Tokyo Tatemono (8804) Q3 2024 earnings summary

Executive summary

• Revenue and profits rose year-over-year, driven by strong sales and gross profit from for-sale condominiums and higher property sales to investors.

• Major redevelopment projects, including the World Trade Center and Raffles Tokyo, are progressing, with new international and domestic initiatives.

• The Japanese economy showed moderate recovery, but uncertainty remains due to global risks, domestic policy reviews, and currency fluctuations.

• The company continues to expand its land bank and property sales to investors, supporting future growth.

Financial highlights

• Operating revenue for the first three quarters was ¥359.8 billion, up 51.1% year-over-year; operating profit reached ¥61.6 billion, up 43.1%.

• Profit attributable to owners of parent was ¥35.5 billion, up 22.2% year-over-year.

• Total assets increased to ¥2,040.7 billion, mainly due to investments in large-scale redevelopment projects.

• Interest-bearing debt rose to ¥1,225.9 billion, with a debt-equity ratio of 2.3x.

• Dividend per share for FY2024 is forecast at ¥80, up ¥7 from the previous year, with a payout ratio of 34.4%.

Outlook and guidance

• Full-year FY2024 revenue and profits are expected to increase, supported by strong performance in building leasing and residential businesses, despite lower property sales to investors.

• Business profit is forecast at ¥78.0 billion, with profit attributable to owners of parent at ¥48.5 billion.

• The company aims to achieve the ¥75.0 billion business profit target under its medium-term plan.

• No revisions to previously announced full-year forecasts.