Mugen Estate revises FY2025 forecast down on slower sales

Mugen Estate has revised its consolidated earnings forecast for fiscal year 2025, projecting lower net sales and profit figures. The revised forecast for net sales is JPY 64,135 million, down from JPY 80,694 million, while ordinary income is now expected to be JPY 9,147 million, a decrease from JPY 9,955 million. This adjustment is primarily attributed to slower-than-anticipated sales of large investment-type properties, although the purchase and resale of residential properties continued to perform steadily. The company emphasizes a continued focus on profitability in its sales strategies.

Despite the downward revision in earnings, Mugen Estate confirmed that its year-end dividend forecast remains unchanged at JPY 67 per share, maintaining its commitment to a stable dividend policy with a target payout ratio of 40% or more. The company also highlighted its FY2025 3Q highlights, including an expansion of purchasing and sales in regional areas, strengthening of fixed asset acquisitions totaling JPY 2 billion, and consolidation of sales offices to enhance operational efficiency.

The 3Q results show net sales of JPY 46,959 million, a 2.9% year-on-year decrease, and ordinary income of JPY 6,310 million, down 9.8% year-on-year. The company's inventory of investment-type properties increased significantly, while the Shinkoiwa Project was fully sold out. Mugen Estate also noted progress in its real estate development pipeline and sustainability initiatives.