Real estate trading business centered on the short-term resale of condominium units

「Although real estate market conditions, mainly in the Tokyo metropolitan area, remained generally solid, revenue was lower than in the previous fiscal year because opportunities to secure orders were limited by intensifying competition for high-quality properties, among other factors. On the profit side, the Company secured an operating profit for the full fiscal year through the acquisition of projects in the fourth quarter, but profit was lower than in the previous fiscal year due to higher payment processing fees associated with the recognition of management guidance fees paid to the parent company and legal fees, as well as higher property investigation expenses, among other factors.」

「Revenue fell below the previous fiscal year's results, mainly because the factoring business in the asset management-related segment reduced the scale of sales activities while prioritizing collection of existing receivables, and because order opportunities in the real estate sales business became limited as competition in the real estate market intensified, among other factors.」

「In the real estate trading business, revenue was higher year on year because the business began contributing to results from the beginning of the current fiscal year, real estate sales transactions were completed, and related services were provided under contract, among other factors.」

「During the current interim consolidated accounting period, the Company carried out preliminary investment activities aimed at monetization, including market research and property acquisitions for short-term resales of individually owned condominium units in and around Tokyo.」