October 31, 2025
Highlights During the Six Months Ended September 30, 2025
In the second quarter of the fiscal year ending March 31, 2026, the consolidated financial results show increases in net sales, operating profit,
＜Progress of Gains on Sales in Properties＞
and ordinary profit compared with the same period of the previous fiscal year mainly due to increased sales of properties, the rise in earnings from
【Fiscal year ended March 31, 2025】
【Fiscal year ending March 31, 2026】
the operations of the hotel, and revision of rent increase in the Building Business.
Profit attributable to owners of parent also increased compared with the same period of the previous fiscal year due to the reason described above as well as the recognition of gain on sale of investment securities resulting from the reduction of cross-shareholdings.
Construction work of the Odori-nishi 4 South, Type 1 District Redevelopment Project has commenced on October 1, 2025. The amount of investment Heiwa Real Estate Co., Ltd. (the "Company") plans to acquire as an association member is expected to be approximately 120 billion yen.
The hotel development project "Caption by Hyatt Kabutocho Tokyo" (with a total of 195 rooms) in Nihonbashi Kabutocho and Kayabacho opened on October 7, 2025.
% indicates the progress rate against the quarterly plan.
103%
100%
100%
Sapporo City and the Company concluded "The Partnership Agreement for Strengthening the Financial Ecosystem" on October 22, 2025, to promote the clustering of financial companies in Sapporo City, strengthen the financial ecosystem, and revitalize the economy.
1Q 2Q 3Q 4Q
PlanActual1Q 2Q 3Q 4Q
PlanActual
Consolidated Financial Results for the Six Months Ended September 30, 2025Net sales, operating profit, and ordinary profit were increased compared with the same period of the previous fiscal year mainly due to increased sales of properties, the rise in earnings from the operations of the hotel, and revision of rent increase in the Building Business.
Profit attributable to owners of parent also increased compared with the same period of the previous fiscal year due to the reason described above as well as the recognition of gain on sale of investment securities resulting from the reduction of cross-shareholdings.
(Millions of yen)
Six months ended September 30,
2024
Six months ended September 30,
2025
Year on year
Year on year (%)
Full-year forecast for the fiscal year ending March 31, 2026*1
Progress against full-year forecast*1 (%)
Net sales
18,761
21,820
+3,058
+16.3
49,000
44.5
Building Business
17,007
19,733
+2,725
+16.0
44,600
44.2
Asset Management Business
1,753
2,087
+333
+19.0
4,400
47.4
Operating profit
5,254
5,766
+512
+9.8
13,900
41.5
Building Business
5,293
5,597
+303
+5.7
13,700
40.9
Asset Management Business
1,016
1,276
+260
+25.6
2,500
51.1
Intersegment eliminations
(1,056)
(1,107)
(51)
-
(2,300)
-
Ordinary profit
4,581
4,831
+249
+5.5
11,700
41.3
Extraordinary income
-
1,764
+1,764
-
Extraordinary losses
8
2
(5)
(67.6)
Profit attributable to owners of parent
3,431
4,347
+916
+26.7
9,700
44.8
Earnings per share (EPS) (yen) *2
50.18
65.09
+14.91
+29.7
145.22
44.8
*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 Six Months Ended September 30, 2025Year-on-year differences in segment results
Building Business
(Millions of yen)
Six months ended September 30,
2024
Six months ended September 30,
2025
Year on year
Year on year (%)
Main reasons for year-on-year differences in results
Net sales
17,007
19,733
+2,725
+16.0
The increase in leasing revenue mainly reflected contributions due to the rise in
earnings from the operations of the hotel and from success in raising leasing amounts, as well as due to ORSUS series acquired in the previous fiscal year.
Note: The vacancy rate for the Group as a whole was 2.09% as of September 30, 2025.
Leasing revenue
13,637
14,028
+391
+2.9
Revenue from sales of properties
2,665
4,825
+2,160
+81.1
Other
705
879
+173
+24.6
Operating profit
5,293
5,597
+303
+5.7
revenue by about ¥0.2 billion.
Gains on sales of properties
828
1,059
+230
+27.9
The increase in sales of properties reflected an increase in sales of inventories. (Osaka
Office and Sapporo Office (part of the equity) were sold.)
Leasing revenue
Operations of the hotel contributed about ¥0.3 billion to leasing revenue.
Revision of rent increase contributed about ¥0.2 billion to leasing revenue.
Increased periodic revenues, mainly from acquired and newly built properties, contributed about ¥0.1 billion to leasing revenue.
Reduced periodic revenues, resulting mainly from sales of properties, reduced leasing
Revenue from sales of properties
Asset Management Business
(Millions of yen)
Six months ended September 30,
2024
Six months ended September 30,
2025
Year on year
Year on year (%)
Main reasons for year-on-year differences in results
Net sales
1,753
2,087
+333
+19.0
Asset management revenue
1,361
1,590
+228
+16.8
Brokerage commissions
392
496
+104
+26.6
Operating profit
1,016
1,276
+260
+25.6
The Asset Management Business saw an increase in revenue, mainly from higher asset management revenue and brokerage commissions.
Due to the payment of participation fee for the North 4 West 3, Type 1 District Redevelopment Project as well as the construction costs for Caption by Hyatt Kabutocho Tokyo, there was an increase in total assets. Total liabilities increased, reflecting a rise of interest-bearing liabilities and deferred tax liabilities.
(Millions of yen)
As of March 31,
2025
Six months ended September 30, 2025
Year on year
Main reasons for year-on-year differences in results
Total assets
419,541
432,377
+12,836
Current assets
60,036
55,978
(4,058)
The decreases in cash and deposits, as well as securities were mainly due to the payment of the participation fee for the North 4 West 3, Type 1 District Redevelopment Project and the payment of construction costs for Caption by Hyatt Kabutocho Tokyo.
Cash and deposits/Securities
25,341
20,504
(4,837)
Inventories (including operating investments in capital)
31,036
31,505
+468
Other current assets
3,658
3,968
+310
Non-current assets
359,177
376,097
+16,919
The increase in the payment of participation fee for the North 4 West 3, Type 1 District Redevelopment Project and the payment of construction costs for Caption by Hyatt Kabutocho Tokyo.
The increase was mainly due to an increase in the market valuation of investment securities.
Property, plant and equipment
282,350
291,730
+9,379
Intangible assets
31,164
31,131
(32)
Investments and other assets
45,662
53,235
+7,572
Deferred assets
326
301
(24)
Total liabilities and net assets
419,541
432,377
+12,836
Total liabilities
301,541
309,064
+7,522
The net debt-to-equity ratio is 1.9 as of September 30, 2025.
The increase in other liabilities was mainly due to the result of increase in deferred tax liabilities.
Interest-bearing liabilities
254,072
258,415
+4,343
Other liabilities
47,469
50,648
+3,179
Net assets
117,999
123,313
+5,314
The increase was mainly due to an increase in the market valuation of investment securities.
Shareholders' equity
86,749
87,478
+729
Valuation difference on available-for-sale securities
15,265
19,766
+4,500
Deferred gains or losses on hedges
54
139
+84
Revaluation reserve for land
15,928
15,928
-
Cash and deposits/Securities
Property, plant and equipment
Investments and other assets
Interest-bearing liabilities
Other 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, and long-term accounts payable-other.
Key Performance IndicatorsShare price*1,2
EPS, ROE, and ROA*2
(Yen) 4000
2,748 2,887 3,085
(Yen) 160.00
118.37 127.14
141.55 10.0%
3000
1,728 1,834
2,336
2,060
2,515 2,644 2,702
1,728 1,978 1,893 2,040
2,350
120.00
4.7% 4.7%
5.2% 5.8%
6.5% 6.3%
94.88
7.3% 7.7%
118.06
7.9%
6.9%
8.0%
6.0%
2000
1,511
1,157
1,291 1,189 1,222 1,315
1,077
1,410 1,419
1,595 1,635 1,667 1,755 1,767
80.00
3.4% 2.9%
55.25 56.59 66.29
79.37 92.41
4.0%
1000
1,400
40.00
2.6%
2.8%
2.8% 3.3% 3.2%
3.2% 3.1% 3.3%
3.2% 3.2%
2.0%
824 844
0
700
1,025 1,066
787
0.00
36.36 31.27
2.9%
2.8%
0.0%
FYE FYE
Mar/14 Mar/15
FYE
Mar/16
FYE FYE FYE
Mar/17 Mar/18 Mar/19
FYE
Mar/20
FYE
Mar/21
FYE
Mar/22
FYE
Mar/23
FYE
Mar/24
FYE
Mar/25
FYE FYE FYE
Mar/14 Mar/15 Mar/16
FYE
Mar/17
FYE
Mar/18
FYE
Mar/19
FYE
Mar/20
FYE
Mar/21
FYE
Mar/22
FYE
Mar/23
FYE
Mar/24
FYE
Mar/25
Market value of assets for leasing and other purposes
Indicators of financial discipline
420.1 421.2
339.5
244.2
26.4
268.7
41.7
286.4
62.0
289.6
70.3
316.3
85.6
103.3
363.5
119.4
376.8
112.4
388.9
112.2
111.5
116.7
439.8
128.4
308.6
217.8 227.0 224.4 219.2
230.6
236.2
244.0
264.4
276.7
304.4 311.3
(Billions of yen) 500
400
300
200
100
(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%28.5%
1.7
1.6
1.5
1.4
1.4
1.6
1.5
1.6
1.5
1.7
1.6
1.9 1.9
3.0
2.0
1.0
40.0%
30.0%
20.0%
10.0%
0
FYE
Mar/14
FYE
Mar/15
FYE
Mar/16
FYE FYE FYE FYE FYE
Mar/17 Mar/18 Mar/19 Mar/20 Mar/21
FYE
Mar/22
FYE
Mar/23
FYE
Mar/24
FYE
Mar/25
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 Sep/25
0.0%
*1 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.
*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.
Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2026Net sales are forecasted to increase year on year, mainly as a result of an increase in revenue from sales of properties in the Building Business.
Operating profit, ordinary profit, and profit attributable to owners of parent are forecasted to increase year on year and expected to reach record highs. This is due to an increase in gain on sales of properties in the Building Business and the recognition of gain on sale of investment securities resulting from the disposal of cross-shareholdings.
(Millions of yen) | Fiscal year ended March 31, 2025 | Fiscal year ending March 31, 2026 (Forecast) | Year on year | Year on year (%) | |
Net sales | 42,075 | 49,000 | +6,924 | +16.5 | |
Building Business | 37,997 | 44,600 | +6,602 | +17.4 | |
Asset Management Business | 4,078 | 4,400 | +321 | +7.9 | |
Operating profit | 13,196 | 13,900 | +703 | +5.3 | |
Building Business | 13,010 | 13,700 | +689 | +5.3 | |
Asset Management Business | 2,355 | 2,500 | +144 | +6.1 | |
Intersegment eliminations | (2,169) | (2,300) | (130) | - | |
Ordinary profit | 11,651 | 11,700 | +48 | +0.4 | |
Profit attributable to owners of parent | 9,565 | 9,700 | +134 | +1.4 | |
EPS (yen)* | 141.55 | 145.22 | +3.67 | +2.6 | |
* 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 EndingMarch 31, 2026
Year-on-year differences in segment results
Building Business
(Millions of yen)
Fiscal year ended March 31, 2025
Fiscal year ending March 31, 2026
(Forecast)
Year on year
Year on year (%)
Main reasons for year-on-year differences in results
Net sales
37,997
44,600
+6,602
+17.4
Leasing revenue is forecasted to increase mainly on an increase in hotel revenues due to the opening of Caption by Hyatt Kabutocho Tokyo.
reduce leasing revenue by about ¥0.4 billion
Leasing revenue
27,517
28,200
+682
+2.5
Revenue from sales of properties
8,965
14,900
+5,935
+66.2
Other
1,514
1,500
(14)
(1.0)
Operating profit
13,010
13,700
+689
+5.3
Revenue from sales of properties is forecasted to increase due to an increase in
Gains on sales of properties
4,519
5,900
+1,380
+30.5
sales of real estate for sale.
Leasing revenue
Increase in hotel revenues is expected to contribute about ¥0.9 billion to leasing revenue.
Revision of rent increase is expected to contribute about ¥0.1 billion to leasing revenue.
Contributions from properties acquired in the previous fiscal year are expected to boost leasing revenue by about ¥0.1 billion.
Reduced periodic revenues, mainly resulting from sales of properties, are expected to
Revenue from sales of properties
Leasing profit
Leasing profit is forecasted to decrease mainly due to a recording of opening costs of Caption by Hyatt Kabutocho Tokyo and a decrease of period revenue associated with sales of properties.
Asset Management Business
(Millions of yen)
Fiscal year ended March 31, 2025
Fiscal year ending March 31, 2026
(Forecast)
Year on year
Year on year (%)
Main reason for year-on-year differences in results
Net sales
4,078
4,400
+321
+7.9
Asset management revenue
2,781
2,900
+118
+4.3
Brokerage commissions
1,296
1,500
+203
+15.7
Operating profit
2,355
2,500
+144
+6.1
Asset management revenue and brokerage commissions are expected to grow stable.
- 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 October 31, 2025. 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.