Sumitomo Realty & Development (8830) Q4 2026 earnings summary

Executive summary

• Achieved record highs in revenue from operations, operating income, ordinary profit, and profit attributable to owners for FY2025, continuing multi-year streaks of record performance, with ordinary profit rising for the 5th consecutive year and profit for the 13th consecutive year.

• Leasing business, especially Tokyo office buildings, was the main driver of profit growth, with Sales and Step segments also reaching record profits.

• FY2026 forecasts anticipate further record highs, targeting 1,070.0 billion yen in revenue and 300.0 billion yen in ordinary profit.

• Progress on the 10th Medium-term Management Plan is on track, with approximately one-third of cumulative targets achieved in the first year.

• Non-operating income declined due to higher interest expenses, but extraordinary income improved from gains on investment securities.

Financial highlights

• FY2025 revenue from operations: 1,057.8 billion yen (+4.3% YoY); operating income: 299.2 billion yen (+10.2% YoY); ordinary profit: 289.2 billion yen (+7.8% YoY); profit attributable to owners: 212.5 billion yen (+10.9% YoY).

• EPS was 228.42 yen, up from 202.56 yen YoY; operating income margin improved to 28.3%.

• Comprehensive income surged to 398.7 billion yen, up 141.4% YoY.

• All major profit metrics exceeded forecasts for FY2025.

• Net cash provided by operating activities was 127.2 billion yen; interest-bearing debt at year-end was 3,916.7 billion yen.

Outlook and guidance

• FY2026 guidance projects revenue from operations of 1,070.0 billion yen, operating income of 320.0 billion yen, ordinary profit of 300.0 billion yen, and profit attributable to owners of 223.0 billion yen.

• Leasing business expected to continue as main growth driver.

• Net cash provided by operating activities is expected to rise to 150.0 billion yen in FY2026.

• Continued progressive dividend policy, with a 9 yen increase to 44 yen per share for FY2025 and a commitment to annual increases of at least 8 yen.

• Two-for-one stock split effective January 1, 2026; EPS and dividends adjusted accordingly.