Financial Highlights

Financial Highlights
[Accounting standards: Japanese GAAP]

Overview of Operating Results

FY2025

Analysis of Operating Results

The Group’s business performance during the fiscal year ended March 31, 2026 showed increases both in revenue and profit for five consecutive years, 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 ¥1,246.0 billion in operating revenue (up 8.3% from the previous fiscal year), ¥166.9 billion in operating profit (up 18.6%), ¥147.8 billion in ordinary profit (up 14.4%), and ¥96.7 billion in profit attributable to owners of parent (up 24.7%) owing to robust performance in sales, etc. to investors and real estate agent business against the backdrop of a strong property market for real estate, as well as improved occupancy of office and commercial facilities, particularly in the Greater Shibuya Area.

Urban Development

In our Urban Development business, we recorded ¥399.9 billion in operating revenue (up 14.6% from the previous fiscal year) and ¥75.2 billion in operating profit (up 6.6%).
Although Offices and Commercial facilities saw an increased occupancy in Leasing (Office buildings), particularly in the Greater Shibuya Area, there was a decrease in revenue and profit mainly due to a decrease in sales to investors in Other.
Residential saw increases in both revenue and profit due to an increase in sales to investors in Other, although the number of units sold in Condominiums decreased.
As a result, the Urban Development business segment overall saw increases in revenue and profit.
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 (leasing office buildings and leasing commercial facilities) was continued to maintain at a low level of 0.7%.
In addition, sales of condominium units continued to show an underlying strength of demand and proceeded strongly, especially in city center. The ratio of contracted amount for sale to the planned sales amount for the next fiscal year for condominium units became 76% (±0 percentage points from the previous fiscal year).

Strategic Investment

In our Strategic Investment business, we recorded ¥146.6 billion in operating revenue (up 32.3% from the previous fiscal year) and ¥13.2 billion in operating profit (up 156.9%).
In Infrastructure & Industry, revenue and profit increased mainly due to an increase in sales to investors in Industry.
Although Overseas operations experienced a decrease in revenue due to a reduction in the number of condominium units sold in Indonesia, we saw increased profit due to improved interim profit and loss in the U.S. facilities.
As a result, the Strategic Investment business segment overall saw increases in both revenue and profit.
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 2,693 MW (166 MW increase from March 31, 2025).

Property Management & Operation

In our Property Management & Operation business, we recorded ¥364.4 billion in operating revenue (down 0.4% from the previous fiscal year) and ¥27.2 billion in operating profit (up 8.6%).
Property Management saw increases in revenue and profit mainly due to increased fixed income and repair work.
Wellness saw a decrease in revenue because, in Other, there was an impact of selling a portion of shares of EWEL, Inc., transitioning it to an equity-method affiliate and a decrease in sales to investors, however, saw an increase in profit mainly because Hotels continued to perform well by capturing inbound tourism demand.
As a result, the Property Management & Operation business segment overall saw a decrease in revenue and an increase in profit.

Real Estate Agents

In our Real Estate Agents business, we recorded ¥364.7 billion in operating revenue (up 5.6% from the previous fiscal year) and ¥64.4 billion in operating profit (up 26.7%).
Overall, the Real Estate Agents business segment saw increases in revenue and profit. Real Estate Agents saw increases in revenue and profit primarily due to increases in the number and volume of transactions in response to the robust real estate distribution market in Real estate sales agent and increases in revenue recognized for development projects for Real estate sales.

In the third quarter ended December 31, 2025, the Company finalized the provisional accounting treatment for the business combination. Accordingly, the figures as of March 31, 2025 reflect this finalization.