Tokyo Tatemono: F12/26 1Q Results: Good Progress Despite Apparent Sharp Profit Drop due to Lower Condo Sales

Research evidence excerpt

Tokyo Tatemono: F12/26 1Q Results: Good Progress Despite Apparent Sharp Profit Drop due to Lower Condo Sales

Update

May 13, 2026 01:49 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MTokyo Tatemono (8804) | Japan Toshiyuki Anegawa

Equity Analyst

F12/26 1Q Results: Good Toshiyuki.Anegawa@morganstanleymufg.com +81 3 6836-8914

Tokyo Tatemono (8804.T, 8804 JP)

Real Estate | JapanProgress Despite Apparent

Stock Rating Equal-weight

Industry View In-Line

Price target ¥4,650Sharp Profit Drop due to Lower Shr price, close (May 13, 2026) ¥3,574

Mkt cap, curr, basic (bn) ¥742.0

Avg daily trading value (bn) ¥2.7Condo Sales

Reaction to earnings

Unchanged Meaningful shortfall Largely unchanged

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways

TOFROM YAESU TOWER leasing progressed beyond the previous ~80%, with

asking rent set a notch or two higher than surrounding levels according to the

firm.

Sales and profit declined YoY due to lower condo sales and GP.

Results however tracked in-line with guidance, with the firm maintaining full-year

guidance.

Results vs. forecasts: F12/26 1Q OP and EPS missed consensus estimates, mainly

because the booking of condo sales is set to be skewed to 2H (particularly 3Q) this

F12/26; fundamentals remain solid. The difference vs. our forecasts was because we

had assumed some level of an increase in property sales gains in 1Q.

Recommended action: Given the focus on risks such as delays with the handover of

condos owing to uncertainty surrounding the situation in the Middle East, we think

there remains a risk of share price downside in the short-term, but since actual

results tracked broadly in-line with guidance, we view results as neutral for the