Keihanshin Building revised down its full-year forecast for the fiscal year ending March 2027, while forecasting net income of ¥7 billion on gains from the sale of a property in Kyoto. The article also outlines the ex-rights date, shareholder benefits and progressive dividend increase policy.
Keihanshin Building's consolidated results for the first quarter of the fiscal year ending March 2027 showed net sales of ¥5,099 million, up 1.7% year on year, operating profit of ¥1,629 million, up 10.2%, ordinary profit of ¥1,739 million, up 12.6%, and net income for the quarter of ¥1,270 million, up 12.5%, securing profit growth at every stage. Data center buildings accounted for the largest share, at 55.2% of the total, and served as the company's largest earnings contributor. The vacancy rate remained low at 0.02%. Progress against the full-year forecast was 24.9% for net sales and 29.6% for operating profit.
On 30 July, the company announced that it had entered into an agreement to transfer the Shijo Kawaramachi Building in Nakagyo-ku, Kyoto, to a domestic business corporation. As a result, it expects to record approximately ¥5.9 billion as a gain on the sale of fixed assets under extraordinary income in the second quarter of the fiscal year ending March 2027. The full-year earnings forecast for net sales of ¥20.5 billion and operating profit of ¥5.5 billion was left unchanged, while the forecasts for ordinary profit and net income were revised to ¥4.5 billion and ¥7 billion, respectively. The company explained that the downward revision to ordinary profit reflected the bringing forward of expenses for an overseas real estate development project.
The company has adopted a policy of progressively increasing dividends from the fiscal year ending March 2027 through the fiscal year ending March 2029, reflecting the stock split. The annual dividend for the fiscal year ending March 2027 is ¥30 on a post-split basis, comprising an interim dividend of ¥15 and a year-end dividend of ¥15. Compared with the pre-split dividend of ¥40, this is effectively equivalent to ¥20. The payout ratio is expected to be approximately 40.9%, approaching the long-term management plan's target of around 45%, although caution is warranted because the figure includes gains from the sale of the Kyoto property.