Revenue Mix Centered on the sumuzu Business and Rental Income

「In the sumuzu business, the Group secured stable customer acquisition and real estate sales through word-of-mouth referrals and repeat business from affluent customers and the use of its in-house media and social media. In addition, sales of large residential land parcels and income-generating real estate drove substantial year-on-year increases in both revenue and profit. In the rental business, revenue declined year on year due in part to the reclassification of properties to inventories following changes in their intended use in the previous fiscal year, but profit increased as rent optimization contributed to earnings.」

「Revenue and profit increased substantially year on year due to sales of large residential sites and income-producing real estate.」

「In the sumuzu business, the Group secured stable customer acquisition and real estate sales through word-of-mouth referrals and repeat business from affluent customers and the use of its in-house media and social media. In addition, sales of large residential land parcels and income-generating real estate drove substantial year-on-year increases in both revenue and profit. Revenue for the interim consolidated accounting period was ¥12,835.152 million, up 36.0% year on year, and segment profit was ¥2,202.117 million, up 107.5%. In the rental business, existing rental real estate continued to operate steadily from the previous fiscal year amid stable market conditions, and revenue and profit increased year on year.」

「In the sumuzu business, the Company steadily increased the number of real estate sales by securing stable customer acquisition through stronger in-house media and maintaining a high referral and repeat-business rate of approximately 30%. It also significantly increased revenue and profit by improving profitability for residential properties. In the rental business, rental income remained steady as market conditions were stable and tenant occupancy remained nearly 100%, despite changes involving multiple tenant replacements and the reclassification of properties to inventories following changes in their intended use. However, profit declined year on year because major repairs, including waterproofing work on exterior walls, were carried out.」

「In the sumuzu business, the Group secured stable customer acquisition and real estate sales through word-of-mouth referrals and repeat business from affluent customers and the use of its in-house media and social media. In addition, sales of large residential land parcels and income-generating real estate drove increases in both revenue and profit year on year. Revenue for the interim consolidated accounting period was ¥9,434.489 million, up 7.2% year on year, and segment profit was ¥1,061.012 million, up 22.2%. In the rental business, existing rental real estate continued to operate steadily from the previous fiscal year amid stable market conditions, but profit declined year on year due to major repairs.」

「In the sumuzu business, the Company increased the number of real estate sales by establishing a customer-acquisition system that reliably delivered content to highly interested customer segments through its in-house media and social media, while reaching a broad range of potential homebuyers. However, higher acquisition costs, discounts and other factors reduced profit from inventory sales.」

「In the sumuzu business, operating efficiency improved as stronger in-house media enhanced customer acquisition. However, costs continued to rise across the real estate industry, particularly construction and personnel costs. Although sales volume increased, profit declined due to higher acquisition prices resulting from competition with other companies and lower selling prices and sales commissions. As a result, revenue was ¥11,091.498 million, up 6.8% year on year, and segment profit was ¥873.602 million, down 43.2%. In the rental business, rental income from existing properties remained steady, securing stable earnings.」

「In the sumuzu business, sales of residential real estate remained steady as the volume of acquisitions increased following staff expansion in the acquisition division and advertising effectiveness improved through stronger in-house media. However, the acquisition environment remained challenging, and higher acquisition prices reduced the profit margin from the previous year. As a result, revenue for the first half was ¥8,797.031 million, up 16.9% year on year, and segment profit was ¥868.130 million, down 31.0%. In the rental business, existing rental properties continued to operate steadily and stable earnings were secured despite some sales, supported by rent revisions in line with higher market rents in the surrounding area.」

「The sumuzu business continued to capitalize on the Group's strengths, including closing transactions through word-of-mouth referrals and repeat business from affluent customers and maintaining short lead times from the acquisition to sale of residential land. However, profit declined year on year because sales outside the main Jonan area remained sluggish and personnel and other costs increased following strategic staff expansion to support further business growth.」

「In the sumuzu business, the Company established a customer-acquisition system that reliably delivered content to highly interested customer segments through its website and social media, while reaching a broad range of potential customers considering purchasing a home. This also enabled it to acquire potential customers. As a result, the number of real estate sales and brokerage transactions increased, and revenue was ¥14,906.569 million, up 34.6% year on year. Segment profit was ¥1,962.475 million, up 13.4%. In the rental business, performance remained steady as a new rental property acquired in 2-chome, Shinmachi, Setagaya-ku, Tokyo, in March 2022 began operations in April of the same year, and rental income from resort facilities recovered. As a result, revenue was ¥109.462 million, up 109.5% year on year, and segment profit was ¥52.515 million, up 553.9%.」

「① sumuzu business In the previous fiscal year, high-margin projects were concentrated through the third quarter. In the first nine months of the current fiscal year, project profitability has been more evenly distributed, so although progress toward the full-year forecast has been steady, profit has declined year on year. As a result, revenue was ¥10,381.431 million, up 18.9% year on year, and segment profit was ¥1,539.137 million, down 1.0%. ② Rental business In the rental business, rental income remained steady, partly because the Company acquired a new rental property in 2-chome, Shinmachi, Setagaya-ku, Tokyo, in March 2022 and began operations in April of the same year. As a result, revenue was ¥80.546 million, up 105.9% year on year, and segment profit was ¥38.312 million, up 123.1%.」

「In the sumuzu business, performance remained steady, supported by proactive consultative sales activities following staff increases in the inside sales division and strong sales of high-priced properties. As a result, revenue for the first half was ¥7,526.248 million, up 46.5% year on year, and segment profit was ¥1,258.200 million, up 13.3%. In the rental business, stable rental income supported steady performance, helped by the acquisition of rental real estate at the end of the previous fiscal year and higher occupancy rates at the resort properties owned by the Company. As a result, revenue for the first half was ¥52.795 million, up 102.6% year on year, and segment profit was ¥25.951 million, up 132.1%.」

「In the sumuzu business, performance remained steady as sales of real estate inventory acquired in the second half of the previous fiscal year progressed well, supported in part by proactive consultative sales activities following staff increases in the inside sales division. As a result, revenue for the first quarter was ¥3,549.168 million, up 36.8% year on year, and segment profit was ¥586.149 million, down 4.5%. In the rental business, the number of rental properties increased and the overall occupancy rate remained high. The business remained steady, supported by stable rental income, with no sudden move-outs or rent arrears due to the spread of COVID-19. As a result, revenue for the first quarter was ¥25.710 million, up 88.2% year on year, and segment profit was ¥12.950 million, up 165.6%.」

「As a result, revenue was ¥8,728.782 million, up 57.1% year on year, and segment profit was ¥1,555.242 million, up 178.4%. In the rental business, there were no sudden move-outs from residential properties due to the spread of COVID-19, but rental income from properties owned in resort areas declined, as in the second quarter. Rental real estate of ¥211.698 million recorded under buildings and land at the end of the previous fiscal year was reclassified to inventories, specifically real estate held for sale.」

「In the sumuzu business, customer visits remained strong throughout the first half amid stronger housing demand, and the sales plan progressed as initially scheduled. Sales of income-generating real estate also made a significant contribution to revenue and profit. As a result, revenue for the first half was ¥5,135.956 million, up 54.4% year on year, and segment profit was ¥1,110.583 million, up 319.4%. The rental business was able to secure rental income at a level comparable to the first half of the previous year, as it primarily comprises residential income-generating properties and experienced no sudden move-outs due to the spread of COVID-19.」

「In the sumuzu business, the effects of restrictions on going out by prospective buyers eased, and the number of real estate brokerage contracts and sales of properties owned by the Company increased from the same period of the previous year. As a result, revenue for the first quarter was ¥2,594.625 million, up 241.9% year on year, and segment profit was ¥613.563 million, compared with a segment loss of ¥29.575 million in the same period of the previous year. The rental business remained steady, supported by stable rental income, as it primarily comprises residential income-generating properties and experienced no sudden move-outs or rent arrears due to the spread of COVID-19.」

「In the rental business, there were no sudden move-outs from residential income-generating properties due to the spread of COVID-19, but rental income from resort facilities declined. As a result, revenue was ¥54.430 million, compared with ¥71.076 million in the same period of the previous year, and segment profit was ¥23.026 million, compared with ¥36.870 million.」

「During the third quarter, as in the second quarter, the number of customer visits increased amid stronger demand for housing, and real estate sales remained strong. In the rental business, there were no sudden move-outs from residential income-generating properties due to the spread of COVID-19, as in the second quarter, but rental income from resort facilities continued to decline.」

「The number of customer visits increased significantly amid stronger demand for housing, and real estate sales remained strong. However, the spread of COVID-19 during the first quarter of the fiscal year had a significant impact on the Group's business activities. Rental income from resort facilities declined.」

「The rental business primarily comprises residential income-generating properties. It remained steady, supported by stable rental income, with no sudden move-outs or rent arrears resulting from the spread of COVID-19.」

「In the sumuzu business, revenue reached ¥8,013.071 million as planned growth was achieved in real estate sales and the number of brokerage transactions. The rental business remained steady as rents for owned properties were revised upward in line with higher market rents in the surrounding area.」

「As a result, revenue was ¥5,924.222 million and operating profit was ¥930.951 million. The rental business remained steady, supported by stable rental income, with no cancellations of leases during their terms. As a result, revenue was ¥54.574 million and operating profit was ¥30.917 million.」