| 指標 | 当期 | 前年同期 | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥1385.8B | ¥921.5B | +50.4% |
| Operating Income / Operating Profit | ¥138.0B | ¥92.3B | +49.6% |
| Ordinary Income | ¥118.2B | ¥86.0B | +37.4% |
| Net Income / Net Profit | ¥48.8B | ¥-4.4B | +1205.4% |
| ROE | 8.8% | -0.9% | - |
The FY2026 full-year results delivered a substantial revenue and profit increase: Revenue ¥1,385.8B (YoY +¥464.2B +50.4%), Operating Income ¥138.0B (YoY +¥45.7B +49.6%), Ordinary Income ¥118.2B (YoY +¥32.2B +37.4%), and Net Income attributable to owners of the parent ¥71.3B (YoY +¥12.2B +30.5%; the previous year's ¥-4.4B is considered a special factor related to exclusion of a consolidated subsidiary — comparable figures were used). Growth in the Asset Management business and rapid expansion of the Continuing Care Retirement Community (CCRC) business drove results, achieving the third consecutive year of revenue growth. The operating margin remained flat at 10.0% (prior year 10.0%). Gross profit margin declined to 22.0% (prior year 23.7%), but this was offset by an improvement in SG&A ratio to 12.0% (prior year 13.6%). The company paid an annual dividend of ¥74 (payout ratio 40.4%). ROE was 8.8% (net assets/equity ¥553.2B, total assets ¥1,891.9B, Equity Ratio 29.2%).
【Revenue / Net Sales】Revenue expanded sharply to ¥1,385.8B (YoY +50.4%). By segment, the Asset Management business recorded ¥536.6B (YoY +95.4%), accounting for 38.7% of consolidated revenue and contributing an incremental ¥261.2B YoY. The Continuing Care Retirement Community (CCRC) business grew rapidly to ¥142.3B (YoY +282.0%), adding ¥105.0B YoY. The Family/Single condominium sales business produced ¥636.0B (YoY +18.5%), achieving modest growth, and the Property Management & Related Services business remained flat at ¥84.7B (YoY +0.2%). High-margin Asset Management and the newly entered CCRC business drove top-line growth, indicating a clear structural shift. Gross profit margin declined by 1.7ppt to 22.0% (prior year 23.7%), affected by changes in sales mix and margin compression in the condominium sales business.
【Profitability】Operating Income expanded to ¥138.0B (YoY +49.6%) in line with revenue growth; the operating margin remained at 10.0%. By segment, Asset Management delivered Operating Income ¥95.0B (YoY +115.8%), with a segment margin of 17.7%, demonstrating high profitability and becoming the core business accounting for approximately 69% of consolidated Operating Income. The CCRC business recorded Operating Income ¥7.1B (YoY +298.9%, margin 5.0%), and Property Management & Related Services posted ¥5.4B (YoY +34.2%, margin 6.4%). Conversely, the condominium sales business recorded Operating Income ¥26.9B (YoY -44.4%), with margin declining to 4.2% due to gross margin pressure and rising development costs associated with business expansion. SG&A increased to ¥166.8B (prior year ¥125.7B), but the SG&A ratio improved to 12.0% (prior year 13.6%), reflecting economies of scale. Non-operating income was ¥11.1B (prior year ¥15.1B) and non-operating expenses were ¥30.9B (prior year ¥21.3B); interest expense increased to ¥21.6B (prior year ¥15.4B) due to higher borrowings and rising interest rates. Ordinary Income reached ¥118.2B (YoY +37.4%), lagging Operating Income growth because of higher finance costs. Extraordinary income of ¥4.5B (including gains on sale of investment securities ¥1.7B and gains on sale of fixed assets ¥2.2B) and extraordinary losses of ¥8.5B (including impairment losses ¥4.4B and loss on disposals of fixed assets ¥0.9B) were recorded, resulting in profit before tax of ¥114.2B. Income taxes were ¥41.2B (effective tax rate 36.1%). After subtracting Net Income attributable to non-controlling interests ¥1.6B, Net Income attributable to owners of the parent was ¥71.3B (YoY +30.5%; prior year -¥4.4B but estimated as equivalent to ¥56.2B on a full-year comparable basis, implying a real increase of about ¥15.1B). In conclusion, high growth and high profitability in Asset Management combined with improved SG&A efficiency drove the revenue and profit expansion.
Asset Management: Revenue ¥536.6B (YoY +95.4%), Operating Income ¥95.0B (YoY +115.8%), Operating margin 17.7%, maintaining high profitability. The segment added ¥51.0B in profit from a prior ¥44.0B, growing to account for about 69% of consolidated Operating Income. Continuing Care Retirement Community (CCRC): Revenue ¥142.3B (YoY +282.0%), Operating Income ¥7.1B (YoY +298.9%), margin 5.0%. Recorded a large YoY revenue increase of ¥105.0B and profit increase of ¥5.3B, rapidly expanding as a newly entered segment. Property Management & Related Services: Revenue ¥84.7B (YoY +0.2%), Operating Income ¥5.4B (YoY +34.2%), margin 6.4%. Slight revenue increase of ¥0.2B YoY, with profit up ¥1.4B, improving profitability. Family/Single condominium sales: Revenue ¥636.0B (YoY +18.5%), Operating Income ¥26.9B (YoY -44.4%), margin 4.2%. Profit decreased by ¥21.6B from ¥48.5B prior year, with margin compression and higher development costs weighing on earnings. Segment analysis shows increasing dependence on high-margin Asset Management while declining margins in the condominium sales business are pulling down consolidated gross margin.
【Profitability】Operating margin was 10.0%, unchanged from 10.0% a year earlier; the decline in gross profit margin to 22.0% (prior year 23.7%) was absorbed by an improvement in SG&A ratio to 12.0% (prior year 13.6%). ROE was 8.8% (based on net assets ¥553.2B), down 0.8ppt from 9.6% (net assets ¥478.9B) in the prior year; the decline reflects equity growth outpacing net income growth, though capital efficiency remains in a healthy range. 【Cash Quality】Operating Cash Flow (OCF) was ¥106.3B (prior year -¥141.2B), turning positive, and OCF/Net Income was 2.18x, indicating strong cash generation. Free Cash Flow was ¥109.0B (OCF ¥106.3B + Investing CF ¥2.7B), providing ample liquidity. 【Investment Efficiency】Total Asset Turnover was 0.73x (Revenue ¥1,385.8B ÷ Total Assets ¥1,891.9B), improving from 0.51x the prior year (+0.22ppt). Inventory turnover period is prolonged at approximately 330 days based on inventories for sale ¥410.1B and work-in-progress for sale ¥840.2B totaling ¥1,250.3B, making inventory management a key metric. 【Financial Health】Equity Ratio improved to 29.2% (prior year 26.6%) (+2.6ppt), but interest-bearing debt remains high at ¥1,176.5B (short-term borrowings ¥110.1B, current portion of long-term borrowings ¥189.2B, long-term borrowings ¥718.7B, corporate bonds ¥27.4B, current portion of bonds ¥15.6B), and D/E ratio is 2.43x (prior year 2.76x), indicating sustained high leverage. Current ratio was 306.9% (current assets ¥1,700.3B ÷ current liabilities ¥554.1B), maintaining strong liquidity. Cash and deposits increased by ¥82.7B to ¥379.3B (prior year ¥296.7B). Interest coverage was 6.38x (Operating Income ¥138.0B ÷ Interest expense ¥21.6B), indicating capacity to service interest.
Operating Cash Flow was ¥106.3B (prior year -¥141.2B), turning positive. The result reflects subtotal operating capital (profit before tax + depreciation/amortization, goodwill amortization, impairments, etc.) of ¥154.5B, less changes in working capital -¥33.2B (increase in inventories) and income taxes paid -¥30.8B. Inventories totaled ¥1,250.3B (sales properties ¥410.1B and work-in-progress for sale ¥840.2B), up ¥100.8B from ¥1,149.5B prior year, with inventory accumulation for development projects suppressing OCF. Accounts receivable decreased ¥3.3B and accounts payable decreased ¥20.9B. Investing Cash Flow recorded net inflow of ¥2.7B (prior year net inflow ¥2.7B): acquisitions of tangible and intangible fixed assets amounted to -¥13.6B, offset by proceeds from sales ¥6.6B, collections of long-term loans ¥10.8B, sales of investment securities ¥3.7B, etc., securing net cash inflows. Free Cash Flow was ¥109.0B (prior year -¥138.5B), a substantial improvement, providing sufficient funds to cover dividend payments of ¥27.2B and debt repayments. Financing Cash Flow was -¥11.7B (prior year ¥125.3B): funds procured included long-term borrowings ¥595.6B and bond issuance ¥22.0B, while repayments included long-term borrowings -¥562.9B, bond redemptions -¥39.6B, dividend payments -¥27.2B, etc. Cash and cash equivalents at period-end rose ¥99.6B to ¥376.9B (prior year ¥277.4B), significantly improving liquidity.
Against Operating Income ¥138.0B, non-operating income was ¥11.1B (interest income ¥2.4B, dividend income ¥1.0B, foreign exchange gains ¥4.4B, investment partnership returns ¥0.7B, etc.) and non-operating expenses were ¥30.9B (interest expense ¥21.6B, fees paid ¥5.4B, equity method losses ¥2.4B, etc.), resulting in Ordinary Income ¥118.2B. The increase in interest expense to ¥21.6B (prior year ¥15.4B) reflects higher interest-bearing debt (borrowings ¥1,018.2B vs. prior year ¥1,005.9B) and rising interest rates. Extraordinary income was ¥4.5B (gains on sale of investment securities ¥1.7B, gains on sale of fixed assets ¥2.2B, gain on business transfers ¥0.3B, etc.), and extraordinary losses were ¥8.5B (impairment losses ¥4.4B, loss on disposals of fixed assets ¥0.9B, valuation losses on investment securities ¥0.0B, etc.), yielding profit before tax ¥114.2B. Income taxes were ¥41.2B (effective tax rate 36.1%), up from 31.3% prior year, increasing the tax burden. After subtracting Net Income attributable to non-controlling interests ¥1.6B, Net Income attributable to owners of the parent was ¥71.3B. Operating Cash Flow ¥106.3B is 2.18x the Net Income ¥48.8B, indicating high-quality earnings backed by cash; the accrual ratio is -117.7% ((OCF - Net Income)/Total Assets = -3.0%), a low level, signifying cash-supported high-quality profits. Total comprehensive income was ¥73.8B, ¥24.9B above Net Income ¥48.8B, with Other Comprehensive Income ¥0.9B (foreign currency translation adjustments ¥0.7B, valuation differences on available-for-sale securities ¥2.0B, share of other comprehensive income of associates -¥1.8B), though the impact is limited.
Against the full-year guidance (Revenue ¥1,278.0B, Operating Income ¥139.0B, Ordinary Income ¥108.0B, Net Income attributable to owners of the parent ¥72.0B), actuals were Revenue ¥1,385.8B (progress 108.4%), Operating Income ¥138.0B (progress 99.3%), Ordinary Income ¥118.2B (progress 109.4%), and Net Income attributable to owners of the parent ¥71.3B (progress 99.0%). Revenue exceeded guidance by ¥107.8B (+8.4%), driven by progress on Asset Management EXIT deals and larger-than-expected expansion of the CCRC business. Operating Income missed guidance by ¥1.0B but landed close to plan. Ordinary Income exceeded guidance by ¥10.2B (+9.4%), with non-operating gains such as foreign exchange gains surpassing expectations. Net Income missed guidance by ¥0.7B, affected by higher effective tax rate and extraordinary losses. Forecast revisions were made during the year, and final results were broadly in line with guidance.
Annual dividend was ¥74 (¥37 at Q2-end, ¥37 year-end), with a payout ratio of 40.4% (total dividends ¥2,860M ÷ Net Income attributable to owners of the parent ¥71.3B, adjusted for treasury shares). Prior year dividend was ¥29 (payout ratio 40.4%); the dividend per share increased by ¥45 (+155.2%). Total dividends amounted to ¥2,720M (prior year ¥2,050M), and the ratio of dividend payments to Free Cash Flow ¥109.0B was 24.9%, indicating sufficient CF coverage. The payout ratio of 40.4% is at a sustainable level; based on ROE 8.8% and the payout ratio, DOE (dividend amount ÷ equity) is approximately 3.6%. Purchase and disposal of treasury shares occurred during the period, with proceeds from disposal of treasury shares ¥598M recorded in financing CF. A public offering and third-party allotment were executed in September 2025 to strengthen capital, as noted in the earnings forecast footnote. Total return ratio (dividends + share buybacks) disclosure only included dividends; the 40.4% payout ratio represents the shareholder return outcome.
Inventory stagnation risk: Inventories (sales properties ¥410.1B, work-in-progress for sale ¥840.2B) totaling ¥1,250.3B represent 66.1% of total assets ¥1,891.9B. A downturn in the real estate market or prolonged sales could trigger valuation losses or lower turnover. Although OCF turned positive to ¥106.3B, the inventory increase of -¥100.8B pressured liquidity; delays in delivery progress could affect liquidity.
Interest rate risk: Against interest-bearing debt ¥1,176.5B, interest expense increased to ¥21.6B (prior year ¥15.4B, +40.3%), raising interest burden. In a rising rate environment, refinancing costs may increase, compressing Ordinary Income. While interest coverage is currently sound at 6.38x, the high leverage structure with D/E ratio 2.43x increases interest rate sensitivity.
Business portfolio concentration risk: Approximately 69% of Operating Income derives from the Asset Management business, indicating high dependence on this high-profit segment. Meanwhile, the condominium sales business posted Operating Income ¥26.9B (margin 4.2%, down from ¥48.5B prior year, -44.4%), causing significant profit decline and increasing portfolio vulnerability. A downturn in the asset investment market or fewer EXIT deals could materially affect consolidated performance.
Profitability & Return
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Operating margin | 10.0% | 10.7% (6.8%–17.9%) | -0.7pt |
| Net margin | 3.5% | 5.8% (2.5%–11.9%) | -2.3pt |
Operating margin is 0.7ppt below the industry median, placing the company in the mid-range, while Net margin is 2.3ppt below the median due to increased interest burden, leaning toward the lower side.
Growth & Capital Efficiency
| 指標 | 自社 | 中央値 (IQR) | Delta |
|---|---|---|---|
| Revenue growth rate (YoY) | 50.4% | 12.8% (4.2%–29.2%) | +37.6pt |
Revenue growth rate 50.4% far exceeds the industry median 12.8%, driven by the rapid expansion of Asset Management and CCRC businesses, delivering standout growth within the industry.
※Source: Company compilation
Rapid growth and high profitability in the Asset Management business drove consolidated performance, delivering +50.4% revenue and +49.6% Operating Income. The Asset Management business now accounts for about 69% of Operating Income, indicating a clear shift toward higher-margin revenue sources and portfolio transformation. Conversely, declining margins in the condominium sales business (4.2% vs. 9.0% prior year) have pulled down consolidated gross margin, making mid-term rebalancing a key issue.
OCF turned positive at ¥106.3B and Free Cash Flow was ¥109.0B, securing strong cash generation. Payout ratio 40.4% and DOE ~3.6% indicate sustainable shareholder returns. The company maintains robust liquidity (current ratio 306.9%, cash and deposits ¥379.3B), but leverage remains high (D/E ratio 2.43x), and interest expense increase to ¥21.6B (prior year ¥15.4B) is compressing Ordinary Income. Refinancing risk in a rising-rate environment and the trajectory of interest coverage warrant attention.
Inventory pressure of ¥1,250.3B (66.1% of total assets) is the primary monitoring item. Sales property and work-in-progress digestion and delivery timing are prerequisites for cash flow generation; attention is required regarding valuation risk and turnover declines due to market fluctuations. As long as high growth in Asset Management continues, consolidated performance is expected to remain solid, but changes in the EXIT environment and recovery of margins in the condominium business are key to medium-term stability.
This report is an earnings analysis document automatically generated by AI analyzing XBRL earnings release data. It is not a recommendation to invest in any particular security. Industry benchmarks are reference information compiled by the company based on publicly disclosed financials. Investment decisions are your responsibility; consult professionals as needed before making investment decisions.