Financial Summary for Q3 Fiscal Year Ending March 2026

Q3 Financial Overview

Operating revenue for Q3 FY March 2026 increased by 1.9% YoY to JPY 388.2 billion. Segment contributions to revenue growth included Real Estate +JPY 2.8 billion, Hotel & Leisure +JPY 4.9 billion, and Urban Transportation & Railway +JPY 2.5 billion. Operating income declined by 11.0% YoY to JPY 44.8 billion due to increased expenses including personnel costs. Net income attributable to owners of parent sharply decreased by 64.9% YoY to JPY 32.0 billion, primarily due to a negative goodwill gain arising in the previous period from an additional acquisition of NW Corporation shares. Total assets stood at JPY 1,641.8 billion, liabilities at JPY 1,093.4 billion, and net assets at JPY 548.3 billion, resulting in an improved equity ratio of 33.1% compared to the previous fiscal year-end.

Earnings Guidance Revision and Long-Term Strategy Progress

The full-year operating revenue forecast remains unchanged at JPY 511.0 billion, while operating income forecast was revised upward by JPY 2.0 billion from the initial forecast to JPY 42.0 billion, and net income attributable to owners of parent was upgraded by JPY 3.0 billion to JPY 29.0 billion. These revisions reflect the upside through Q3; however, a downside in overseas hotel businesses and cost timing effects are anticipated in Q4. Regarding long-term strategy, the inclusion of residences through the joint SPC with Morgan Stanley Capital and PRIME Asia is progressing, with the second phase property scheduled for delivery in April 2026. Additionally, share buyback completed in December 2024 and all acquired shares were cancelled by January 2026.