These are mechanically computed values based on a residual income model. They are not a forecast of market prices or a recommendation of any investment action, and do not predict or guarantee future share prices. Historical values are computed retrospectively using current guidance-achievement statistics.
| Metric | Current Period | Same Period of Previous Year | YoY |
|---|---|---|---|
| Revenue | ¥10234.0B | ¥9397.2B | +8.9% |
| Operating Income | ¥1209.6B | ¥1022.5B | +18.3% |
| Ordinary Income | ¥1160.7B | ¥982.4B | +18.1% |
| Net Income | ¥812.6B | ¥741.8B | +9.6% |
| ROE | 13.8% | 13.8% | - |
In addition to revenue and profit growth, this earnings result reflects margin improvement, with the operating income growth rate exceeding the revenue growth rate, indicating that earnings quality has improved from the previous year. Revenue was ¥10,234.0B (+8.9% YoY), Operating Income was ¥1,209.6B (+18.3%), Ordinary Income was ¥1,160.7B (+18.1%), and Net Income attributable to owners of the parent was ¥812.6B (+9.6%). The primary drivers of profit growth were steady expansion in the detached housing-related business and product-mix improvement resulting from the expansion of high-margin segments such as Condominiums and Pressance.
【Revenue】Revenue was ¥10,234.0B, an increase of +8.9% YoY. By segment, the core detached housing-related business accounted for the largest revenue scale at ¥5,655.4B (55.3% of total, +8.6%), while income-producing real estate (formerly PropertyResales) generated ¥1,541.3B (+8.5%), Other generated ¥1,140.4B (+3.2%), Pressance was nearly flat at ¥1,500.5B (-0.3%), and the Condominiums Business increased substantially by +123.1% YoY to ¥424.4B. The sharp expansion of the Condominiums Business contributed to revenue growth, while revenue concentration in the detached housing-related business remains high.
【Profit and Loss】Operating Income was ¥1,209.6B (+18.3%), and Ordinary Income was ¥1,160.7B (+18.1%), with both expanding at rates exceeding revenue growth. The gross margin was 19.5% and the SG&A expense ratio was 7.7%, indicating margin expansion alongside cost control. In non-operating items, interest expenses of ¥75.1B exceeded interest income of ¥21.5B, leaving Ordinary Income slightly below Operating Income, although the difference was limited. Net Income was ¥812.6B (+9.6%), and the effective tax rate was approximately 30.0%, with no significant change from the previous year. Given that revenue and profit both increased and the profit growth rate exceeded the revenue growth rate, the earnings result can be concluded to have been driven by improved profitability.
The detached housing-related business made the largest contribution to segment profit, leading the company with Operating Income of ¥618.4B (+10.5% YoY; margin of 10.9%). Income-producing real estate generated Operating Income of ¥163.7B (+12.1%; margin of 10.6%), while Pressance generated ¥207.6B (+13.8%; margin of 13.8%), achieving profit growth despite virtually no revenue growth and confirming improved profitability. Against revenue growth of +123.1%, the Condominiums Business generated Operating Income of ¥75.7B (+2,802.1%; margin of 17.8%), the highest margin among all segments, indicating simultaneous progress in scale expansion and mix improvement. Other generated Operating Income of ¥133.8B (-1.0%), a slight decline and the only loss-making segment among the five segments. While growth in the high-margin Condominiums Business and Pressance contributed to company-wide margin expansion, the concentration of revenue in the detached housing-related business (55.3% of total) increases sensitivity to demand fluctuations.
【Profitability】The Operating Income margin was 11.8%, improving from approximately 10.9% in the previous year, while the gross margin also increased to 19.5%. The Net Income margin was 7.9%, virtually unchanged from approximately 7.9% in the previous year, indicating that profit growth was primarily attributable to cost efficiency improvements and mix improvement at the operating level.【Cash Flow Quality】Cash and deposits were ¥3,664.1B, down from ¥4,219.0B at the end of the previous year, as the buildup of real estate under development and real estate for sale increased funding requirements.【Investment Efficiency】ROE was 13.8%; among the three components of the DuPont analysis—Net Income margin, total asset turnover, and financial leverage—improved profitability was the primary driver of the increase. Total assets were ¥15,299.1B, net assets were ¥5,885.5B, and the Equity Ratio was 38.5%, a slight improvement from 38.1% in the previous year.【Financial Soundness】Current assets of ¥14,051.5B compared with current liabilities of ¥4,466.5B indicate that the current ratio remained high. Non-current liabilities, centered on long-term borrowings of ¥4,785.2B, totaled ¥4,947.1B. While the short-term liquidity safety margin is substantial, reliance on borrowings remains at a considerable level.
Although detailed disclosure of the statement of cash flows is not available, cash trends can be inferred from changes in the balance sheet. Cash and deposits declined by approximately ¥555B from ¥4,219.0B at the end of the previous year to ¥3,664.1B. Meanwhile, inventory-related assets, including real estate under development and real estate for sale, increased, suggesting that the buildup of working capital associated with business expansion was the primary cause of the decline in cash. Property, plant and equipment also increased from ¥30.6B to ¥40.7B, indicating continued investment in business-use real estate and equipment. The real estate industry tends to experience seasonality in quarterly cash generation due to the timing of property deliveries, and the current buildup of inventory highlights the importance of cash collection through progress in future deliveries.
No recognition of temporary factors equivalent to the gain on negative goodwill of approximately ¥51.5B or extraordinary income totaling ¥56.9B recorded in the previous year was identified for the current period. Earnings growth was achieved based on operating activities, indicating that earnings quality has improved from the previous year. Non-operating income was ¥38.6B, approximately 0.4% of revenue, and was relatively small, consisting primarily of non-core items such as dividend income and foreign exchange gains; its impact on recurring business profit was limited. Non-operating expenses were ¥87.5B, primarily consisting of interest expenses of ¥75.1B. The increase in financial costs associated with higher borrowings was the primary cause of the approximately ¥49.0B difference between Ordinary Income and Operating Income. Comprehensive Income was ¥906.5B, exceeding Net Income of ¥812.6B, with the difference primarily attributable to foreign currency translation adjustments of ¥93.5B, reflecting valuation fluctuations in overseas-related assets.
Progress against the full-year forecast was 68.2% for Revenue (¥10,234.0B/¥15,000.0B), 67.2% for Operating Income (¥1,209.6B/¥1,800.0B), and 68.3% for Ordinary Income (¥1,160.7B/¥1,700.0B), all below the 75% benchmark corresponding to three-quarters of the fiscal year having elapsed. However, because property deliveries in the real estate industry tend to be concentrated in Q4, this degree of deviation in progress can be viewed as within the range of industry seasonality. The full-year forecast calls for increases over the previous year in Revenue of +12.2%, Operating Income of +23.3%, and Ordinary Income of +21.9%. Considering the current-period Operating Income growth rate of +18.3%, progress in Q4 property deliveries will be the key to achieving the plan. Both the earnings forecast and dividend forecast were revised during the current quarter.
An interim dividend of ¥100 has been paid, and the full-year forecast is ¥205, increased from ¥84 in the previous year. Based on projected full-year Net Income of ¥1,185.0B and the number of issued shares excluding treasury shares, the forecast Payout Ratio is approximately 20%, indicating that the dividend burden remains conservative relative to earnings power. As no disclosure regarding share repurchases could be confirmed in the available data, this report evaluates shareholder returns based solely on the Payout Ratio. The substantial increase in the dividend forecast from the previous year indicates strengthened shareholder returns reflecting the ongoing profit growth trend.
Working capital risk associated with inventory buildup: Cash and deposits decreased by approximately ¥555B from the end of the previous year due to increases in real estate under development and real estate for sale. If the progress of property deliveries slows, this could affect liquidity.
Segment concentration risk: The detached housing-related business accounts for 55.3% of Revenue, indicating a high degree of reliance on a single segment. The business structure is relatively sensitive to changes in housing market conditions and interest rates, which may affect overall performance.
Risk of rising financial costs: Long-term borrowings increased to ¥4,785.2B from ¥4,437.5B at the end of the previous year, while interest expenses increased to ¥75.1B from ¥54.9B in the previous year. If borrowing rates continue to rise, Ordinary Income may come under pressure through higher non-operating expenses.
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Income Margin | 11.8% | 8.0% (2.8%–11.2%) | +3.9pt |
| Net Income Margin | 7.9% | 4.4% (1.2%–7.2%) | +3.5pt |
Both profitability indicators clearly exceed the industry median and are at levels positioned in the upper tier of the industry.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 8.9% | 18.5% (6.9%–54.7%) | -9.6pt |
The Revenue growth rate is below the industry median, representing a relatively moderate growth pace within an industry containing many high-growth companies.
※Source: Compiled by the Company
The continued structure in which the profit growth rate exceeds the revenue growth rate indicates that performance is being supported not by simple scale expansion but by mix improvement through the expansion of high-margin segments such as the Condominiums Business and Pressance.
The pace of inventory growth, including real estate under development and real estate for sale, has been accompanied by a decline in cash. Together with the relatively moderate full-year progress rates of 68.2% for Revenue and 67.2% for Operating Income, the execution status of property delivery absorption in Q4 will be an important focus for assessing future performance.
While the dividend forecast has increased from ¥84 in the previous year to ¥205, the forecast Payout Ratio remains restrained at approximately 20%, reflecting a balance between strengthening shareholder returns in line with profit growth and retaining earnings.
This is a mechanically calculated reference range based solely on publicly disclosed data using a residual income model (Ohlson-type model with an explicit 5-year fade period). It is not a forecast of the market share price or a recommendation of any specific investment action.
| Scenario | Theoretical Share Price |
|---|---|
| bear | 7,157円 |
| base | 7,394円 |
| bull | 7,590円 |
| Calculation Assumption | Value |
|---|---|
| Book Value Per Share (BPS) | 5,329円 |
| Adjusted Forecast EPS | 1,129.0円 |
| Cost of Equity r | 9.27%（10-year Japanese government bond 2.77% + equity risk premium 6.00% + size premium 0.50%） |
| Persistence Parameter for Residual Income ω / Explicit Forecast Period | 0.62 / 5 years |
| Assumed Payout Ratio | 19.3% |
| Forecast EPS Confidence Adjustment | ×1.062（based on the track record of guidance achievement rates for comparable companies） |
| Implied PBR / PER |
Sensitivity: 7,176円–7,622円 at Cost of Equity ±1%, and 7,338円–7,480円 at ω±0.1.
Notes:
（Calculation model: Residual Income Model / Interest rate reference month: 2026-07 / This value does not predict or guarantee the future share price）
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not recommend investment in any specific security. The industry benchmarks are reference information compiled by the Company based on publicly disclosed earnings data. Investment decisions should be made at your own responsibility, and, as necessary, after consulting with a professional.
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| 1.39倍 / 6.5倍 |