Kyoritsu Maintenance (9616): FY2025 Results Summary — Record Profit for a Third Straight Year on Hotel Price Optimization

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

Note: The company labels the fiscal year ended March 31, 2026 as “FY 3/26” in its presentation, and the following fiscal year as “FY 3/27”; the labels used in the text and tables below follow the materials. Kyoritsu Maintenance reported net sales of 2,752 (100 million yen) and net income of 187 (100 million yen) for FY 3/26, describing the result as “Recorded highest profits for 3 consecutive years, Net income increased 28.5% YoY to 18.7 billion yen.” The dormitory business grew on higher occupied rooms and sales price optimization, while the hotel business increased both revenue and profit by promoting sales price optimization and absorbing cost increases. For FY 3/27 the company forecasts operating income of 260 (100 million yen), which it presents as “Steady Sustainable Growth: Operating Profit of 26.0 Billion Yen with 12.7% Organic Growth Net of Real Estate Liquidation.”

Consolidated Results (Full-Year Actual)

Net sales rose 20.2% year on year and operating income rose 21.2%. The presentation separates out “Special Causes” — the year-on-year increase/decrease in sales and leaseback of real estate, impairment loss and tax effect accounting — and shows that, excluding those factors, net sales grew +6.0%, operating income +10.7%, ordinary income +12.3% and net income +15.0%. EPS for FY 3/26 is stated as 221.8 yen; the company notes that this figure takes into account the issuance of new shares (12,804,084 shares) through the exercise of convertible bonds with stock acquisition rights made between April 1, 2025 and March 31, 2026, and that EPS excluding that impact is 239.6 yen (up 28.4% YoY).

Item (100 million yen)	FY 3/25 Results	FY 3/26 Results	YoY Comparison
Net Sales	2,289	2,752	+463 (+20.2%)
Operating Income	204	248	+43 (+21.2%)
Ordinary Income	214	262	+47 (+22.3%)
Net Income	145	187	+41 (+28.5%)
EPS (yen)	186.6	221.8	+35.3 (+18.9%)
Depreciation Expense	77	90	+13 (+17.1%)
Cash Flow	222	277	+54 (+24.5%)
Capital Investment	480	421	-58 (-12.2%)

On the balance sheet, total assets stood at 316.6 billion yen at the end of March 2026 (+15.1 billion yen), net assets at 145.5 billion yen (+46.1 billion yen) and interest-bearing liabilities at 120.7 billion yen (-28.4 billion yen). The equity ratio improved to 46.0% from 33.0% a year earlier, and the net debt-to-equity ratio fell to 0.62x from 1.24x.

Segment Results

Segment figures are shown before eliminations of intersegment transactions. Hotel Business Total (Dormy Inn plus Resorts) net sales reached 1,492 (100 million yen) versus 1,392 in FY 3/25, and operating income 210.5 versus 184.9. Within the hotel business, Dormy Inn drove the increase while Resorts operating income declined. The Development segment expanded sharply; the company states that real estate securitization was carried out for four properties, contributing net sales of 35.0 billion yen and operating income of 2.3 billion yen. For FY 3/26 the segment mix of operating income was 61.6% Dormy Inn, 20.0% Dormitory, 9.8% Development and 6.3% Resorts.

Segment (100 million yen)	Net Sales FY 3/25	Net Sales FY 3/26	Operating Income FY 3/25	Operating Income FY 3/26
Dormitory	549	579	60.7	61.9
Dormy Inn	838	922	154.3	190.9
Resorts	554	570	30.6	19.5
Comprehensive Building Management	271	221	12.1	2.9
Foods Service	125	140	2.4	5.9
Development	99	431	6.7	30.4
Others	178	196	-4.2	-1.8
Hotel Business Total	1,392	1,492	184.9	210.5

Operating KPIs: Dormitories and Hotels

In the dormitory business, the occupancy ratio at the beginning of the period was 97.4% for FY 3/26 and is 98.5% for FY 3/27 (+1.1pt). The number of properties rose from 536 to 542, the number of rooms from 46,266 to 47,920 (+1,654), and the number of rooms occupied from 45,082 to 47,225 (+2,143). In FY 3/26 the company opened 13 dormitory facilities with 1,405 rooms, four Dormy Inn facilities with 636 rooms, and one Resorts facility with 239 rooms.

For the hotel operations, the presentation shows the following KPI table comparing FY 3/26 results with the FY 3/27 forecast. The company notes that these figures exclude hotels that opened in April 2025 or later, in order to enable comparison under the same conditions. Group-wide, the inbound tourism ratio was 21.4% (+1.1 pt YoY) and the company website reservation ratio 25.8% (+3.0 pt YoY), with Dormy’s membership reaching 2.01 million (+61.4% YoY).

Business	Metric	FY 3/26	FY 3/27	YoY
Dormy Inn	OCC (%)	88.8	89.2	+0.4pt
Dormy Inn	ADR (thousand yen)	16.6	17.5	+5.0%
Dormy Inn	RevPAR (thousand yen)	14.8	15.6	+5.5%
Resorts	OCC (%)	82.1	81.4	-0.7pt
Resorts	ADR (thousand yen)	48.3	51.6	+6.7%
Resorts	RevPAR (thousand yen)	39.7	42.0	+5.8%

FY 3/27 Forecast

The company forecasts net sales of 2,770 (100 million yen) and operating income of 260, with ordinary income of 260 and net income of 180. Excluding the Special Causes shown in the presentation, the year-on-year comparison is +9.9% for net sales, +12.7% for operating income, +6.2% for ordinary income and +4.2% for net income. Capital investment is planned to rise 28.0% to 540. In the dormitory business the company plans to open 15 facilities with 2,466 rooms, and in the hotel business 8 new facilities with 1,197 rooms through a combination of new construction and rebranding, targeting double-digit growth by capturing lodging demand and implementing revenue management through dynamic pricing while offsetting increases in pre-opening and operating costs. By segment, the FY 3/27 forecast calls for net sales of 615 for Dormitory, 1,005 for Dormy Inn and 658 for Resorts, with Hotel Business Total net sales of 1,664 and operating income of 236.7.

Item (100 million yen)	FY 3/26 Results	FY 3/27 Forecast	YoY Comparison
Net Sales	2,752	2,770	+17 (+0.6%)
Operating Income	248	260	+11 (+4.6%)
Ordinary Income	262	260	-2 (-0.8%)
Net Income	187	180	-7 (-3.8%)
EPS (yen)	221.8	198.0	-23.9 (-10.8%)
DPS (yen)	46.0	46.0	—
Depreciation Expense	90	115	+24 (+27.3%)
Cash Flow	277	295	+17 (+6.3%)
Capital Investment	421	540	+118 (+28.0%)

Shareholder Returns

The annual dividend for FY 3/26 was 46.0 yen, an increase of 8.0 yen (+21.1%) from 38.0 yen in FY 3/25, split between an interim dividend of 23.0 yen and a year-end dividend of 23.0 yen. The consolidated payout ratio was 20.7%. For FY 3/27 the company states that net income is expected to decrease slightly due to Special Causes, with the annual dividend planned at 46 yen, consistent with the previous year, giving a payout ratio of 23.2% (+2.5 pt YoY). Shareholder benefits comprise Shareholder Discount Electronic Vouchers (July and December), Long-term Shareholder Discount Electronic Vouchers (July) and Shareholder Resort Hotel Benefit Electronic Vouchers (July and December), with amounts scaled by the number of shares held.

Item	FY 3/25	FY 3/26
Interim dividend (yen)	16.0	23.0
Year-end dividend (yen)	22.0	23.0
Annual dividend (yen)	38.0	46.0
EPS (yen)	186.6	221.8
Payout ratio (%)	20.4	20.7

Medium-Term Management Plan

Under “KYORITSU Growth Vision Rise Up Plan 2028,” the company is targeting average rates of growth of 10% in net sales and 30% in operating income over five years based on steady growth in the dormitory and hotel businesses. The Goals for 2028 are net sales of 280 billion yen, operating income of 28.0 billion yen, an operating income margin of 10%, EPS of 200 yen, ROE of 10% and a net D/E ratio of 1 or less. For reference, the presentation notes that the record high operating income was 14.5 billion yen in FY 3/19 and that the quantitative target for the final fiscal year of the previous Medium-Term Management Plan was 19.0 billion yen.

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.