Leasing and development carry the half
Daito Trust Construction Co., Ltd. (TSE: 1878) reported consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on October 30, 2026 under Japanese GAAP. Real estate leasing revenue rose 4.0% to ¥618,863 million and segment profit 16.7% to ¥53,310 million, driven by more master-leased units and high occupancy at Daito Trust Partners; residential occupancy by rent rose 0.4 points in September. Real estate development revenue jumped 30.6% to ¥78,872 million and profit 53.3% to ¥9,104 million, helped by the first-time consolidation of THE Global. Completed construction revenue fell 6.1% to ¥248,002 million, but price revisions lifted the construction gross margin 2.8 points to 27.6% and segment profit rose 11.4% to ¥22,234 million.
Construction orders fell 13.2% to ¥237,835 million as higher interest rates made landowners more cautious, and the order backlog at the end of September was ¥754,995 million, down 4.7%. Ordinary profit rose 10.1% to ¥78,567 million. A gain on the sale of shares in nursing-care operator Solasto, an equity-method affiliate, of about ¥9.87 billion was booked as extraordinary income, partly offset by a valuation loss on shares of JustCo Holdings; net profit attributable to owners of the parent rose 28.6% to ¥64,175 million, or ¥196.79 per share.
Forecast and dividend raised
Daito Trust raised its FY3/2027 forecast from the figures published on April 30: net sales to ¥2,080,000 million from ¥2,050,000 million, operating profit to ¥150,000 million (+10.9%) from ¥142,000 million, ordinary profit to ¥148,000 million from ¥140,000 million and net profit to ¥109,000 million from ¥108,000 million, citing the consolidation of THE Global, rent revisions and high occupancy. It will pay an interim dividend of ¥81 and now plans ¥84 at year end, an annual ¥165. Total assets rose to ¥1,566,706 million on higher cash and property for sale, funded partly by ¥145,853 million of new long-term borrowings, and the equity ratio fell to 34.4% from 36.5%.
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 988,686 | 959,553 | +3.0% |
| Operating profit (¥ million) | 79,299 | 69,393 | +14.3% |
| Ordinary profit (¥ million) | 78,567 | 71,380 | +10.1% |
| Net profit attrib. to owners of parent (¥ million) | 64,175 | 49,886 | +28.6% |
| Comprehensive income (¥ million) | 63,943 | 45,290 | +41.2% |
| EPS (¥) | 196.79 | 150.41 | +30.8% |
| Construction — revenue (¥ million) | 248,002 | 264,012 | -6.1% |
| Construction — segment profit (¥ million) | 22,234 | 19,953 | +11.4% |
| Real estate leasing — revenue (¥ million) | 618,863 | 594,879 | +4.0% |
| Real estate leasing — segment profit (¥ million) | 53,310 | 45,669 | +16.7% |
| Real estate development — revenue (¥ million) | 78,872 | 60,415 | +30.6% |
| Real estate development — segment profit (¥ million) | 9,104 | 5,939 | +53.3% |
| Orders received (¥ million) | 237,835 | — | -13.2% |
| Order backlog (¥ million) | 754,995 | — | -4.7% |
| Total assets (¥ million) | 1,566,706 | 1,367,502 | +14.6% |
| Net assets (¥ million) | 538,230 | 496,598 | +8.4% |
| Equity ratio | 34.4% | 36.5% | -2.1 pt |
| FY3/2027 guidance — revenue (¥ million) | 2,080,000 | 1,984,743 | +4.8% |
| FY3/2027 guidance — operating profit (¥ million) | 150,000 | 135,256 | +10.9% |
| FY3/2027 guidance — ordinary profit (¥ million) | 148,000 | 139,169 | +6.3% |
| FY3/2027 guidance — net profit (¥ million) | 109,000 | 99,030 | +10.1% |
| Annual dividend per share (¥) | 165.00 | — | — |
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.