We would like to express our sincere appreciation to our shareholders and investors for continued support.
During the period, our business environment was favorably supported mainly by strong inbound demand, despite the unstable global situation in the aviation industry. Meanwhile, a rise in logistics and labor costs due to soaring raw material prices and labor shortages is affecting construction costs and overall prices.
Under such conditions, we recorded higher revenue but lower profit for the six months ended September 30, 2025, mainly due to an increase in rental income attributable to the review of lease terms for existing properties and attraction of new tenants in the Airport Real Estate Business, the sale of an office building (real estate for sale) in the non-asset Business, the revision of base fees in the Area Heating & Cooling Business, and favorable trends in water supply and drainage usage in the Water Supply & Drainage Service Business. However, as a result of the review of building removal costs in the Haneda Airport 1-Chome area and the subsequent recognition of impairment loss (extraordinary loss) for a significant portion of those costs, profit decreased despite the increase in revenue.
Taking these circumstances into account, and based on the medium- to long-term management plan revised in May 2025, we have set the interim dividend for the current fiscal year at ¥18 per share, an increase of ¥9 from the previous interim dividend. The annual dividend is planned to be ¥37 per share.
We are steadily advancing initiatives to achieve the priority measures set forth in the medium- to long-term management plan revised in May 2025, while also executing capital policies such as the acquisition of treasury stock in a planned manner to improve capital efficiency. Furthermore, after careful consideration of the most appropriate listing market to realize our envisioned corporate future (AFC VISION), we applied for a change in our market segment to the Tokyo Stock Exchange Standard Market in October. This change in market segment will not affect our implementation of management practices that are conscious of the cost of capital and stock price, nor will it alter the systems and responses required of a listed company. We will continue to strive for sustainable growth and enhancement of corporate value over the medium to long term.
We would like to ask for continued understanding and support from our shareholders and investors.
