Arealink (8914) Q1 2025 earnings summary

Executive summary

• Achieved 9.3% YoY growth in Q1 net sales and 23.2% YoY net profit, driven by robust self-storage business expansion, while land rights consolidation contracted as planned.

• Opened 3,555 new self-storage units in Q1, progressing toward a 15,000-unit annual target.

• Utilization rate for self-storage remained high at 85.64%, with established locations above 90%.

Financial highlights

• Q1 FY12/25 net sales: ¥7,521mn (+9.3% YoY); operating income: ¥1,563mn (+11.3% YoY); net income: ¥1,112mn (+23.2% YoY); ordinary profit: ¥1,495mn (+11.4% YoY).

• Self-storage business net sales up 23.1% YoY; business profit up 21.0% YoY.

• Land rights consolidation net sales down 42.3% YoY, business profit down 59.5% YoY, reflecting planned downsizing.

• SG&A expenses decreased 4.4% YoY, with notable increases in salaries (+8.6%) and directors' compensation (+28.1%).

• Basic EPS for Q1 2025 was ¥43.81, reflecting a two-for-one share split.

Outlook and guidance

• FY12/25 full-year guidance: net sales ¥26,000mn (+5.3% YoY), operating income ¥5,350mn (+9.0%), net income ¥3,420mn (+6.8%), and EPS ¥134.70.

• Medium-term plan targets 200,000 self-storage units by 2029, with net sales of ¥33.5bn and operating income of ¥8.0bn.

• Dividend payout ratio target raised to 35% from FY12/24, with annual dividend planned at ¥48 per share (¥25 interim).