Tokyo Tatemono (8804) Q4 2025 earnings summary

Executive summary

• Revenue and profit increased in FY2025, driven by favorable real estate market conditions, higher leasing revenue, and improved profit margins on property sales to investors.

• Operating revenue rose 2.3% year-over-year to ¥474,586 million, with operating profit up 20.2% to ¥95,763 million and ordinary profit up 9.0% to ¥78,187 million.

• Profit attributable to owners of parent declined 10.6% to ¥58,879 million, mainly due to a rebound from prior-year cross-shareholding sales.

• Comprehensive income increased 46.3% year-over-year to ¥81,558 million.

Financial highlights

• FY2025 operating revenue: ¥474.5B (+¥10.8B YoY); operating profit: ¥95.7B (+¥16.0B YoY); business profit: ¥89.4B (+¥10.0B YoY).

• FY2025 profit attributable to owners of parent: ¥58.8B (down ¥7.0B YoY).

• Total assets at FY2025 year-end: ¥2,272.7B (+¥191.4B YoY); interest-bearing debt: ¥1,345.4B (+¥133.1B YoY).

• Cash and cash equivalents at year-end: ¥152.2B (+¥41.1B YoY).

• Net assets increased to ¥603.1B, with an equity-to-asset ratio of 26.0%.

Outlook and guidance

• FY2026 forecast: operating revenue ¥524.0B (+¥49.4B YoY), operating profit ¥100.0B (+¥4.2B YoY), business profit ¥102.0B (+¥12.5B YoY), profit attributable to owners of parent ¥63.0B (+¥4.1B YoY), and EPS ¥303.46.

• Dividend for FY2026 planned at ¥122 per share (payout ratio 40.2%).

• Business profit and payout ratio targets for FY2027 expected to be achieved one year ahead of schedule.