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% year-over-year to JPY 36,295 million, but net income declined 36.9% to JPY 5,365 million due to lower extraordinary gains from asset sales.

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

• A JPY 6 billion share buyback (3.9% of shares) was announced, reflecting management's view of undervaluation.

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).

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

• Net assets per share increased to JPY 242.90 from JPY 237.57 year-over-year.

• Shareholders’ equity ratio was 27.6% at period-end.

Outlook and guidance

• Asset sales to accelerate in H2; 5th Ichigo Residence Token (JPY 11.4B) sale to be recorded in Q3.

• Full-year all-in operating profit forecast: JPY 24.0B; net income forecast: JPY 14.0B; EPS forecast: JPY 32.10.

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

• Dividend forecast is JPY 10 per share, with a payout ratio of 31.2%.

• Continued growth in hotel and residential asset segments expected.