Financial Summary for Q1 of Fiscal Year Ending December 2026 (Japanese GAAP) (Consolidated)

Overview of Performance

In the consolidated cumulative period of Q1 of the fiscal year ending December 2026, net sales amounted to 226,841 million yen (44.8% YoY increase), primarily driven by increased sales of real estate for sale in the real estate business. Operating income was 31,171 million yen (2.0% YoY decrease), while net income attributable to owners of parent increased to 18,141 million yen (5.6% YoY increase). The real estate business performed well with favorable acquisition of well-located rental properties and smooth progress in development and rebuilding projects, recording operating revenue of 191,360 million yen (43.4% YoY increase) and operating income of 38,534 million yen (15.4% YoY increase). Both the insurance business and the hotel and inn business posted increases in revenue and profit, whereas other businesses recorded operating losses.

Financial Condition and Outlook

As of the end of March 2026, total assets increased to 3,552,936 million yen from the previous fiscal year-end, and total liabilities also increased to 2,611,534 million yen. Net assets rose to 941,401 million yen compared to the previous fiscal year-end, while the equity ratio slightly declined to 25.5%. Borrowings stood at 1,582,333 million yen, secured at stable low costs. There is no change to the earnings guidance for the fiscal year ending December 2026, and the company intends to continue focusing on stable rental income from real estate and trends in sales of real estate for sale.