Columbia Works Co., Ltd. (TSE: 146A), a Tokyo-listed real estate developer, released its consolidated Q1 results for the fiscal year ending December 2026 under Japanese GAAP. The company operates as a single segment focused on real estate development.
Net sales reached ¥10,140 million, up 87.0% year on year from ¥5,421 million. Operating profit rose 51.2% to ¥1,288 million, ordinary profit climbed 51.3% to ¥998 million, and profit attributable to owners of the parent reached ¥616 million, up 20.6%. Quarterly EPS came to ¥79.88 (versus ¥73.61 in the prior-year quarter on a post-split basis, following the 2-for-1 stock split effective August 1, 2025); diluted EPS was ¥79.60.
The gap between robust top-line growth and more moderate bottom-line growth reflects a higher cost-of-sales ratio (¥8,143 million versus ¥3,935 million), elevated interest expenses on borrowings (¥263 million versus ¥145 million), and the absence of a non-recurring gain on negative goodwill of ¥59 million that had supported the prior-year quarter following the February 2025 business combination with ACS Holdings Co., Ltd.
Aggressive pipeline build-out, leveraged balance sheet
Management indicated that demand for residential properties remained firm, and the Company concentrated development activity on residential assets during the quarter. Investment in real estate for sale, including pipeline properties earmarked for sale within the current fiscal year, totaled ¥21,430 million in Q1 alone, underscoring an aggressive strategy.
Total assets expanded to ¥76,514 million (+¥9,637 million). Current assets rose ¥9,340 million to ¥63,018 million, with real estate for sale in process (work-in-progress) up ¥10,805 million to ¥44,698 million. Total liabilities grew ¥9,616 million to ¥59,053 million; long-term borrowings climbed to ¥32,235 million from ¥26,456 million. Net assets stood at ¥17,460 million (broadly unchanged) as ¥616 million of retained earnings was largely offset by a ¥601 million dividend payment. The equity ratio declined to 22.8% from 26.1%, reflecting the leverage used to finance development inventory.
The macro backdrop combined gradual recovery, inbound tourism strength and improving employment with input-cost inflation and the Bank of Japan's policy normalization. In real estate specifically, elevated construction material and labor costs continue to weigh on building economics, but rising central-Tokyo rents, sustained inbound tourism and a weak-yen environment continue to attract solid investment appetite from both domestic and overseas investors for Japanese real estate.
| Metric | Q1 FY12/26 | Q1 FY12/25 | YoY |
|---|---|---|---|
| Net sales (¥ million) | 10,140 | 5,421 | +87.0% |
| Operating profit (¥ million) | 1,288 | 852 | +51.2% |
| Ordinary profit (¥ million) | 998 | 660 | +51.3% |
| Net profit attrib. to owners (¥ million) | 616 | 511 | +20.6% |
| EPS (¥, post 2-for-1 split) | 79.88 | 73.61 | +8.5% |
| Equity ratio | 22.8% | 26.1% | -3.3pp |
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