FY2026 operating profit is ahead of schedule, making revenue recognition in the final quarter the focus

For the nine months ended June 2026, covering the 9 months from October 2025 through June 2026, revenue was ¥5,467.679 million, operating profit was ¥1,063.113 million, ordinary profit was ¥1,058.990 million, and net income attributable to owners of the parent was ¥696.996 million. Year on year, revenue increased 10.0%, operating profit 20.0%, ordinary profit 20.4%, and net income 20.8%, with profit growth outpacing revenue growth.

Progress against the full-year forecast was 80.7% for revenue, 96.0% for operating profit, 97.2% for ordinary profit, and 97.1% for net income. The remaining amounts are ¥1,310.321 million for revenue, ¥43.887 million for operating profit, ¥31.010 million for ordinary profit, and ¥21.004 million for net income. Compared with the simple 75% elapsed-period ratio, profit is substantially ahead of schedule, while revenue progress is only approximately 5.7 percentage points ahead.

In the first quarter, revenue was ¥1,427 million and operating profit was ¥70 million, down 27.1% year on year. Lower revenue from real estate held for sale, delays in key handovers, and higher personnel, advertising, land rent and rental expenses weighed on results, but the company recovered in the nine-month period as all segments increased revenue and profit and sales of real estate held for sale increased. The final results therefore need to clarify whether the first-quarter weakness was temporary or whether cost burdens will persist into the fourth quarter.

At the next results announcement, we will want to confirm which businesses, among brokerage, property management and resident support, and how much real estate held for sale, filled the ¥1,310 million revenue shortfall against the ¥6,778 million full-year forecast. Since only ¥44 million in additional operating profit is needed to meet the forecast, it will be important to assess not only profit but also the extent to which spot revenue, such as real estate held for sale, contributed to meeting the revenue target, as well as whether the full-year forecast or the ¥70 dividend forecast will be revised.