Notice Regarding Upward Revision of Numerical Targets in Medium-Term Management Plan

Details of the Upward Revision in the Medium-Term Management Plan

Heiwa Real Estate Co., Ltd. has upwardly revised the numerical targets for the final fiscal year (March 2027) of its medium-term management plan "WAY 2040 Stage1," covering fiscal years 2024 through 2026. Specifically, EPS was raised from 135 yen or more to 160 yen or more, consolidated operating income was increased from 14 billion yen or more to 15 billion yen or more, and ROE improved from 7% or more to 8% or more. Dividends are also expected to increase to a total of 95 yen or more, comprising an ordinary dividend of 80 yen or more and a special dividend of 15 yen. The main drivers are increased earnings in the Building and Asset Management businesses.

Background for the Revision and Future Outlook

Based on the upward revision of the full-year earnings guidance announced on January 31, 2025, and the expectation that strong performance will continue into the fiscal year ending March 2027, the numerical targets for the final fiscal year in the medium-term management plan have been updated. Efforts to accelerate the reduction of policy holding stocks and improve capital efficiency are underway, promoting management mindful of capital costs and stock prices. It should be noted that a 2-for-1 stock split was implemented on July 1, 2025, and the numerical targets take this into account.