Tokyu Fudosan Holdings (3289) Q1 2025 earnings summary

Executive summary

• Q1 FY2024 operating revenue rose 5.6% YoY to ¥267.2B, driven by strong condominium, real estate agent, and hotel demand.

• Operating profit fell to ¥31.6B (down ¥2.9B or 8.4% YoY), and net profit dropped to ¥18.9B (down ¥6.4B or 25.3% YoY), mainly due to lower asset sales gains.

• Progress toward full-year forecasts: 24.3% of operating profit and 27.0% of net profit achieved.

• Major developments included the opening of Tokyu Plaza Harajuku "Harakado" and full opening of Shibuya Sakura Stage.

• All segments except Urban Development posted revenue growth; profit declined in Urban Development and Strategic Investment.

Financial highlights

• Operating revenue: ¥267.2B (+¥14.1B or 5.6% YoY); operating profit: ¥31.6B (−¥2.9B or 8.4% YoY).

• Net profit attributable to owners of parent: ¥18.9B (−¥6.4B or 25.3% YoY).

• ROE at 9.0% (down from 9.6% YoY); ROA steady at 4.2%.

• Equity ratio improved to 26.1% (+1.3pt YoY); D/E ratio at 2.1x.

• EPS: ¥26.52 (down from ¥35.63 YoY).

Outlook and guidance

• FY2024 full-year forecasts maintained: operating revenue ¥1,130B, operating profit ¥130B, net profit ¥70B, EPS ¥98.27.

• Plan to increase profit by ¥9.8B YoY, driven by improved condominium margins and higher hotel and real estate agent earnings.

• Annual dividend forecast raised to ¥32.0 per share, maintaining a payout ratio above 30%.

• Next medium-term management plan to be announced in May 2025, focusing on urban competitiveness and sustainable business models.