To Shareholders and Investors

Business Environment

In the market for condominiums in the Tokyo metropolitan area, factors such as high cost of construction and building plots drove the number of newly supplied units down 17.0% from the previous consolidated to 22,239 in FY2024 (Apr. 1, 2024 - Mar. 31, 2025), the lowest figure since 1973. In terms of purchasing demand, consumers continue to take a wait-and-see attitude amid high prices, with the average first-month contract rate for the same period being 66.8%, falling below 70% which is said to be a good indicator, for two consecutive years. (All figures are derived from a survey by Real Estate Economic Institute Co., Ltd.)

Net sales were ￥112,429 million, operating income amounted ￥9,488 million, and ordinary income was ￥9,459 million.Furthermore, net income attributable to shareholders of parental company totaled ￥6,483 million.
When considering the above, in terms of sales, we plan to sell 3,500 condominium units in our mainstay real estate development business. In addition, we expect net sales of ￥125,000 million for the fiscal year ending March 2026.
In earnings terms, the Group forecasts operating income of ￥9,600 million, ordinary income of ￥9,600 and net income attributable to shareholders of parental company of ￥6,600 million, Expected contributing factors include high prices for construction materials and building plots in the real estate development business.