Tokyo Tatemono upgraded its full-year forecasts after progress in the second quarter improved. Annual dividends are also expected to increase, supported by order intake and property sales progress ahead of the initial outlook. The quantitative targets under its current medium-term plan are expected to be achieved one year early.
At its second-quarter results briefing, Tokyo Tatemono reported year-on-year increases in operating profit, business profit, ordinary profit and interim net profit. Solid growth in building leasing and facility operations, together with progress in property sales to investors, offset lower revenue recognition from condominium sales. The company consequently decided to raise its full-year forecasts. Net income was increased to ¥65.0 billion from the initial forecast of ¥63.0 billion, representing expected growth of more than 10% year on year.
In the results summary, operating revenue was ¥194.4 billion, down year on year, while profits grew steadily. The company explained that higher condominium sales offset the decline caused by the previous period's rebound effect, while progress in building leasing, facility operations and property sales to investors contributed to increases in ordinary profit and net profit. Under the revised full-year forecasts, operating profit is expected to be ¥105.5 billion, business profit ¥105.0 billion, ordinary profit ¥83.5 billion and net income ¥65.0 billion, with all figures reflecting upward revisions.
By segment, the company cited progress on redevelopment projects, including Kita-Aoyama 3-chome, its capital and business alliance with STAR MICA HOLDINGS CO., LTD., and the upgrade of its JCR rating to A+. In its overseas business, the company revised its equity-method investment gains and losses. While it will continue to base its funding on yen-denominated financing, it is also considering local funding in the future. Investment progress in fiscal 2026 has been generally steady, and the company plans to continue making solid investments and recovering funds in the second half.
As part of its shareholder returns, the company indicated that it plans to raise its annual dividend to ¥126 in line with the upward revision to its full-year earnings forecast. With a view to improving ROE and EPS, it is considering optimizing its asset portfolio and using third-party capital. These policies are expected to be made more specific when its long-term and medium-term plans are announced.