Financial Highlights

Financial Highlights
[Accounting standards: Japanese GAAP]

Overview of Operating Results

FY2024

Analysis of Operating Results

The Group’s business performance during the fiscal year ended March 31, 2025 showed increases both in revenue and profit, with increases in operating revenue, operating profit, ordinary profit, and profit attributable to owners of parent, all of which are record highs, including the period before shifting to a holdings structure. There was ¥1,150.3 billion in operating revenue (up 4.3% from the previous fiscal year), ¥140.8 billion in operating profit (up 17.1%), ¥129.2 billion in ordinary profit (up 17.0%), and ¥77.6 billion in profit attributable to owners of parent (up 13.2%) owing to robust performance in the condominium business and real estate sales agent business against the backdrop of a strong property market for real estate, strong performance in the hotel business from capturing high inbound demand, etc.

Urban Development

In our Urban Development business, we recorded ¥348.8 billion in operating revenue (down 4.5% from the previous fiscal year) and ¥70.5 billion in operating profit (up 32.7%).
Overall, the segment saw a decrease in operating revenue. In Offices and Commercial facilities, revenue increased due to factors such as the full-period operation of Shibuya Sakura Stage (Shibuya-ku, Tokyo) in Leasing (Office buildings), and selling a partial interest in Shibuya Sakura Stage in Other. However, in Residential, revenue decreased due to factors such as a decline in sales to investors in Other.
Overall, the segment saw an increase in operating profit, thanks to factors such as the recording of gain on sale from Shibuya Sakura Stage and improvements in the gross profit ratio of condominium sales.
Leasing of office buildings has been favorable, particularly in the Shibuya area, where the Company owns many properties, and the vacancy rate as of the end of the current fiscal year (office buildings and commercial facilities) was continued to maintain at a low level of 0.3%.
In addition, sales of condominium units continued to show an underlying strength of demand and proceeded strongly, especially in city center. Regarding condominiums during the fiscal year under review, The TOWER JUJO (Kita-ku, Tokyo) and BRANZ Chiyodafujimi (Chiyoda-ku, Tokyo) were recorded as newly completed and delivered properties. The ratio of contracted amount for sale to the planned sales amount for the next fiscal year for condominium units became 76% (up 2 percentage points from the previous fiscal year).

Strategic Investment

In our Strategic Investment business, we recorded ¥110.8 billion in operating revenue (up 2.6% from the previous fiscal year) and ¥5.2 billion in operating profit (down 65.9%).
Overall, the segment saw an increase in revenues and a decrease in profit. Although there was a decrease in revenues mainly due to a decline in sales to investors of logistics facilities in Infrastructure & Industry, revenues increased mainly due to an increase in condominium units sold in Indonesia, despite increased costs in North America in Overseas operations.
In the renewable energy business, the number of facilities in operation increased as planned. Total rated capacity after all facilities are put into operation (before taking our equity into account) is 2,527 MW (699 MW increase from the end of the previous fiscal year).

Property Management & Operation

In our Property Management & Operation business, we recorded ¥365.8 billion in operating revenue (down 1.5% from the previous fiscal year) and ¥25.0 billion in operating profit (up 9.6%).
Overall, the segment saw a decrease in operating revenue due to factors such as, in Property Management, the transfer of the detached housing renovation business, which had been included in Condominiums, and in Wellness, the removal from consolidation following the transfer of all the shares in TOKYU SPORTS OASIS Inc. (Note), which had been included in Healthcare.
Overall, the segment saw an increase in operating profit due to factors such as, in Property Management, the increase of construction projects in Condominiums and the commencement of management for a large-scale project in Buildings, etc., and in Wellness, the capture of inbound demand in Hotels, particularly centered around Tokyu Stay.

Real Estate Agents

In our Real Estate Agents business, we recorded ¥345.4 billion in operating revenue (up 21.0% from the previous fiscal year) and ¥50.8 billion in operating profit (up 31.8%).
Overall, the segment saw increases in revenues and profit. In Real Estate Agents, Real estate sales agent increased in revenues due to an increase in the number and volume of transactions in response to the robust real estate distribution market, and Real estate sales increased in revenues due to the acquisition of large-scale projects and an increase in the number of units recorded.