Kasumigaseki Capital's fiscal year ending August 2026 results reported revenue of ¥163,756 million and operating profit of ¥27,866 million. It acquired 16 development sites and opened 5 hotels, while 401A holds 15 properties with 726 rooms.
Kasumigaseki Capital announced consolidated results for the fiscal year ended August 2026, reporting revenue of ¥163,756 million, up approximately 69.7% year on year, and operating profit of ¥27,866 million, up approximately 47.2%. The main reasons for the upward revision were increased earnings from hotel projects and earlier-than-expected sales, while full-year profit was concentrated at the end of the fiscal year. In the hotel business, 5 new properties opened during the period, 16 development sites were acquired, and acquisitions of existing hotels and ryokan also progressed. The earnings summary and presentation materials outline the company's profit-generation model through the transfer of assets to development funds and REITs.
401A (Kasumigaseki Hotel REIT Investment Corporation) held 15 properties with 726 rooms as of the fiscal year ended July 2026. The acquisition price was ¥49,210 million, equivalent to approximately ¥67.78 million per room. One property in Ishigaki accounted for 38% of the acquisition price, while 4 properties with fixed rents accounted for approximately 62%; the remainder consisted of a mix of fixed- and variable-rent properties. Overall, the July year-end earnings summary indicates that inventory management and the restructuring of the rent mix are progressing.
The cycle from development to funds and REITs was highlighted, with AUM and the pipeline expanding substantially over one year. The business scale reached approximately ¥1.2 trillion, while the hotel segment expanded to 75 properties valued at approximately ¥431.2 billion. There are 16 development sites, with no room count disclosed, and 11 properties with 724 rooms scheduled to open by spring 2027 have been disclosed. The sale of development sites and their inclusion in funds and REITs are expected to remain key investor focuses.
The earnings presentation materials set the forecast for the fiscal year ending August 2027 at revenue of ¥220,000 million and operating profit of ¥41,000 million, and presented a medium-term plan targeting ROE of around 30%. Of the 27 properties and 1,806 rooms under development, 11 properties with 724 rooms are expected to open by spring 2027. The outlook remains that trends in the lodging market will continue to be a key determinant of earnings.