Es-Con Japan reports strong Q2 growth, maintains full-year outlook

Es-Con Japan reported a 13.4% year-on-year increase in net sales to JPY 35,181 million and a 13.7% increase in operating income to JPY 4,905 million for the first half of FY2026. Profit attributable to owners of the parent grew 27.0% to JPY 1,858 million, aligning with its full-year consolidated earnings forecast. This growth was primarily fueled by higher condominium sales, including the high-end DIAMAS Hayama residence, and contributions from real estate leasing due to new commercial and hotel facilities in Hokkaido and the consolidation of Shiba Real Estate Inc.

The company's investment plan for the first half of FY2026 is 56.4% complete, with significant investments in income-generating properties. Total assets increased by JPY 21,210 million to JPY 481,057 million, largely due to increased cash, inventories, and property, plant, and equipment, reflecting the inclusion of Shiba Real Estate Inc. Liabilities rose by JPY 25,170 million to JPY 406,337 million, primarily from borrowings to fund acquisitions.

Es-Con Japan also announced a credit rating upgrade from A+ (Positive) to AA- (Stable) by JCR and the issuance of a second unsecured corporate bond worth JPY 10.0 billion, which garnered strong investor demand. The company is committed to its progressive dividend policy, targeting JPY 48 per share for FY3/26, and is actively advancing large-scale urban development projects.