Tokyo Tatemono (8804) Q4 2024 earnings summary

Executive summary

• FY2024 saw record highs in operating revenue, operating profit, business profit, and ordinary profit, with profit attributable to owners of parent up 46.1% year-over-year, driven by strong condominium and residential sales and extraordinary income from cross-shareholding and investment securities sales.

• All major business segments contributed, with Residential showing the highest revenue growth, while Asset Service and Other segments saw declines.

• The company exceeded its medium-term business plan targets, achieving higher-than-expected business profit and improved capital efficiency.

• FY2025 is forecasted to set new records again, with growth expected across all major segments due to increased property sales to investors.

• Notable developments include entry into the Australian residential market, launch of a new retail facility brand, and introduction of a luxury hotel brand in Japan.

Financial highlights

• FY2024 operating revenue rose to ¥463.7 billion (up 23.3% or ¥87.7 billion year-over-year), with operating profit at ¥79.67 billion (up 13.0% or ¥9.1 billion).

• Profit attributable to owners of parent reached ¥65.88 billion, a 46.1% or ¥20.7 billion increase year-over-year.

• Extraordinary income surged to ¥27.9 billion, mainly from cross-shareholding sales.

• Total assets increased by ¥175.9 billion to ¥2,081.2 billion; net assets at ¥547.5 billion; equity capital ratio 25.8%.

• Cash and cash equivalents at year-end were ¥111.1 billion, down ¥16.1 billion year-over-year.

Outlook and guidance

• FY2025 forecasts operating revenue of ¥503.0 billion and operating profit of ¥86.0 billion.

• Profit attributable to owners of parent is expected to decrease to ¥55.0 billion due to lower extraordinary income.

• Annual dividend for FY2025 planned at ¥97 per share (36.7% payout), with a total return ratio of 42.1% including share repurchases.

• Medium-term plan targets consolidated business profit of ¥120 billion by 2030.

• Dividend payout ratio target is 40% by FY2027, with flexible share repurchases planned.