MUGEN ESTATE's interim period for FY2026 saw substantial declines in revenue and profit due to weakening demand from overseas investors and other factors. The full-year earnings forecast was also revised downward, with results expected to be weighted toward the second half.
In its interim results for the fiscal year ending December 2026, MUGEN ESTATE reported revenue of ¥26,743 million, down 18.8% year on year; operating profit of ¥2,773 million, down 49.4%; ordinary profit of ¥2,142 million, down 56.6%; and interim net income attributable to owners of the parent of ¥1,320 million, down 60.2%, resulting in lower revenue and profits. In its core property acquisition and resale business, weaker demand from overseas investors and sluggish sales of higher-priced properties had an impact. Residential properties saw lower revenue as sales of higher-priced properties progressed slowly. Although the proportion of revenue from overseas investors declined, the real estate specified joint enterprise business posted higher revenue following the sellout of the Ogikubo project.
For the full year, the forecast for the fiscal year ending December 2026 was revised downward based on interim results and market trends, with revenue projected at ¥61,599 million, down 9.8% from the previous fiscal year; operating profit at ¥8,588 million, down 22.3%; ordinary profit at ¥7,237 million, down 27.3%; and net income at ¥4,770 million, down 28.4%. The revised forecasts call for investment properties of ¥33,143 million, up 7.4% year on year, and residential properties of ¥22,818 million, down 29.7%. In light of the limited overseas demand environment, the company indicated a policy of strengthening cooperation with regional banks and other institutions. Property acquisitions in the second quarter totaled ¥22,256 million, down ¥1,046 million year on year, reflecting a focus on acquisition profitability.