Ichigo (2337) Q2 2025 earnings summary

Executive summary

• All-in operating profit for FY25/2 H1 was JPY 9.4B, down 32% year-over-year, with cash net income at JPY 7.5B, down 43% year-over-year.

• Stock earnings grew 11% year-over-year to JPY 11.1B, driven by strong hotel performance, while flow earnings fell 50% year-over-year to JPY 4.8B.

• Revenue rose 37.0% year-over-year to JPY 36,295 million for FY25/2 H1, but net income declined 36.9% year-over-year to JPY 5,365 million, mainly due to a sharp drop in extraordinary gains from asset sales.

• Asset sales are expected to accelerate in H2, with a JPY 11.4B sale of 7 residential assets to be recorded in Q3.

• Completed 100% renewable energy transition (RE100) and achieved CO2 reduction 4.4 times emissions.

Financial highlights

• All-in operating profit: JPY 9.4B (-32% YOY); cash EPS: JPY 17.29 (-41% YOY); net income: JPY 5.4B (-37% YOY).

• Stock earnings: JPY 11.1B (+11% YOY); flow earnings: JPY 4.8B (-50% YOY).

• Recurring profit increased 35.9% year-over-year to JPY 5,554 million, but All-In Recurring Profit dropped 34.4% to JPY 8,145 million.

• Cash earnings 1.4x accounting earnings, reflecting focus on long-term cash flows.

• EPS: JPY 12.24 (-35% YOY); full-year EPS forecast: JPY 32.10.

Outlook and guidance

• Asset sales and Flow Earnings are expected to accelerate in the second half, with a JPY 11.4B Ichigo Residence Token sale to be recorded in Q3.

• Full-year all-in operating profit forecast: JPY 24.0B; net income forecast: JPY 14.0B; operating profit guidance JPY 16,000 million (+23.5% YoY).

• Dividend forecast is JPY 10 per share, with a payout ratio of 31.2% and three consecutive years of increases.

• AUM forecast to grow 16% year-over-year, driven by Ichigo Residence Tokens and private REITs.

• Full-year performance is expected to match or exceed last year, with record Stock Earnings growth anticipated.