Ichigo: F2/27 1Q Results: Sustainable Real Estate Sales Steady, Good Start to Achieving Guidance/Record Profit

Research evidence excerpt

Ichigo: F2/27 1Q Results: Sustainable Real Estate Sales Steady, Good Start to Achieving Guidance/Record Profit

Update

July 15, 2026 11:21 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MIchigo (2337) | Japan Toshiyuki Anegawa

Equity Analyst

F2/27 1Q Results: Sustainable Toshiyuki.Anegawa@morganstanleymufg.com +81 3 6836-8914

Real Estate Sales Steady, Good

Start to Achieving Guidance/

Ichigo (2337.T, 2337 JP)

Real Estate | Japan

Record Profit Stock Rating Underweight

Industry View In-Line

Price target ¥460

Reaction to earnings Shr price, close (Jul 15, 2026) ¥444

Mkt cap, curr, basic (bn) ¥178.5

Unchanged Modest upside Largely unchanged Avg daily trading value (bn) ¥0.5

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

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways

1Q NP beat the consensus and also looks to have marked steady progress against

guidance.

Ichigo noted earnings were driven by a +102% YoY increase in flow income,

backed by greater-than-expected gains on the sale of commercial facilities in

Hakata.

Office profit grew on a rise in the Tradepia Odaiba occupancy rate from 80% in

F2/26 1Q to 97%, pro-active leasing and rent increases.

Ichigo has not identified any particular impact to hotel demand or construction

progress from the situation in the Middle East at this stage.

Ichigo indicated that while the Cap rate may rise with interest rate hikes, rising

rents suggest real estate prices are unlikely to fall.

Results vs. forecasts: F2/27 1Q NP beat the consensus, and looks to have marked

steady progress against full-year guidance thanks to strong business profit of

¥6.8bn (+45% YoY).

Recommended action: While results were solid, especially flow income due to