EriaLink <8914> announced its financial results for the third quarter of the fiscal year ending December 2024 (January to September 24). Revenue increased by 12.9% year-on-year to 19.296 billion yen, operating profit increased by 12.7% to 3.781 billion yen, ordinary profit increased by 7.3% to 3.574 billion yen, and net income for the quarter increased by 6.7% to 2.494 billion yen.

The storage business revenue increased by 12.3% year-on-year to 14.668 billion yen, and operating profit increased by 15.8% to 3.976 billion yen. Storage operation, including the toro "Hello Storage" brand operated by the company, maintained a high occupancy rate of 86.57%, a decrease of 1.72 points from the previous year-end, despite an increase in the number of new store rooms. The high occupancy rate was mainly due to improvements in store accuracy through data analysis, downsizing of store locations, increased product awareness, leading to a steady increase in the number of transactions. As stated in the "Medium-Term Management Plan 23-25" announced on February 14, 2023, the storage business exceeded the target of 4,700 rooms for the fiscal year ending December 2023 by opening 5,800 rooms (including 430 additional rooms in existing properties), and for the fiscal year ending December 2024, they aimed for 10,400 rooms but achieved 7,490 rooms in cumulative period of the third quarter (including 381 additional rooms in existing properties). The total number of rooms increased by 6,255 rooms from the previous period to reach 107,634 rooms due to regular closures and other factors. Thanks to improvements in the accuracy and downsizing of new store locations through database construction, increased product awareness through enhanced promotional activities, the storage business was able to capture demand and steadily increase the number of operational rooms. Profitability was achieved through focusing on profitable self-operated stores, controlling discount rates through campaigns, revising certain rents, and enhancing advertising efficiency. The fluidization of storage included the sale of 9 indoor storage assets with land.

Revenue from land rights development business increased by 16.9% to 3.484 billion yen, while operating profit decreased by 8.8% to 0.531 billion yen. In terms of procurement, the company continued to focus on acquiring high-quality properties, resulting in a decrease in inventory to 2.653 billion yen, down by 1.156 billion yen compared to the previous period.

Revenue from other operational services increased by 9.0% to 1.142 billion yen, and operating profit increased by 29.2% to 0.318 billion yen. This segment consists of businesses that rely on rental income from asset management and office operations. The asset business maintained high occupancy of owned and managed properties, leading to increased revenue and profit. The office business saw smooth operation progress at two newly opened properties in February 2023, resulting in increased revenue and profit.

Regarding the financial estimates for the fiscal year ending December 2024, the company maintains its initial plan, with sales expected to increase by 8.6% YoY to JPY24.4 billion, operating profit expected to increase by 11.9% to JPY4.65 billion, ordinary profit expected to increase by 11.4% to JPY4.52 billion, and net income for the year expected to increase by 9.2% to JPY3.08 billion.

On the same day, with a change in the dividend policy (from a dividend payout ratio of 30% to 35%), it was announced that the year-end dividend for the fiscal year ending December 2024 will be increased by 4.50 yen per share to 23.50 yen from the latest dividend forecast.