Stepping Up Purchases of Older Properties

「Procurement activities also got off to a strong start, with new properties being acquired through JV projects following the establishment of a joint venture with Hulic Co., Ltd. in February 2026. During the interim accounting period, settlement was completed for 4 new property acquisitions and contracts were signed for 2 master-lease properties, putting performance ahead of plan. From the second half onward, we will continue to make active upfront investments, including acquiring properties that will contribute to earnings from the next fiscal year onward, while increasing our annual acquisition target to 12 properties and focusing on initiatives to further expand the business, including new businesses such as the hotel business.」

「Against this backdrop, as a result of continuing active procurement activities through the fourth quarter, we acquired 7 new properties during the fiscal year, including 3 owned properties, 3 master-lease properties and 1 property-management property. We also acquired 2 properties under master leases, steadily making upfront investments aimed at sustainable growth from the next fiscal year onward.」

「In procurement activities during the second quarter, the number of owned properties increased through the acquisition of 2 properties under master leases, and we also secured 1 new master-lease property.」

「During the fiscal year, we acquired 3 new properties for sale: OMB Meguro Nakacho, (tentative name) Meguro Ward Ohashi 1-chome PJ and (tentative name) Yoyogi 4-chome PJ. As a result, properties for sale increased by ¥2,288.752 million, while cash and deposits decreased by ¥832.401 million due in part to progress in acquiring new properties.」

「In addition, settlement of the acquisition of 2 new properties for sale progressed, and investment aimed at growth from the next fiscal year onward is also progressing steadily.」

「In addition, during the first quarter we signed purchase and sale agreements for newly acquired properties, and investment aimed at growth from the next fiscal year onward is also progressing steadily.」

「In addition, we are strengthening the acquisition of existing master-lease properties and the conversion of such properties to owned properties. Converting master-lease properties to owned properties eliminates rental costs and is expected to improve profit margins.」

「This was mainly attributable to increases of ¥1,566.011 million in land and ¥513.348 million in buildings from property acquisitions, in line with the policy of strengthening purchases of older properties from the previous fiscal year, as well as a ¥222.940 million increase in construction in progress for properties scheduled for completion from the fourth quarter onward, among other factors.」