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Earnings presentation8892ES-CON JAPAN Ltd.Real Estate

Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027

In the second quarter of the fiscal year ending March 2027, revenue and profit increased substantially, driven by the sale of income-producing properties and growth in the asset management business. Operating profit reached 39.9% of the full-year plan, and the company said progress was proceeding smoothly.

Worth reading
74In focus
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
57.8
Year-on-year change in revenue (%)
Wording
Conditional
How definitive the wording is.

Contents of this document

Earnings presentationSecond quarter of the fiscal year ending March 20279 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥55,523 million+57.8%
Operating profit¥10,578 million+115.6%
Ordinary income¥6,878 million+189.0%
Net income¥4,920 million +164.8%interim net income attributable to owners of the parent
Full-year earnings forecast
Net Sales
¥145,000 million
Operating profit
¥26,500 million
Ordinary income
¥20,000 million
Profit attributable to owners of the parent
¥14,000 million
Earnings per share
¥151.42
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 Sales38.3%
Operating profit39.9%
Ordinary income34.4%
Interim net income attributable to owners of the parent35.1%
Housing development business revenue29.2%
Real estate development business revenue44.2%
Real estate leasing business revenue48.0%
Asset management business revenue39.1%
Other Businesses net sales81.0%
Housing development business segment profit26.0%
Real estate development business segment profit55.0%
Real estate leasing business segment profit44.5%
Asset management business segment profit39.6%
Other businesses segment profit52.8%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing steadily
New initiatives
  • Acquisition of shares in 北浜リアルティ (formerly アーク不動産)
  • Sale of commercial facilities and commercial leasehold land to a private fund managed by EIP
  • Launch of condominium development at ORINAS TOYOTA (オリナス豊田)
  • Advancement of the Nagoya Racetrack site development project
  • Development of hotels, high-rise condominiums and mixed-use facilities around Hokkaido Ballpark F Village
Key KPIsA metric the company considers important as a management benchmark.
  • AM business AUM¥118,021 million
    Year on year against the same period last year+36.6%
  • Condominium contract progress rate84.7 %
  • Progress against the investment target during the medium-term management plan period74.8 %
  • Residential vacancy rate0.6 %
  • Business-use property vacancy rate (company-owned properties)2.9 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Number of condominium handovers
253 units-12.5%
Condominium selling price per unit
¥70 million/unit
Contracted units
771 units
Segment results
Residential development business
Net Sales
¥19,429 million+5.5%
Segment profit
¥3,203 million+1.0%
Real estate development business
Net Sales
¥24,651 million+295.3%
Segment profit
¥8,638 million+445.5%
Real estate leasing business
Net Sales
¥8,404 million-5.4%
Segment profit
¥3,607 million-14.5%
Asset management business
Net Sales
¥1,093 million+14.8%
Segment profit
¥632 million+27.2%
Other Business
Net Sales
¥1,943 million+176.9%
Segment profit
¥211 million+42.2%
Medium-term management plan targets
Operating profit
¥25,000 million
Target fiscal yearFiscal year ending March 2027
Net Sales
¥157,000 million
Target fiscal yearFiscal year ending March 2027
Recurring revenue ratio
30 %
Target fiscal yearFiscal year ending March 2027
Financial targets
Equity ratio
Target value17.5 %
Actual value16.9 %
ROE
Target value14 %
Actual value14.7 %
ROIC
Target value3.6 %
Actual value3.2 %
Annual Dividend
Annual dividend amount¥53 per share
Payout ratio
Rate35 %
Contents of this document
ItemDetails
Document typeEarnings presentation
Fiscal Period CoveredSecond quarter of the fiscal year ending March 2027
Net Sales¥55,523 million (YoY +57.8%)
Operating profit¥10,578 million (YoY +115.6%)
Ordinary income¥6,878 million (YoY +189.0%)
Net income¥4,920 million (interim net income attributable to owners of the parent) (YoY +164.8%)
Full-year earnings forecastNet Sales ¥145,000 million / Operating profit ¥26,500 million / Ordinary income ¥20,000 million / Profit attributable to owners of the parent ¥14,000 million / Earnings per share ¥151.42
Progress against full-year forecastNet Sales 38.3% / Operating profit 39.9% / Ordinary income 34.4% / Interim net income attributable to owners of the parent 35.1% / Housing development business revenue 29.2% / Real estate development business revenue 44.2% / Real estate leasing business revenue 48.0% / Asset management business revenue 39.1% / Other Businesses net sales 81.0% / Housing development business segment profit 26.0% / Real estate development business segment profit 55.0% / Real estate leasing business segment profit 44.5% / Asset management business segment profit 39.6% / Other businesses segment profit 52.8%
Self-assessment against the planProgressing steadily
Segment resultsResidential development business Net Sales ¥19,429 million (YoY +5.5%) / Segment profit ¥3,203 million (YoY +1.0%) / Real estate development business Net Sales ¥24,651 million (YoY +295.3%) / Segment profit ¥8,638 million (YoY +445.5%) / Real estate leasing business Net Sales ¥8,404 million (YoY -5.4%) / Segment profit ¥3,607 million (YoY -14.5%) / Asset management business Net Sales ¥1,093 million (YoY +14.8%) / Segment profit ¥632 million (YoY +27.2%) / Other Business Net Sales ¥1,943 million (YoY +176.9%) / Segment profit ¥211 million (YoY +42.2%)
Key KPIsIndicator name AM business AUM / Value ¥118,021 million / Year on year against the same period last year ¥36.6 million, Indicator name Condominium contract progress rate / Value 84.7 % / Year on year against the same period last year Not disclosed, Indicator name Progress against the investment target during the medium-term management plan period / Value 74.8 % / Year on year against the same period last year Not disclosed, Indicator name Residential vacancy rate / Value 0.6 % / Year on year against the same period last year Not disclosed, Indicator name Business-use property vacancy rate (company-owned properties) / Value 2.9 % / Year on year against the same period last year Not disclosed
Unit price and quantity metricsNumber of condominium handovers 253 units (YoY -12.5%) / Condominium selling price per unit ¥70 million/unit / Contracted units 771 units
Medium-term management plan targetsOperating profit ¥25,000 million / Net Sales ¥157,000 million / Recurring revenue ratio 30 %
Financial targetsEquity ratio Target value 17.5 % / Actual value 16.9 % / ROE Target value 14 % / Actual value 14.7 % / ROIC Target value 3.6 % / Actual value 3.2 %
Annual DividendAnnual dividend amount ¥53 per share / Interim Not disclosed / End of period Not disclosed
Payout ratioRate 35 % / Total payout ratio Not disclosed / DOE Not disclosed
New initiativesAcquisition of shares in 北浜リアルティ (formerly アーク不動産), Sale of commercial facilities and commercial leasehold land to a private fund managed by EIP, Launch of condominium development at ORINAS TOYOTA (オリナス豊田), Advancement of the Nagoya Racetrack site development project, Development of hotels, high-rise condominiums and mixed-use facilities around Hokkaido Ballpark F Village
Items this document does not state (14)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterBreakdown of Factors Affecting the ChangeNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAcquisition 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 sale of multiple income-producing properties, including commercial facilities, commercial leasehold land and development sites, made a significant contribution, while the asset management business also grew. In the residential development business, higher average selling prices per condominium unit also contributed to the increases in revenue and profit.

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.
Financial Results Presentation for the Second Quarter of the Fiscal Year Ending March 2027 | ES-CON JAPAN Ltd. (8892) timely disclosure | Komori