Fiscal Year Ending March 2026 Q3 (2025/4-2025/12) Earnings Presentation Materials

Overview of Business Performance

For the cumulative Q3 period ending March 2026, sales increased by 7.1% YoY to 182.5 billion yen, operating income rose 6.6% YoY to 19.0 billion yen, and net income attributable to owners of parent grew 12.2% YoY to 14.3 billion yen, all setting new record highs. The dormitory business achieved revenue and profit growth through increased long-term contracted rooms while absorbing higher operating costs. The hotel business attained higher revenue and profit by optimizing selling prices and absorbing cost increases. The Dormy Inn business saw significant increases in sales and operating income driven by higher RevPAR and contributions from newly opened properties. The resort business posted higher sales but experienced a decline in operating income.

Shareholder Returns and Future Outlook

Dividends are planned to increase with a total payout of 46 yen (interim and year-end combined), up 8 yen YoY representing a 21.1% increase. Shareholder benefits will continue to be offered. The full-year forecast for fiscal year ending March 2026 remains unchanged, with operating income projected at 25.0 billion yen, targeting a third consecutive record high. The dormitory business plans new openings of 12 buildings totaling 1,364 rooms, starting at high occupancy, and the hotel business plans new openings of 5 buildings with 876 rooms. The company aims for continuous revenue and profit growth through price optimization and occupancy increases.