FY2027-H1 results will establish a new performance baseline following the deconsolidation after the sale of FRE

This change in the scope of consolidation affects not only how year-on-year results are viewed but the earnings structure itself. All 7,788 shares of FREアセットマネジメント株式会社 were transferred on 15 June 2026 for total consideration of ¥385.6 million, leaving 0 shares held after the transfer. The company was consequently excluded from the scope of consolidation, and non-consolidated quarterly financial statements have been prepared from FY2027-Q1. In addition, the parent company changed from ヨウテイホールディングス合同会社 to JTMホールディングス株式会社 on 19 June 2026. At the next earnings release, it will be important to confirm that the scope of consolidation and the presentation of the parent company have been finalized.

Consolidated revenue for the fiscal year ended March 2026 was ¥433 million, while non-consolidated revenue in FY2027-Q1 was only ¥43 million. This figure reflects the new accounting scope following FRE’s exclusion from consolidation, rather than a year-on-year comparison of the business. The standalone full-year forecast for the fiscal year ending March 2027 is revenue of ¥196 million, an operating loss of ¥5 million, an ordinary loss of ¥4 million and a net loss of ¥6 million, putting Q1 revenue progress at 21.9%. It would not be appropriate to estimate changes by using consolidated revenue or consolidated profit for the same period of the prior year as the benchmark.

In the FY2027-Q1 disclosure, the reporting structure consists of a single segment, the real estate leasing business, and revenue and profit from the former real estate management business are not presented separately. In FY2027-H1, the focus will be on whether the company can provide additional information on the standalone sources of revenue, even while retaining a single segment, including the number of rental properties, major lease agreements, monthly rents and the number of contract renewals and terminations. In particular, disclosure is needed to determine which entity holds the management and asset advisory contracts after the sale of FRE and whether any revenue remains with RISE itself after the transfer. These points are necessary to assess the sustainability of the ¥43 million in revenue.