Notice Regarding Trust Establishment of Fixed Assets and Transfer of Trust Beneficiary Rights, Conclusion of Lease Agreement, Recording of Special Gain (Fixed Asset Sale Gain), and Revision of Consolidated Earnings Guidance for the Fiscal Year Ending February 2026

Background of Transfer and Asset Details

TKP Corporation, aiming to enhance the agility of growth investments and optimize capital policies, conducted a sale and leaseback transaction by establishing a trust over a portion of its fixed assets and transferring the trust beneficiary rights. The asset involved is the APA Hotel <TKP Nippori Ekimae> located in Arakawa-ku, Tokyo, a hotel specializing in accommodation with a land area of 588.43㎡ and a building area of 4,139.40㎡. The transfer gain amounts to 11,861 million yen. A lease agreement with a lease term of 10 years was concluded, and the hotel will continue operations as before.

Revision of Earnings Guidance and Future Outlook

As a result of this transaction, a special gain from the fixed asset sale is expected to be recorded in the fiscal year ending February 2026, leading to an upward revision of the forecast for net income attributable to owners of parent from 3,800 million yen to 10,400 million yen, an increase of 173.7%. There are no changes to net sales, operating income, or ordinary income from the previous forecast. The funds raised will be allocated to reinvestment in growth areas including M&A, aiming to improve capital efficiency and further enhance corporate value.