April 30, 2026
Topics for the Fiscal Year Ended March31, 2026
【Consolidated Financial Results】
Regarding the consolidated financial results for the fiscal year ended March 31, 2026, operating profit reached record highs for the third consecutive year, while ordinary profit and profit attributable to owners of parent reached record highs for the second consecutive year. This was due to factors such as an increase in revenue from sales of properties, revenue contributions from Caption by Hyatt Kabutocho Tokyo, which opened in the current fiscal year, and Mercure Hotel Tokyo Hibiya, an increase in leasing revenue owing to rent revisions, and the recognition of gain on sale of investment securities resulting from the accelerated reduction of cross-shareholdings.
As for the forecast of consolidated financial results for the fiscal year ending March 31, 2027, operating profit is expected to reach record highs for the fourth consecutive year, while ordinary profit and profit attributable to owners of parent are expected to reach record highs for the third consecutive year. This is primarily due to an increase in hotel revenue, rent revisions, and an increase in gain on sale of investment securities resulting from the disposal of cross-shareholdings.
【Further Advance Management Conscious of the Cost of Capital and the Company's Stock Price, etc.】
In the fiscal year ended March 31, 2026, the Company reduced its cross-shareholdings by five listed companies for approximately ¥3.3 billion (sales prices). (In the fiscal year ended March 31, 2025, the Company reduced three listed companies for approximately ¥0.9 billion (sales prices)).
With the aim of strengthening its capital policy and shareholder returns, the Company conducted a share repurchase of approximately ¥1.0 billion and cancelled 6.7 million shares of treasury stock in the fiscal year ended March 31, 2026.
In line with the Company's basic policy of maintaining shareholder returns with a consolidated dividend payout ratio of approximately 50%, the annual dividend per share for the fiscal year ended March31, 2026 is scheduled to increase to ¥98, including a special dividend of ¥15. This represents a ¥12 increase from the previous fiscal year's dividend of ¥86 (including special dividend of ¥15), marking the ninth consecutive year of dividend increases. For the fiscal year ending March 31, 2027, the annual dividend per share is projected to be ¥103 (including a special dividend of ¥15), representing a ¥5 increase year-on-year and the tenth consecutive annual dividend increase.
【Progress of Redevelopment Projects in Sapporo】
In January 2026, the Company decided to name the building for the Odori-nishi 4 South, Type 1 District Redevelopment Project in the Redevelopment Projects in Sapporo SAPPORO ONE. For the office-use portion, SAPPORO ONE obtained "ZEB Oriented" certification and was also certified by the City of Sapporo as a "Zero-Carbon Promotion Building."
【Sustainability】
In the field of climate change in CDP, the Company has been selected to the "A List," the highest rating in the field for the second consecutive year.
The Company has also been recognized for the fourth consecutive year as "Outstanding Organizations of KENKO Investment for Health 2026 (White 500)."
Consolidated Financial Results for the Fiscal Year Ended March 31, 2026Net sales, operating profit, and ordinary profit increased compared with the previous fiscal year, mainly due to an increase in gain on sales of properties, revenue contributions from Caption by Hyatt Kabutocho Tokyo, which opened in the current fiscal year, and the Mercure Hotel Tokyo Hibiya, and an increase in leasing revenue owing to rent revisions. Operating profit reached record highs for the third consecutive year, while ordinary profit reached record highs for the second consecutive year.
Profit attributable to owners of parent also increased compared with the previous fiscal year due to the reasons described above, as well as the recognition of gain on sale of investment securities resulting from the accelerated reduction of cross-shareholdings, reaching record highs for the second consecutive year.
(Millions of yen)
Fiscal year ended March 31, 2025
Fiscal year ended March 31, 2026
Year-on-year
Year-on-year (%)
Full-year forecast for the fiscal year ended March 31, 2026*1
Progress against full-year forecast*1 (%)
Net sales
42,075
50,855
+8,779
+20.9
49,000
103.8
Building Business
37,997
46,236
+8,239
+21.7
44,600
103.7
Asset Management Business
4,078
4,619
+540
+13.3
4,400
105.0
Operating profit
13,196
15,109
+1,913
+14.5
13,900
108.7
Building Business
13,010
14,657
+1,646
+12.7
13,700
107.0
Asset Management Business
2,355
2,737
+381
+16.2
2,500
109.5
Intersegment eliminations
(2,169)
(2,284)
(114)
-
(2,300)
-
Ordinary profit
11,651
12,980
+1,328
+11.4
11,700
110.9
Extraordinary income
799
3,248
+2,449
+306.3
Extraordinary losses
16
330
+313
-
Profit attributable to owners of parent
9,565
11,032
+1,466
+15.3
9,700
113.7
Earnings per share (EPS) (yen) *2
141.55
165.63
+24.08
+17.0
145.22
114.1
ROE (%)
7.9
9.0
-
-
8% or more
-
*1 Announced on April 30, 2025
*2 Since the Company conducted a 2-for-1 stock split effective from July 1, 2025, the above indicators take this stock split into account.
Consolidated Financial Results by Segment for the Fiscal Year Ended March 31, 2026Year-on-year differences in segment results
Building Business
(Millions of yen)
Fiscal year ended March 31, 2025
Fiscal year ended March 31, 2026
Year on year
Year on year (%)
Main reasons for year-on-year differences in results
Net sales
37,997
46,236
+8,239
+21.7
The increase in leasing revenue mainly reflected contributions due to an increase in hotel revenue, rent revisions, an increase in leasing revenue primarily due to leasing of newly occupied office space and the rise in earnings from ORSUS series acquired in the previous fiscal year.
Note: The vacancy rate for the Group as a whole was 2.27% as of March 31, 2026.
Leasing revenue
27,517
28,932
+1,414
+5.1
Hotel revenue
2,269
3,440
+1,171
+51.6
Revenue from sales of properties
8,965
15,675
+6,710
+74.8
Other
1,514
1,628
+114
+7.6
Operating profit
13,010
14,657
+1,646
+12.7
The increase in sales of properties reflected an increase in sales of inventories. (Osaka
Gains on sales of properties
4,519
5,967
+1,447
+32.0
Office, Sapporo Office (part of the equity), Nagoya Office (part of the equity), Oshiage
Residence, and Otorii Residence were sold.)
Leasing revenue
Increase in hotel revenue contributed about ¥1.2 billion to leasing revenue.
Rent revisions contributed about ¥0.2 billion to leasing revenue.
Leasing of newly occupied office space contributed about ¥0.2 billion to leasing revenue.
Increased periodic revenues, mainly from acquired and newly built properties, contributed about ¥0.2 billion to leasing revenue.
Reduced periodic revenues, resulting mainly from sales of properties, reduced leasing revenue by about ¥0.4 billion.
Revenue from sales of properties
Asset Management Business
(Millions of yen)
Fiscal year ended March 31, 2025
Fiscal year ended March 31, 2026
Year on year
Year on year (%)
Main reasons for year-on-year differences in results
Net sales
4,078
4,619
+540
+13.3
Asset management revenue
2,781
3,152
+370
+13.3
Brokerage commissions
1,296
1,466
+169
+13.1
Operating profit
2,355
2,737
+381
+16.2
The Asset Management Business saw an increase in revenue, mainly from higher asset management revenue and brokerage commissions.
Due to the payment of the participation fee for the Redevelopment Projects in Sapporo and the construction costs for Caption by Hyatt Kabutocho Tokyo, and an increase in the market valuation of investment securities, total assets increased. Total liabilities increased, primarily reflecting a rise of interest-bearing liabilities.
(Millions of yen)
As of March 31, 2025
As of March 31, 2026
Year on year
Main reasons for year-on-year differences in results
Total assets
419,541
451,838
+32,297
Current assets
60,036
93,373
+33,336
The increase in inventories mainly resulted from the reclassification from fixed assets to real estate for sale and acquired properties.
Cash and deposits/Securities
25,341
31,115
+5,774
Inventories (including operating investments in
capital)
31,036
58,377
+27,340
Other current assets
3,658
3,879
+221
Non-current assets
359,177
358,184
(993)
Despite an increase which was mainly due to the payment of a participation fee for the Redevelopment Projects in Sapporo and construction costs for Caption by Hyatt Kabutocho Tokyo, the property, plant and equipment saw a decrease primarily due to the reclassification from fixed assets to real estate for sale.
The increase was mainly due to an increase in the market valuation of investment securities.
Property, plant and equipment
282,350
272,043
(10,306)
Intangible assets
31,164
31,113
(50)
Investments and other assets
45,662
55,026
+9,363
Deferred assets
326
280
(45)
Total liabilities and net assets
419,541
451,838
+32,297
Total liabilities
301,541
325,075
+23,533
The net debt-to-equity ratio is 1.9 as of March 31, 2026.
Interest-bearing liabilities
254,072
272,683
+18,610
Other liabilities
47,469
52,392
+4,923
Net assets
117,999
126,763
+8,764
The increase was due to an increase in the market valuation of investment securities.
Shareholders' equity
86,749
89,916
+3,167
Valuation difference on available-for-sale securities
15,265
20,526
+5,260
Deferred gains or losses on hedges
54
311
+257
Revaluation reserve for land
15,928
16,008
+79
Inventories
Property, plant and equipment
Investments and other assets
Interest-bearing liabilities
Valuation difference on available-for-sale securities
(Note) Interest-bearing liabilities comprised short-term borrowings, current portion of bonds payable, current portion of long-term borrowings, certain other current liabilities, bonds payable, long-term borrowings, long-term non-recourse loans payable, and long-term accounts payable-other.
Key Performance IndicatorsShare price*1,2,3
EPS, ROE, and ROA*3
(Yen) 4,000
3,000
2,515 2,644 2,702 2,748
2,887 3,085
3,334
(Yen) 200.00
160.00
6.5%
7.3% 7.7%
6.9%
7.9%
9.0%
10.0%
9.0%
8.0%
2,000
1,511
1,728 1,834 2,060
2,336
1,728
1,419
1,978 1,893 2,040
2,350 2,414
120.00
3.4%
4.7% 4.7% 5.2%
5.8%
79.37
6.3%
127.14 141.55
118.37 118.06
165.637.0%
6.0%
5.0%
1,000
1,291
1,077 1,157
1,189 1,222 1,315 1,410
1,595 1,635 1,667
1,755
1,767
1,919
80.00
2.6%
2.9% 2.8% 3.3%
66.29
92.41 94.88
4.0%
3.0%
1,400
1,066
40.00
2.8%
55.25 56.59 3.2% 2.9% 3.2% 3.1% 3.3% 2.8% 3.2% 3.2% 3.5%
2.0%
824 844 700 787 1,025
0
0.00
36.36 31.27
1.0%
0.0%
FYE FYE FYE FYE FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE FYE FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
FYE
Mar./14 Mar./15 Mar./16 Mar./17 Mar./18 Mar./19 Mar./20 Mar./21 Mar./22 Mar./23 Mar./24 Mar./25 Mar./26
Stock price BPS Net asset value (NAV) per shareMar./14 Mar./15 Mar./16 Mar./17 Mar./18 Mar./19 Mar./20 Mar./21 Mar./22 Mar./23 Mar./24 Mar./25 Mar./26
EPS ROE ROAMarket value of assets for leasing and other purposes *1
Indicators of financial discipline
376.8 388.9 420.1 421.2 439.8 423.1
339.5
363.5
244.2
26.4
268.7
41.7
286.4 289.6 316.3
111.5 116.7 128.4 136.5
112.4 112.2
62.0 70.3
85.6
103.3 119.4
217.8 227.0 224.4 219.2
230.6 236.2 244.0 264.4 276.7 308.6 304.4 311.3 286.6
(Billions of yen) 500
400
300
200
100
0
(Times) 4.0
29.0% 31.0%
32.3% 33.3% 34.9% 32.5% 31.6%
31.1%
31.7%
30.0% 30.9% 28.1%28.1%
1.7
1.6
1.9 1.9
1.5
1.4
1.4
1.6
1.5
1.6
1.5
1.7
1.6
3.0
2.0
1.0
0.0
40.0%
30.0%
20.0%
10.0%
0.0%
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Mar./14 Mar./15 Mar./16 Mar./17 Mar./18 Mar./19 Mar./20 Mar./21 Mar./22 Mar./23 Mar./24 Mar./25 Mar./26
Book value Unrealized gainFYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Mar./14 Mar./15 Mar./16 Mar./17 Mar./18 Mar./19 Mar./20 Mar./21 Mar./22 Mar./23 Mar./24 Mar./25 Mar./26
Net Debt Equity Ratio Equity Ratio*1 For the fiscal year ended March 31, 2026, the book value of real estate, including income-generating properties that are not classified as assets for leasing and other purposes, was ¥300.4 billion,
with unrealized gain of ¥148.4 billion and market value of ¥448.9 billion. Net asset value per share amounted to ¥3,457.
*2 Net asset value per share is calculated as (net assets + after-tax unrealized gains on assets for leasing and other purposes) ÷ number of shares issued excluding treasury stock.
*3 Since the Company conducted a 2-for-1 stock split effective from July 1, 2025, the above indicators take this stock split into account.
Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2027Net sales are forecasted to increase mainly as a result of an increase in revenue from sales of properties in the Building Business. Operating profit and ordinary profit are forecasted to increase due to factors including an increase in hotel revenue and rent revisions, thereby expecting to reach record highs for the fourth consecutive year and the third consecutive years, respectively.
Profit attributable to owners of parent is forecasted to increase year on year primarily due to the recognition of gain on sale of investment securities resulting from the disposal of cross-shareholdings, thereby expecting to achieve record highs for the third consecutive year.
(Millions of yen)
Fiscal year ended March 31, 2026
Fiscal year ending March 31, 2027 (Forecast)
Year on year
Year on year (%)
Net sales
50,855
63,800
+12,944
+25.5
Building Business
46,236
58,900
+12,663
+27.4
Asset Management Business
4,619
4,900
+280
+6.1
Operating profit
15,109
15,800
+690
+4.6
Building Business
14,657
15,300
+642
+4.4
Asset Management Business
2,737
2,900
+162
+6.0
Intersegment eliminations
(2,284)
(2,400)
(115)
-
Ordinary profit
12,980
13,000
+19
+0.2
Profit attributable to owners of parent
11,032
11,500
+467
+4.2
EPS (yen) *
165.63
174.06
+8.43
+5.1
ROE (％)
9.0
8% or more
-
-
* Since the Company conducted a 2-for-1 stock split effective from July 1, 2025, the above indicators take this stock split into account.
Forecast of Consolidated Financial Results by Segment for the Fiscal Year Ending March 31, 2027Year-on-year differences in segment results
Building Business
(Millions of yen)
Fiscal year ended March 31, 2026
Fiscal year ending March 31, 2027
(Forecast)
Year on year
Year on year (%)
Main reasons for year-on-year differences in results
Net sales
46,236
58,900
+12,663
+27.4
Leasing revenue is forecasted to increase mainly as a result of an increase in hotel revenue primarily due to a full-year operation of Caption by Hyatt Kabutocho Tokyo and rent revisions
Revenue from sales of properties is forecasted to increase due to an increase in
sales of real estate for sale.
Leasing revenue
28,932
30,900
+1,967
+6.8
Hotel revenue
3,440
4,800
+1,359
+39.5
Revenue from sales of properties
15,675
26,400
+10,725
+68.4
Other
1,628
1,600
(28)
(1.8)
Operating profit
14,657
15,300
＋642
+4.4
(%)
1Q
2Q
3Q
Gain of sales of properties
5,967
6,000
＋32
＋0.5
Fiscal year ended March 31, 2026
18
18
29
Fiscal year ending March 31, 2027 (Forecast)
2
36
40
Leasing revenue
Increase in hotel revenue is expected to contribute about ¥1.4 billion to leasing revenue.
Rent revisions are expected to contribute about ¥0.5 billion to leasing revenue.
Contributions from properties acquired are expected to boost leasing revenue by about ¥0.4 billion.
Reduced periodic revenues, mainly resulting from sales of properties, are expected to reduce leasing revenue by about ¥0.4 billion
Revenue from sales of properties
Progress of gain on sales of properties
Asset Management Business
(Millions of yen)
Fiscal year ended March 31, 2026
Fiscal year ending March 31,
2027
(Forecast)
Year on year
Year on year (%)
Main reasons for year-on-year differences in results
Net sales
4,619
4,900
+280
+6.1
Asset management revenue
3,152
3,400
+247
+7.9
Brokerage commissions
1,466
1,500
+33
+2.3
Operating profit
2,737
2,900
+162
+6.0
Asset management revenue and brokerage commissions are expected to grow stable.
Disclaimer
- This document is not intended to solicit investment. Users of this document are requested to use their own judgment when making final decisions about investing.
- Information other than historical facts presented in this document are forward-looking statements that were formulated according to certain assumptions and were based on judgments by the Company's management in light of currently available information as of April 30, 2026. Therefore, these statements may differ significantly from results announced in the future due to a variety of factors. The Company assumes no responsibility for any losses resulting from the use of this document.
- The Company might revise the forward-looking statements contained in this document based on new information or future events; however, this document will not be updated.