and Fukuoka in the fiscal year ending March 2027. The total number of locations at period-end and the number of openings and closures during the period were not disclosed. |
| Number of employees | The company stated that the number of employees increased, but the number was not disclosed. |
| Assumptions Underlying the Business Outlook | A corporate tax rate of approximately 35% is assumed. The forecast incorporates the impact of inflation, increases in maintenance, personnel and other costs, and the effects of refinancing. Other numerical assumptions were not disclosed. |
| Medium-term management plan targets | Target 30% payout ratio for the fiscal year ending March 2028 / Actual and forecast 22.2% for the fiscal year ended March 2026; 21.5% forecast for the fiscal year ending March 2027, Target 534,000 managed units for the fiscal year ending March 2028 / Change Up 1,000 units from the previous plan, Target Contracted rent index of 116 / Subject Fiscal years ending March 2027 and March 2028 |
| Annual Dividend | ¥10 for the fiscal year ended March 2026 (¥5 interim and ¥5 year-end). ¥15 is planned for the fiscal year ending March 2027 (¥5 interim and ¥10 year-end). |
| Payout ratio | 22.2% outlook for the fiscal year ended March 2026, 21.5% forecast for the fiscal year ending March 2027, and a 30% target for the fiscal year ending March 2028. |
| Acquisition of treasury shares | A tender offer for treasury shares will be conducted by the second quarter. The purchase amount, number of shares and period were not disclosed. The company stated that it does not intend to execute additional purchases immediately. |
| Orders received and order backlog | Order value was ¥14.198 billion. The amount of the order backlog was not disclosed. |
| Key points of the Q&A | Issues Shareholder Returns / Answer The 30% payout ratio target for the fiscal year ending March 2028 will be maintained, with the company intending to reach it in stages., Issues Cap on specified skilled workers / Answer Customers in the food service and lodging industries account for approximately 8% of the customer base, so the company recognizes the impact as limited., Issues Potential upside in rent increases / Answer The plan has been kept unchanged rather than slowed. For individual properties, the company will continue seeking higher rents when recruiting tenants after move-outs., Issues Gross profit in the development business / Answer The gross margin for the current fiscal year is expected to range from 10% to 15%., Issues Decline in the number of managed units / Answer At the expiration of basic agreements, the company proposes rebuilding or extending the contracts, and the pace of decline has slowed somewhat from before., Issues Middle East situation and materials risk / Answer Materials for the first quarter have already been secured. If shortages continue for more than a year, there could be an impact, but the risk is currently contained., Issues Use of technology / Answer The company will pilot AI-based rent setting and aims to reduce personnel and SG&A expenses by improving efficiency in areas such as document preparation., Issues Tax assumptions for the fiscal year ending March 2027 / Answer No extraordinary gains or losses are assumed, and a corporate tax rate of approximately 35% is used as the assumption. |
| New initiatives | Pilot implementation of AI-based rent setting, Expansion of sales offices for the development business to Osaka, Hiroshima and Fukuoka, Continuation of well-being management, Improving occupancy in regional areas through dynamic pricing |
Items this document does not state (8)
Gross Profit MarginOperating profit marginResults for the three months of the current quarterSegment resultsRisk amount incorporated into the outlookFinancial targetsCapital expendituresMarket 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 factors behind the improvement in results were higher rent levels, improved occupancy, an increase in the number of units used, mainly under corporate contracts, stronger-than-expected orders in the development business, and lower interest expense following refinancing. The year-on-year decline in net income was attributable to a ¥10 billion loss on the cancellation of treasury stock acquisition rights, recorded as an extraordinary loss in the first quarter.
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