Kasumigaseki Capital (3498): FY2025 Results Summary — Net Income Doubles to ¥10.2 Billion, Phase 1 Plan Targets Met a Year Early

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

Note: Kasumigaseki Capital’s fiscal year ends on August 31. This article classifies the fiscal year ended August 31, 2025 (labeled “FYE8/2025” or “FYE8/25” in the company’s materials) as FY2025 under this site’s convention; the body text and tables below keep the company’s own labels.

Kasumigaseki Capital Co., Ltd. (TSE Prime: 3498), a real estate consulting company that develops hotels, logistics facilities and healthcare facilities through a fund-based model, reported net sales of 96,501 million yen for FYE8/2025 (146.9% of the prior year), operating profit of 18,933 million yen (221.8%) and profit attributable to owners of parent of 10,250 million yen (204.2%). The company states that net income of ¥10.2 billion achieved the targets of its Phase 1 Medium-Term Management Plan (FYE8/22 to FYE8/26) one year ahead of schedule, and it revised upward its FYE8/26 net income forecast from ¥15.0 bn to ¥16.5 bn.

Consolidated Results (Full-Year Actual)

All figures exceeded the company’s FYE8/25 forecasts. Net sales reached 96,501 million yen against a forecast of 95,000 million yen, operating profit 18,933 million yen against 16,500 million yen, ordinary profit 17,134 million yen against 15,000 million yen, and profit attributable to owners of parent 10,250 million yen against 10,000 million yen. Gross profit rose to 36,436 million yen (196.3% of the prior year). According to the company, each business segment posted growth with success fees recorded, and the hotel business was particularly robust.

Item (Millions of yen)	FYE8/24 Actual	FYE8/25 Forecast	FYE8/25 Actual	YoY
Net sales	65,685	95,000	96,501	146.9%
Gross profit	18,559	－	36,436	196.3%
Operating profit	8,537	16,500	18,933	221.8%
Ordinary profit	7,860	15,000	17,134	218.0%
Profit attributable to owners of parent	5,020	10,000	10,250	204.2%

The company explains that SG&A expenses rose with workforce expansion and proactive advertising but grew more slowly than gross profit (+96.3% vs. +74.6%), driving operating profit up +121.8%. In FYE8/25, success fees accounted for approx. 30% of gross profit, which the company describes as establishing a robust, multi-layered earnings base.

On the balance sheet, total assets increased to 121,688 million yen as of August 31, 2025 from 77,549 million yen a year earlier. Cash and deposits were 24,016 million yen (up from 11,064 million yen), and real estate for sale and costs on development business and other were 53,321 million yen (up from 48,670 million yen). Total net assets stood at 38,193 million yen (27,739 million yen a year earlier). The company notes that it built up inventory to ¥53.3 bn, securing sufficient stock to meet the FYE8/26 target.

Business Results: Project Pipeline and AUM

The materials present business progress by project pipeline and assets under management (AUM) rather than by segment profit. Total project value for pipeline and AUM grew to ¥663.6 bn as of August 31, 2025, up ¥172.0 bn (+35.0%) from the previous fiscal year-end. Logistics rose to ¥341.1 bn (24 projects) and Hotel to ¥246.5 bn (56 projects), while residential funds declined to ¥5.1 bn.

Business	Aug. 31, 2024 (Projects / Value, ¥bn)	Aug. 31, 2025 (Projects / Value, ¥bn)	Change (Amount)	Change (%)
Logistics	19 / 247.5	24 / 341.1	+93.6	+37.8%
Hotel	44 / 158.0	56 / 246.5	+88.5	+56.0%
Healthcare	15 / 37.0	17 / 45.1	+8.1	+21.9%
Alternative investment: Overseas Business	8 / 15.6	9 / 25.7	10.1	+64.7%
Alternative investment: Residential funds	13 (4 funds) / 33.4	6 (1 fund) / 5.1	(28.3)	(84.7%)
Total	99 / 491.6	112 / 663.6	+172.0	+35.0%

Hotel: The company listed Kasumigaseki Hotel REIT Investment Corporation, described as Japan’s first developer-sponsored, hotel-focused listed REIT, with an asset size at listing of ¥49.2 bn across 15 properties. Five development hotels opened, including FAV LUX Sapporo Susukino and edit x seven FUJI GOTEMBA, as well as the first rebranded hotel, BASE LAYER HOTEL NAGOYA NISHIKI (186 rooms). The company targets over 50 properties in operation by 2028 and beyond, with approx. 10 new openings per year.

Logistics: The company formed a private fund focused on frozen & chilled warehouses, with an asset size of ¥82.0 bn and 8 properties under management, described as one of the largest domestic funds of its kind. It also concluded a land purchase agreement in Malaysia for an automated frozen warehouse near Kuala Lumpur as the first step of ASEAN expansion, and is developing a factory-warehouse integrated site, the “Factory & Logistics Park” (provisional name).

Healthcare and Overseas: Hospice residences from the Group and development investors were sold to Mori Trust (6 properties / ¥15 billion in total), and all opened properties have transitioned to the management phase. In Dubai, the company signed a memorandum of understanding with Daito Trust Construction and sold development land for the first fund-based project, Emerald Hills, to a joint venture of both companies.

FYE8/2026 Forecast

For FYE8/26, the company forecasts net sales of 150,000 million yen (155.4% YoY), operating profit of 26,500 million yen (140.0%), ordinary profit of 24,000 million yen (140.1%) and profit attributable to owners of parent of 16,500 million yen (161.0%). The net income forecast was revised upward from ¥15.0 bn to ¥16.5 bn. EPS is forecast at ¥834.86, compared with ¥520.37 for FYE8/25, which is calculated as if the 2-for-1 share split conducted on Sep. 1, 2025 had taken place at the beginning of FYE8/2025.

Item (Millions of yen)	FYE8/25 (Actual)	FYE8/26 (Forecast)	YoY
Net sales	96,501	150,000	155.4%
Operating profit	18,933	26,500	140.0%
Ordinary profit	17,134	24,000	140.1%
Profit attributable to owners of parent	10,250	16,500	161.0%
EPS (yen/share)	¥520.37*	¥834.86	160.4%

* The Company conducted a 2-for-1 share split of its common shares on Sep. 1, 2025. The amount is calculated on the assumption that the share split was conducted at the beginning of the FYE8/2025.

Shareholder Returns

The dividend for FYE8/25 was 120.00 yen per share on a post-split basis (¥240.00 before the split). For FYE8/26, the company plans to increase the dividend to 165.00 yen per share (¥330.00 before the split). The company states that it implemented the stock split to create a more investor-friendly environment and expand its investor base, and will continue to strive to return value to shareholders.

Dividend per share	Split-adjusted	Before split (Sep. 1, 2025)
FYE8/24 (incl. commemorative dividend 25 (50))	85	170
FYE8/25 (Actual)	120.00 yen	¥240.00
FYE8/26 (Forecast)	165.00 yen	¥330.00

Medium-Term Management Plan

Under the Phase 2 Medium-Term Management Plan (FYE8/25 to FYE8/29), the company aims to achieve an AUM target of ¥1.5 trillion for FYE8/2029 by diversifying its business portfolio and scaling up its business size. AUM results (billions of yen) rose from 123.9 at FYE8/22 to 394.1 at FYE8/25. The company says it sees a clear outlook for achieving Phase 2 as business domains expand across segments, including frozen & chilled warehouse development in ASEAN, fund-based development projects in Dubai and consideration of a hotel business in the United States, and that it is considering entry into new domains and M&A with a view toward growth beyond Phase 2.

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.