Daito Trust Construction (1878) Q1 2027 earnings summary

Executive summary

• Consolidated net sales for 1Q FY27/3 were ¥480.1bn, up 0.4% YoY, with operating profit up 15.5% to ¥39.3bn and ordinary profit at ¥39.8bn.

• Profit attributable to owners was ¥23.6bn, down 1.8% YoY, mainly due to a ¥4bn extraordinary loss from JustCo's IPO.

• The business environment saw a recovery in housing starts, especially in rental residential properties, but uncertainty remains due to a weak yen and high costs.

Financial highlights

• Gross profit increased 9.0% YoY to ¥87.8bn, with gross margin improving to 18.3%.

• Construction segment net sales fell 5.3% YoY, but gross profit margin improved to 27.9% (+3.5p).

• Real estate leasing net sales grew 3.9% YoY, with operating profit up 15.7%.

• Real estate development net sales declined 10.6% YoY, but operating profit surged 52.3%.

• Total assets at June 2026 were ¥1,387.6bn, equity ratio 35.8%, BPS ¥1,523.67, EPS ¥72.68.

Outlook and guidance

• Full-year forecast for FY2027: net sales ¥2,050bn, operating profit ¥142bn, profit attributable to owners ¥108bn, EPS ¥326.00.

• Segment targets: construction net sales ¥545bn, real estate leasing ¥1,230bn, real estate development ¥180bn; operating profit: construction ¥47bn, leasing ¥88bn, development ¥25bn.

• Dividend forecast for FY2027 is ¥163.00 per share.