Tokyo Tatemono (8804) Q2 2024 earnings summary

Executive summary

• Revenue and profits rose in the first two quarters of FY2024, driven by strong for-sale condominium sales and robust performance in Commercial Properties and Residential segments.

• Operating revenue for the first two quarters of FY2024 rose 54.5% year-over-year to ¥277.6B, with operating profit up 42.1% to ¥51.2B and profit attributable to owners up 33.1% to ¥31.7B.

• Full-year earnings forecast revised: operating revenue lowered from initial guidance, but profit items and dividend per share raised due to expense reductions and strong segment results.

• Major project completions include ONE DOJIMA PROJECT and Hilton Kyoto, with first overseas logistics facility developments and new subsidiaries including Thailand.

Financial highlights

• 2Q FY2024 operating revenue: ¥277.6B (up 54.5% year-over-year); operating profit: ¥51.2B (up 42.1%); profit attributable to owners: ¥31.7B (up 33.1%).

• Total assets at June 2024: ¥2,026.3B, up ¥121.0B from December 2023, mainly from redevelopment investments.

• Interest-bearing debt increased to ¥1,182.7B; capital adequacy ratio stable at 26.0%.

• Cash and cash equivalents at period end: ¥111.7B, down from ¥127.3B at prior year-end.

• EPS: ¥151.73 (up from ¥114.01 year-over-year).

Outlook and guidance

• FY2024 full-year operating revenue forecast revised to ¥465.0B (down 6.1% from initial), but profit attributable to owners forecast raised to ¥48.5B (up 1.0%).

• Dividend per share forecast raised to ¥80, marking the eleventh consecutive annual increase.

• Business profit target of ¥75.0B for FY2024 under the medium-term plan remains in place.