AZ Planning & Design Co., Ltd. (TSE: 3490), which buys used income-producing real estate, adds value through renovation and leasing, and resells it to property investors, reported results for the first quarter of the fiscal year ending February 2027 — the three months to May 31, 2026. Net sales rose 101.1% to ¥4,426m, operating profit rose 175.7% to ¥530m, ordinary profit rose 272.9% to ¥414m and net profit attributable to owners rose 352.6% to ¥284m. Quarterly EPS was ¥188.45, up from ¥51.82.
Sales double as buy-and-resell business accelerates
Investment demand for income-producing real estate in urban areas stayed firm despite gradual interest-rate rises, while high prices for newly built properties pushed investor attention toward used income assets that can be improved through renovation. Against that backdrop the company stepped up sourcing across a wider range of property types, more than doubling net sales to ¥4,426 million.
Profit growth outpaces the top line
Earnings rose far faster than revenue as disciplined cost control and value-add renovation lifted margins. Operating profit climbed 175.7% to ¥530 million, ordinary profit rose 272.9% to ¥414 million, and net profit attributable to owners surged 352.6% to ¥284 million, taking quarterly EPS to ¥188.45 from ¥51.82 a year earlier.
Property sales segment drives the quarter
By segment, the property sales business — the core buy-and-resell operation — led the quarter, with revenue up 115.2% to ¥4,201 million and segment profit up 177.2% to ¥564 million after the company sold two buildings, two sectional offices and one residential building. The property leasing business saw revenue fall 19.3% to ¥154 million and segment profit drop 78.2% to ¥7 million as inventory diversified, while the property management business posted revenue up 24.5% to ¥72 million and segment profit up 49.4% to ¥30 million.
Balance sheet and dividend
Total assets rose to ¥17,366 million from ¥14,514 million at the previous fiscal year-end, driven mainly by a ¥1,999 million increase in real estate for sale as the company built up inventory. Net assets rose to ¥4,225 million, but the equity ratio slipped to 24.3% from 27.5% as interest-bearing debt expanded to fund the larger property inventory. The company left its full-year dividend forecast unchanged at ¥30.00 per share, all payable at year-end.
Full-year guidance unchanged
AZ Planning & Design left its full-year guidance for the fiscal year ending February 2027 unchanged, projecting net sales of ¥15,500 million (+14.4%), operating profit of ¥1,250 million (+61.4%), ordinary profit of ¥850 million (+81.6%) and net profit of ¥530 million (+79.8%), for EPS of ¥351.52. With first-quarter net profit already at ¥284 million — about 54% of the full-year target — the company said a high balance of real estate for sale is expected to convert into sales as the year progresses.
| Metric | Q1 FY2/27 | Q1 FY2/26 | YoY |
|---|---|---|---|
| Net sales (¥m) | 4,426 | 2,200 | +101.1% |
| Operating profit (¥m) | 530 | 192 | +175.7% |
| Ordinary profit (¥m) | 414 | 111 | +272.9% |
| Net profit attrib. (¥m) | 284 | 62 | +352.6% |
| EPS (¥) | 188.45 | 51.82 | +263.7% |
| Equity ratio | 24.3% | 27.5% | −3.2pp |
JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.