Tokyo Tatemono (8804) Q3 2025 earnings summary

Executive summary

• Revenue and profit declined year-over-year due to a rebound from high for-sale condominium sales in the prior year, but leasing revenue from buildings and facilities continued to grow steadily.

• The full-year earnings forecast was revised upward for all major profit items, driven by increased leasing revenue and gains on property sales, despite lower operating revenue than initially forecast.

• Dividend per share forecast for FY2025 was raised to ¥103, up ¥8 from the previous year, with a payout ratio of 36.9%.

• Comprehensive income rose 4.0% year-over-year to ¥43,749 million, driven by gains in valuation difference on available-for-sale securities.

• A logistics private fund was established through a joint venture to acquire and operate new logistics assets.

Financial highlights

• Operating revenue for the first three quarters was ¥298.8 billion, down 17.0% year-over-year; full-year forecast revised to ¥470.0 billion.

• Operating profit for the first three quarters was ¥50.6 billion, down 17.9%; full-year forecast revised to ¥92.5 billion.

• Profit attributable to owners of parent for the first three quarters was ¥29.5 billion, down 17.0%; full-year forecast revised to ¥58.0 billion.

• Ordinary profit for the first three quarters was ¥41.5 billion, down 22.4%.

• Basic earnings per share for the first three quarters was ¥141.81, down from ¥170.23 year-over-year.

Outlook and guidance

• Full-year profit forecasts for all major items were revised upward, despite a decrease in operating revenue due to a review of property sales to investors.

• Dividend per share for FY2025 is forecast at ¥103, with a target payout ratio of 40% by FY2027.

• The company aims for business profit of ¥95.0 billion and ROE of 10% by FY2027.

• Profit attributable to owners of parent for FY2025 is forecast at ¥58.0 billion, down 12.0% year-over-year.