Arealink (8914) Q2 2025 earnings summary

Executive summary

• Achieved double-digit year-over-year growth in all profit types, driven by expansion in the self-storage business, offsetting declines in the land rights consolidation segment.

• Net sales for the six months ended June 30, 2025 rose 9.0% YoY to ¥14,067 million, with operating profit up 18.6% to ¥3,022 million and net profit up 23.0% to ¥2,075 million.

• Basic earnings per share increased to ¥81.71 from ¥66.48, calculated on a post-stock split basis.

• Opened 9,446 new self-storage units in 2Q, progressing toward the annual target of 15,000 units.

Financial highlights

• Net sales increased 9.0% YoY to ¥14,067 million, achieving 54.1% of the full-year plan.

• Operating income rose 18.6% YoY to ¥3,022 million, 56.5% of the annual target.

• Net income grew 23.0% YoY to ¥2,075 million, 60.7% of the full-year plan.

• Ordinary profit for the period was ¥2,921 million, up 17.7% YoY.

• Gross profit reached ¥4,898 million, with a gross margin of approximately 34.8%.

Outlook and guidance

• FY12/25 full-year net sales projected at ¥26,000 million (+5.3% YoY), operating income at ¥5,350 million (+9.0% YoY), and net income at ¥3,420 million (+6.8% YoY).

• Basic earnings per share for the full year is projected at ¥134.70 (post-share split basis).

• No changes have been made to the previously announced financial results forecast.

• Medium-term plan targets 200,000 self-storage units under management and ¥33.5 billion in net sales by 2029.

• Dividend payout ratio target raised to 35% starting FY12/24, with no planned year-on-year reduction.