[Storage-O Q2 FY2027 Earnings Analysis] Successful TOB by Area Link and Path to Privatization: Full Overview of the Back-Loaded Earnings Structure Toward Full-Year Profitability

Storage-O Co., Ltd. (TSE Growth: 2997) disclosed its Q2 FY2027 Earnings Presentation Materials on September 14, 2026.

The most significant development this quarter is the successful completion of the Tender Offer Bid (TOB) by industry leader Area Link Co., Ltd. , making Storage-O a consolidated subsidiary. Following an extraordinary general meeting of shareholders, the company is set to proceed with delisting and becoming a wholly-owned subsidiary.

This report provides a detailed analysis of the tender offer, synergies from the group integration, Q2 (interim) performance, segment-specific trends, operational KPIs (number of units and occupancy rates), and the full-year outlook, which is heavily weighted toward the fourth quarter in terms of revenue and profit.

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1. Roadmap to TOB Completion and Privatization by Area Link

The tender offer for the company's common shares by Area Link Co., Ltd. , which commenced on July 9, 2026, was successfully completed, and Storage-O became a consolidated subsidiary of Area Link on August 28, 2026.

• Planned number of shares to be purchased : 1,937,500 shares
• Number of shares purchased : 1,630,384 shares
• Voting rights ownership ratio after purchase : 84.14%

To achieve full subsidiary status, an extraordinary general meeting of shareholders is scheduled for mid-November 2026 , with a record date of September 28, 2026. At this meeting, proposals regarding share consolidation and amendments to the Articles of Incorporation concerning the number of shares per unit will be submitted, with the company expected to delist following the prescribed procedures.

Integration Synergies with Area Link

The materials highlight three synergies to be created through collaboration with the parent company, Area Link:

1. Strengthening Human Resource Development : Deploying Area Link's proprietary training methods to promote efficient management with a lean workforce.
2. Efficiency in Overlapping Departments : Sharing storage operation databases and integrating operational know-how by leveraging economies of scale.
3. Cost Reduction : Reducing costs associated with maintaining a public listing while maintaining a robust governance structure.

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2. Q2 FY2027 Earnings Results (PL Summary)

While the cumulative Q2 consolidated results showed a year-on-year decline in revenue and an expansion of losses, the company outperformed its initial Q2 earnings forecasts in both revenue and profit at all levels .

As shown in the slide above, the cumulative Q2 results are as follows:

• Net Sales : 907 million yen (vs. 1,285 million yen in the same period last year / +222 million yen against the 685 million yen Q2 forecast)
• Operating Profit : -250 million yen (vs. -105 million yen in the same period last year / +30 million yen against the -280 million yen Q2 forecast)
• Ordinary Profit : -267 million yen (vs. -110 million yen in the same period last year / +24 million yen against the -291 million yen Q2 forecast)
• Net Profit : -185 million yen (vs. -67 million yen in the same period last year / +106 million yen against the -291 million yen Q2 forecast)

Although revenue and profit declined year-on-year due to factors such as the timing of property sales, progress remains steady relative to the plan.

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3. Segment Performance and Financial Position (BS)

The breakdown of segment performance and the status of the financial base are as follows:

Segment Performance

• Management Business :
  • Net Sales: 632 million yen (+109 million yen YoY)
  • Operating Profit: -76 million yen (-44 million yen YoY)
  • Stock-based revenue is steadily expanding due to the accumulation of existing trunk room operations.
• Development Business :
  • Net Sales: 260 million yen (-145 million yen YoY)
  • Operating Profit: 22 million yen (+7 million yen YoY)
• Other Businesses :
  • Net Sales: 14 million yen (-341 million yen YoY)
  • Operating Profit: 8 million yen (-14 million yen YoY)

Financial Position (As of the end of Q2 FY2027)

• Total Assets : 5,571 million yen
  • Current Assets : 3,974 million yen (71% of total, +288 million yen from the end of the previous fiscal year). Includes 716 million yen in "Cash and Deposits" and 3,086 million yen in "Real Estate for Sale."
  • Non-current Assets : 1,596 million yen (29% of total, +576 million yen from the end of the previous fiscal year).
• Liabilities and Net Assets :
  • Total Liabilities : 4,498 million yen (81% of total, +1,029 million yen from the end of the previous fiscal year). Includes 2,161 million yen in project loans and 176 million yen in syndicated loans.
  • Total Net Assets : 1,073 million yen (Equity ratio approx. 19.3%).

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4. Operational KPIs and Store Openings

The company's core business, trunk room operations, continues to expand steadily, primarily in the Tokyo metropolitan area.

As shown in the slide above, key KPIs forming the foundation of the stock business are growing steadily.

• Managed Units : 13,558 units (Continuous growth from 7,710 units in Q1 FY2022)
• Occupied Units : 8,990 units (Steady increase from 5,845 units in Q1 FY2022)
• Occupancy Rate for Units Open >2 Years : 76.0% (+1.1pt recovery from 74.9% in FY2026)

While the overall occupancy rate tends to dilute temporarily due to continuous new store openings, the occupancy rate for stable stores that have been open for more than two years has shown a recovery trend to 76.0%.

New Openings and Development Pipeline

• Q2 New Openings : 6 stores, totaling 227 units (e.g., Setagaya Okusawa, Kurashiki Hiroe, Maebashi Motosōja).
• Nationwide Network : 239 stores in total (54 in Tokyo, 45 in Okayama, 29 in Chiba, 18 in Kanagawa, etc.).
• Indoor Development Pipeline :
  • Kawasaki Odasaka TR (Sold), Setagaya Seijo TR (Opened April 2026), Setagaya Okusawa TR (Opened June 2026), Yokohama Tsunashima TR (Scheduled Oct 2026), Kawasaki Saiwai TR (Scheduled Jan 2027), Setagaya Hachimanyama TR (Scheduled March 2027), Saginuma TR (Scheduled April 2027), and others are in the pipeline.

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5. Full-Year FY2027 Earnings Outlook

There are no changes to the full-year earnings forecast from the initial plan. Due to the "Q4-weighted structure" inherent in the company's business model, a significant increase in revenue and a return to profitability are planned for the full year.

As clearly shown in the graph above, the company's net sales and operating profit are planned to surge in the fourth quarter , when the delivery (settlement) of developed properties is concentrated.

• Full-Year Plan (Unchanged) :
  • Net Sales : 4,668 million yen (Q2 actual: 907 million yen)
  • Operating Profit : 217 million yen (Q2 actual: -250 million yen)

The loss at the interim stage is in line with the plan (and ahead of the forecast), and the roadmap aims to achieve full-year profitability as the settlement of development property sales proceeds in the second half.

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Summary

In Q2 FY2027, Storage-O progressed through the privatization process via integration with Area Link , while achieving growth in its core trunk room business to 13,558 managed units and 8,990 occupied units , outperforming its Q2 plan. Future attention will be focused on the further strengthening of its revenue base by leveraging the economies of scale of the Area Link Group.