Worth reading
71In 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
445
¥100 million (year-on-year increase in operating revenue)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationSecond quarter (interim period) of the fiscal year ending March 202713 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,041 hundred million+17.2%
Operating profit¥421 hundred million+34.8%
Ordinary income¥382 hundred million+29.4%
Net income¥241 hundred million+21.2%
Results for the three months of the current quarter
Operating revenue
¥1,495 hundred million
Operating profit
¥161 hundred million
Ordinary income
¥127 hundred million
Profit attributable to owners of parent for the quarter
¥73 hundred million
Full-year earnings forecast
Operating revenue
¥6,190 hundred million
Operating profit
¥560 hundred million
Profit attributable to owners of the parent
¥260 hundred million
Interim Dividend
¥21 per share
Year-end dividend
¥21 per share
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress exceeded the initial forecast.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Impact of the consolidation of e'grand Co.,Ltd as a subsidiary on operating revenue in the real estate business¥176 hundred million
- Increase in transportation revenue in the railway business¥55 hundred million
- Impact of the consolidation of e'grand Co.,Ltd as a subsidiary on operating profit in the real estate business¥2 hundred million
- Increase in commuter transportation revenue in the railway business¥21 hundred million
- Increase in non-commuter transportation revenue in the railway business¥33 hundred million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
- Inbound DemandDetailsExpected to increase over the medium to long term
- RevPAR for hotels in JapanDetailsExpected to grow by approximately 3% per year through 2030
- Holding period for private fundsDetailsApproximately 5 years
- Cost of equity7.2 %
New initiatives
- Formation of Seibu REIT (tentative name) planned during fiscal 2027
- ¥18.1 billion investment in a private fund acquiring The Prince Gallery Tokyo Kioicho
- Additional appointment of outside experts to the Capital Allocation Review Committee
- Beginning the introduction of an AI revenue management system at certain hotels
- Consideration of hotel renovations in Ikebukuro, Shin-Yokohama, and Hawaii
Key KPIsA metric the company considers important as a management benchmark.
- RevPAR for domestic hotels (total)Year on year against the same period last year+2.1%
- Railway transportation revenueYear on year against the same period last year+10.9%
- Number of hotel network contracts and openings17 Deals
- AUM¥4,116 hundred million
- Equity ratio31.5 %Year on year against the same period last year-1.3%
Unit price and quantity metricsThese figures show sales broken down by price and volume.
- Commuter transportation revenue in the railway businessYear on year against the same period last year+10.3%
- Non-commuter transportation revenue in the railway businessYear on year against the same period last year+11.3%
- Hotel RevPAR
Segment results
Real Estate Business
Operating revenue
¥691 hundred million+55.1%
Operating profit
¥150 hundred million+72.2%
Hotel and Leisure Business
Operating revenue
¥1,302 hundred million+8.1%
Operating profit
¥93 hundred million-2.8%
Urban transportation and lineside business
Operating revenue
¥846 hundred million+8.8%
Operating profit
¥129 hundred million+54.7%
Other
Operating revenue
¥374 hundred million+13.3%
Operating profit
¥48 hundred million+11.6%
Medium-term management plan targets
- TargetA network of 250 hotels in Japan and overseas
- Target20 contracts and openingsTarget fiscal yearThe period covered by this medium-term management plan
- TargetApproximately ¥100 billion in cumulative property acquisitions for inclusion in the private REITTarget fiscal yearFiscal 2031
- TargetAUM of more than ¥600 billion
Financial targets
Equity ratio
Actual results31.5 %
Debt-to-equity ratio
Actual results1.4 Times
Cost of equity
7.2 %
Market Size / Share
- Visitors to Japan4,300 10,000 people 2025
- Government target for the number of foreign visitors to Japan6,000 10,000 people 2030
- Market outlook for hotel RevPAR in Japan3 Average annual growth rate %
Number of stores and locations
The target is a network of 250 hotels in Japan and overseas; 17 contracts and openings had been achieved as of September 2026 against a target of 20. The number of openings and closures during the period was Not disclosed.Capital expenditures
¥1,647 100 million capital expenditures for the acquisition of property, plant and equipment and intangible assets
Annual Dividend
Annual dividend amount¥42 per share
Interim¥21 per share
End of period¥21 per share
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | Second quarter (interim period) of the fiscal year ending March 2027 |
| Net Sales | ¥3,041 hundred million (YoY +17.2%) |
| Operating profit | ¥421 hundred million (YoY +34.8%) |
| Ordinary income | ¥382 hundred million (YoY +29.4%) |
| Net income | ¥241 hundred million (YoY +21.2%) |
| Results for the three months of the current quarter | Operating revenue ¥1,495 hundred million / Operating profit ¥161 hundred million / Ordinary income ¥127 hundred million / Profit attributable to owners of parent for the quarter ¥73 hundred million |
| Full-year earnings forecast | Operating revenue ¥6,190 hundred million / Operating profit ¥560 hundred million / Profit attributable to owners of the parent ¥260 hundred million / Interim Dividend ¥21 per share / Year-end dividend ¥21 per share |
| Self-assessment against the plan | Progress exceeded the initial forecast. |
| Segment results | Real Estate Business Operating revenue ¥691 hundred million (YoY +55.1%) / Operating profit ¥150 hundred million (YoY +72.2%) / Hotel and Leisure Business Operating revenue ¥1,302 hundred million (YoY +8.1%) / Operating profit ¥93 hundred million (YoY -2.8%) / Urban transportation and lineside business Operating revenue ¥846 hundred million (YoY +8.8%) / Operating profit ¥129 hundred million (YoY +54.7%) / Other Operating revenue ¥374 hundred million (YoY +13.3%) / Operating profit ¥48 hundred million (YoY +11.6%) |
| Breakdown of Factors Affecting the Change | Factors Impact of the consolidation of e'grand Co.,Ltd as a subsidiary on operating revenue in the real estate business / Amount ¥176 hundred million, Factors Increase in transportation revenue in the railway business / Amount ¥55 hundred million, Factors Impact of the consolidation of e'grand Co.,Ltd as a subsidiary on operating profit in the real estate business / Amount ¥2 hundred million, Factors Increase in commuter transportation revenue in the railway business / Amount ¥21 hundred million, Factors Increase in non-commuter transportation revenue in the railway business / Amount ¥33 hundred million |
| Key KPIs | Indicator name RevPAR for domestic hotels (total) / Value Not disclosed / Year on year against the same period last year 2.1 Year on year, Indicator name Railway transportation revenue / Value Not disclosed / Year on year against the same period last year 10.9 Year on year, Indicator name Number of hotel network contracts and openings / Value 17 Deals / Year on year against the same period last year Not disclosed, Indicator name AUM / Value ¥4,116 hundred million / Year on year against the same period last year Not disclosed, Indicator name Equity ratio / Value 31.5 % / Year on year against the same period last year -1.3 % |
| Unit price and quantity metrics | Indicator name Commuter transportation revenue in the railway business / Year on year against the same period last year 10.3 %, Indicator name Non-commuter transportation revenue in the railway business / Year on year against the same period last year 11.3 %, Indicator name Hotel RevPAR / Value Not disclosed |
| Number of stores and locations | The target is a network of 250 hotels in Japan and overseas; 17 contracts and openings had been achieved as of September 2026 against a target of 20. The number of openings and closures during the period was Not disclosed. |
| Assumptions Underlying the Business Outlook | Item Inbound Demand / Details Expected to increase over the medium to long term, Item RevPAR for hotels in Japan / Details Expected to grow by approximately 3% per year through 2030, Item Holding period for private funds / Details Approximately 5 years, Item Cost of equity / Value 7.2 % |
| Medium-term management plan targets | Target A network of 250 hotels in Japan and overseas / Target fiscal year Not disclosed, Target 20 contracts and openings / Target fiscal year The period covered by this medium-term management plan, Target Approximately ¥100 billion in cumulative property acquisitions for inclusion in the private REIT / Target fiscal year Fiscal 2031, Target AUM of more than ¥600 billion / Target fiscal year Not disclosed |
| Financial targets | Equity ratio Actual results 31.5 % / Debt-to-equity ratio Actual results 1.4 Times / Cost of equity Value 7.2 % |
| Annual Dividend | Annual dividend amount ¥42 per share / Interim ¥21 per share / End of period ¥21 per share |
| Capital expenditures | ¥1,647 100 million (capital expenditures for the acquisition of property, plant and equipment and intangible assets) |
| Market Size / Share | Indicator Visitors to Japan / Value 4,300 10,000 people (2025), Indicator Government target for the number of foreign visitors to Japan / Value 6,000 10,000 people (2030), Indicator Market outlook for hotel RevPAR in Japan / Value 3 Average annual growth rate (%) |
| New initiatives | Formation of Seibu REIT (tentative name) planned during fiscal 2027, ¥18.1 billion investment in a private fund acquiring The Prince Gallery Tokyo Kioicho, Additional appointment of outside experts to the Capital Allocation Review Committee, Beginning the introduction of an AI revenue management system at certain hotels, Consideration of hotel renovations in Ikebukuro, Shin-Yokohama, and Hawaii |
Items this document does not state (10)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastNumber of employeesRisk amount incorporated into the outlookPayout ratioAcquisition of treasury sharesOrders 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.Operating revenue increased due to the consolidation of e'grand Co.,Ltd as a subsidiary, the effects of railway fare revisions, higher revenue in the domestic hotel business, and the securitisation of residences. Operating profit increased as higher revenue outweighed increases in personnel expenses and depreciation, among others.
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