The FY2027 forecast assumes a sharp recovery in the second half from zero revenue in Q1.

Operating revenue in FY2027 Q1 was ¥0 million, down 99.7% from ¥163 million in the same quarter of the previous year. Operating results deteriorated from an operating loss of ¥7 million in the same quarter of the previous year to an operating loss of ¥212 million. The company also posted an ordinary loss of ¥87 million and a quarterly net loss attributable to owners of the parent of ¥84 million. As of Q1, operating revenue, operating results, ordinary results and net results were all either negative or zero, indicating that normal rental revenue remains almost entirely interrupted.

The company forecasts full-year operating revenue of ¥3,500 million, operating profit of ¥150 million, ordinary profit of ¥487 million and net profit attributable to owners of the parent of ¥330 million. Simply subtracting Q1 results means that the remaining 9 months must generate operating revenue of ¥3,500 million, operating profit of ¥362 million, ordinary profit of ¥574 million and net profit of ¥414 million. Operating profit in particular must first cover the Q1 operating loss of ¥212 million and then produce a profit of ¥150 million, implying an extremely sharp revenue ramp-up from Q2.

This sharp recovery appears to assume that new revenue will begin after tenants have vacated and demolition of the existing rental buildings associated with the WIC development has been completed. However, the Q1 results did not explain the factors behind the full-year revenue increase by breaking down sales amounts by business, product or contract. The reporting structure also consists of a single segment, “Real Estate Development and Rental Management,” so the disclosed information does not allow the contribution of new businesses such as semiconductor and electronic component sales to be verified separately.

In FY2027 H1, the first points to confirm will be whether operating revenue has recovered from zero and whether rental revenue or new-business revenue made the contribution. It will also be important to assess the extent to which operating profit improved from the Q1 loss and whether the profit margin turned positive after depreciation, personnel expenses, and selling, general and administrative expenses. Even if the company maintains its full-year forecast, the forecast’s credibility will depend on whether it can provide specific figures for first-half results, confirmed contracts and sales, and the timing of revenue recognition in the second half.