ムゲンエステート revised its full-year forecasts for the fiscal year ending December 2026 downward based on its first-half results and the outlook for the real estate market. While lowering its forecasts for net sales and each profit measure, the company outlined a policy of increasing its focus on investment properties.
ムゲンエステート revised its full-year earnings forecasts for the fiscal year ending December 2026 based on its first-half results and the outlook for the real estate market. Net sales are forecast to decline 9.8% year on year to ¥61,599 million, operating profit to fall 22.3% to ¥8,588 million, ordinary profit to decrease 27.3% to ¥7,237 million, and net profit attributable to owners of the parent to decline 28.4% to ¥4,770 million.
By business segment, the company revised its forecasts for sales of investment properties to increase 7.4% year on year to ¥33,143 million and sales of residential properties to decrease 29.7% to ¥22,818 million, strengthening its shift toward investment properties. In light of limited demand from overseas investors, the company is working to strengthen cooperation with financial institutions, including regional banks.
In the real estate development business, the company is working to sell completed properties at an early stage. In the specified joint real estate venture business, it is strengthening sales efforts and expanding sales channels toward selling the Soka Project within the year. Purchases in the second quarter totaled ¥222,256 million, down ¥1,046 million from the same period of the previous year, as the company is prioritizing profitability in its acquisitions.
The inventory balance was ¥80,982 million at the end of the second quarter, providing an adequate level of inventory. Following the end of the first half, progress against the revised full-year earnings forecasts was 43.4% for net sales and 32.3% for operating profit, with results expected to be weighted toward the second half. The company plans to pay an interim dividend of ¥52.0 and a year-end dividend of ¥52.0, for a full-year dividend of ¥104.0.
The basic policy on shareholder returns is to continue stable dividends while strengthening the company’s financial position and building retained earnings.