Arealink (8914) Q1 2026 earnings summary

Executive summary

• Net sales for 1Q FY12/26 decreased 5.0% year-over-year to ¥7,144 million, mainly due to declines in flow-type businesses, while core self-storage management sales and profit increased steadily.

• Operating income rose 0.5% year-over-year to ¥1,571 million, with business profit in self-storage management up 0.1% and land rights consolidation up 36.4%.

• Net income fell 9.6% year-over-year to ¥1,006 million, reflecting lower non-operating and extraordinary income.

• The self-storage business saw a decrease in revenue but a slight increase in profit, while land rights consolidation and other operational services also experienced revenue declines but improved or stable profitability.

Financial highlights

• 1Q FY12/26 net sales: ¥7,144 million (-5.0% YoY); operating income: ¥1,571 million (+0.5% YoY); net income: ¥1,006 million (-9.6% YoY).

• Gross profit margin improved to 35.9% from 33.0% in the prior year; gross profit for Q1 2026 was ¥2,565 million, up from ¥2,485 million in Q1 2025.

• Ordinary profit decreased 5.3% year-on-year to ¥1,415 million.

• SG&A expenses increased 7.9% year-over-year, with notable rises in salaries and other costs.

• Cash and deposits at quarter-end: ¥15.6 billion; net assets: ¥29.6 billion; total assets as of March 31, 2026, were ¥65,441 million, up ¥1,361 million from December 31, 2025.

• Basic earnings per share for Q1 2026 was ¥19.79, compared to ¥21.91 in Q1 2025, reflecting a two-for-one share split.

Outlook and guidance

• FY12/26 full-year guidance: net sales ¥28.5 billion (+7.9% YoY), operating income ¥5.85 billion (+6.9%), net income ¥3.72 billion (+0.3%), with basic EPS of ¥73.08.

• Self-storage business expected to drive growth, with 16,246 new units targeted for FY12/26.

• Dividend payout ratio target raised to 35% or higher, with no planned year-on-year reduction; annual dividend for 2026 is planned at ¥26.50 per share, with an interim dividend of ¥13.

• No changes have been made to previously announced forecasts.