Fiscal Year Ending March 2026 Financial Presentation Materials

Overview of Performance

For the fiscal year ending March 2026, net sales amounted to 137.0 billion yen (YoY +23.4 billion yen), operating income was 26.1 billion yen (YoY +4.79 billion yen), and net income attributable to owners of parent totaled 12.1 billion yen (YoY +990 million yen), marking record highs for net sales and operating income. Ordinary income decreased 0.8% year over year due to losses on equity-method investments, but net income increased driven by factors including the reversal of deferred tax liabilities following a change in the effective tax rate of consolidated subsidiaries.

Earnings Guidance for FY2027 and Shareholder Returns

For the fiscal year ending March 2027, the company plans net sales of 145.0 billion yen (YoY +7.97 billion yen), operating income of 26.5 billion yen (YoY +390 million yen), and net income attributable to owners of parent of 14.0 billion yen (YoY +1.8 billion yen). Increased profits are expected due to growth in condominium revenue and expansion in revenue properties sales, rentals, and asset management businesses, with both net sales and operating income projected to reach new highs. The dividend is planned to increase by 5 yen to 53 yen, maintaining a progressive dividend policy.

Business Growth and M&A

The company is driving business growth through M&A activities centered on soccer stadium development, including the acquisition of Montedio Football Park shares (consolidated subsidiary) in February 2026, the planned acquisition of Montedio Yamagata shares in July 2026, and the planned acquisition of Arc Real Estate shares in October 2026.

Segment Performance

The residential sales segment experienced a decrease in revenue and profit due to reduced units delivered despite higher sales prices. The real estate development segment recorded significant revenue and profit growth due to the sale of large-scale projects. The real estate leasing and asset management segments also posted increased revenue and profit. Profit margins improved in the stock business contributing to overall profit expansion.

Financial Position and Cash Flows

Total assets stood at 509.7 billion yen (YoY +10.9%), total liabilities were 423.6 billion yen (YoY +11.1%), and net assets amounted to 86.1 billion yen (YoY +9.5%). Cash and deposits increased by 16.0 billion yen to 62.0 billion yen. Operating cash flow returned to positive territory at 10.3 billion yen.

Sustainability Initiatives

The company aims to achieve a female recruitment ratio of over 35%, promotes compliance, and has set greenhouse gas reduction targets (40% reduction compared to 2022 levels) toward realizing a decarbonized society, striving to enhance corporate value sustainably.