Financial Summary for the Third Quarter of the Fiscal Year Ending December 2026 [Japanese GAAP] (Consolidated)

Overview of Results

Consolidated revenue for the third quarter of the fiscal year ending December 2026 was 2,774 million yen, an increase of 1.2% year-on-year. However, operating loss was 320 million yen, ordinary loss was 342 million yen, and net loss attributable to owners of parent for the quarter was 344 million yen. Due to concentration in the timing of handovers in the core real estate sales business, revenue recognition is expected in the fourth quarter, which is likely to boost results in the second half. The full-year forecast is revenue of 5,000 million yen, operating income of 50 million yen, ordinary income of 23 million yen, and net income of 20 million yen, and these are expected to be below previous forecasts. The RWA-related business is in the start-up stage, and its future monetization is a point of attention.

Outlook and Risks

Skewed timing of revenue and profit recognition due to property handovers in real estate sales may continue to have an impact. Geopolitical risks and interest rate trends could affect profitability. While realization of handovers in Q4 aims to restore revenue and profits, attention should be paid to geopolitical developments and changes in the financing environment. The RWA business has not yet reached a monetization stage, but groundwork for the business is ongoing.