To Shareholders and Investors

Business Environment

　In the market for condominiums in the Tokyo metropolitan area, the number of new condominiums supplied in the first half of fiscal 2024 (April to September) was only 8,238 units, down 29.7% from the same period last year. The adjustment phase continues, with sales prices rising due to soaring construction costs and land prices, and the average first-month contract rate remaining at 64.3%, below 70%, which is considered a good benchmark. (All figures are derived from a survey by Real Estate Economic Institute Co., Ltd.)

　Net sales were ¥53,588 million, operating income amounted ¥4,115 million, and ordinary income was ¥4,106 million. Furthermore, net income attributable to shareholders of parental company totaled ¥2,796 million.

When considering the above, in terms of sales, we plan to sell 2,900 condominium units (including 193 units in the Gala Residence series) in our mainstay real estate development business. In addition, we expect net sales of ¥103,000 million for the fiscal year ending March 2025.
In earnings terms, the Group forecasts operating income of ¥7,500 million, ordinary income of ¥7,500 million and net income attributable to shareholders of parental company of ¥5,000 million. Expected contributing factors include high prices for construction materials and building plots and increased sales ratio of pre-owned condominium units due to rising customer needs in the real estate development segment.