Sumitomo Realty & Development (8830) Q1 2027 earnings summary

Executive summary

• Operating income, ordinary profit, and net profit all reached record highs for the first quarter, with net profit up 15.4% year-over-year and ordinary profit up 3.3% year-over-year.

• Leasing segment drove performance with record-high profit, supported by improved occupancy and rent increases in Tokyo office buildings.

• Sales segment maintained high profit levels despite a decrease in units delivered, aided by higher selling prices.

• Non-operating and extraordinary income improved due to higher dividend income and gains on sale of investment securities.

Financial highlights

• Revenue from operations: ¥281.0 billion, down 4.2% year-over-year.

• Operating income: ¥102.8 billion, up 1.0% year-over-year.

• Ordinary profit: ¥108.7 billion, up 3.3% year-over-year.

• Net profit attributable to owners: ¥85.1 billion, up 15.4% year-over-year.

• Comprehensive income: ¥111.6 billion, up 13.0% year-over-year.

• EPS: ¥92.20 for the quarter.

Outlook and guidance

• No changes to full-year forecasts: revenue ¥1,070.0 billion, operating income ¥320.0 billion, ordinary profit ¥300.0 billion, net profit ¥223.0 billion.

• Leasing and sales segments are on track to meet or exceed full-year targets, with leasing at 26% and sales at 60% of annual operating income forecasts.