Tosei lowered its sales forecast and raised its profit forecast in the same notice on 5 October. The Tokyo-listed property company, which trades under code 8923, now expects consolidated sales of ¥113.613bn for the year ending November 2026, down ¥9.373bn from its January forecast of ¥122.986bn.
Why sales fall while profit rises
The company said it reviewed the property sales plan it set at the start of the year and decided to move the timing of some sales from the current year to next year or later. It called the change strategic.
The lost sales were offset by two other lines. Tosei expects higher disposition fees and similar income in its property fund and consulting business, where acquisitions and sales of assets entrusted to it for asset management exceeded its initial expectations. It also expects its rental business to beat plan, helped by leasing and rent increases.
Operating profit guidance rose ¥449mn to ¥25.061bn from ¥24.611bn. Pretax profit rose ¥700mn to ¥22.7bn, and profit attributable to owners of the parent rose ¥749mn to ¥15.906bn. Basic earnings per share are now forecast at ¥163.94, against ¥156.31 before and ¥152.18 last year, both adjusted for the 2-for-1 stock split of 1 December 2025.
A ¥3 dividend increase
Tosei raised its year-end dividend forecast to ¥58 a share from ¥55. It put the payout ratio at 35.4%, against 35.2% at the earlier level. Both forecasts are post-split, while last year's ¥100 dividend is the actual pre-split payment, so the two are not directly comparable.
On a standalone basis, Tosei cut its sales forecast by ¥8.171bn to ¥70.236bn and raised its recurring profit forecast by ¥1.676bn to ¥19.147bn.
The notice does not say which properties move to later years or what they are worth. Tosei also states that the forecasts rest on information available on the announcement date and may differ from final results.