Ichigo (2337) Q1 2027 earnings summary

Executive summary

• Business profit surged 45% year-on-year in Q1 FY27/2, with net income up 24% and EPS up 32%; cash EPS rose 70% year-on-year, driven by robust Japanese real estate and extraordinary gains from asset sales.

• Completed a JPY 10 billion share buyback, repurchasing over 10% of shares outstanding in the last two years, and forecasting a 5th consecutive double-digit dividend increase.

• Opened new community-focused offices (THE VILLAGE OSAKA, SAPPORO) and boutique hotel (THE KNOT FUKUOKA), expanding the hotel and office portfolio.

• Revenue declined 15.9% year-on-year to JPY 10.5 billion, while operating profit fell 25.4% to JPY 2.6 billion, mainly due to lower asset management performance fees and higher expenses.

• The company continues to focus on sustainable infrastructure, expanding both real estate and clean energy businesses, and maintaining a strong financial base.

Financial highlights

• Q1 FY27/2 business profit: JPY 6.8B (+45% YOY); net income: JPY 2.9B (+24% YOY); EPS: JPY 7.28 (+32% YOY); cash EPS: JPY 15.37 (+70% YOY).

• Extraordinary gains from SRE/hotel asset sales up 245% YOY, totaling JPY 4.3 billion.

• ROE at 15.0%, cash ROE at 20.0%, DOE at 5.1%.

• Dividend forecast for FY27/2: JPY 15.5 (+35% YOY).

• Total assets increased to JPY 445.1 billion (+2.1% vs. FY26/2-end), while net assets decreased to JPY 109.1 billion (-6.6%).

Outlook and guidance

• Full-year FY27/2 guidance maintained: business profit JPY 34.0 billion (+21.2% YOY), net income JPY 18.0 billion (+8.2%), EPS JPY 45.1 (+13% YOY), cash EPS JPY 60.17 (+35% YOY).

• Expecting record profits and cash earnings, with accelerated flow earnings from Q2 onwards.

• Forecasting 5th consecutive double-digit dividend increase, supported by robust earnings and cash flows.

• Odaiba asset sale expected to contribute significantly to results.