Tokyo Tatemono (8804) Q1 2025 earnings summary

Executive summary

• Revenue and profit rose year-over-year in Q1 FY2025, driven by higher gross profit on for-sale condominiums and increased property sales to investors.

• Operating revenues for Q1 2025 rose 9.0% year-over-year to ¥126,665 million, with operating profit up 23.7% to ¥23,706 million and profit attributable to owners of parent up 23.0% to ¥14,347 million.

• Major projects include the TOFROM YAESU redevelopment near Tokyo Station, with a 60% pre-leasing rate for offices, and the completion of Japan's first large-scale ZEH-M certified condominium.

• The company acquired its first new golf course in 17 years and continues to expand its land bank for future development.

• Comprehensive income declined 44.6% year-over-year to ¥11,549 million, reflecting lower other comprehensive income components.

Financial highlights

• Q1 FY2025 operating revenue was ¥126.6 billion, up ¥10.4 billion year-over-year; operating profit rose to ¥23.7 billion, up ¥4.5 billion.

• Profit attributable to owners of parent increased to ¥14.3 billion, up ¥2.6 billion year-over-year.

• Business profit reached ¥24.3 billion, a ¥7.0 billion increase year-over-year.

• Total assets grew to ¥2,156.6 billion, with interest-bearing debt rising to ¥1,273.5 billion.

• Net assets stood at ¥546.1 billion, with an equity-to-asset ratio of 24.8%.

Outlook and guidance

• FY2025 full-year revenue forecast is ¥503.0 billion, with operating profit projected at ¥86.0 billion and profit attributable to owners of parent at ¥55.0 billion.

• Business profit target for FY2027 is ¥95.0 billion, with a focus on steady growth and capital efficiency.

• Dividend payout ratio is targeted at 40% by FY2027, with flexible share repurchases planned.

• Annual dividend forecast for 2025 is ¥97.00 per share.