Heiwa Real Estate: 27/3 Q1 results: Rental income beats our forecast

研报英文原文证据摘录

Heiwa Real Estate: 27/3 Q1 results: Rental income beats our forecast

Global Markets Research

1 August 2026Heiwa Real Estate

8803.T 8803 JP / EQUITY: JAPAN HOUSING & REAL ESTATE

Rating27/3 Q1 results: Rental income beats our forecast Remains Neutral

Target price JPY 2,790 RemainsWe raise our 27/3 operating profit forecast by ¥500mn

Closing price JPY 2,355We raise our profit forecast, retain our Neutral rating 31 July 2026

We raise our earnings forecast in light of 27/3 Q1 results, but retain our target price of

Implied upside +18.5%¥2,790 as we make no change to our calculation methodology. We maintain our Neutral

rating.

Q1 rental income beats our forecast on strength of hotel business and upward

revisions to office rents Relative performance chart

In 27/3 Q1, operating profits fell 19% y-y to ¥2.8bn, exceeding our ¥2.6bn forecast by

¥200mn. This is mainly because operating profits from rental revenue, which includes the

hotel business, beat our forecast by ¥400mn, and profits in the asset management

business undershot our forecast by ¥200mn. Property sales were in line with our

expectations. We revise our forecasts for the leasing business for Q2 onwards to reflect

strong performance at the hotel business and upward revisions to office rents, and raise

our operating profit forecasts by ¥0.5bn for 27/3, ¥0.7bn for 28/3, and ¥0.7bn for 29/3. We

raise our 27/3 forecast by only ¥500mn to reflect the temporary closure of Mercure Tokyo

Hibiya in Jul–Sep for renovations.

The company is still advertising office space in the Sapporo One property due for

completion in August 2029, at ¥33,000/tsubo (one tsubo = 3.3m2). This is much higher

than the average advertised rent per tsubo at large office buildings near the south exit of Source: LSEG, Nomura