Forecasting 11% OP growth in 1Q, with no changes to shareholder returns policy

Research evidence excerpt

Forecasting 11% OP growth in 1Q, with no changes to shareholder returns policy

18 June 2026

Environment: The company is aligned with the government’s goal of net zero ESG

greenhouse gas emissions by 2050 and calls for its CO2 emissions to fall 50% versus

the 2014 level by 2030. In addition, the company acquired the DBJ Green Building

certification from the Development Bank of Japan for 113 office buildings as of March

2025, and green building certified properties now account for 92% (certified floor area

ratio) of total assets held at the company. The company in December 2021 began

accepting remodeling orders that would allow existing homes to meet the same

energy conservation standards as newly constructed homes. In addition, the

company in collaboration with TEPCO Energy Partners in April 2022 began offering

the “SUMIFU × ENEKARI” service that installs solar power generation equipment and

storage batteries at no initial cost to customers remodeling their detached homes. We

also note that the company has applied its ZEH-M Oriented standard (a condo version

of zero-energy housing standards) to all condos designed and developed from

October 2021 onward, and to all condos it designs from its ninth medium-term plan,

which ran through FY3/25.

Social: By job type, the ratio of female hires in sales positions rose from 17.9% in

FY3/16 to 29.0% in FY3/25, while the ratio of female hires in technical positions rose

from 5.4% in FY3/16 to 21.3% in FY3/25, which would achieve the company’s

respective targets (25% and 13%). The company has expanded the number of senior

employees in the workplace by hiring employees aged 60 and over and offering

re-employment to retirees.

Governance: Following the general shareholders’ meeting scheduled for 26 June