Financial Summary for the Fiscal Year Ending March 2026【Japanese Standards】 (Consolidated)

Overview of Business Results

The consolidated financial results for the fiscal year ending March 2026 showed growth despite challenging conditions influenced by the strong inbound demand in the aviation industry and Middle East geopolitical factors. Cost increases due to soaring raw material prices, labor shortages leading to higher logistics and personnel costs, and rising construction expenses were offset by increased rental income from airport real estate, the sale of office buildings in the non-asset businesses, revisions to basic rates in the heat supply business, and increased water supply and drainage utility usage in the water operations business. Consequently, net sales reached 36,792 million yen (up 18.2% YoY), operating income was 6,719 million yen (up 50.3% YoY), ordinary income was 7,126 million yen (up 53.9% YoY), and net income attributable to owners of the parent was 3,479 million yen (up 34.9% YoY). Although there was a special loss due to the review of demolition expenses for buildings in Haneda Airport's 1-chome area, profits increased significantly.

Segment Performance

The airport real estate segment recorded net sales of 17,291 million yen (up 2.3% YoY) and segment profit of 4,006 million yen (up 18.0% YoY) due to review of existing rental conditions. The off-airport real estate segment achieved net sales of 11,312 million yen (up 77.5% YoY) and segment profit of 2,929 million yen (up 98.4% YoY) through the sale of three office buildings and steady year-round operation. The airport infrastructure segment generated net sales of 7,459 million yen (up 5.3% YoY) and segment profit of 1,154 million yen (up 33.3% YoY), driven by tariff revisions in the heat supply business and increased water supply and drainage usage. The other businesses posted net sales of 729 million yen (down 6.2% YoY) and segment profit of 257 million yen (down 12.8% YoY), influenced by the transfer of solar power generation assets.

Financial Condition and Cash Flows

Total assets increased by 3,469 million yen from the previous period to 112,049 million yen, and net assets increased by 1,798 million yen to 64,392 million yen. The equity ratio was 54.9%, down 0.2 percentage points from the previous period. Cash flows from operating activities provided an income of 9,943 million yen (compared to 5,239 million yen in the same period last year). Investing activities resulted in expenditure of 1,885 million yen (compared to expenditure of 3,419 million yen in the previous year). Financing activities resulted in expenditure of 2,019 million yen (compared to expenditure of 5,656 million yen last year). The cash and cash equivalents at the end of the period totaled 13,234 million yen (up from 7,159 million yen in the previous year).

Dividends and Future Outlook

The annual dividend for the fiscal year ending March 2026 is planned at 42 yen (interim 18 yen, final 24 yen), with a payout ratio of 60.3%. The next fiscal year (ending March 2027) also plans to pay an annual dividend of 42 yen (interim 21 yen, final 21 yen). For the fiscal year ending March 2027, the consolidated earnings forecast is sales of 39,300 million yen (up 6.8% YoY), operating income of 4,900 million yen (down 27.0% YoY), ordinary income of 4,900 million yen (down 31.2% YoY), and net income attributable to owners of the parent of 3,400 million yen (down 2.2% YoY).