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

Overview of Business Results

During the cumulative consolidated third quarter period of the fiscal year ending March 2026, net sales increased slightly to 581,562 million yen (up 1.7% YoY). However, operating income decreased to 80,320 million yen (down 18.7% YoY), business profit to 86,288 million yen (down 14.8% YoY), ordinary income to 70,099 million yen (down 20.4% YoY), and net income attributable to owners of parent for the quarter declined to 42,940 million yen (down 31.2% YoY). By segment, the Housing division experienced declines in both sales and profits; the Urban Development division had increased sales but decreased profits; the Overseas division saw significant decreases in sales and profits; while the Brokerage & CRE and Property Management divisions both recorded increases in sales and profits.

Financial Position and Revision to Earnings Forecast

Total assets amounted to 2,840,953 million yen (up 5.7% from previous consolidated fiscal year-end), net assets were 747,879 million yen (down 0.5%), and the equity ratio was 26.3% (down 1.6 points). Cash flow showed a decrease of 73,322 million yen from operating activities, a decrease of 98,317 million yen from investing activities, and an increase of 179,272 million yen from financing activities. The full-year consolidated earnings forecast for the fiscal year ending March 2026 has been revised to net sales of 950,000 million yen (up 1.1% from previous forecast), operating income of 128,000 million yen (up 4.9%), business profit of 137,000 million yen (up 1.5%), ordinary income of 114,000 million yen (up 5.6%), and net income attributable to owners of parent of 75,000 million yen (unchanged from previous forecast).