Third-quarter cumulative results are broadly on plan, but operating profit is tracking below the full-year target

Revenue for the nine months ended May 2026 was ¥3,522 million and operating profit was ¥94 million, up 0.1% and 1.4%, respectively, from the same period a year earlier. The operating margin was approximately 2.67%. While revenue was nearly flat, the company remained profitable at the operating level. However, ordinary profit was ¥79 million, down 36.6% year on year, and profit attributable to owners of the parent was ¥81 million, down 32.3%. Profit growth below the operating line was therefore limited.

The full-year forecasts presented by the company are revenue of ¥4,800 million, operating profit of ¥150 million, ordinary profit of ¥140 million, and profit attributable to owners of the parent of ¥120 million. The nine-month cumulative progress rates are 73.4% for revenue, 62.7% for operating profit, 56.4% for ordinary profit, and 67.5% for net profit. On a simple calculation, the fourth quarter will require revenue of ¥1,278 million, operating profit of ¥56 million, ordinary profit of ¥61 million, and net profit of ¥39 million. Relative to revenue, the required build-up in operating profit is comparatively demanding.

Cumulative quarterly results progressed from first-quarter revenue of ¥1,028 million and operating profit of ¥6 million, to first-half revenue of ¥2,371 million and operating profit of ¥58 million, and then to nine-month revenue of ¥3,522 million and operating profit of ¥94 million. At the first-half stage, revenue stood at 49.4% of the full-year forecast and operating profit at 38.7%, while the operating profit progress rate rose to 62.7% in the third quarter. In the final quarter, it will be necessary to determine whether the additional operating profit reflects recurring factors such as tenant rents and expense reductions rather than one-off items.

At the next full-year results announcement, the key points will be the revenue outcome against the ¥4,800 million forecast and the profit bridge required to achieve operating profit of ¥150 million. No revision to the forecast was made in the third-quarter summary report, and no supplementary presentation materials or earnings briefing were disclosed. Accordingly, if the targets are missed, it will be important to see whether the company can disclose the factors behind the variances separately at each level of revenue, operating profit, ordinary profit, and net profit, including tenant income, department-store sales, SG&A expenses, and gains on sales of fixed assets.