Update shared on 08 May 2026
Q1 FY12/26 results update
Record monetization and acquisition signal accelerating capital recycling – Loadstar's record Q1 revenue was driven by the Company’s largest single asset monetization transaction to date. Capital was immediately recycled into GINZA PREX East, the largest single acquisition in the Company’s history, alongside two additional central Tokyo properties, lifting the on-balance-sheet portfolio to a record ¥99.1bn. With the FY12/27 real estate portfolio target of ¥150bn still requiring approximately ¥50bn in net accumulation from the current level, acquisition activity is expected to remain elevated. The office market backdrop remains constructive, with existing office building vacancy in Tokyo's five central wards tightening to 2.02% and average rents continuing their recovery trend, providing visibility to Loadstar’s investment returns in the Company’s Real Estate Investment business.
Record Q1 results
Q1 FY12/26 delivers record results – Loadstar reported Q1 FY12/26 revenue of ¥18.26bn (+65.2% YoY) and net income of ¥3.83bn (+6.8% YoY), both records for a single quarter. BVPS grew to ¥2,073 (+24.5% YoY). Real Estate Investment drove the headline, with ¥15.8bn in revenue from the disposal of Grace Kojimachi. Real Estate Leasing grew +10.7% YoY to ¥0.84bn, supported by continued rent growth in a strong demand environment. Asset Management revenue rose +72.0% YoY to ¥0.29bn, with AUM recovering to ¥120bn. Hotel Operations were broadly in line with Loadstar’s forecast at ¥1.11bn. Crowdfunding also delivered solid +21.9% YoY revenue growth.
Grace Kojimachi deal demonstrates Loadstar's countercyclical investment strategy – Acquired in May 2023 when office investment sentiment was cautious, Grace Kojimachi was sold in Q1 FY12/26 for ¥15.8bn, the largest single-property monetization in Loadstar's history. We estimate the investment generated unlevered IRR of +17% and a levered IRR of +60.5%, a very strong performance and a demonstration of Loadstar’s strategy, which aggressively invested in anticipation of a recovery in the Tokyo office market
Valuations – On our earnings estimates, the shares are trading on an estimated PER FY12/2026 of 5.4x (on +15.4% EPS growth YoY), a PBR of 1.5x, and a sum-of-the-parts multiple of 0.7x.
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