Dear Life (3245): FY2025 Results Summary — Record Recurring Profit Up 68.2% on a Firm Real Estate Market

This article is based on publicly available IR materials and is not a recommendation to buy or sell any specific securities.

Note: Dear Life does not publish an English results presentation; this article is an English translation of the Japanese-language article on our sister site Investalk, which is based on the company’s Japanese-language IR materials, with figures transcribed as reported. This site classifies the most recently completed fiscal year as FY2025; the company’s fiscal year ends in September, and this article covers the fiscal year ended September 30, 2025 (October 2024–September 2025), with the source labels retained in the body text and tables. Yen amounts follow the source materials: figures the source states in millions of yen are shown in millions of yen, and figures the source states in units of ¥100 million are rendered in billions of yen.

Dear Life’s consolidated results for the fiscal year ended September 2025 posted recurring profit of ¥7,831 million (up 68.2% year on year) and net income attributable to owners of the parent of ¥5,320 million (up 67.8%), with both the Real Estate business and the Sales Promotion business recording their highest-ever profits, supported by a virtuous cycle of purchasing and selling amid a firm real estate market and by greater value-added in the sales promotion business. The equity ratio rose 6.8pt from the previous fiscal year-end to 59.3%, and to commemorate the record profit the annual dividend per share was set at ¥63 (payout ratio 51.5%). For the fiscal year ending September 2026, under its medium-term management target “Challenge 2028 – Catch the Wave,” the company targets recurring profit of ¥10.0 billion.

Consolidated Results (Fiscal Year Ended September 2025, Actual)

For the fiscal year ended September 2025, consolidated net sales were ¥78,505 million (up 67.5% year on year), operating profit ¥7,726 million (up 67.3%), recurring profit ¥7,831 million (up 68.2%) and net income attributable to owners of the parent ¥5,320 million (up 67.8%), with both recurring profit and net income reaching record highs. This reflected a virtuous cycle of purchasing and selling activities that accurately captured market needs amid a firm real estate market, together with the Sales Promotion business advancing its shift to a higher-quality, higher-unit-price strategy. EPS was ¥122.31 (up 68.8%).

Item	FY ended Sep 2024	FY ended Sep 2025	Change
Net sales	¥46,880 million	¥78,505 million	+¥31,625 million (+67.5%)
Operating profit	¥4,619 million	¥7,726 million	+¥3,107 million (+67.3%)
Recurring profit	¥4,656 million	¥7,831 million	+¥3,175 million (+68.2%)
Net income attributable to owners of the parent	¥3,170 million	¥5,320 million	+¥2,150 million (+67.8%)
EPS	¥72.44	¥122.31	+¥49.87 (+68.8%)

Segment Results

By segment, the Real Estate business posted segment net sales of ¥74,569 million (up 74.1% year on year) and segment profit of ¥8,619 million (up 59.1%), aided by investment within Tokyo’s 23 wards centered on the five central wards. The period-end real estate inventory balance decreased to ¥16,800 million (down 32.2% year on year) on the virtuous cycle of purchasing and selling. In the Sales Promotion business, net sales declined 2.9% to ¥3,936 million as the company withdrew from some clients in line with its shift to higher-value-added services, but segment profit reached ¥79 million on higher dispatch unit prices, marking a second consecutive year of segment profit.

Segment	Metric	FY ended Sep 2024	FY ended Sep 2025
Real Estate	Net sales	¥42,826 million	¥74,569 million
Real Estate	Segment profit	¥5,417 million	¥8,619 million
Sales Promotion	Net sales	¥4,053 million	¥3,936 million
Sales Promotion	Segment profit	¥20 million	¥79 million

Full-Year Forecast / Medium-Term Targets

Based on the medium-term management target “Challenge 2028 – Catch the Wave,” the company set a recurring profit target of ¥10,000 million (¥10.0 billion) for the fiscal year ending September 2026. For the medium term (fiscal years ending September 2026 to September 2028), it targets recurring profit of ¥15.0 billion, ROE of 20% or more, ROIC at around the 12% level and an equity ratio of 40% or more.

Metric	FY ended Sep 2025 (Actual)	Medium-Term Target (FY ending Sep 2026 – Sep 2028)	FY ending Sep 2035 (30th Anniversary Target)
Recurring profit	¥7.8 billion	¥15.0 billion	¥30.0 billion
ROE	20.2%	20% or more	20% or more
ROIC	12.7%	around 12%	around 14%
Equity ratio	59.3%	40% or more	40% or more

Shareholder Returns

The company’s policy is to target a payout ratio of 40% and to aim for stable dividends after taking into account business performance and DOE (dividend on equity). For the fiscal year ended September 2025, to commemorate the record profit, it set the annual dividend at ¥63 per share (payout ratio 51.5%). For the fiscal year ending September 2026, it targets an annual dividend of ¥64 per share.

Financial Position

Cash and deposits increased to ¥27,104 million (from ¥18,653 million at the previous fiscal year-end) on cash recovery from property sales, while interest-bearing debt decreased to ¥15,166 million (from ¥18,850 million) as debt repayment progressed. As a result, the equity ratio rose 6.8pt from the previous fiscal year-end to 59.3% (real estate industry average 30%), and the D/E ratio was 0.54x.

Item	End of FY Sep 2024	End of FY Sep 2025
Cash and deposits	¥18,653 million	¥27,104 million
Real estate for sale in process	¥10,644 million	¥4,616 million
Real estate for sale	¥14,139 million	¥12,184 million
Interest-bearing debt	¥18,850 million	¥15,166 million
Net assets	¥25,075 million	¥28,492 million

Medium-Term Management Target “Challenge 2028 – Catch the Wave”

Under “Challenge 2028 – Catch the Wave,” the company’s policy is to accelerate growth through organic growth in its Real Estate business, focused on Tokyo’s 23 wards, and through strategic investment leveraging M&A. In its cash flow allocation, drawing on ¥60.0–80.0 billion of cash on hand and operating income and more than ¥200.0 billion of borrowings and financing, it plans a three-year cumulative total of ¥9.0–15.0 billion for shareholder returns, ¥1.0–5.0 billion for human capital investment and more than ¥220.0 billion for growth investment (including ¥3.0–20.0 billion for strategic investment).

This article is an analysis based on publicly available information and is not a recommendation to buy or sell any specific securities. Investment decisions are your own responsibility.