Real estate purchase and resale business is performing well. Target consolidated dividend payout ratio of 40%. Mugen Estate.
[Financial Results] Mugen Estate (3299)
Market capitalization 51.6 billion yen, PER 7.6x, PBR 1.58x, Dividend yield 5.28%
First Quarter of Fiscal Year Ending December 2025 (May 14)
The real estate industry is performing steadily due to a moderate economic recovery and rising demand for redevelopment and investment driven by an increase in inbound tourists. The official land prices announced in March 2025 recorded a 2.7% increase year-on-year, the largest growth rate since the collapse of the bubble economy. The real estate market remains in a favorable environment, with the used condominium market in the Tokyo metropolitan area continuing an upward trend in both prices and the number of contracts. On the other hand, there are uncertain factors such as rising interest rates and the impact of exchange rates.
Under these circumstances, in the core real estate purchase and resale business, the company is expanding its area by opening new sales offices in Kyoto and Naha. Although the number of units sold decreased, sales of high-priced residential properties were strong, resulting in both revenue and profit significantly exceeding the same period of the previous year. For investment properties, although the number of units sold remained flat, revenue decreased due to a decline in unit prices. Overall, high-profitability sales activities were successful, and the gross profit margin improved.
In addition, in the real estate specified joint enterprise business, the second round of recruitment for the "Sapporo Hostel Project" has been completed, and the "Shin-Koiwa Project" has also begun sales. Rental income also continues to grow steadily.
● Consolidated Financial Results (Year-on-Year)
■ Trends by Segment
● Real Estate Trading Business (Core)
Investment Real Estate: 44 units sold (+5 units), average unit price 76 million yen (-32.6%), revenue 3.35 billion yen (-23.9%)
Residential Real Estate: 95 units sold (-31 units), average unit price 138 million yen (+207.1%), revenue 13.13 billion yen (+131.6%)
Development Business: No sales recorded
Specified Joint Enterprise: No revenue recorded (anonymous partnership formed in April)
→ Segment revenue was 16.5 billion yen (+40.7%), operating profit was 3.39 billion yen (+120.6%)
● Rental and Other Businesses
Revenue 650 million yen (+12.4%), operating profit 195 million yen (+10.0%)
Overall, by leveraging the tailwinds of the real estate market, high value-added strategies, and expansion of sales areas, the company achieved strong financial results with significant increases in revenue and profit. While caution remains regarding future interest rate and exchange rate trends, the start of the year provides grounds for optimism regarding full-year performance due to steady demand and a sales policy that prioritizes reliable profitability. Net cash (28,305 million yen), net cash ratio (0.55).
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