Ichigo (2337) Q3 2025 earnings summary

Executive summary

• All-In Operating Profit declined 6.7% year-over-year to JPY 15,177 million, with cash EPS down 9% and net income down 7.2%, but stock earnings rose 13% year-over-year, driven by strong hotel and asset management performance.

• Revenue rose 49.0% year-over-year to JPY 57,227 million, while comprehensive income increased 1.8% to JPY 9,430 million.

• Ongoing share buyback program of JPY 6B (3.9% of shares), with about half executed by end of December 2024.

• Dividend raised for the third consecutive year to JPY 10, reflecting strong cash generation and stock earnings growth.

• A new subsidiary, Ichigo Realty Management Co., Ltd., was added to the consolidation scope.

Financial highlights

• Operating profit increased 30.4% year-over-year to JPY 10,338 million; recurring profit rose 48.0% to JPY 8,586 million.

• EPS was JPY 20.33 (-4.1% YoY); cash EPS JPY 27.39 (-9.0% YoY); cash earnings JPY 25.4B; stock earnings/fixed expenses ratio: 210%.

• Asset management OP up 31% year-over-year; sustainable real estate stock earnings up 16% year-over-year.

• Hotel operator income up 90% year-over-year, with 1.3 billion JPY in the first three quarters; RevPAR up 20% YoY and 64% above pre-Covid levels.

• Total assets grew to JPY 394,295 million from JPY 367,015 million at the previous year-end.

Outlook and guidance

• Full-year FY25/2 guidance: operating profit JPY 16,000 million (+23.5% YoY), net income JPY 14,000 million (+15.6% YoY), EPS JPY 32.10 (+19.4% YoY), and dividend per share JPY 10.

• Forecasting record full-year cash earnings of JPY 37.2B, supported by robust stock earnings.

• Asset management AUM forecast to grow 14% YOY, driven by Ichigo Residence Tokens and private equity funds.

• Owners segment OP forecast to fall below 4.5 billion JPY due to delayed Residence Token activity, but overall targets to be exceeded through other segments.

• Security token (Residence Token) sales pushed to next year, with 60 billion JPY in token sales expected, supporting 15%-25% AUM growth.