Nomura Real Estate Holdings, Inc. TSE:3231

Nomura Real Estate : FY2026/3 Annual Results (Fiscal year ended March 31, 2026)

Published

Source: MarketScreener

April 24, 2026

Consolidated Financial ResultsFor the Fiscal Year Ended March 31, 2026

Note: The accompanying consolidated financial statements were not audited since they have been prepared only for reference purpose. All statements were

based on Tanshin report prepared in accordance with the provisions set forth in accounting regulations and principles generally accepted in Japan.

Name of company listed: Nomura Real Estate Holdings, Inc.

Shares traded: TSE

Code number: 3231

URL: https://www.nomura-re-hd.co.jp/english/

Representative: Satoshi Arai, President and Representative Director

Inquiries: Yoshiro Arima,

General Manager, Corporate Communications Dept.

Email: [email protected]

Scheduled date of Ordinary General Meeting of Shareholders: Scheduled starting date for dividend payments:

Scheduled submitting date of securities report:

June 25, 2026

June 4, 2026

June 23, 2026

Preparation of explanatory materials for financial results: No

Information meetings arranged related to financial results: Yes (for institutional investors and analysts)

(Values of less than one million yen rounded down)

  1. I. Consolidated operating results for the fiscal year from April 1, 2025 to March 31, 2026

    1. Consolidated business results

      (% indicate the rate of changes from previous fiscal term)

      Operating revenue

      Operating profit

      Business profit

      Ordinary profit

      Profit attributable to owners of parent

      Fiscal year ended

      Millions of yen

      %

      Millions of yen

      %

      Millions of yen

      %

      Millions of yen

      %

      Millions of yen

      %

      Mar. 31, 2026

      942,505

      24.4

      138,242

      16.2

      147,384

      17.8

      124,807

      16.9

      82,880

      10.8

      Mar. 31, 2025

      757,638

      3.1

      118,958

      6.1

      125,104

      10.1

      106,740

      8.6

      74,835

      9.8

      (Note) Comprehensive income: Fiscal year ended March 31, 2026 : 88,206 million yen (down 3.0%)

      Fiscal year ended March 31, 2025 : 90,944 million yen (up 36.7%)

      (Note) Business profit = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of intangible assets associated with corporate acquisitions + gain or loss on sale of equity interest in project companies (*1) in the Overseas Business Unit (*2)

      *1 They refer to SPCs, etc. which are mainly engaged in holding/development of real estate.

      *2 “Gain or loss on sale of equity interest in project companies in the Overseas Business Unit” has been added to the definition of business profit. The change to this definition has been applied from the fiscal year ended March 31, 2025.

      (Note) The rate of changes from previous fiscal year in business profit for the previous fiscal year has also been calculated based on this definition.

      Basic earnings per share

      Diluted earnings per share

      Return on equity

      Ordinary profit

      margin on total assets

      Operating profit margin

      Fiscal year ended

      Yen

      Yen

      %

      %

      %

      Mar. 31, 2026

      96.69

      96.67

      10.7

      4.5

      14.7

      Mar. 31, 2025

      86.77

      86.69

      10.4

      4.3

      15.7

      (Reference) Share of profit (loss) of entities accounted for using equity method: Fiscal year ended March 31, 2026 : 6,877 million yen

      Fiscal year ended March 31, 2025 : 5,008 million yen (Note) Nomura Real Estate Holdings, Inc. (the “Company”) conducted a stock split at a ratio of five shares for every one share of

      common stock on April 1, 2025. “Basic earnings per share” and “Diluted earnings per share” have been calculated based on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

    2. Consolidated financial position

      Total assets

      Net assets

      Shareholders’ equity ratio

      Net assets per share

      As of

      Millions of yen

      Millions of yen

      %

      Yen

      Mar. 31, 2026

      2,811,989

      802,729

      28.5

      938.08

      Mar. 31, 2025

      2,686,569

      751,439

      27.9

      873.40

      (Reference) Shareholders’ equity: As of March 31, 2026 : 801,312 million yen As of March 31, 2025 : 750,048 million yen (Note) The Company conducted a stock split at a ratio of five shares for every one share of common stock on April 1, 2025. “Net

      assets per share” has been calculated based on the assumption that the stock split was conducted at the beginning of the

      previous fiscal year.

    3. Consolidated cash flows

      Cash flows from (used in) operating activities

      Cash flows from (used in) investing activities

      Cash flows from (used in) financing activities

      Cash and cash equivalents at end of

      period

      Fiscal year ended

      Millions of yen

      Millions of yen

      Millions of yen

      Millions of yen

      Mar. 31, 2026

      44,906

      (59,067)

      15,643

      36,842

      Mar. 31, 2025

      (133,793)

      (203,364)

      318,459

      35,894

  2. Dividends

    Dividend per share

    Total amount of dividends (Annual)

    Payout ratio (Consolidated)

    Dividend on equity (Consolidated)

    1st quarter

    end

    2nd quarter

    end

    3rd quarter

    end

    Fiscal year

    end

    Total

    Fiscal year ended

    Yen

    Yen

    Yen

    Yen

    Yen

    Millions of yen

    %

    %

    Mar. 31, 2025

    -

    82.50

    -

    87.50

    170.00

    29,777

    39.2

    4.1

    Mar. 31, 2026

    -

    18.00

    -

    22.00

    40.00

    34,929

    41.4

    4.5

    Mar. 31, 2027

    (Forecast)

    -

    22.00

    -

    22.00

    44.00

    43.7

    (Notes)1. The total amount of dividends includes the amount of dividends paid to BIP (Board Incentive Plan) trust and the ESOP (Employee Stock Ownership Plan) trust for granting stock (472 million yen in the fiscal year ended March 31, 2025 and 703 million yen in the fiscal year ended March 31, 2026)

    2. The Company conducted a stock split at a ratio of five shares for every one share of common stock on April 1, 2025. The

    amounts shown for the fiscal year ended March 31, 2025 are the actual amount of dividends paid before the stock split.

  3. Forecasts of consolidated operating results for the fiscal year from April 1, 2026 to March 31, 2027

(% indicates the rate of changes from previous fiscal year)

Operating revenue

Operating profit

Business profit

Ordinary profit

Profit attributable to owners of parent

Basic earnings per share

Fiscal year ending

Millions

of yen

%

Millions

of yen

%

Millions

of yen

%

Millions

of yen

%

Millions

of yen

%

Yen

Mar. 31, 2027

1,080,000

14.6

140,000

1.3

150,000

1.8

125,000

0.2

86,000

3.8

100.68

  • Notes

    1. Significant changes in the scope of consolidation during the period: None

    2. Changes in accounting policies, changes in accounting estimates and restatements

      1. Changes in accounting policies due to revision of accounting standards, etc. : None

      2. Changes in accounting policies other than the above : None

      3. Changes in accounting estimates : None

      4. Restatements : None

    3. Number of shares issued (common stock)

      1. Number of shares issued at end of period (including treasury shares)

        As of Mar. 31 As of Mar. 31 2026 2025

        917,927,685 917,388,185

      2. Treasury shares at end of period 63,725,878 58,618,355

        Fiscal year ended March 31, 2026

        Fiscal year ended March 31, 2025

      3. Average number of shares outstanding during the period

857,167,445 862,447,528

(Note) 1. The Company conducted a stock split at a ratio of five shares for every one share of common stock on April 1, 2025. The number of shares issued (common stock) has been calculated based on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

2. The number of treasury shares at end of each period includes the Company’s shares owned by BIP trust and ESOP trust (19,062,378 shares as of March 31, 2026 and 13,955,135 shares as of March 31, 2025). The Company’s shares owned by BIP trust and ESOP trust are included in the number of treasury shares deducted in the calculation of average number of shares outstanding during the period (15,956,184 shares in the fiscal year ended March 31, 2026 and 14,206,752 shares in the fiscal year ended March 31, 2025).

  • This Consolidated Financial Results is not required to be audited by certified public accountants or audit corporations.

  • Proper use of forecasts of operating results, and other special matters

    1. Forward-looking statements in this document, including the forecasts of financial results, etc., are based on the information currently available to the Company and certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges to realize such statements. Actual performance and other results may differ materially from these forecasts due to various factors. For matters related to the forecasts of financial results, please refer to “1. Business Results and Financial Position (3) Consolidated Operating Result Forecasts” on page 4 of the Attachments.

      Attachments- Contents

      1. Business Results and Financial Position 2

        1. Overview of the Current Business Results 2

        2. Overview of the Current Financial Position 3

        3. Consolidated Operating Results Forecasts 4

        4. Basic Policy regarding Profit Distribution and Dividends for the Current and Next Fiscal Year 5

      2. Group Companies 6

      3. Basic Policies for Selecting Accounting Standards 8

      4. Consolidated Financial Statements and Notes 9

        1. Consolidated Balance Sheets 9

        2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 11

          (Consolidated Statements of Income) 11

          (Consolidated Statements of Comprehensive Income) 12

        3. Consolidated Statements of Changes in Shareholders' Equity 13

        4. Consolidated Statements of Cash Flows 15

        5. Notes to Consolidated Financial Statements 17

      (Notes to Going Concern Assumptions) 17

      (Notes to Consolidated Statements of Income) 17

      (Real Estate for Rent) 17

      (Segment Information, etc.) 18

      (Per Share Information) 20

      (Significant Subsequent Events) 21

      1. Business Results and Financial Position

        1. Overview of the Current Business Results

          The Nomura Real Estate Group (the “Group”) posted the following consolidated performance for the fiscal year ended March 31, 2026: Operating revenue of 942,505 million yen, which represents an increase of 184,866 million yen, or 24.4% year on year; operating profit of 138,242 million yen, an increase of 19,284 million yen, or 16.2%; business profit of 147,384 million yen, an increase of 22,280 million yen, or 17.8%; ordinary profit of 124,807 million yen, an increase of 18,067 million yen, or 16.9%; and profit attributable to owners of parent of 82,880 million yen, an increase of 8,045 million yen, or 10.8%.

          (Note) Business profit = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of intangible assets associated with corporate acquisitions + gain or loss on sale of equity interest in project companies (*1) in the Overseas Business Unit

          *1 They refer to SPCs, etc. which are mainly engaged in holding/development of real estate. An overview of business unit achievements is given below:

          (Notes) 1. Operating revenue for each business unit includes internal sales and transfer amount among business units.

      2. Total figures may not match due to the rounding of fractions.

      3. On September 1, 2025, a merger was completed between Nomura Real Estate Partners Co., Ltd., which became the surviving company, and Nomura Real Estate Amenity Service Co., Ltd., which became the dissolving company.

      1. Residential Development Business Unit

        Operating revenue in this Business Unit totaled 433,408 million yen, which represents an increase of 64,951 million yen, or 17.6% year on year, and business profit totaled 61,736 million yen, an increase of 12,953 million yen, or 26.6%, resulting in increases in both operating revenue and business profit compared with the financial results of the fiscal year ended March 31, 2025.

      2. Commercial Real Estate Business Unit

        Operating revenue in this Business Unit totaled 324,789 million yen, which represents an increase of 111,439 million yen, or 52.2% year on year, and business profit totaled 53,987 million yen, an increase of 12,373 million yen, or 29.7%, resulting in increases in both operating revenue and business profit compared with the financial results of the fiscal year ended March 31, 2025.

      3. Overseas Business Unit

        Operating revenue in this Business Unit totaled 3,718 million yen, which represents a decrease of 5,683 million, or 60.5% yen year on year, and business profit totaled 2,792 million yen, a decrease of 3,827 million yen, or 57.8% year on year, resulting in decreases in both operating revenue and business profit compared with the financial results of the fiscal year ended March 31, 2025. Share of profit of entities accounted for using equity method included in the business profit in this Business Unit was 6,616 million yen and gain on sale of equity interest in project companies was 858 million yen.

      4. Investment Management Business Unit

        Operating revenue in this Business Unit totaled 16,340 million yen, which represents an increase of 746 million yen, or 4.8% year on year, and business profit totaled 10,575 million yen, an increase of 718 million yen, or 7.3%, resulting in increases in both operating revenue and business profit compared with the financial results of the fiscal year ended March 31, 2025.

      5. Property Brokerage & CRE Business Unit

        Operating revenue in this Business Unit totaled 64,363 million yen, which represents an increase of 7,175 million yen, or 12.5% year on year, and business profit totaled 18,994 million yen, an increase of 2,421 million yen, or 14.6%, resulting in increases in both operating revenue and business profit compared with the financial results of the fiscal year ended March 31, 2025.

      6. Property & Facility Management Business Unit

        Operating revenue in this Business Unit totaled 129,869 million yen, which represents an increase of 15,980 million yen, or 14.0% year on year, and business profit totaled 13,526 million yen, an increase of 1,585 million yen, or 13.3%, resulting in increases in both operating revenue and business profit compared with the financial results of the fiscal year ended March 31, 2025.

      7. Other

      Operating revenue totaled 280 million yen, which represents a decrease of 1 million yen, or 0.7% year on year, and business profit totaled 94 million yen, which represents a decrease of 41 million yen, or 30.7% year on year.

      1. Overview of the Current Financial Position

        As of March 31, 2025 (Millions of yen)

        As of March 31, 2026 (Millions of yen)

        Changes (Millions of yen)

        Changes

        Total assets

        2,686,569

        2,811,989

        125,419

        4.7%

        Total liabilities

        1,935,129

        2,009,259

        74,130

        3.8%

        [Of which, Interest-bearing debt]

        [1,545,305]

        [1,599,365]

        [54,059]

        3.5%

        Net assets

        751,439

        802,729

        51,289

        6.8%

        Shareholders’ equity ratio

        27.9%

        28.5%

        -

        -

        D/E ratio

        2.1

        2.0

        -

        -

        (Note) D/E (Debt-to-Equity) ratio = Interest-bearing debt / Shareholders’ equity

        1. Total Assets

          Total assets were 2,811,989 million yen, which represents an increase of 125,419 million yen compared to the end of the previous fiscal year. This increase was mainly because real estate for sale increased by 134,178 million yen and investment securities by 56,379 million yen, while land decreased by 90,536 million yen.

        2. Total liabilities

          Total liabilities were 2,009,259 million yen, which represents an increase of 74,130 million yen compared to the end of the previous fiscal year. This increase was mainly because long-term borrowings increased by 160,226 million yen, while short-term borrowings decreased by 69,166 million yen and commercial papers by 34,000 million yen.

        3. Net assets

          Net assets were 802,729 million yen, which represents an increase of 51,289 million yen compared to the end of the previous fiscal year. This increase was mainly because retained earnings increased by 51,889 million yen and remeasurements of defined benefit plans by 4,658 million yen, while treasury shares decreased by 6,137 million yen.

          The shareholders’ equity ratio was 28.5%, an increase of 0.6 percentage point from the end of the previous fiscal year.

        4. Cash Flows

          Cash and cash equivalents as of March 31, 2026 totaled 36,842 million yen, which represents an increase of 947 million yen compared to the end of the previous fiscal year.

          Net cash provided by operating activities amounted to 44,906 million yen. This was mainly due to an increase in cash inflow from profit before income taxes (109,478 million yen), despite increases in cash outflows from inventories (40,354 million yen) and income taxes paid (37,718 million yen).

          Net cash used in investing activities amounted to 59,067 million yen. This was mainly due to cash outflows from purchase of property, plant and equipment and intangible assets (69,165 million yen) and purchase of investment securities (48,673 million yen), despite an increase in a cash inflow from proceeds from sale of property, plant and equipment and intangible assets (39,147 million yen).

          Net cash provided by financing activities amounted to 15,643 million yen. This was mainly due to a cash inflow from proceeds from long-term borrowings (239,824 million yen), despite cash outflows mainly from repayments of long-term borrowings (124,139 million yen) and decrease of commercial papers (34,000 million yen).

      2. Consolidated Operating Results Forecasts

        1. Consolidated Forecasts

          Forecasts of consolidated operating results for the fiscal year ending March 31, 2027 are as follows:

          FY2026/3

          (From April 1, 2025

          to March 31, 2026)

          FY2027/3

          (From April 1, 2026

          to March 31, 2027) forecast

          Changes

          Operating revenue (Millions of

          yen)

          942,505

          1,080,000

          137,494

          Operating profit (Millions of yen)

          138,242

          140,000

          1,757

          Business profit (Millions of yen)

          147,384

          150,000

          2,615

          Ordinary profit (Millions of yen)

          124,807

          125,000

          192

          Profit attributable to owners of

          parent (Millions of yen)

          82,880

          86,000

          3,119

          Basic earnings per share (Yen)

          96.69

          100.68

          3.99

        2. By segment

          FY2026/3

          (From April 1, 2025

          to March 31, 2026) (Millions of yen)

          FY2027/3

          (From April 1, 2026

          to March 31, 2027) forecast

          (Millions of yen)

          Changes (Millions of yen)

          Residential Development

          433,408

          500,000

          66,591

          Commercial Real Estate

          324,789

          370,000

          45,210

          Overseas

          3,718

          4,000

          281

          Investment Management

          16,340

          25,000

          8,659

          Property Brokerage & CRE

          64,363

          68,000

          3,636

          Property & Facility

          Management

          129,869

          133,000

          3,130

          Other

          280

          0

          (280)

          Adjustments

          (30,264)

          (20,000)

          10,264

          Total

          942,505

          1,080,000

          137,494

          Forecasts for the fiscal year ending March 31, 2027 by segment are as follows: Operating revenue

          Business profit

          FY2026/3

          (From April 1, 2025

          to March 31, 2026) (Millions of yen)

          FY2027/3

          (From April 1, 2026

          to March 31, 2027) forecast

          (Millions of yen)

          Changes (Millions of yen)

          Residential Development

          61,736

          69,000

          7,263

          Commercial Real Estate

          53,987

          52,000

          (1,987)

          Overseas

          2,792

          0

          (2,792)

          Investment Management

          10,575

          11,500

          924

          Property Brokerage & CRE

          18,994

          19,000

          5

          Property & Facility

          Management

          13,526

          9,500

          (4,026)

          Other

          94

          0

          (94)

          Adjustments

          (14,323)

          (11,000)

          3,323

          Total

          147,384

          150,000

          2,615

      3. Basic Policy regarding Profit Distribution and Dividends for the Current and Next Fiscal Years

      The Group has set the year-end dividend for the fiscal year ended March 31, 2026 at 22.0 per share, as announced on January 28, 2026. Combined with the interim dividend already paid, the annual dividend will be 40.0 yen per share. As a result, the dividend payout ratio for this fiscal year is 41.4%

      Under the Long-term Management Policy, which was formulated in April 2025, the Company set financial policies of the total return ratio to be 40-50% and of setting a level that meets DOE of 4% as the lower limit for annual dividend. Based on these policies, the Company intends to set both the interim dividend and the year-end dividend for the next fiscal year ending March 31, 2027 at 22.0 yen per share; therefore, the annual dividend is expected to be 44.0 yen per share.

      (Note) DOE = annual dividend / average shareholders’ equity during the period

    2. Group Companies

      As of the end of this fiscal year, the Group comprises the Company and 112 affiliated companies (44 consolidated subsidiaries, and 68 unconsolidated subsidiaries accounted for using the equity method and affiliates). The main businesses of the major consolidated subsidiaries are given below.

      ･Nomura Real Estate Development Co., Ltd. is engaged in the development and sale of condominiums, detached housing, and rental housing, the development of senior housing, and the development of hotels.

      ･Nomura Real Estate Wellness Co., Ltd. is engaged in the planning and operation of senior housing.

      ･Nomura Real Estate Hotels Co., Ltd. is engaged in the planning and operation of hotels.

      ･UDS Ltd. is engaged in the planning, design and construction of real estates, and the operation of hotels and other properties.

      ･OKINAWA UDS Ltd. is engaged in the operation of hotels.

      ･PRIME X Co., Ltd. operates as an internet advertising agency.

      ･First Living Assistance Co., Ltd. provides emergency response services for homes and buildings.

      ･Nomura Real Estate Development Co., Ltd. is engaged in the development, leasing, and sale of office buildings, retail facilities, logistic facilities and other properties, and also in the entrusted management of office buildings and logistic facilities. The company is also involved in the planning and management of construction work.

      ･Nomura Real Estate Life & Sports Co., Ltd. is engaged in the management of fitness club business.

      ･Nomura Real Estate Retail Properties Co., Ltd. provides contract services for planning and operation of retail facilities.

      ･Nomura Real Estate Development Co., Ltd. is engaged in the development and sale of condominiums and detached housing, and the development and leasing of offices buildings and other properties.

      ･ZEN PLAZA CO., Ltd. is engaged in leasing business of office building in Vietnam (Ho Chi Minh City).

      ･Nomura Real Estate Asset Management Co., Ltd. provides asset management services including real estate investment trusts (REITs), private funds, and real estate securitization products.

      Nomura Real Estate Development Co., Ltd. has equity interest in funds managed by Nomura Real Estate Asset Management Co., Ltd.

      ･Nomura Real Estate Solutions Co., Ltd. is engaged in real estate brokerage and consulting business, as well as the insurance agency business.

      ･Nomura Real Estate Partners Co., Ltd. is engaged in the operation and management of condominiums and office buildings, as well as contract work for repair and tenant constructions associated with management, and is also engaged in operations in renovation business.

      ･Nomura Real Estate Heating and Cooling Supply Co., Ltd. operates a local cooling and heat supply business in Yokohama Business Park (Hodogaya-ku, Yokohama City, Kanagawa) and a solar power generation business utilizing logistics facilities managed by the Group.

      ･Nomura Real Estate Development Co., Ltd. is engaged in the sale and leasing of land and buildings. The matters described above are shown in the following systematic business diagram.

      Nomura Real Estate Holdings, Inc.

      Management Guidance

      Nomura Real Estate Development Co., Ltd.

      Nomura Real

      Estate Solutions Co., Ltd.

      Nomura Real

      Estate Partners Co., Ltd.

      Nomura Real

      Estate Development Co., Ltd.

      Nomura Real

      Estate Wellness

      Co., Ltd.

      Nomura Real Estate Hotels Co., Ltd.

      Nomura Real

      Estate Life & Sports Co., Ltd.

      Nomura Real Estate Retail Properties Co., Ltd.

      ZEN PLAZA

      Co., Ltd.

      Nomura Real

      Estate Asset Management Co., Ltd.

      Nomura Real Estate Heating and Cooling Supply

      Co., Ltd.

      UDS Ltd.

      OKINAWA

      UDS Ltd.

      PRIME X

      Co., Ltd.

      First Living Assistance Co., Ltd.

      Other

Property & Facility Management Business Unit

Property Brokerage & CRE Business Unit

Investment Management Business Unit

Overseas Business Unit

Commercial Real Estate Business Unit

Residential Development Business Unit

    1. Basic Policies for Selecting Accounting Standards

    The Group creates consolidated financial statements in accordance with the Japanese standards taking account of comparability of the consolidated financial statements over different accounting periods and between companies. The Group will adopt International Accounting Standards, as appropriate, considering shareholder composition and the movement of other domestic companies in the industry.

    2. Consolidated Financial Statements and Notes

    1. Consolidated Balance Sheets

      (Millions of yen)

      As of March 31, 2025

      As of March 31, 2026

      Assets

      Current assets

      Cash and deposits

      37,265

      38,288

      Notes and accounts receivable - trade, and contract

      assets

      32,432

      38,199

      Real estate for sale

      527,417

      661,595

      Real estate for sale in process

      370,730

      376,640

      Land held for development

      264,096

      272,873

      Equity investments

      103,060

      131,545

      Other

      149,582

      128,386

      Allowance for doubtful accounts

      (22)

      (16)

      Total current assets

      1,484,563

      1,647,512

      Non-current assets

      Property, plant and equipment

      Buildings and structures

      546,472

      501,265

      Accumulated depreciation

      (225,717)

      (211,543)

      Buildings and structures, net

      320,755

      289,722

      Land

      513,933

      423,396

      Other

      78,126

      80,680

      Accumulated depreciation

      (22,565)

      (21,493)

      Other, net

      55,561

      59,186

      Total property, plant and equipment

      890,250

      772,305

      Intangible assets

      36,278

      38,815

      Investments and other assets

      Investment securities

      189,916

      246,296

      Leasehold and guarantee deposits

      36,880

      41,892

      Deferred tax assets

      21,666

      21,602

      Retirement benefit asset

      —

      13,700

      Other

      27,624

      30,645

      Allowance for doubtful accounts

      (611)

      (782)

      Total investments and other assets

      275,476

      353,355

      Total non-current assets

      1,202,005

      1,164,476

      Total assets

      2,686,569

      2,811,989

      (Millions of yen)

      As of March 31, 2025

      As of March 31, 2026

      Liabilities

      Current liabilities

      Notes and accounts payable - trade

      94,382

      87,759

      Short-term borrowings

      211,799

      142,632

      Commercial papers

      110,000

      76,000

      Current portion of bonds payable

      30,000

      —

      Income taxes payable

      19,733

      20,550

      Deposits received

      21,330

      32,427

      Provision for bonuses

      15,829

      17,486

      Provision for bonuses for directors (and other

      officers)

      656

      803

      Other

      96,890

      79,541

      Total current liabilities

      600,622

      457,202

      Non-current liabilities

      Bonds payable

      140,000

      167,000

      Long-term borrowings

      1,053,505

      1,213,732

      Leasehold and guarantee deposits received

      63,338

      70,034

      Deferred tax liabilities

      43,497

      34,763

      Deferred tax liabilities for land revaluation

      4,021

      4,021

      Provision for share awards

      6,624

      7,293

      Retirement benefit liability

      5,848

      12,089

      Other

      17,671

      43,121

      Total non-current liabilities

      1,334,506

      1,552,056

      Total liabilities

      1,935,129

      2,009,259

      Net assets

      Shareholders' equity

      Share capital

      119,706

      119,836

      Capital surplus

      115,712

      115,843

      Retained earnings

      519,307

      571,197

      Treasury shares

      (36,220)

      (42,357)

      Total shareholders' equity

      718,506

      764,519

      Accumulated other comprehensive income

      Valuation difference on available-for-sale

      securities

      4,038

      8,268

      Deferred gains or losses on hedges

      2,822

      911

      Revaluation reserve for land

      7,761

      7,761

      Foreign currency translation adjustment

      10,658

      8,932

      Remeasurements of defined benefit plans

      6,260

      10,918

      Total accumulated other comprehensive income

      31,542

      36,792

      Share acquisition rights

      130

      6

      Non-controlling interests

      1,260

      1,411

      Total net assets

      751,439

      802,729

      Total liabilities and net assets

      2,686,569

      2,811,989

    2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Consolidated Statements of Income)

      (Millions of yen)

      Fiscal year ended March 31, 2025

      Fiscal year ended March 31, 2026

      Operating revenue

      757,638

      942,505

      Operating costs

      ※１ 491,037

      ※１ 639,923

      Operating gross profit

      266,601

      302,581

      Selling, general and administrative expenses

      147,643

      164,339

      Operating profit

      118,958

      138,242

      Non-operating income

      Interest income

      195

      236

      Dividend income

      137

      131

      Share of profit of entities accounted for using equity

      method

      5,008

      6,877

      Other

      558

      914

      Total non-operating income

      5,899

      8,160

      Non-operating expenses

      Interest expenses

      15,851

      18,856

      Other

      2,265

      2,738

      Total non-operating expenses

      18,117

      21,595

      Ordinary profit

      106,740

      124,807

      Extraordinary income

      Gain on sale of non-current assets

      —

      17,351

      Gain on sale of investment securities

      —

      858

      Other

      —

      1,287

      Total extraordinary income

      —

      19,497

      Extraordinary losses

      Impairment losses

      417

      20,073

      Loss on building reconstruction

      2,033

      14,753

      Total extraordinary losses

      2,450

      34,826

      Profit before income taxes

      104,289

      109,478

      Income taxes - current

      33,682

      37,874

      Income taxes - deferred

      (4,344)

      (11,352)

      Total income taxes

      29,337

      26,521

      Profit

      74,951

      82,956

      Profit attributable to non-controlling interests

      116

      75

      Profit attributable to owners of parent

      74,835

      82,880

      (Consolidated Statements of Comprehensive Income)

      (Millions of yen)

      Fiscal year ended March 31, 2025

      Fiscal year ended March 31, 2026

      Profit

      74,951

      82,956

      Other comprehensive income

      Valuation difference on available-for-sale securities

      (1,271)

      4,230

      Deferred gains or losses on hedges

      7,116

      (1,911)

      Revaluation reserve for land

      (114)

      (0)

      Foreign currency translation adjustment

      6,759

      (43)

      Remeasurements of defined benefit plans, net of tax

      4,181

      4,658

      Share of other comprehensive income of entities

      accounted for using equity method

      (678)

      (1,683)

      Total other comprehensive income

      15,992

      5,250

      Comprehensive income

      90,944

      88,206

      Comprehensive income attributable to

      Comprehensive income attributable to owners of

      parent

      90,828

      88,130

      Comprehensive income attributable to non-controlling

      interests

      115

      75

    3. Consolidated Statements of Changes in Shareholders' Equity FY2025/3 (From April 1, 2024 to March 31, 2025)

      (Millions of yen)

      Shareholders' equity

      Share capital

      Capital surplus

      Retained earnings

      Treasury shares

      Total shareholders' equity

      Balance at beginning of period

      119,479

      115,653

      472,152

      (31,903)

      675,381

      Changes during period

      Issuance of new shares

      226

      226

      453

      Dividends of surplus

      (27,680)

      (27,680)

      Profit attributable to owners of parent

      74,835

      74,835

      Purchase of treasury shares

      (4,999)

      (4,999)

      Disposal of treasury shares

      683

      683

      Change in ownership interest

      of parent due to transactions with non-controlling interests

      (166)

      (166)

      Net changes in items other than shareholders' equity

      —

      Total changes during period

      226

      59

      47,155

      (4,316)

      43,125

      Balance at end of period

      119,706

      115,712

      519,307

      (36,220)

      718,506

      Accumulated other comprehensive income

      Share acquisition rights

      Non-controlling interests

      Total net assets

      Valuation difference on available-

      for-sale securities

      Deferred gains or losses on hedges

      Revaluation reserve for land

      Foreign currency translation adjustment

      Remeasure ments of defined benefit plans

      Total accumulated other comprehensive income

      Balance at beginning of period

      5,309

      (4,293)

      7,876

      4,576

      2,079

      15,548

      355

      1,154

      692,440

      Changes during period

      Issuance of new shares

      453

      Dividends of surplus

      (27,680)

      Profit attributable to owners of parent

      74,835

      Purchase of treasury shares

      (4,999)

      Disposal of treasury shares

      683

      Change in ownership interest

      of parent due to transactions with non-controlling interests

      (166)

      Net changes in items other than shareholders' equity

      (1,271)

      7,116

      (114)

      6,082

      4,181

      15,993

      (224)

      105

      15,874

      Total changes during period

      (1,271)

      7,116

      (114)

      6,082

      4,181

      15,993

      (224)

      105

      58,999

      Balance at end of period

      4,038

      2,822

      7,761

      10,658

      6,260

      31,542

      130

      1,260

      751,439

      FY2026/3 (From April 1, 2025 to March 31, 2026)

      (Millions of yen)

      Shareholders' equity

      Share capital

      Capital surplus

      Retained earnings

      Treasury shares

      Total shareholders' equity

      Balance at beginning of period

      119,706

      115,712

      519,307

      (36,220)

      718,506

      Changes during period

      Issuance of new shares

      130

      130

      260

      Dividends of surplus

      (30,990)

      (30,990)

      Profit attributable to owners of parent

      82,880

      82,880

      Purchase of treasury shares

      (8,197)

      (8,197)

      Disposal of treasury shares

      2,060

      2,060

      Change in ownership interest of parent due to transactions with non-controlling interests

      —

      Net changes in items other than shareholders' equity

      —

      Total changes during period

      130

      130

      51,889

      (6,137)

      46,012

      Balance at end of period

      119,836

      115,843

      571,197

      (42,357)

      764,519

      Accumulated other comprehensive income

      Share acquisition rights

      Non-controlling interests

      Total net assets

      Valuation difference on available-

      for-sale securities

      Deferred gains or losses on hedges

      Revaluation reserve for land

      Foreign currency translation adjustment

      Remeasure ments of defined benefit plans

      Total accumulated other comprehensive income

      Balance at beginning of period

      4,038

      2,822

      7,761

      10,658

      6,260

      31,542

      130

      1,260

      751,439

      Changes during period

      Issuance of new shares

      260

      Dividends of surplus

      (30,990)

      Profit attributable to owners of parent

      82,880

      Purchase of treasury shares

      (8,197)

      Disposal of treasury shares

      2,060

      Change in ownership interest of parent due to transactions with non-controlling interests

      —

      Net changes in items other than shareholders' equity

      4,230

      (1,911)

      (0)

      (1,726)

      4,658

      5,250

      (124)

      151

      5,276

      Total changes during period

      4,230

      (1,911)

      (0)

      (1,726)

      4,658

      5,250

      (124)

      151

      51,289

      Balance at end of period

      8,268

      911

      7,761

      8,932

      10,918

      36,792

      6

      1,411

      802,729

    4. Consolidated Statements of Cash Flows

      (Millions of yen)

      Fiscal year ended March 31, 2025

      Fiscal year ended March 31, 2026

      Cash flows from operating activities

      Profit before income taxes

      104,289

      109,478

      Depreciation

      20,888

      29,366

      Impairment losses

      417

      20,073

      Gain on sale of non-current assets

      —

      (17,351)

      Loss (gain) on sale of investment securities

      —

      (858)

      Share of loss (profit) of entities accounted for using equity

      method

      (5,008)

      (6,877)

      Increase (decrease) in allowance for doubtful accounts

      208

      164

      Decrease (increase) in retirement benefit asset

      —

      (13,700)

      Increase (decrease) in retirement benefit liability

      (6,951)

      6,242

      Interest and dividend income

      (332)

      (367)

      Interest expenses

      15,851

      18,856

      Decrease (increase) in trade receivables

      (3,090)

      (5,872)

      Decrease (increase) in inventories

      (149,959)

      (40,354)

      Decrease (increase) in equity investments

      (49,703)

      (27,661)

      Increase (decrease) in trade payables

      15,319

      (6,446)

      Increase (decrease) in deposits received

      (8,779)

      11,095

      Other, net

      (28,229)

      16,774

      Subtotal

      (95,078)

      92,558

      Interest and dividends received

      2,271

      9,510

      Interest paid

      (15,355)

      (19,443)

      Income taxes refund (paid)

      (25,630)

      (37,718)

      Net cash provided by (used in) operating activities

      (133,793)

      44,906

      Cash flows from investing activities

      Purchase of investment securities

      (8,637)

      (48,673)

      Proceeds from sales and liquidation of investment securities

      619

      15,303

      Purchase of shares of subsidiaries resulting in change in scope of

      consolidation

      (20,963)

      —

      Purchase of property, plant and equipment and intangible assets

      (167,343)

      (69,165)

      Proceeds from sale of property, plant and equipment and

      intangible assets

      99

      39,147

      Payments of leasehold and guarantee deposits

      (4,234)

      (4,539)

      Proceeds from refund of leasehold and guarantee deposits

      3,581

      5,326

      Repayments of lease and guarantee deposits received

      (3,846)

      (11,609)

      Proceeds from lease and guarantee deposits received

      5,204

      15,979

      Other, net

      (7,843)

      (835)

      Net cash provided by (used in) investing activities

      (203,364)

      (59,067)

      (Millions of yen)

      Fiscal year ended March 31, 2025

      Fiscal year ended March 31, 2026

      Cash flows from financing activities

      Net increase (decrease) in short-term borrowings

      57,067

      (25,162)

      Repayments of finance lease liabilities

      (394)

      (327)

      Net increase (decrease) in commercial papers

      110,000

      (34,000)

      Proceeds from long-term borrowings

      254,505

      239,824

      Repayments of long-term borrowings

      (90,344)

      (124,139)

      Proceeds from issuance of shares

      237

      151

      Proceeds from share issuance to non-controlling shareholders

      —

      100

      Proceeds from issuance of bonds

      29,858

      26,858

      Redemption of bonds

      (10,000)

      (30,000)

      Proceeds from sale of treasury shares

      436

      1,454

      Purchase of treasury shares

      (5,143)

      (8,197)

      Dividends paid

      (27,680)

      (30,990)

      Dividends paid to non-controlling interests

      (30)

      (35)

      Proceeds from investments in silent partnerships

      —

      107

      Purchase of shares of subsidiaries not resulting in change in

      scope of consolidation

      (53)

      —

      Net cash provided by (used in) financing activities

      318,459

      15,643

      Effect of exchange rate change on cash and cash equivalents

      782

      81

      Net increase (decrease) in cash and cash equivalents

      (17,916)

      1,565

      Cash and cash equivalents at beginning of period

      53,811

      35,894

      Increase (decrease) in cash and cash equivalents resulting from

      change in scope of consolidation

      —

      (617)

      Cash and cash equivalents at end of period

      35,894

      36,842

    5. Notes to Consolidated Financial Statements (Going Concern Assumptions)

      Not applicable.

      (Notes to Consolidated Statements of Income)

      *1 Inventory at the end of the fiscalyear is the amount after devaluation of the book value in connection with decline in profitability, and the following loss on valuation of inventories is included in the cost of sales.

      (Millions of yen)

      FY2025/3 FY2026/3

      (From April 1, 2024

      to March 31, 2025)

      (From April 1, 2025

      to March 31, 2026)

      1,123 2,577

      (Real Estate for Rent)

      Some of the Company’s consolidated subsidiaries own rental office buildings and rental retail facilities (including land) in Tokyo and other regions. Some rental office buildings are regarded as properties including the portion used as real estate for rent since they are used by the Company and certain consolidated subsidiaries.

      The book values in the Consolidated Balance Sheets, changes during the fiscal year, and fair values of these rental properties and properties including the portion used as rental properties are as follows.

      (Millions of yen)

      FY2025/3

      FY2026/3

      (From April 1, 2024

      to March 31, 2025)

      (From April 1, 2025

      to March 31, 2026)

      Real estate for rent

      Book value in the consolidated balance sheets

      Balance at thebeginning of the fiscalyear

      644,362

      473,378

      Changesduring the fiscalyear

      (Notes) 2 (170,984)

      (44,700)

      Balance at the end of the fiscal year

      473,378

      428,678

      Fairvalue at the end of the fiscalyear

      677,140

      643,840

      Propertiesincluding the portion used as real estatefor rent

      Book value in the consolidated balance sheets

      Balance at thebeginning of the fiscalyear

      24,953

      328,324

      Changesduring the fiscalyear

      (Notes) 3 303,371

      (29,157)

      Balance at the end of the fiscal year

      328,324

      299,167

      Fairvalue at the end of the fiscalyear

      448,445

      401,274

      (Notes) 1. Book values in theconsolidatedbalance sheets aretheamountsdetermined by deducting accumulated depreciation fromthe acquisition cost.

      1. From the fiscal year ended March 31, 2025, due to the completion of BLUE FRONTSHIBAURA TOWER S, the amounts recorded on the consolidated balance sheet for Hamamatsucho Building and otherpropertieshavebeen reclassified from “Real estate for rent”to “Propertiesincluding theportion used as real estate for rent.” The change fromthisreclassification is a deduction of 189,494 million yen.

      2. Among the changes for the fiscalyear ended March 31, 2025, the main increase relates to completion of BLUEFRONT SHIBAURA TOWER S and reclassification from “Real estate for rent” (total of 303,361 million yen).

      3. Fairvalues as of March 31, 2025 and 2026 aredetermined based primarily on values according to Real EstateAppraisal Standards(including adjustmentsbased on certain indexes). However, if no significant fluctuations in certain appraisalvalues or indexes considered to appropriately reflected marketvalueshaveoccurred since thetime of acquisition fromthirdparty or the time of themostrecent appraisal, the Group basesthefairvalue on an amountthathasbeen adjustedusing the aforesaid values or indexes.

    (Segment Information, etc.)

    1. FY2025/3 (From April 1, 2024 to March 31, 2025)

      1. Information regarding sales, gains or losses, assets, liabilities and others, by reportable segment

        (Millions of yen)

        Reportable segments

        Other (Note) 1

        Total

        Adjustments (Note) 2

        Amount recorded in consolidated financial statements (Note) 3

        Residential Development

        Commercial Real Estate

        Overseas

        Investment Manage ment

        Property Brokerage & CRE

        Property & Facility Management

        Subtotal

        Operating revenue

        External

        customers

        367,087

        210,447

        9,401

        15,354

        55,840

        99,230

        757,361

        276

        757,638

        -

        757,638

        Internal sales and transfer amount

        among segments

        1,369

        2,902

        -

        239

        1,347

        14,659

        20,518

        4

        20,523

        (20,523)

        -

        Subtotal

        368,456

        213,349

        9,401

        15,593

        57,188

        113,889

        777,880

        281

        778,161

        (20,523)

        757,638

        Operating profit (Note) 3

        47,894

        41,326

        1,736

        9,757

        16,575

        11,952

        129,242

        136

        129,379

        (10,420)

        118,958

        Share of profit (loss) of entities accounted for using equity method (Note) 3

        29

        52

        4,840

        98

        (1)

        (11)

        5,008

        -

        5,008

        -

        5,008

        Amortization of intangible assets associated with corporate acquisitions

        (Note) 3

        859

        235

        42

        -

        -

        -

        1,137

        -

        1,137

        -

        1,137

        Gain or loss on sale of equity interest in project companies in the Overseas

        Business Unit (Note) 3

        -

        -

        -

        -

        -

        -

        -

        -

        -

        -

        -

        Segment profit or loss (Business profit

        or loss) (Note) 3

        48,782

        41,614

        6,620

        9,856

        16,573

        11,941

        135,388

        136

        135,524

        (10,420)

        125,104

        Segment assets

        784,460

        1,454,584

        296,730

        59,851

        36,484

        53,104

        2,685,216

        1,295

        2,686,511

        57

        2,686,569

        Other items

        Depreciation

        2,451

        15,064

        357

        57

        628

        789

        19,350

        9

        19,359

        1,529

        20,888

        Investment in affiliates accounted for using equity method

        608

        1,083

        230,145

        628

        146

        382

        232,995

        -

        232,995

        451

        233,446

        Increase in property, plant and equipment and intangible assets

        9,860

        145,757

        4,346

        11

        2,211

        1,372

        163,560

        0

        163,561

        10,857

        174,419

        (Notes) 1. The “Other” category represents operating segments that are not included in reportable segments.

        1. (1) Thededuction of 10,420 million yen shown in the adjustmentscolumn for segment profit or loss (businessprofit or loss) includes elimination of intersegment transactions of 3,095 million yen and adeduction of 13,516 million yen for corporate expenses not allocated to each reportable segment. These corporate expenses mainly consist of general and administrative expenses not attributable to reportablesegments.

          (2) The addition of 57 million yen shown in the adjustments column for segment assets includes a deduction of 65,692 million yen for the elimination of inter-segment transactions and an addition of 65,749 million yen for corporate assets not allocated to each reportable segment.

        2. Segment profit or loss (Business profit or loss) = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of intangible assets associated with corporate acquisitions + gain or loss on sale of equity interest in project companies (*1) in the Overseas Business Unit

        *1 They refer to SPCs, etc. which are mainly engaged in holding/development of real estate.

    2. FY2026/3 (From April 1, 2025 to March 31, 2026)

      1. Information regarding sales, gains or losses, assets, liabilities and others, by reportable segment

        (Millions of yen)

        Reportable segments

        Other (Note) 1

        Total

        Adjustments (Note) 2

        Amount recorded in consolidated financial statements (Note) 3

        Residential Development

        Commercial Real Estate

        Overseas

        Investment Manage ment

        Property Brokerage & CRE

        Property & Facility Management

        Subtotal

        Operating revenue

        External

        customers

        431,723

        318,711

        3,718

        16,102

        62,322

        109,653

        942,230

        275

        942,505

        -

        942,505

        Internal sales and transfer amount

        among segments

        1,685

        6,078

        -

        238

        2,040

        20,216

        30,259

        4

        30,264

        (30,264)

        -

        Subtotal

        433,408

        324,789

        3,718

        16,340

        64,363

        129,869

        972,489

        280

        972,769

        (30,264)

        942,505

        Operating profit (Note) 3

        60,588

        53,710

        (4,723)

        10,421

        18,982

        13,493

        152,472

        94

        152,566

        (14,323)

        138,242

        Share of profit (loss) of entities accounted for using equity

        method (Note) 3

        20

        42

        6,616

        153

        12

        33

        6,877

        -

        6,877

        -

        6,877

        Amortization of intangible assets associated with corporate acquisitions (Note) 3

        1,127

        235

        42

        -

        -

        -

        1,405

        -

        1,405

        -

        1,405

        Gain or loss on sale of equity interest in project companies in the Overseas Business Unit

        (Note) 3

        -

        -

        858

        -

        -

        -

        858

        -

        858

        -

        858

        Segment profit or loss (Business profit or loss) (Note) 3

        61,736

        53,987

        2,792

        10,575

        18,994

        13,526

        161,613

        94

        161,708

        (14,323)

        147,384

        Segment assets

        824,225

        1,470,334

        343,962

        65,494

        37,698

        58,262

        2,799,977

        2,118

        2,802,096

        9,893

        2,811,989

        Other items

        Depreciation

        2,622

        21,555

        787

        96

        1,121

        1,111

        27,295

        8

        27,303

        2,062

        29,366

        Investment in affiliates accounted for using equity method

        1,100

        11,005

        289,793

        1,399

        164

        416

        303,881

        -

        303,881

        470

        304,351

        Increase in property, plant and equipment and intangible assets

        11,694

        41,532

        870

        55

        1,305

        1,614

        57,072

        33

        57,105

        6,332

        63,438

        (Notes) 1. The “Other” category represents operating segments that are not included in reportable segments.

        1. (1) Thededuction of 14,323 million yen shown in the adjustmentscolumn for segment profit or loss (businessprofit or loss) includes elimination of intersegment transactions of 5,068 million yen and adeduction of 19,392 million yen for corporate expenses not allocated to each reportable segment. These corporate expenses mainly consist of general and administrative expenses not attributable to reportablesegments.

          (2) The addition of 9,893 million yen shown in the adjustments column for segment assets includes a deduction of 68,604 million yen for the elimination of inter-segment transactions and an addition of 78,497 million yen for corporate assets not allocated to each reportable segment.

        2. Segment profit or loss (Business profit or loss) = operating profit + share of profit (loss) of entities accounted for using equity method + amortization of intangible assets associated with corporate acquisitions + gain or loss on sale of equity interest in project companies (*1) in the Overseas Business Unit

        *1 They refer to SPCs, etc. which are mainly engaged in holding/development of real estate.

    3. Information regarding impairment losses on non-current assets by reportable segment FY2025/3 (From April 1, 2024 to March 31, 2025)

    (Millions of yen)

    Residential Development

    Commercial Real Estate

    Overseas

    Investment Management

    Property

    Brokerage & CRE

    Property &

    Facility Management

    Other

    Adjustment amount

    Total

    Impairment losses

    -

    417

    -

    -

    -

    -

    -

    -

    417

    FY2026/3 (From April 1, 2025 to March 31, 2026)

    (Millions of yen)

    Residential Development

    Commercial Real Estate

    Overseas

    Investment Management

    Property Brokerage

    & CRE

    Property & Facility

    Management

    Other

    Adjustment amount

    Total

    Impairment losses

    163

    19,909

    -

    -

    -

    -

    -

    -

    20,073

    (Per Share Information)

    FY2025/3

    FY2026/3

    (From April 1, 2024

    to March 31, 2025)

    (From April 1, 2025

    to March 31, 2026)

    Net assets per share

    873.40 yen

    938.08 yen

    Basicearningsper share

    86.77 yen

    96.69 yen

    Diluted earningsper share

    86.69 yen

    96.67 yen

    (Notes) 1.The Company conducted a stock split at aratio of five sharesforeveryoneshare of common stock onApril 1, 2025. “Net assets per share,”“Basic earningsper share” and “Diluted earningsper share” havebeen calculated based on the assumption that the stock split was conducted at the beginning of the previous fiscal year.

    2.Thebasis for the calculation of basic earningsper share and diluted earnings per share is as follows.

    FY2025/3

    FY2026/3

    (From April 1, 2024

    to March 31, 2025)

    (From April 1, 2025

    to March 31, 2026)

    Basicearningsper share

    Profit attributable to owners of parent (Millions of

    yen)

    74,835

    82,880

    Profit not attributed to common shareholders

    (Millions of yen)

    -

    -

    Profit attributable to owners of parent available to

    common stock (Millions of yen)

    74,835

    82,880

    Averagenumber of shares of common stock outstanding during the period

    (Thousand shares)

    862,447

    857,167

    Diluted earningsper share

    Adjustmentforprofit attributable to owners of parent

    (Millions of yen)

    -

    -

    Increase in number of shares of common stock

    (Thousand shares)

    761

    142

    Of which, stock acquisition rights

    (Thousand shares)

    (761)

    (142)

    Description of potentially dilutive common sharesnot

    -

    -

    included in thecomputation of diluted earningsper share because of their anti-dilutive effect

    (Note) For thepurposes of calculating net assets per share, the Company’s sharesowned by BIPtrust and ESOPtrust are included in the treasury sharesdeducted fromthe totalnumber of shares issued at end of period. In calculating the basic earningsper share and diluted earnings per share, the said shares are included in the treasury sharesdeducted in the calculation of the average number of sharesoutstanding during the period. Thenumber of the treasury shares at the end of period deducted in calculating net assets per sharewas 13,955 thousand shares for the fiscalyear ended March 31, 2025 and 19,062 thousand shares for the fiscal year ended March 31, 2026, and the averagenumber of treasury shares during the period deducted in calculating the basic earningsper share and diluted earningsper share was 14,206 thousand shares for the fiscal year ended March 31, 2025 and 15,956 thousand shares for the fiscal year ended March 31, 2026.

    (Significant Subsequent Events) Not applicable.