Announcement • Aug 07
Sumitomo Realty & Development Co., Ltd. Provides Second Quarter-End Interim Dividend Guidance of the Year Ending March 31, 2027; Provides Year-End Dividend Guidance for the Fiscal Year Ending March 31, 2027 Sumitomo Realty & Development Co., Ltd. provided second quarter-end interim dividend guidance of the year ending March 31, 2027. For the second quarter-end, company expects dividend of JPY 26.00 per share against JPY 42.00 per share a year ago.
The company provided year-end dividend guidance of JPY 26.00 per share for the fiscal year ending March 31, 2027 against JPY 23.00 per share a year ago. A two-for-one stock split of common stock became effective on January 1, 2026. Dividend per share for the interim period of FY2025 is stated on a pre-stock split basis. Reported Earnings • Aug 07
First quarter 2027 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2027 results: EPS: JP¥92.20 (up from JP¥78.95 in 1Q 2026). Revenue: JP¥281.0b (down 4.2% from 1Q 2026). Net income: JP¥85.2b (up 15% from 1Q 2026). Profit margin: 30% (up from 25% in 1Q 2026). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) exceeded analyst estimates by 21%. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Real Estate industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Jul 25
Final dividend of JP¥26.00 announced Shareholders will receive a dividend of JP¥26.00. Ex-date: 29th September 2026 Payment date: 8th December 2026 Dividend yield will be 1.3%, which is lower than the industry average of 2.5%. Sustainability & Growth Dividend is covered by earnings (19% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 17% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 20% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 18
Sumitomo Realty & Development Co., Ltd. to Report Q1, 2027 Results on Aug 06, 2026 Sumitomo Realty & Development Co., Ltd. announced that they will report Q1, 2027 results on Aug 06, 2026 Live News • May 22
Sumitomo Realty Shares Fall Sharply as Sales Stagnate and Liquidity Pressures Persist Sumitomo Realty & Development shares fell sharply in the latest session, with the stock down between 5.23% and 5.93% on the day.
The stock has lagged the broader Japanese market over the past year, with a 27.06% loss compared with a 61.09% gain for the Nikkei 225.
Recent financial data show net sales growth broadly flat and liquidity ratios at relatively low levels, highlighting ongoing operational and funding pressures in a weak real estate market backdrop.
The combination of sustained share price pressure, stagnant sales and tighter liquidity signals that the company is dealing with both market headwinds and internal balance sheet constraints.
For investors, the key questions now are how long these pressures persist and whether the company can improve cash generation and financing flexibility without putting additional strain on shareholders. Valuation Update With 7 Day Price Move • May 20
Investor sentiment deteriorates as stock falls 23% After last week's 23% share price decline to JP¥3,765, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 11x in the Real Estate industry in Japan. Total returns to shareholders of 146% over the past three years. Reported Earnings • May 15
Full year 2026 earnings: Revenues and EPS in line with analyst expectations Full year 2026 results: EPS: JP¥228 (up from JP¥203 in FY 2025). Revenue: JP¥1.06t (up 4.3% from FY 2025). Net income: JP¥212.5b (up 11% from FY 2025). Profit margin: 20% (up from 19% in FY 2025). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Real Estate industry in Japan. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 39% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 15
Sumitomo Realty & Development Co., Ltd., Annual General Meeting, Jun 26, 2026 Sumitomo Realty & Development Co., Ltd., Annual General Meeting, Jun 26, 2026. Board Change • May 07
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 5 non-independent directors. Independent Outside Director Hakaru Tamura was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Mar 11
Sumitomo Realty & Development Co., Ltd. to Report Fiscal Year 2026 Results on May 13, 2026 Sumitomo Realty & Development Co., Ltd. announced that they will report fiscal year 2026 results at 3:30 PM, Tokyo Standard Time on May 13, 2026 Price Target Changed • Feb 10
Price target increased by 8.4% to JP¥4,603 Up from JP¥4,245, the current price target is an average from 11 analysts. New target price is 10% below last closing price of JP¥5,123. Stock is up 97% over the past year. The company is forecast to post earnings per share of JP¥229 for next year compared to JP¥203 last year. Reported Earnings • Feb 07
Third quarter 2026 earnings: EPS and revenues exceed analyst expectations Third quarter 2026 results: EPS: JP¥60.82 (up from JP¥39.31 in 3Q 2025). Revenue: JP¥246.9b (up 1.5% from 3Q 2025). Net income: JP¥56.5b (up 52% from 3Q 2025). Profit margin: 23% (up from 15% in 3Q 2025). The increase in margin was primarily driven by lower expenses. Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) also surpassed analyst estimates by 27%. Revenue is forecast to grow 4.6% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Real Estate industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has increased by 44% per year, which means it is tracking significantly ahead of earnings growth. New Risk • Dec 28
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 108% Dividend yield: 2.2% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (5.4% operating cash flow to total debt). Minor Risk Dividend is not well covered by cash flows (108% cash payout ratio). Price Target Changed • Dec 09
Price target increased by 7.7% to JP¥7,295 Up from JP¥6,772, the current price target is an average from 11 analysts. New target price is approximately in line with last closing price of JP¥7,534. Stock is up 63% over the past year. The company is forecast to post earnings per share of JP¥455 for next year compared to JP¥405 last year. Declared Dividend • Dec 09
First half dividend of JP¥44.00 announced Shareholders will receive a dividend of JP¥44.00. Ex-date: 30th March 2026 Payment date: 30th June 2026 Dividend yield will be 1.1%, which is lower than the industry average of 2.5%. Sustainability & Growth Dividend is covered by both earnings (18% earnings payout ratio) and cash flows (54% cash payout ratio). The dividend has increased by an average of 16% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 20% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Dec 05
Sumitomo Realty & Development Co., Ltd. to Report Q3, 2026 Results on Feb 06, 2026 Sumitomo Realty & Development Co., Ltd. announced that they will report Q3, 2026 results at 3:30 PM, Tokyo Standard Time on Feb 06, 2026 Reported Earnings • Nov 13
Second quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2026 results: EPS: JP¥95.72 (up from JP¥73.69 in 2Q 2025). Revenue: JP¥238.9b (up 6.7% from 2Q 2025). Net income: JP¥44.6b (up 28% from 2Q 2025). Profit margin: 19% (up from 16% in 2Q 2025). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.6%. Earnings per share (EPS) exceeded analyst estimates by 1.6%. Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Real Estate industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Sep 22
Upcoming dividend of JP¥42.00 per share Eligible shareholders must have bought the stock before 29 September 2025. Payment date: 05 December 2025. Payout ratio is a comfortable 17% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (2.4%). Announcement • Sep 17
Sumitomo Realty & Development Co., Ltd. to Report Q2, 2026 Results on Nov 11, 2025 Sumitomo Realty & Development Co., Ltd. announced that they will report Q2, 2026 results on Nov 11, 2025 Reported Earnings • Aug 08
First quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2026 results: EPS: JP¥158. Revenue: JP¥293.3b (down 7.1% from 1Q 2025). Net income: JP¥73.8b (down 1.0% from 1Q 2025). Profit margin: 25% (up from 24% in 1Q 2025). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 3.7%. Earnings per share (EPS) exceeded analyst estimates by 7.4%. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 4.1% growth forecast for the Real Estate industry in Japan. Declared Dividend • Jul 09
Final dividend of JP¥42.00 announced Shareholders will receive a dividend of JP¥42.00. Ex-date: 29th September 2025 Payment date: 5th December 2025 Dividend yield will be 1.4%, which is lower than the industry average of 2.5%. Sustainability & Growth Dividend is well covered by both earnings (17% earnings payout ratio) and cash flows (45% cash payout ratio). The dividend has increased by an average of 16% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 17% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jun 14
Sumitomo Realty & Development Co., Ltd. to Report Q1, 2026 Results on Aug 07, 2025 Sumitomo Realty & Development Co., Ltd. announced that they will report Q1, 2026 results on Aug 07, 2025 Announcement • Jun 12
Sumitomo Realty Reportedly Seeks $700 Million Office Sale Amid Elliott Push Sumitomo Realty & Development Co., Ltd. (TSE:8830), the Japanese developer facing pressure from Elliott Investment Management L.P. to boost its value, is seeking to sell a group of office properties in Tokyo for at least JPY 100 billion ($700 million), according to people with knowledge of the matter. The developer has earmarked 19 midsized office buildings for the divestment. It has asked real estate investment firms and agencies to estimate the value of the offices, which it is considering selling separately, the people said, asking not to be identified because the matter is private. It is also weighing the sale of eight rental apartment buildings in the city, they said. Representatives for Sumitomo Realty weren’t immediately available for comment. After taking a stake in Sumitomo Realty, Elliott said this week that the Tokyo-based company should do more to improve shareholder returns and corporate governance. The sale plans mark a shift from its business model of developing properties in-house, holding them for the long term, and earning steady income from tenants, toward a strategy targeting capital gains. In a rare public letter, Elliott said it would vote against Sumitomo Realty’s senior management at an annual shareholder meeting on June 27 if no meaningful progress is made on improving its value. It called on the developer to unwind its cross-shareholdings, increase its shareholder payout ratio to 50% or more and target a return on equity of at least 10%. Elliott has built up more than a 3% holding in the company, according to the letter. Announcement • Jun 11
Elliott Investment Management Calls to Enhance Corporate Value and Strengthen Corporate Governance Ahead of Sumitomo Realty's Annual General Meeting On June 8, 2025, Elliott Investment Management, L.P. and Elliott Advisors (UK) Limited released an open letter to Sumitomo Realty & Development Co., Ltd.'s shareholders. In the letter, Elliott Investment Management encouraged fellow shareholders to actively engage with the Company's management ahead of the upcoming 2025 annual general meeting of shareholders and to hold the Company accountable for not addressing its long-standing valuation discount and weak corporate governance. The letter outlines 4 key areas of concern – poor shareholder returns, excessive cross shareholdings, declining capital efficiency and subpar governance – and urges the Company to implement tangible reforms. These include increasing its shareholder payout, reducing cross shareholdings, issuing a credible return target and enhancing governance. Elliott Investment Management also emphasized that without meaningful progress from the Company, it intends to vote against the reappointment of senior management at the upcoming AGM. Reported Earnings • May 15
Full year 2025 earnings: Revenues and EPS in line with analyst expectations Full year 2025 results: EPS: JP¥405 (up from JP¥374 in FY 2024). Revenue: JP¥1.01t (up 4.8% from FY 2024). Net income: JP¥191.7b (up 8.2% from FY 2024). Profit margin: 19% (in line with FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Real Estate industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year but the company’s share price has increased by 19% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 14
Sumitomo Realty & Development Co., Ltd. (TSE:8830) announces an Equity Buyback for 2,000,000 shares, representing 0.43% for ¥10,000 million. Sumitomo Realty & Development Co., Ltd. (TSE:8830) announces a share repurchase program. Under the program, the company will repurchase up to 2,000,000 shares, representing 0.43% of its issued share capital (excluding treasury stock), for ¥10,000 million. The purpose of the program is to allocate the shares to the stock compensation plan to reward long service and dedication for company's employees. The program will be funded from proceeds from the sale of shares. The repurchased shares will be cancelled. The program will be valid till September 30, 2025. As of May 1, 2025, the company has 466,861,584 issued shares (excluding treasury stock) and 9,224,394 treasury shares. Announcement • May 13
Sumitomo Realty & Development Co., Ltd., Annual General Meeting, Jun 27, 2025 Sumitomo Realty & Development Co., Ltd., Annual General Meeting, Jun 27, 2025. New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (5.5% operating cash flow to total debt). Minor Risk Share price has been volatile over the past 3 months (5.6% average weekly change). Announcement • Mar 25
Elliott Investment Management Builds Stake in Sumitomo Realty & Development On March 24, 2025, Elliott Investment Management announced that it has built a significant stake in Sumitomo Realty & Development Co., Ltd. and is engaging with the Company to improve shareholder value. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 30 June 2025. Payout ratio is a comfortable 16% but the company is paying out more than the cash it is generating. Trailing yield: 1.3%. Lower than top quartile of Japanese dividend payers (3.7%). Lower than average of industry peers (2.6%). Announcement • Mar 16
Sumitomo Realty & Development Co., Ltd. to Report Fiscal Year 2025 Results on May 13, 2025 Sumitomo Realty & Development Co., Ltd. announced that they will report fiscal year 2025 results at 3:30 PM, Tokyo Standard Time on May 13, 2025 Reported Earnings • Feb 07
Third quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2025 results: EPS: JP¥78.62 (down from JP¥83.70 in 3Q 2024). Revenue: JP¥243.3b (up 10.0% from 3Q 2024). Net income: JP¥37.2b (down 6.1% from 3Q 2024). Profit margin: 15% (down from 18% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 12%. Earnings per share (EPS) missed analyst estimates by 8.7%. Revenue is forecast to grow 2.3% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Real Estate industry in Japan. Over the last 3 years on average, earnings per share has increased by 9% per year whereas the company’s share price has increased by 13% per year. Announcement • Dec 17
Sumitomo Realty & Development Co., Ltd. (TSE:8830) announces an Equity Buyback for 8,000,000 shares, representing 1.69% for ¥35,000 million. Sumitomo Realty & Development Co., Ltd. (TSE:8830) announces a share repurchase program. Under the program, the company will repurchase up to 8,000,000 shares, representing 1.69% of its issued share capital (excluding treasury stock), for ¥35,000 million. The purpose of the program is to allocate the shares to the stock compensation plan to reward long service and dedication for company's employees engaged in Shinchiku Sokkurisan Remodeling Business and Custom Homes Business. The program will be funded from proceeds from the sale of shares. The program will be valid till June 30, 2025. As of September 30, 2024, the company has 473,758,539 issued shares (excluding treasury stock) and 2,327,439 treasury shares. Announcement • Dec 14
Sumitomo Realty & Development Co., Ltd. to Report Q3, 2025 Results on Feb 06, 2025 Sumitomo Realty & Development Co., Ltd. announced that they will report Q3, 2025 results on Feb 06, 2025 Declared Dividend • Dec 06
First half dividend of JP¥35.00 announced Shareholders will receive a dividend of JP¥35.00. Ex-date: 28th March 2025 Payment date: 30th June 2025 Dividend yield will be 1.5%, which is lower than the industry average of 2.5%. Sustainability & Growth Dividend is covered by earnings (17% earnings payout ratio) but not covered by cash flows (147% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 14% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 09
Second quarter 2025 earnings: Revenues and EPS in line with analyst expectations Second quarter 2025 results: EPS: JP¥73.69 (down from JP¥103 in 2Q 2024). Revenue: JP¥223.9b (down 11% from 2Q 2024). Net income: JP¥34.9b (down 29% from 2Q 2024). Profit margin: 16% (down from 20% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Real Estate industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 7% per year. Announcement • Oct 30
NEC Corporation (TSE:6701) proposed to acquire 48.64% stake in NEC Networks & System Integration Corporation (TSE:1973) from the group of shareholders for approximately ¥240 billion. NEC Corporation (TSE:6701) proposed to acquire 48.64% stake in NEC Networks & System Integration Corporation (TSE:1973) from the group of shareholders for approximately ¥240 billion on October 29, 2024. A cash consideration valued at ¥3250 per share will be paid by NEC Corporation. Upon completion, NEC Corporation will own 87.13% direct stake in NEC Networks & System Integration Corporation. The transaction will be financed through senior debt of ¥236 million. NEC plans to borrow funds from Sumitomo Mitsui Banking Corporation by the business day preceding the commencement date of settlement for the Tender Offer subject to the completion of the Tender Offer and the certain other conditions in order to cover the funds required for the Transactions.
The transaction is subject to consummation of due diligence investigation and minimum tender. NEC sets the minimum number of shares to be acquired in the Tender Offer at 22,756,305 shares, If the total number of the shares tendered in the Tender Offer is less than the minimum number of shares to be acquired, NEC will not acquire any of the Tendered Shares. The Board of Directors of NEC Networks & System Integration Corporation formed a special committee for the transaction. NESIC has resolved at the meeting of its board of directors to express its opinion supporting the Tender Offer and to recommend that the shareholders of NESIC tender
their shares in the Tender Offer. The tender offer will be commenced on October 30, 2024, and will close on December 11, 2024.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., SMBC Nikko Securities Inc. acted as financial advisors for NEC Corporation. Nagashima Ohno & Tsunematsu acted as legal advisor for NEC Corporation. Daiwa Securities Co. Ltd. acted as financial advisor and provided fairness opinion to NEC Networks & System Integration Corporation. Nishimura & Asahi acted as legal advisor for NEC Networks & System Integration Corporation. Upcoming Dividend • Sep 20
Upcoming dividend of JP¥35.00 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 04 December 2024. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.8%). Lower than average of industry peers (2.6%). Announcement • Sep 14
Sumitomo Realty & Development Co., Ltd. to Report Q2, 2025 Results on Nov 08, 2024 Sumitomo Realty & Development Co., Ltd. announced that they will report Q2, 2025 results on Nov 08, 2024 Reported Earnings • Aug 10
First quarter 2025 earnings: EPS and revenues exceed analyst expectations First quarter 2025 results: EPS: JP¥157 (up from JP¥120 in 1Q 2024). Revenue: JP¥315.7b (up 25% from 1Q 2024). Net income: JP¥74.5b (up 31% from 1Q 2024). Profit margin: 24% (up from 23% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 18%. Earnings per share (EPS) also surpassed analyst estimates by 39%. Revenue is forecast to grow 1.7% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Real Estate industry in Japan. Over the last 3 years on average, earnings per share has increased by 12% per year whereas the company’s share price has increased by 7% per year. New Risk • Aug 05
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 6.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (5.9% operating cash flow to total debt). Minor Risk Share price has been volatile over the past 3 months (6.1% average weekly change). Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 25% After last week's 25% share price decline to JP¥3,717, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 11x in the Real Estate industry in Japan. Total returns to shareholders of 7.9% over the past three years. Declared Dividend • Jul 11
Final dividend of JP¥35.00 announced Shareholders will receive a dividend of JP¥35.00. Ex-date: 27th September 2024 Payment date: 4th December 2024 Dividend yield will be 1.3%, which is lower than the industry average of 2.5%. Sustainability & Growth Dividend is covered by both earnings (16% earnings payout ratio) and cash flows (76% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 14% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Jun 17
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Japanese stocks, typically moving 5.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Debt is not well covered by operating cash flow (6.7% operating cash flow to total debt). Minor Risk Share price has been volatile over the past 3 months (5.5% average weekly change). Announcement • Jun 17
Sumitomo Realty & Development Co., Ltd. to Report Q1, 2025 Results on Aug 08, 2024 Sumitomo Realty & Development Co., Ltd. announced that they will report Q1, 2025 results on Aug 08, 2024 Reported Earnings • May 11
Full year 2024 earnings: Revenues and EPS in line with analyst expectations Full year 2024 results: EPS: JP¥374 (up from JP¥342 in FY 2023). Revenue: JP¥967.7b (up 3.0% from FY 2023). Net income: JP¥177.2b (up 9.4% from FY 2023). Profit margin: 18% (up from 17% in FY 2023). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Real Estate industry in Japan. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 16% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 11
Sumitomo Realty & Development Co., Ltd., Annual General Meeting, Jun 27, 2024 Sumitomo Realty & Development Co., Ltd., Annual General Meeting, Jun 27, 2024. Announcement • May 10
Sumitomo Realty & Development Co., Ltd. Provides Earnings Guidance for the fiscal Year Ending March 31, 2025 Sumitomo Realty & Development Co., Ltd. provided earnings guidance for the fiscal Year Ending March 31, 2025. For the year, company expects revenue from operations to be JPY 1,000,000, Operating income to be JPY 267,000, Profit attributable to owner of parent to be JPY 190,000. Price Target Changed • May 03
Price target increased by 8.9% to JP¥5,934 Up from JP¥5,449, the current price target is an average from 10 analysts. New target price is 9.8% above last closing price of JP¥5,406. Stock is up 75% over the past year. The company is forecast to post earnings per share of JP¥375 for next year compared to JP¥342 last year. Price Target Changed • Apr 05
Price target increased by 9.1% to JP¥5,349 Up from JP¥4,904, the current price target is an average from 11 analysts. New target price is approximately in line with last closing price of JP¥5,608. Stock is up 90% over the past year. The company is forecast to post earnings per share of JP¥374 for next year compared to JP¥342 last year. Upcoming Dividend • Mar 21
Upcoming dividend of JP¥30.00 per share Eligible shareholders must have bought the stock before 28 March 2024. Payment date: 01 July 2024. Payout ratio is a comfortable 7.7% but the company is not cash flow positive. Trailing yield: 1.1%. Lower than top quartile of Japanese dividend payers (3.2%). Lower than average of industry peers (2.2%). Valuation Update With 7 Day Price Move • Mar 19
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to JP¥5,243, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Real Estate industry in Japan. Total returns to shareholders of 40% over the past three years. Announcement • Mar 17
Sumitomo Realty & Development Co., Ltd. to Report Fiscal Year 2024 Results on May 09, 2024 Sumitomo Realty & Development Co., Ltd. announced that they will report fiscal year 2024 results on May 09, 2024 Reported Earnings • Feb 10
Third quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2024 results: EPS: JP¥83.70 (down from JP¥87.68 in 3Q 2023). Revenue: JP¥221.2b (down 1.2% from 3Q 2023). Net income: JP¥39.7b (down 4.5% from 3Q 2023). Profit margin: 18% (in line with 3Q 2023). Revenue missed analyst estimates by 5.4%. Earnings per share (EPS) exceeded analyst estimates by 1.0%. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Real Estate industry in Japan. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 10% per year. Announcement • Dec 17
Sumitomo Realty & Development Co., Ltd. to Report Q3, 2024 Results on Feb 09, 2024 Sumitomo Realty & Development Co., Ltd. announced that they will report Q3, 2024 results on Feb 09, 2024 Reported Earnings • Nov 11
Second quarter 2024 earnings: EPS and revenues exceed analyst expectations Second quarter 2024 results: EPS: JP¥103 (up from JP¥86.85 in 2Q 2023). Revenue: JP¥252.1b (up 9.0% from 2Q 2023). Net income: JP¥49.0b (up 19% from 2Q 2023). Profit margin: 20% (up from 18% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.3%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Real Estate industry in Japan. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 9% per year. Upcoming Dividend • Sep 21
Upcoming dividend of JP¥29.00 per share at 1.5% yield Eligible shareholders must have bought the stock before 28 September 2023. Payment date: 05 December 2023. Payout ratio is a comfortable 15% but the company is not cash flow positive. Trailing yield: 1.5%. Lower than top quartile of Japanese dividend payers (3.3%). Lower than average of industry peers (2.6%). Announcement • Sep 17
Sumitomo Realty & Development Co., Ltd. to Report Q2, 2024 Results on Nov 10, 2023 Sumitomo Realty & Development Co., Ltd. announced that they will report Q2, 2024 results on Nov 10, 2023 Reported Earnings • Aug 12
First quarter 2024 earnings: EPS exceeds analyst expectations First quarter 2024 results: EPS: JP¥120 (up from JP¥112 in 1Q 2023). Revenue: JP¥253.1b (up 3.9% from 1Q 2023). Net income: JP¥56.9b (up 7.5% from 1Q 2023). Profit margin: 23% (in line with 1Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 17%. Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Real Estate industry in Japan. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has increased by 7% per year. Announcement • Jun 07
Sumitomo Realty & Development Co., Ltd. to Report Q1, 2024 Results on Aug 10, 2023 Sumitomo Realty & Development Co., Ltd. announced that they will report Q1, 2024 results on Aug 10, 2023 Reported Earnings • May 14
Full year 2023 earnings: Revenues and EPS in line with analyst expectations Full year 2023 results: EPS: JP¥342 (up from JP¥317 in FY 2022). Revenue: JP¥939.9b (flat on FY 2022). Net income: JP¥161.9b (up 7.6% from FY 2022). Profit margin: 17% (up from 16% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Real Estate industry in Japan. Over the last 3 years on average, earnings per share has increased by 3% per year whereas the company’s share price has increased by 7% per year. Announcement • May 13
Sumitomo Realty & Development Co., Ltd., Annual General Meeting, Jun 29, 2023 Sumitomo Realty & Development Co., Ltd., Annual General Meeting, Jun 29, 2023. Upcoming Dividend • Mar 23
Upcoming dividend of JP¥28.00 per share at 1.9% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 30 June 2023. Payout ratio is a comfortable 14% and the cash payout ratio is 77%. Trailing yield: 1.9%. Lower than top quartile of Japanese dividend payers (3.6%). Lower than average of industry peers (3.1%).