On the 14th, AD Works Group <2982> announced its consolidated performance for the third quarter of the fiscal year ending December 2024 (January-September 2024). Revenue reached 33.797 billion yen, a 20.8% increase compared to the same period last year, operating profit increased by 27.6% to 2.293 billion yen, pre-tax consolidated net income rose 14.8% to 1.782 billion yen, and net income attributable to the parent company shareholders increased by 5.9% to 1.105 billion yen.

The revenue from the income-generating real estate sales business increased by 25.3% compared to the same period last year, reaching 29.624 billion yen, with operating profit at 2.733 billion yen. The income-generating real estate sales business now represents over 80% of consolidated revenue. Income-generating real estate, which is the source of income, is purchased based on the ability to assess property values, focusing on product planning. In the domestic market, both procurement and sales have remained stable amidst a thriving market environment. Particularly in sales, properties from the real estate fractionalization business, including "ARISTO Nishishinjuku" (total sales: 1.14 billion yen), "ARISTO Hakata" (total sales: 0.725 billion yen), and "ARISTO Nishi Azabu II" (total sales of 2.205 billion yen, with 2.083 billion yen being 94.4% of the total) have been sold, successfully expanding revenue (all total sales are displayed including tax). Overseas, procurement and sales activities are being conducted cautiously while monitoring market trends.

The revenue from the stock-type fee business saw a decline of 1.8%, totaling 4.56 billion yen, with operating profit at 0.913 billion yen. The stock-type fee business plays a crucial role in ensuring the stability of the group's performance. Major income sources include rental income from the income-generating real estate held by the group as well as property service income from AD Partners and ADW Management USA Inc., and construction income from Sumikawa ADD. The year-end balance of income-generating real estate slightly decreased to 44.725 billion yen at the end of the third quarter from 45.833 billion yen at the end of the previous third quarter due to robust sales activities. Furthermore, factors such as the operational status of the income-generating real estate and ongoing sales contributed to a decrease in rental income of 1.325 billion yen for the third quarter compared to the same period last year, following the trend from the second quarter.

For the consolidated performance plan for the fiscal year ending December 2024, revenue is projected to increase by 13.7% to 47 billion yen compared to the previous period, operating profit is expected to rise by 22.9% to 3 billion yen, pre-tax net income is estimated to grow by 11.3% to 2.3 billion yen, and net income attributable to the parent company's shareholders is projected to increase by 10.2% to 1.565 billion yen. The group has disclosed its management objectives for the current consolidated accounting year as "performance plan." The "performance plan" serves as the target set by management and is distinct from the so-called "financial estimates" or "performance outlook." Additionally, financial estimates are updated and disclosed in a timely manner as "forecasts" based on high-confidence information and reasonable judgments pertaining to the overall group status at that time, reflecting progress projections for each quarter.