Tokyo Tatemono (8804) Q2 2026 earnings summary

Executive summary

• Operating profit for the first two quarters of FY2026 rose 17.1% YoY to ¥39.8 billion, and business profit increased 20.0% YoY to ¥41.3 billion, despite a decline in operating revenue due to a previous one-time large-scale condominium sale.

• Profit attributable to owners of parent increased 13.7% YoY to ¥23.3 billion, and comprehensive income for the period was ¥29.5 billion, up 29.1% YoY.

• Full-year earnings forecasts were revised upward, with operating profit expected to reach ¥105.5 billion (+10.2% YoY) and profit attributable to owners of parent at ¥65.0 billion (+10.4% YoY), both record highs.

• Dividend per share forecast for FY2026 was raised to 126 yen, a 21-yen increase YoY, with a payout ratio of 40.2%.

• The company expects to exceed all major quantitative targets in its Medium-Term Business Plan one year ahead of schedule, with a new management plan to be announced in February 2027.

Financial highlights

• Operating revenue for the first two quarters was ¥194.4 billion, down from ¥208.7 billion YoY, but operating profit rose to ¥39.8 billion (+¥5.8 billion YoY).

• Business profit reached ¥41.3 billion (+¥6.8 billion YoY), and profit attributable to owners of parent was ¥23.3 billion (+¥2.8 billion YoY).

• Ordinary profit increased 12.5% to ¥31.4 billion, and basic EPS was ¥112.61, up from ¥98.62.

• Total assets increased by ¥203.4 billion to ¥2,476.1 billion, driven by investments in properties for sale and redevelopment projects.

• Net assets increased to ¥619.0 billion, with net assets per share at ¥2,929.73.

Outlook and guidance

• Full-year 2026 forecast: operating revenues ¥524.0 billion (+10.4% YoY), operating profit ¥105.5 billion (+10.2%), ordinary profit ¥83.5 billion (+6.8%), profit attributable to owners of parent ¥65.0 billion (+10.4%).

• All major Medium-Term Business Plan targets are expected to be achieved ahead of schedule.

• Dividend payout ratio target of 40% for FY2027 is expected to be met in FY2026.