■Performance Trends
1. Summary of financial results for the 2nd quarter of the fiscal year ending 2024/9
In the second quarter of the fiscal year ending 2024/9 of Real Gate ＜5532＞, sales increased 28.8% from the same period last year to 5,013 million yen, operating income increased 70.0% to 702 million yen, ordinary profit increased 64.5% to 647 million yen, and quarterly net profit increased 78.0% to 444 million yen.
As for sales, there was a steady increase in both stock type and flow type. Stock sales increased 7.8% from the same period last year to 2,671 million yen. In addition to the stable operation of existing management properties, “ROOTS SQUARE IKEJIRI OHASHI,” “LANTIQUE BY IOQ,” and “&NEIGHBOR NAKAMEGURO,” etc. opened and the scale of the business expanded. There were 60 properties under operation (58 buildings in the same period last year), the operating area was 96,334 m2 (same 84,850 m2), and the occupancy rate of ML/owned properties was 98.67% (96.8% at the end of the same period last year), all of which exceeded the same period last year. Flow type sales were a significant increase of 2,341 million yen, up 65.3% from the same period last year. This is due to the fact that sales of “PORTAL POINT HARAJUKU ANNEX” and “IVY WORKS” were established in the first half in addition to the completion and delivery of 3 large-scale constructions. Furthermore, even after delivery and sale of these flow-related properties, ML agreements were concluded, leading to stock type sales.
Gross profit increased significantly to 964 million yen, up 55.4% from the same period last year. As a breakdown, stock gross margin before common expense allocation is 732 million yen, and flow gross margin is 563 million yen. By covering fixed costs of 545 million yen with gross stock margin, the company is able to manage with plenty of room. Sales and administration expenses remained at a constant level of 261 million yen, an increase of 26.4% from the same period, in terms of labor costs for the management department and rent for the head office. As a result, operating profit increased 70.0% from the same period to 702 million yen and reached a level exceeding the full-year plan of 640 million yen. The first half was affected by the fact that flow income from design/construction and property sales was high, and upfront costs associated with property acquisition and losses at the beginning of business were relatively small.
(Written by FISCO Visiting Analyst Hideo Kakuta)