Business Expansion into Repairs, Renovation and Real Estate

「The number of condominium units under management continued to increase. In addition, revenue from management associations increased as the Company proceeded to pass on recent increases in labor and other costs through higher management contract fees, and as repair work increased. However, the number of real estate sales declined, and revenue from purchase-and-resale transactions fell below the previous year, resulting in revenue of ¥4,062 million, down 1.7% year on year.」

「Revenue from management associations increased due to higher management contract fees and an increase in prime-contractor planned repair work. However, real estate transactions declined because of a temporary shortage of real estate held for sale, resulting in revenue of ¥1,848 million, down 9.4% year on year.」

「In the condominium management business, inquiries for new condominium management contracts remained steady and the number of units under management increased. During the current interim consolidated accounting period, revenue was ¥2,040 million, up 12.8% year on year, owing to an increase in repair work projects related to water leaks and other issues, higher construction unit prices resulting from rising labor and material costs, and progress in selling real estate held for sale. Operating profit was ¥161 million, up 106.2% year on year, as the increase in revenue outweighed higher personnel expenses for property managers and others.」

「Minor repair work conducted through periodic inspections and repair work related to typhoon damage and other events increased from the previous fiscal year, while real estate purchase-and-resale transactions declined. As a result, revenue was ¥3,808 million, down 1.0% year on year. Operating profit was ¥249 million, down 14.8% year on year, reflecting the fact that cost increases preceded price increases in management fees, as well as the use of temporary staff and others to cover vacancies among property managers and other personnel.」

「In the condominium management business, inquiries for new condominium management contracts remained steady, and the number of units under management increased. Repair work related to typhoon damage and other events, as well as prime-contractor planned repair work, increased from the previous fiscal year, while real estate purchase-and-resale transactions declined. As a result, revenue was ¥2,717 million, up 0.8% year on year.」

「Sales of repair work and products for exclusive-use areas increased. However, in purchase-and-resale transactions involving real estate, many renovations of purchased properties were not scheduled for completion until the second half or later, and the number of transactions completed in the first half declined. As a result, revenue was ¥1,808 million, down 3.2% year on year.」

「Minor repair work also increased from the previous fiscal year. However, in purchase-and-resale transactions involving real estate, the completion of renovations on purchased properties was concentrated from the second quarter onward, resulting in a substantial decline in the number of transactions completed in the first quarter. Revenue was ¥821 million, down 11.1% year on year. Operating profit was ¥16 million, down 44.8% year on year, partly due to higher costs from covering vacancies among property managers and administrative staff with external temporary personnel.」

「In addition to minor repair work, revenue from the completion of planned repair work and sales of jointly purchased products also increased.」

「In the condominium management business, the number of inquiries increased and the number of units under management remained steady. Minor repair work and jointly purchased products increased, as did purchase-and-resale transactions in the real estate utilization services business. However, delays in completing planned repair work and the exclusion of 株式会社全日総管理, which handles renovation services, from the scope of consolidation resulted in revenue of ¥2,696 million, down 8.8% year on year. Operating profit was ¥150 million, up 39.3% year on year, owing to lower personnel expenses resulting from vacancies and a decline in amortization of goodwill.」

「In addition to increases in minor repair work and jointly purchased products, purchase-and-resale transactions in the real estate utilization services business also increased. However, because 株式会社全日総管理, which handles renovation services, was excluded from the scope of consolidation, revenue was ¥1,868 million, down 5.2% year on year. Operating profit was ¥116 million, up 178.1% year on year, owing to lower personnel expenses resulting from vacancies and a decline in amortization of goodwill.」

「In the condominium management business, the number of units under management increased steadily, and purchase-and-resale transactions in the real estate utilization services business also increased. However, because 株式会社全日総管理, which handles renovation services, was excluded from the scope of consolidation, revenue was ¥924 million, down 5.5% year on year.」

「Following the transfer of all shares in 株式会社全日総管理, formerly a consolidated subsidiary, effective 31 March 2022, the company was excluded from the scope of consolidation as of the end of the third quarter of the current consolidated fiscal year.」

「At a meeting of the Board of Directors held on 21 January 2022, the Company resolved to transfer all shares of its consolidated subsidiary, 株式会社全日総管理. In August 2017, with the aim of increasing value in the Group's condominium management business, the Company made 株式会社全日総管理, which had long operated restoration, renovation and cleaning services for various types of real estate and possessed expertise in these areas, a consolidated subsidiary, seeking to create synergies across the Group. However, the two companies did not achieve sufficient results, and following repeated discussions, the Company decided to transfer all of its interest to the founder.」

「Meanwhile, in the condominium management business, while continuing to invest in digitalization, we are addressing construction projects carried over from the previous fiscal year and working to improve service quality, including management and cleaning services and the responsiveness of front-line staff who interact with management associations, as well as to enhance service value by supporting changes in residents' lifestyles.」

「Due to the impact of COVID-19, delays in reaching agreement at condominium board meetings pushed the timing of some large-scale construction projects into the following fiscal year or later. In addition, the number of repair projects related to typhoons and other natural disasters declined from the level seen in the previous fiscal year, resulting in net sales of ¥3,955 million, down 4.0% year on year」

「In addition to the decline in repair work related to typhoons and other natural disasters seen in the previous fiscal year and delays in reaching agreement following the postponement of board meetings and other events, construction work overall remained well below plan. In addition, although orders for renovation services remained solid, completion was delayed due in part to reduced employee working hours as a COVID-19 measure, and the timing of real estate sales was also delayed」

「Repair work was delayed due to the decline in repair work related to typhoons and other natural disasters seen in the previous fiscal year and delays in reaching agreement following the postponement of board meetings and other events. In addition, some real estate sales were delayed because properties took longer to prepare for sale, resulting in net sales of ¥1,914 million, down 6.3% year on year.」

「Although the number of buildings and units under management, including condominiums, which provide recurring revenue, increased steadily, demand for planned repair work brought forward ahead of the previous fiscal year's consumption tax increase and repair work related to typhoons and other natural disasters declined, resulting in net sales of ¥924 million, down 11.1% year on year.」

「In the comprehensive facilities management business, newly contracted properties from condominium owners' associations and building owners, which provide recurring revenue, increased steadily. However, the timing of sales in real estate purchase-and-resale services was delayed, costs increased to strengthen the management structure, and one-time expenses arose from relocating a base to improve operational efficiency, resulting in net sales of ¥3,042 million, up 0.9% year on year, and operating profit of ¥39 million, down 20.4%.」

「In the comprehensive facilities management business, newly contracted properties from condominium owners' associations and building owners, which provide recurring revenue, increased steadily. However, some purchase-and-resale real estate transactions were deferred to the second half, and one-time expenses arose from relocating offices to improve operational efficiency, resulting in net sales of ¥2,042 million, down 2.6% year on year, and operating profit of ¥28 million, down 49.2%.」

「In the comprehensive facilities management business, the number of buildings and units under management, which constitute the facilities-management stock, increased steadily. In addition, some repair work was completed ahead of schedule before the consumption tax increase, resulting in net sales of ¥1,040 million, up 14.8% year on year, and operating profit of ¥33 million, compared with an operating loss of ¥0 million in the previous year.」

「By strengthening proposals aimed at resolving issues for condominium owners' associations, the Company has steadily maintained and expanded its facilities-management stock. Although there were fewer large-scale planned repair projects this fiscal year than in the previous year, the number of small repair projects related to restoring damage from typhoons and other disasters increased, as did real estate services such as purchase and resale.」

「Although renovation and refurbishment services as value-added services experienced lower revenue due to lower unit prices for small repair work and reduced order capacity caused by staff shortages, solid growth in real estate services resulted in net sales of ¥3,016 million, up 8.9% year on year, and operating profit of ¥49 million, up 123.4% year on year. During the fourth quarter of the current consolidated fiscal year, the Company will focus on strengthening the operating structure for renovation and refurbishment services and pursue initiatives to improve profitability.」

「In the comprehensive facilities management business, although some repair work was behind schedule, newly contracted properties from condominium owners' associations and building owners commenced operations smoothly. In addition, increased real estate transactions, including purchase and resale, resulted in net sales of ¥2,095 million, up 10.3% year on year, and operating profit of ¥56 million, up 78.1% year on year.」

「In the comprehensive facilities management business, newly contracted properties from condominium owners' associations and others commenced operations smoothly. In addition, contributions from 株式会社全日総管理, which became subject to consolidation in August of the previous year, and increased real estate transactions resulted in net sales of ¥906 million, up 5.6% year on year, and an operating loss of ¥0 million, compared with an operating loss of ¥19 million in the previous year.」

「In addition, some repair work was completed later than scheduled, resulting in operating profit of ¥22 million, down 49.7% year on year. This was due to a temporary shortfall in service capacity after mid-career employees left amid increased labour mobility in the industry and were replaced by younger personnel. Toward the end of the current fiscal year, the Company is working to complete outstanding repair projects that have not yet started as early as possible.」

「In the comprehensive facilities management business, new orders from condominium owners' associations (replacements) and large-scale planned repair work remained solid. In addition, sales related to renovation and refurbishment by 株式会社全日総管理, which had become a wholly owned subsidiary, contributed, resulting in net sales of ¥1,900 million, up 7.2% year on year.」

「Ancillary services also saw increased transactions in real estate services. In the renovation business, 全日総管理 was made a Group company through M&A during the current fiscal year, and the Group will accelerate collaboration going forward.」

「In the comprehensive facilities management business, the number of units under management from new orders from condominium owners' associations (replacements) increased only slightly year on year. However, sales from repair work on defects identified through building maintenance inspections and large-scale construction under long-term repair plans increased. In addition, services for privately owned condominium units, including purchase-and-resale activities by a subsidiary spun off during the fiscal year, also increased, resulting in net sales of ¥3,395 million, up 1.0% year on year.」

「In the comprehensive facilities management business, the number of newly contracted properties in operation remained broadly unchanged from the previous year. However, growth in repair-related construction and the real estate division's purchase-and-resale services resulted in net sales of ¥2,555 million, up 4.4% year on year.」

「In the comprehensive facilities management business, net sales amounted to ¥1,773 million, up 8.1% year on year, as management revenue remained solid and other sales, including repair-related construction, increased.」

「Orders for repair-related construction, including planned repairs, remained solid, while sales from the purchase and resale of real estate also contributed.」

「Revenue from repair-related construction increased as repair work was carried out on defects identified through building maintenance inspections, and renovation work, including renovations of privately owned units, was newly commercialised. The Company also strengthened the purchase and resale of condominiums and other activities in the real estate business」