Worth reading
55In 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
20001
Millions of yen (year-on-year increase in revenue)Wording
Definitive
How definitive the wording is.Contents of this document
Earnings presentation materialsFiscal year ending March 2027, second quarter (first half)13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥78,234 million+34.3%
Operating profit¥16,641 million+17.8%
Ordinary income¥15,457 million+13.5%
Net income10,346 JPY million +15.1%net income attributable to owners of the parent
Selling, general and administrative expenses¥7,485 million
Operating profit margin21.3% (calculated as operating profit of ¥16,641 million ÷ revenue of ¥78,234 million; not explicitly stated in the materials)
Full-year earnings forecast
Net Sales
¥130,000 million
Gross profit
¥42,839 million
Selling, general and administrative expenses
¥14,689 million
Operating profit
¥28,150 million
Ordinary income
¥26,000 million
Net income
¥17,400 million
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 Sales60.2%
Gross profit56.3%
Selling, general and administrative expenses51.0%
Operating profit59.1%
Ordinary income59.5%
Net income59.5%
Revenue from the real estate revitalization business63.7%
Revenue from the real estate services business52.9%
Revenue from the hotel and tourism business54.1%
Other revenue49.8%
Flow business revenue (effective progress rate including sales of properties under contract)83.3%
Flow business gross profit (effective progress rate including sales of properties under contract)83.8%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progressing steadily toward achieving the full-year forecastBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Real estate revitalization business: 19 properties sold (up 6 year on year). Real estate services business: growth in rental conference rooms, the M&A of the アエラスグループ, and other factors. Hotel and tourism business: an increase in the number of hotels under management and other factors. Other: effects of the M&A of the 大竹建窓グループ. Breakdown by factor: Not disclosed
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Policy rate: 1.25%; average vacancy rate in the five central wards of Tokyo: 1.85%; average rent: ¥23,985 per tsubo; visitors to Japan in July–September 2026: 9.64 million; inbound travel spending: ¥2.2076 trillion. However, these figures were presented as an assessment of the business environment and were not explicitly stated as assumptions underlying the earnings forecasts.New initiatives
- Expansion of the residential leasing brokerage business through the M&A of the アエラスグループ
- Opened 6 hotels during the current fiscal year, with 3 additional hotels scheduled to open in Toyokawa, Sakata and Akita
- Started 7 joint projects with Itochu Corporation
- Raised the targets and total investment amount under Medium-Term Management Plan 2028
- Sale of the first newly built residential project
Key KPIsA metric the company considers important as a management benchmark.
- Number of properties sold in the real estate revitalization business19 contractsYear on year against the same period last year+6 transactions
- Buildings under property management contracts580 propertiesYear on year against the same period last year+21 hotels versus the end of the previous fiscal year
- Hotel rooms under management4,638 RoomsYear on year against the same period last year+948 rooms versus the end of the previous fiscal year
- Inventory at the end of the second quarter107 contractsYear on year against the same period last yearUp 28 cases year on year
- Number of acquisitions54 contractsYear on year against the same period last year35 cases in the same period of the previous year
- Acquisition amount¥855 100 millionYear on year against the same period last year¥50.0 billion in the same period of the previous year
Segment results
Real estate revitalization business
Net Sales¥54,295 million, up 38.1% year on year
Gross profit¥15,655 million, up 19.6% year on year
Segment profit¥14,258 million, up 20.8% year on year
Real Estate Services Business
Net Sales¥9,129 million, up 9.2% year on year
Gross profit¥5,065 million, up 11.9% year on year
Segment profit¥4,496 million, down 0.5% year on year
Hotel and tourism business
Net Sales¥11,871 million, up 22.0% year on year
Gross profit¥2,898 million, up 12.9% year on year
Segment profit¥2,421 million, up 5.6% year on year
Other
Net Sales¥3,726 million, up 132.9% year on year
Gross profit¥995 million, up 126.6% year on year
Segment profit¥774 million, up 89.6% year on year
Medium-term management plan targets
Target fiscal yearFiscal year ending March 2028
Net Sales¥150 billion
Ordinary income¥30 billion
Ordinary income margin20%
ROE14% or higher
Equity ratioAround 45%
Financial targets
Medium-term plan targets: ROE of at least 14% and an equity ratio of approximately 45%. Actual results: ROE for the second quarter of the fiscal year ending March 2027: Not disclosed in the materials; equity ratio: 46.4%Market Size / Share
Average vacancy rate in the five central wards of Tokyo: 1.85%; average rent: ¥23,985 per tsubo. Market share: Not disclosedNumber of stores and locations
Opened 6 new hotels during the current fiscal year. Total number of hotels under management at fiscal year-end: Not disclosedAnnual Dividend
¥80.0 (forecast: ¥40.0 interim and ¥40.0 year-end)Payout ratio
20.0% (forecast for the fiscal year ending March 2027)Gross profit
¥24,127 million, up 20.2% year on year. Gross profit margin: Not disclosed| Item | Details |
|---|---|
| Document type | Earnings presentation materials |
| Fiscal Period Covered | Fiscal year ending March 2027, second quarter (first half) |
| Net Sales | ¥78,234 million (YoY +34.3%) |
| Operating profit | ¥16,641 million (YoY +17.8%) |
| Ordinary income | ¥15,457 million (YoY +13.5%) |
| Net income | 10,346 JPY million (net income attributable to owners of the parent) (YoY +15.1%) |
| Gross profit | ¥24,127 million, up 20.2% year on year. Gross profit margin: Not disclosed |
| Operating profit margin | 21.3% (calculated as operating profit of ¥16,641 million ÷ revenue of ¥78,234 million; not explicitly stated in the materials) |
| Selling, general and administrative expenses | ¥7,485 million |
| Full-year earnings forecast | Net Sales ¥130,000 million / Gross profit ¥42,839 million / Selling, general and administrative expenses ¥14,689 million / Operating profit ¥28,150 million / Ordinary income ¥26,000 million / Net income ¥17,400 million |
| Progress against full-year forecast | Net Sales 60.2% / Gross profit 56.3% / Selling, general and administrative expenses 51.0% / Operating profit 59.1% / Ordinary income 59.5% / Net income 59.5% / Revenue from the real estate revitalization business 63.7% / Revenue from the real estate services business 52.9% / Revenue from the hotel and tourism business 54.1% / Other revenue 49.8% / Flow business revenue (effective progress rate including sales of properties under contract) 83.3% / Flow business gross profit (effective progress rate including sales of properties under contract) 83.8% |
| Self-assessment against the plan | Progressing steadily toward achieving the full-year forecast |
| Segment results | Real estate revitalization business Net Sales ¥54,295 million, up 38.1% year on year / Gross profit ¥15,655 million, up 19.6% year on year / Segment profit ¥14,258 million, up 20.8% year on year / Real Estate Services Business Net Sales ¥9,129 million, up 9.2% year on year / Gross profit ¥5,065 million, up 11.9% year on year / Segment profit ¥4,496 million, down 0.5% year on year / Hotel and tourism business Net Sales ¥11,871 million, up 22.0% year on year / Gross profit ¥2,898 million, up 12.9% year on year / Segment profit ¥2,421 million, up 5.6% year on year / Other Net Sales ¥3,726 million, up 132.9% year on year / Gross profit ¥995 million, up 126.6% year on year / Segment profit ¥774 million, up 89.6% year on year |
| Breakdown of Factors Affecting the Change | Real estate revitalization business: 19 properties sold (up 6 year on year). Real estate services business: growth in rental conference rooms, the M&A of the アエラスグループ, and other factors. Hotel and tourism business: an increase in the number of hotels under management and other factors. Other: effects of the M&A of the 大竹建窓グループ. Breakdown by factor: Not disclosed |
| Key KPIs | Indicator name Number of properties sold in the real estate revitalization business / Value 19 contracts / Year on year against the same period last year +6 transactions, Indicator name Buildings under property management contracts / Value 580 properties / Year on year against the same period last year +21 hotels versus the end of the previous fiscal year, Indicator name Hotel rooms under management / Value 4,638 Rooms / Year on year against the same period last year +948 rooms versus the end of the previous fiscal year, Indicator name Inventory at the end of the second quarter / Value 107 contracts / Year on year against the same period last year Up 28 cases year on year, Indicator name Number of acquisitions / Value 54 contracts / Year on year against the same period last year 35 cases in the same period of the previous year, Indicator name Acquisition amount / Value ¥855 100 million / Year on year against the same period last year ¥50.0 billion in the same period of the previous year |
| Number of stores and locations | Opened 6 new hotels during the current fiscal year. Total number of hotels under management at fiscal year-end: Not disclosed |
| Assumptions Underlying the Business Outlook | Policy rate: 1.25%; average vacancy rate in the five central wards of Tokyo: 1.85%; average rent: ¥23,985 per tsubo; visitors to Japan in July–September 2026: 9.64 million; inbound travel spending: ¥2.2076 trillion. However, these figures were presented as an assessment of the business environment and were not explicitly stated as assumptions underlying the earnings forecasts. |
| Medium-term management plan targets | Target fiscal year Fiscal year ending March 2028 / Net Sales ¥150 billion / Ordinary income ¥30 billion / Ordinary income margin 20% / ROE 14% or higher / Equity ratio Around 45% |
| Financial targets | Medium-term plan targets: ROE of at least 14% and an equity ratio of approximately 45%. Actual results: ROE for the second quarter of the fiscal year ending March 2027: Not disclosed in the materials; equity ratio: 46.4% |
| Annual Dividend | ¥80.0 (forecast: ¥40.0 interim and ¥40.0 year-end) |
| Payout ratio | 20.0% (forecast for the fiscal year ending March 2027) |
| Market Size / Share | Average vacancy rate in the five central wards of Tokyo: 1.85%; average rent: ¥23,985 per tsubo. Market share: Not disclosed |
| New initiatives | Expansion of the residential leasing brokerage business through the M&A of the アエラスグループ, Opened 6 hotels during the current fiscal year, with 3 additional hotels scheduled to open in Toyokawa, Sakata and Akita, Started 7 joint projects with Itochu Corporation, Raised the targets and total investment amount under Medium-Term Management Plan 2028, Sale of the first newly built residential project |
Items this document does not state (8)
Results for the three months of the current quarterUnit price and quantity metricsNumber of employeesRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey 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.In the real estate revitalization business, property sales were strong and the number of properties sold increased. In the real estate services business, growth in rental conference rooms and the M&A of the アエラスグループ contributed. In the hotel and tourism business, the increase in the number of hotels under management contributed, while in the Other business, the effects of the M&A of the 大竹建窓グループ contributed.
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