Strengthening the property leasing and management division, which is expected to generate stable revenue

「The target company operates a rental business using company-owned real estate and is characterized by its ability to generate stable earnings. The expected benefits include: ① expansion of the group's real estate rental business, ② securing stable cash flow, and ③ improved operating efficiency through the sharing of real estate management expertise within the group.」

「The transfer of the rental business, including property management, repair and maintenance work, and rental income, was completed through an absorption-type company split with 1 August 2023 as the effective date.」

「The company resolved to transfer its rental property management business, which forms part of its real estate business, to 緑都開発株式会社 through a company split, specifically a simplified absorption-type company split. The transfer was implemented with 1 August 2023 as the effective date.」

「As a result, revenue for the first-quarter cumulative consolidated period was ¥109 million, down 33.6% year on year, and the company posted an operating loss of ¥18 million, compared with operating profit of ¥21 million in the same period a year earlier.」

「The company also recorded rental income from properties it owned and fees from managing rental properties. As a result, revenue for the consolidated fiscal year was ¥1.971 billion, up 163.8% year on year, and operating profit was ¥239 million, up 45.0% year on year.」

「As a result, revenue for the second-quarter cumulative consolidated period was ¥371 million, up 0.5% year on year, and operating profit was ¥31 million, down 57.9% year on year.」

「The company's income-generating properties also maintained high occupancy, generating stable rental income. Despite the spread of COVID-19, the company continued arranging and providing housing for customers in need. As a result, revenue for the first-quarter cumulative consolidated period was ¥165 million, down 2.6% year on year, and operating profit was ¥21 million, down 44.2% year on year.」

「As the second-quarter consolidated accounting period coincided with the busy season for the rental housing industry, the company focused on arranging rental housing. Despite the spread of COVID-19, it continued arranging and providing housing for customers in need.」

「The company's income-generating properties also maintained high occupancy, generating stable rental income. Despite the spread of COVID-19, the company continued arranging and providing housing for customers in need. As a result, revenue for the first-quarter cumulative consolidated period was ¥169 million, and operating profit was ¥39 million.」

「We advanced contracts and deliveries, primarily for brokerage transactions in Yamaguchi Prefecture, our home market. Our income-producing properties also maintained high occupancy, and repair-work orders increased from the previous fiscal year-end. As a result, revenue for the current consolidated fiscal year was ¥749 million and operating profit was ¥179 million.」

「Rental income from the group’s income-producing properties, which are core businesses of the segment, increased year on year because of high occupancy, while repair-work revenue increased as the company secured more renovation projects. In contrast, brokerage fees at Apamanshop declined because both customer visits and contract volumes were lower than usual, while the weekly rental business declined owing in part to the impact of the COVID-19 pandemic, which prevented international students from entering Japan.」

「As a result, revenue for the six months ended in the current second quarter was ¥370 million, down 0.7% year on year, and operating profit was ¥96 million, down 1.2%.」

「Rental income from the group’s income-producing properties and weekly rental business, which are core businesses of the segment, declined year on year because corporate tenants vacated the company-owned building. Repair-work revenue also declined year on year because there were fewer relatively large-scale projects than in the same quarter of the previous year. Brokerage fees at Apamanshop likewise declined year on year because both customer visits and the number of contracts were lower than usual.」

「Rental income from the company’s income-producing properties and weekly rental business, which are core businesses of the segment, declined year on year because corporate tenants vacated the company-owned building. Repair-work revenue also declined because there were no projects of the scale seen in the previous fiscal year. Consequently, revenue declined year on year, but profit increased owing to improved margins. As a result, revenue for the current fiscal year was ¥720 million, down 2.9% year on year, and operating profit was ¥172 million, up 0.4%.」

「The segment as a whole reported lower revenue but higher profit. As a result, revenue for the nine months ended in the current third quarter was ¥547 million, down 1.3% year on year, and operating profit was ¥131 million, up 7.9%.」

「Personnel costs declined year on year following changes in staff assignments, resulting in lower revenue but higher profit for the segment as a whole. As a result, revenue for the six months ended in the current second quarter was ¥372 million, down 1.6% year on year, and operating profit was ¥97 million, up 20.8%.」

「Brokerage at Apamanshop performed well, increasing fee revenue year on year. In addition, personnel-cost savings resulting from changes in staff assignments meant that the segment as a whole reported lower revenue but higher profit. As a result, revenue for the three months ended in the current first quarter was ¥167 million, down 3.2% year on year, and operating profit was ¥37 million, up 22.6%.」

「In the real estate rental and management business, we actively conducted sales activities, including occupancy-rate improvement campaigns and proposals for construction work to property owners. Company-owned properties and the weekly rental business also operated steadily. As a result, revenue for the current fiscal year was ¥742 million and operating profit was ¥171 million.」

「We actively conducted sales activities, including campaigns to improve occupancy rates and proposals for construction work to property owners aimed at improving occupancy rates. As a result, revenue for the nine months ended in the current third quarter was ¥555 million and operating profit was ¥121 million.」

「In the real estate rental and management business, we focused mainly on brokerage activities during the busy period at fiscal year-end, when employees and university students relocate. As a result, revenue for the six months ended in the current second quarter was ¥378 million and operating profit was ¥80 million.」

「To strengthen the sales structure, we renovated the aging Apamanshop Shin-Shimonoseki store. We also made progress in securing repair work at managed properties ahead of the year-end peak season, while operations in the weekly rental business remained steady. As a result, revenue for the three months ended in the current first quarter was ¥172 million and operating profit was ¥30 million.」

「We closed 1 rental brokerage office and consolidated personnel to establish an efficient sales structure. We also actively conducted sales activities targeting owners to improve occupancy rates at managed properties. Operations at company-owned properties and in the weekly rental business also progressed steadily and broadly in line with plan. As a result, revenue for the six months ended in the current second quarter was ¥379 million, down 3.3% year on year, and operating profit was ¥89 million, up 8.6%.」

「From March, the fiscal year-end, through early April, the peak season for the real estate rental and management business, we focused on brokerage of company-owned and managed properties and worked to improve occupancy rates. We also partially reviewed unprofitable sublease contracts and strengthened sales activities targeting property owners. As a result, revenue for the three months ended in the current first quarter was ¥205 million and operating profit was ¥54 million.」

「In the real estate rental and management business, we aim to improve operating efficiency by replacing the management system, establish the structure required as a property management company, and increase fee income and other revenue from management services.」

「In the real estate rental and management business, we consolidated the division and sought to improve operating efficiency. We also established a dedicated team to manage and maintain properties entrusted to us by owners and to acquire new properties. We put in place the structure required as a property management company and aim to increase fee income and other revenue from management services. As a result, revenue for the current fiscal year was ¥758 million and operating profit was ¥134 million.」

「Although brokerage of rental properties was challenging against plan, operations progressed broadly in line with the initial plan owing to strong performance in the weekly rental business and orders for large-scale repair work. As a result, revenue for the nine months ended in the current third quarter was ¥566 million and operating profit was ¥107 million.」

「In the real estate rental and management business, operations progressed broadly in line with the initial plan, including brokerage of company-owned and managed properties and orders for large-scale repair work. As a result, revenue for the six months ended in the current second quarter was ¥392 million and operating profit was ¥82 million.」

「The Group plans to increase its earnings capacity by continuing to strengthen the property management business, which is expected to generate stable earnings, strengthen real estate brokerage, actively promote the sale of newly built detached homes, and pursue other initiatives.」