Sumitomo Realty & Dev.: F3/26 Results: Rising Office Rents Driving Earnings, Prospect of In-year Progress on Shareholder Returns

研报英文原文证据摘录

Sumitomo Realty & Dev.: F3/26 Results: Rising Office Rents Driving Earnings, Prospect of In-year Progress on Shareholder Returns

Update

May 13, 2026 09:58 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MSumitomo Realty & Dev. (8830) | Japan Toshiyuki Anegawa

Equity Analyst

F3/26 Results: Rising Office Toshiyuki.Anegawa@morganstanleymufg.com +81 3 6836-8914

Sumitomo Realty & Dev. (8830.T, 8830 JT)

Real Estate | JapanRents Driving Earnings,

Stock Rating Overweight

Industry View In-Line

Price target ¥6,150Prospect of In-year Progress on Shr price, close (May 13, 2026) ¥4,870

Mkt cap, curr, basic (bn) ¥4,521.0

Avg daily trading value (bn) ¥10.6Shareholder Returns

Reaction to earnings

Unchanged In-line 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

In the office segment, for F3/26, rent increases of over 20% at the high end and

an average in the 7% range were achieved for tenants subject to renewals, with

further acceleration seen in Mar–Apr.

In guidance for F3/27, of the ¥13.8bn YoY increase in OP from real estate leasing,

¥12.8bn is expected to come from existing buildings, with rent increases more

than offsetting improvements in vacancy rates.

No concrete impact has emerged so far from the Middle East situation, but in the

plan hotel sales are assumed to be flat YoY, and office expenses are expected to

increase slightly.

For condominiums, among the portion to be booked in F3/27, most of the

contracted units are already completed, with no risk of delivery delays.

Results vs forecast: F3/26 OP and EPS were broadly in line with consensus. Of the

¥21.5bn YoY increase in OP from real estate leasing in F3/26, ¥12.4bn came from

existing buildings (vs.