Keihanshin Building Co., Ltd.

Keihanshin Building announced on July 30 that it has signed an agreement to transfer the Shijo Kawaramachi Building in Nakagyo Ward, Kyoto, to a domestic corporate buyer, and expects to record a gain on sale of fixed assets of about 5.9 billion yen as an extraordinary profit in the second quarter of the fiscal year ending March 2027. In response, the company revised its consolidated earnings forecast for the full fiscal year ending March 2027. It left its forecasts of 20.5 billion yen in revenue and 5.5 billion yen in operating profit unchanged, while cutting its ordinary profit forecast to 4.5 billion yen, down 8.2 percent from the previously forecast 4.9 billion yen, and raising its net profit forecast to 7 billion yen, up 42.9 percent from the previously forecast 4.9 billion yen. It explained that the downward revision to ordinary profit reflects overseas real estate development projects where leasing and other business progress has come faster than expected, meaning related costs originally planned for the following fiscal year and beyond are now expected to be booked earlier. The upward revision to net profit is largely due to the one-off extraordinary gain from the building sale, and attention is warranted given that ordinary profit has been revised downward. Net profit per share after the revision comes to 73.37 yen. The company has also decided on a policy of progressive dividend increases from the fiscal year ending March 2027 through the fiscal year ending March 2029, and its annual dividend forecast for the fiscal year ending March 2027 is 15 yen at the interim and 15 yen at the year-end, for a total of 30 yen on a post-split basis, with a forecast payout ratio of 40.9 percent.