Tokyo Tatemono (8804) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose 7.4% to ¥375,946m; operating profit increased 9.4% to ¥70,508m and net income rose 4.7% to ¥45,084m, extending record results.

• Business profit rose 12.3% to ¥74,428m, supported by stronger overseas equity-method income; investor-property sales and parking also lifted results.

Financial highlights

• Operating gross profit increased to ¥109,116m from ¥101,488m; operating costs rose to ¥266,829m from ¥248,452m.

• Ordinary profit grew 9.3% to ¥69,471m; profit attributable to owners rose 4.7% to ¥45,084m, or ¥215.82 per share.

• Total assets increased ¥185,175m to ¥1,905,309m; real estate for sale rose ¥84.0bn to ¥498.9bn, and net assets increased ¥51,197m to ¥508,035m.

• Interest-bearing debt increased ¥99,207m to ¥1,089,006m.

• Comprehensive income was ¥67,511m, including a ¥21,728m gain in available-for-sale securities valuation.

Outlook and guidance

• FY2024 forecast: revenue ¥495,000m, operating profit ¥75,000m, business profit ¥77,000m, ordinary profit ¥67,000m and net income ¥48,000m.

• Higher investor-property sales and condominium postings are expected to drive revenue and profit growth; higher interest expense and lower equity-method income are expected to weigh on ordinary profit.

• FY2024 dividend forecast is ¥79 per share, including ¥37 interim, with a 34.4% payout ratio; this would extend the annual dividend increase streak to 11 years.

• FY2024 gross investment planned at ¥440.0bn, including ¥115.0bn for large-scale redevelopment, ¥115.0bn for condominiums for sale and ¥130.0bn for investor-sale properties.