Sumitomo Realty & Development Co. (8830), Japan’s third-biggest developer, posted a 13 percent gain in first-half profit because of rising leasing revenue and improved profitability at its home sales business.
Net income rose to 26.4 billion yen ($330 million) for the six months ended Sept. 30 from 23.3 billion yen a year earlier, the Tokyo-based company said today in a statement through the stock exchange. Sales gained 2.1 percent to 314 billion yen.
Sumitomo Realty joins Mitsui Fudosan Co. and Mitsubishi Estate Co. in reporting profit increase driven by higher sales. Sumitomo Realty’s leasing profit rose 5.8 percent after the opening of two office buildings in Tokyo boosted its revenue from commercial rents, while its profit for the residential business gained 19 percent.
Sumitomo Realty kept its full-year profit forecast at 58 billion yen for the year ending March 2012 on sales of 720 billion yen.
The shares declined 2.3 percent to 2,212 yen at the close of trading on the Tokyo Stock Exchange after the results. The stock had its biggest drop since Sept. 20, cutting its year-to- date gain to 64 percent. That compares with the 44 percent advance by the 44-member Topix Real Estate Index this year.
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