Hulic Co., Ltd. (TSE: 3003), one of Tokyo's largest owners of station-front commercial real estate, reported consolidated results for the first half of the year to December 2026 (January 1 – June 30, 2026) under Japanese GAAP. Operating revenue jumped 38.8% to ¥416,596 million, an increase of ¥116,515 million, but operating profit rose only 7.0% to ¥80,313 million (+¥5,258 million). Ordinary profit gained 6.4% to ¥70,861 million (+¥4,314 million) and interim net profit attributable to owners of the parent climbed 11.3% to ¥49,978 million (+¥5,085 million). Basic earnings per share were ¥65.82, up from ¥59.06, and comprehensive income rose 27.5% to ¥60,659 million.
Why revenue leapt but profit did not
The gap between a 38.8% revenue gain and a 7.0% profit gain is a function of Hulic's business mix. Rental income from offices and similar assets — the group's stable core — advanced steadily as buildings completed or acquired in the previous financial year and during the half contributed for a full or partial period. On top of that, sales of property held for sale ran strongly, and those transactions add large amounts of revenue at far thinner margins than leasing does.
That same volatility is why Hulic declines to publish a revenue forecast at all. The company says that although its business is anchored on a stable leasing structure, operating revenue fluctuates widely depending on the trading of property held for sale, and that the success and timing of those transactions is heavily influenced by economic conditions and the property market and is currently difficult to predict. It will disclose a revenue forecast promptly once one becomes possible; until then its full-year guidance covers the profit lines only.
Real estate: around 250 buildings, 1.26 million square metres
The real estate segment posted operating revenue of ¥349,630 million, up 35.8% (+¥92,295 million), and operating profit of ¥87,253 million, up 9.4% (+¥7,540 million). As of the end of June 2026 the group owned or managed roughly 250 rental properties, excluding property held for sale, concentrated close to stations in Tokyo's 23 wards, with about 1.26 million square metres of leasable floor area.
New fixed-asset acquisitions in the half included the Hulic Kamiyacho Building (part interest, Minato-ku, Tokyo), the freehold land under the Hulic Kudan Building (Chiyoda-ku) and the Sapporo Network Center (Kita-ku, Sapporo). On the development side, Quartz Shinsaibashi in Chuo-ku, Osaka was completed in March 2026, and a long pipeline is progressing: the Jiyugaoka 1-chome 29 Category-1 Urban Redevelopment Project in Meguro-ku, the tentatively named Ginza 8-chome 9-11/12 development, phase one of the tentatively named Shiohama 2-chome project in Koto-ku, the planned reconstruction of the Aoyama Building in Minato-ku, and the tentative G8, Ginza 5-chome, Ginza 6-chome Miyuki-dori, Ginza 7-chome Showa-dori and Shinjuku 318 developments. In public-private partnerships, the Tokyo Metropolitan Government and Shibuya Ward "Urban Renaissance Step-Up Project (Shibuya district) Shibuya 1-chome joint development" is also on track.
On the trading side, Hulic acquired the East Net Building (Koto-ku) and The Square Hotel Ginza (Chuo-ku) as property held for sale, and sold Hulic Minatomirai (Naka-ku, Yokohama) and Hulic Fuchu Tower (Fuchu, Tokyo).
Hotels, insurance and a goodwill charge
The hotel and ryokan segment — the THE GATE HOTEL and View Hotel brands run by Hulic Hotel Management, plus the Fufu ryokan series operated by Hulic Fufu — lifted operating revenue 13.0% to ¥31,579 million (+¥3,635 million) on continued strong inbound demand, higher room rates and contributions from newly opened properties. Segment operating profit edged up 1.8% to ¥2,700 million (+¥47 million).
Insurance, run through subsidiary Hulic Insurance Service, raised operating revenue 4.6% to ¥2,058 million (+¥92 million) and operating profit 18.8% to ¥662 million (+¥105 million). The unit holds agency agreements with domestic and foreign insurers and is focused on acquiring the business rights of existing non-life agencies, centred on corporate accounts.
The "other" category — construction contracting, design and construction supervision, children's education, boring equipment and fully prepared meals for elderly-care facilities — more than doubled revenue to ¥39,389 million, up 107.1% (+¥20,370 million), but swung to an operating loss of ¥2,459 million from a ¥52 million loss a year earlier. The company attributes the swing to a one-off ¥5,129 million of additional goodwill amortisation linked to the share price of consolidated subsidiary Riso Kyoiku Group; excluding that item the category would have earned an operating profit of ¥2,669 million.
Balance sheet and cash flow
Total assets stood at ¥3,592,508 million at the end of June, up ¥86,440 million from the December 2025 year-end, while total liabilities rose ¥45,274 million to ¥2,612,162 million. Group borrowings totalled ¥1,665,236 million, of which ¥50,060 million were non-recourse loans held at special-purpose companies. Net assets rose ¥41,166 million to ¥980,346 million, lifting the equity ratio to 26.3% from 26.0%, with book value per share of ¥1,247.52 against ¥1,202.76.
Operating cash flow swung sharply higher to ¥155,752 million from ¥47,195 million a year earlier, helped by pre-tax interim profit of ¥71,928 million, a ¥56,912 million decrease in inventories and a ¥37,140 million decrease in operating investment securities, against ¥32,945 million of income taxes paid. Investing activities consumed ¥200,165 million as the group rotated and redeveloped assets, and financing activities provided ¥69,509 million. Cash and equivalents ended the period at ¥155,867 million.
Interim dividend raised; full-year guidance held
Hulic lifted its interim dividend to ¥33.50 per share from ¥28.50 a year earlier, with payments starting September 3, 2026, and kept its year-end forecast at ¥33.50 for an annual total of ¥67.00, up from ¥62.00 — unchanged from the previous announcement. Full-year guidance for the year to December 2026 is also unchanged: operating profit of ¥210,000 million (+12.4%), ordinary profit of ¥185,000 million (+6.9%) and net profit of ¥121,000 million (+5.8%), with EPS of ¥159.34. No operating revenue forecast is given, for the reasons set out above. Management says first-half results tracked broadly in line with plan.
Three companies — Hamakaze Property LLC, HistoRy LLC and Salowin Inc. — entered the scope of consolidation during the half, while Shobu Property LLC and Hulic Biz Frontier Inc. were removed.
| Metric | H1 FY12/2026 | H1 FY12/2025 | YoY |
|---|---|---|---|
| Operating revenue (¥ billion) | 416.60 | 300.08 | +38.8% |
| Operating profit (¥ billion) | 80.31 | 75.06 | +7.0% |
| Ordinary profit (¥ billion) | 70.86 | 66.55 | +6.4% |
| Net profit attrib. to owners (¥ billion) | 49.98 | 44.89 | +11.3% |
| Comprehensive income (¥ billion) | 60.66 | 47.56 | +27.5% |
| Basic EPS (¥) | 65.82 | 59.06 | +11.4% |
| Real estate segment revenue (¥ billion) | 349.63 | 257.34 | +35.8% |
| Real estate segment operating profit (¥ billion) | 87.25 | 79.71 | +9.4% |
| Hotel & ryokan segment revenue (¥ billion) | 31.58 | 27.94 | +13.0% |
| Interim dividend (¥) | 33.50 | 28.50 | +17.5% |
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.