Tokyu Fudosan Holdings (3289) Q2 2025 earnings summary

Executive summary

• Operating revenue for FY2024 Q2 rose to ¥503.3 billion, up 2.6% year-over-year, but profit declined due to the absence of prior-year asset sale gains and a high base from prior asset sales.

• Progress exceeded initial plans, prompting an upward revision of the full-year forecast.

• Strong performance in real estate agents, hotels, and rental businesses offset lower asset sales and strategic investment weakness.

• Revenue growth was driven by strong condominium sales, robust real estate agent transactions, and increased hotel demand from inbound tourism.

• The company revised its full-year forecast upward, now expecting ¥1,140.0 billion in operating revenue and ¥73.0 billion in profit attributable to owners of parent.

Financial highlights

• Operating profit for the first six months was ¥50.5 billion, down 12.9% year-over-year; profit attributable to owners of parent fell 34.6% to ¥25.1 billion.

• EBITDA for the first six months was ¥77.7 billion; full-year EBITDA projected at ¥189.2 billion.

• EPS for the period was ¥35.15, with a projected full-year EPS of ¥102.39.

• Interim dividend per share set at ¥17.0, with a full-year forecast of ¥34.0.

• Total assets as of September 30, 2024: ¥2,971.7 billion; equity ratio: 26.4%.

Outlook and guidance

• Full-year operating revenue forecast revised upward to ¥1,140.0 billion, operating profit to ¥135.0 billion, and profit attributable to owners of parent to ¥73.0 billion.

• ROE is forecast at 9.3%, and dividend payout ratio at 33.2%.

• Dividend forecast for FY2024 raised to ¥34.00 per share.

• Asset sales and real estate agent businesses expected to remain strong, with about 90% of asset sales gross profit target already contracted.

• Progress toward full-year forecast: 44.1% of revenue and 37.4% of operating profit achieved in first half.