Fiscal Year 2025 Third Quarter Earnings Highlights

Performance Overview

Operating income for the third quarter of fiscal 2025 reached 227.3 billion yen, and net income attributable to owners of parent for the quarter was 156.5 billion yen, both achieving year-over-year increases and marking record highs for the third quarter. The commercial real estate business performed well with strong new office leasing and rent revisions on existing buildings, along with a significant rise in capital gains. The Marunouchi business saw a slight decrease in profit due to closures associated with redevelopment but was limited to a minor year-over-year decline thanks to increased rental profits from existing buildings. The housing business posted substantial profit growth driven by a rise in domestic condominium sales, and the overseas business remained steady year-over-year due to increased capital gains. On the other hand, the investment management business incurred a profit decline due to the recording of one-off expenses.

Full-Year Outlook and Shareholder Returns

The full-year operating income forecast was revised upward by 5 billion yen to 330 billion yen (previously 325 billion yen) due to expanded domestic capital gains. Net income attributable to owners of parent was also revised upward by 25 billion yen to 220 billion yen (previously 195 billion yen), supported by accelerated sales of policy holdings, and ROE was raised from approximately 8% to mid-8%. As a shareholder return measure, an additional 30 billion yen share buyback was approved, bringing the total share buyback amount for fiscal 2025 to 130 billion yen.