01Procurement of New Properties in the Purchase and Resale Business

In the Third Medium-Term Management Plan, which commenced in 2025 and covers a three-year period, the Group has positioned the further strengthening and growth of its core Purchase and Resale Business as its highest priority. Under the Plan, we are building a framework to further accelerate the acquisition of new properties by improving sales productivity,expanding sales channels, diversifying the asset types we handle, and continuing to expand our sales area. In light of the solid market demand for investment-type properties, we will promote the acquisition of large, highly profitable properties while rigorously selecting assets with strong demand, thereby enhancing both business scale and profitability.
In the Real Estate Development Business, we will carefully consider the acquisition of development sites while placing emphasis on both market needs and project profitability, and will also work to diversify the asset types we handle. In the Specified Joint Real Estate Business, we will continue to diversify our product offerings, promote the sourcing of products that leverage regional characteristics, and expand an attractive product lineup that meets investor needs.

02Increasing Inventory Turnover Rate of Real Estate for Sale

In the real estate industry in which the Group operates, demand from both domestic and overseas investors is expected to remain firm, supported by strong inbound demand, and overall real estate market conditions are expected to remain stable. On the other hand, there are still many uncertain factors surrounding the domestic and international economic and financial environment, including rising interest rates, higher construction costs due to persistently high material prices, and policy developments in the United States. We therefore recognize that the real estate market is at an important stage where careful assessment of future trends is required. In this environment, the Group believes that it is important to build an operating framework capable of responding swiftly and flexibly to changes in market conditions by appropriately managing real estate holding periods and improving inventory turnover.
The Group has strengthened its construction system by transferring the construction business from a subsidiary to the Company. As a result, we have shortened the time required for interior and exterior construction and established a framework that enables the early commercialization of real estate for sale. In addition, by enhancing the functionality of the property introduction website for brokerage firms, improving the efficiency of sales activities through the use of real estate technology, and strengthening the provision of information that supports customers’ purchasing decisions, we are continuing to improve the environment for providing prompt and accurate information to both investors and end-users. Through these initiatives, we will accelerate sales and improve inventory turnover, thereby generating stable and sustainable earnings.

03 Increasing Profitability by Reducing Construction Costs

Construction costs have been rising due to soaring material prices caused by the prolonged depreciation of the yen, as well as higher labor costs resulting from labor shortages in the transportation and construction industries since 2024. These changes in the external environment are expected to continue for some time, making cost management increasingly important to ensure profitability.
Under these circumstances, the Group is working to optimize procurement costs and outsourcing expenses by continuously expanding its network of material suppliers and construction partners. In addition, we are promoting the containment of construction costs through a range of measures, including curbing unit labor costs by reviewing operational procedures, reducing costs through the standardization of prices and quality, and shortening construction periods. Through these initiatives, we aim to build a profit structure that is less susceptible to fluctuations in the external environment and to maintain and improve profit margins.

04 Expanding Stable Earnings to Support Growth

Consolidated sales in our mainstay business—the Real Estate Trading Business—account for around 90% of total sales and segment profit of at least 80%. Securing stable earnings in preparation for future changes in real estate market conditions is a pressing issue.
As an opportunity to secure long-term stable earnings, we are working to acquire high-quality assets and increase the number of units we manage. With regard to the acquisition of high-quality assets, we decide to acquire them after assessing real estate trends and giving consideration to the level of cash flow and cash in hand for each fiscal year. In terms of increasing our number of managed units, we will coordinate with the sales department to acquire contracts so that we can obtain commissions from asset owners when selling our own real estate properties. In addition, in the Real Estate Asset Management business launched in 2025, we will work to secure stable earnings by increasing assets under management.

05 Proactive Investment in Both Existing and New Businesses

The Group aims to build a well-balanced business portfolio by investing more aggressively than ever in its core Purchase and Resale Business, while also making careful yet proactive entries into new growth areas in light of changes in the external environment.
At present, we aim to expand earnings from our growth businesses—the Real Estate Development Business and the Specified Joint Real Estate Business—and establish them as new pillars of the Group’s business. In the Real Estate Development Business, it continues to be difficult to secure profitability due to soaring material prices and rising labor costs. However, we will work to develop high-value-added products not only through careful site selection and improvements in quality, but also by incorporating environmentally conscious planning. In the Specified Joint Real Estate Business, while placing emphasis on structuring attractive investment products for customers, we will work to increase the annual number of compositions and expand composition capacity by diversifying products, sophistication of structuring schemes, enhancing exit strategies, and expanding the sales network.
In the Real Estate Asset Management Business, we will gradually establish private placement funds over the next several years and work to expand assets under management.
With respect to new businesses, rather than insisting on developing and operating all businesses entirely in-house, we will promote them while also utilizing strategic investments, including business alliances with other companies and M&A, taking into account the time required for commercialization and monetization.

06 Strengthening and Promoting Sustainability Management

The Group recognizes that addressing climate change and other environmental challenges, recruiting and developing human resources, and strengthening organizational capabilities are important to achieving sustainable growth. In the Third Medium-Term Management Plan, we aim to enhance the trust of society and our stakeholders and improve corporate value over the medium to long term by promoting sustainability management as a management policy.
In response to environmental challenges, we will promote initiatives for environmentally friendly business activities, recognizing that regulatory trends and changes in the market environment associated with the transition to a decarbonized society may affect our business operations and cost structure. Specifically, we will promote the use of renewable energy and improve the energy-saving performance of buildings in order to reduce environmental impact while maintaining and enhancing our medium- to long-term competitiveness. In addition, we endorse the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), established by the Financial Stability Board (FSB), and strive to improve transparency regarding the impact of climate-related risks and opportunities on our management through transparent disclosure based on the TCFD recommendations.
With respect to strengthening human resources and organizational capabilities, we recognize that securing and developing human resources is an important management foundation supporting the Group’s sustainable growth. In addition to strengthening the recruitment of new graduates and career professionals, we are working to improve employee productivity by enhancing internal and external education and training programs, developing core personnel through on-the-job training, and supporting the acquisition of specialized skills. We are also promoting diversity and creating an environment in which diverse human resources can maximize their abilities, thereby enhancing organizational productivity and adaptability to change. We continuously monitor the progress and effectiveness of these initiatives through engagement surveys and other measures, while also striving to improve engagement by reflecting the voices of employees.

07 Enhancement of Corporate Governance

The Group recognizes that, in order to maximize corporate value, it is important to ensure the transparency and soundness of management while also establishing a framework capable of responding swiftly and appropriately to changes in the business environment. We regard corporate governance as one of our key management priorities and are working to enhance governance functions by strengthening oversight and checks on business execution, ensuring transparency through appropriate disclosure, and improving the management framework for business execution.
The Group has been working to further strengthen its corporate governance system and enhance corporate value over the medium- to long-term through initiatives such as the establishment of the voluntary Nomination and Compensation Committee in November 2021, the introduction of the executive officer system in January 2022, and the establishment of the Sustainability Committee in July 2022. Through these measures, we are strengthening oversight and checks by outside directors, accelerating management decision-making and enabling agile business execution, and addressing sustainability-related issues toward the realization of a sustainable society.
With respect to the composition of the Board of Directors, we recognize that ensuring diversity in terms of gender, internationality, professional experience, and age contributes to the effective exercise of oversight functions. In appointing independent outside directors, we strive to ensure an appropriate number and composition for the Company in light of the spirit of the Corporate Governance Code. In addition, taking into account that the Japanese government’s “Intensive Policy for Gender Equality and the Empowerment of Women” sets targets for the ratio of female executives at Prime Market-listed companies, we recognize the importance of incorporating diverse perspectives and values into management.
In appointing officers, the Company’s criteria are that candidates possess outstanding character, insight, ability, and extensive experience. Based on these criteria, we are actively promoting the appointment of female officers who meet such requirements, including the appointment of female outside Audit & Supervisory Board Members and female outside directors, and are advancing efforts to enhance the diversity of the Board of Directors. Going forward, we will continue striving to ensure diversity, paying attention to gender and internationality, as well as to the balance of knowledge, experience, and abilities.
Following the market reclassification in April 2022, the Company selected the Prime Market. Subsequently, after reviewing matters including compliance with the listing maintenance standards, the Company selected the Standard Market in October 2023. Going forward, with the goal of relisting on the Prime Market, the Company will seek to achieve stable compliance with the listing maintenance standards by improving performance, promoting IR activities, returning profits to shareholders, and strengthening corporate governance.

08 Improvement of Capital Efficiency

The Group’s basic management policy is to expand business scale and maintain a high level of financial soundness, while making investments in its core and growth businesses and enhancing shareholder returns. In addition, in response to the call for “management that is conscious of the cost of capital and stock price,” we recognize the need to improve capital efficiency and returns, as well as to promote dialogue with shareholders.
As part of our efforts to improve capital efficiency, we will work to sustainably enhance ROE above the cost of equity, while securing sufficient financial flexibility to respond to changes in the business environment and maintaining an appropriate balance between equity and debt. In addition, as part of our efforts to improve market valuation, we will promote appropriate disclosure to shareholders and investors and engage in proactive dialogue, with the goal of sustainably maintaining a price-to-book ratio above 1.0x.

09 Rising Interest Rates

In 2025, the Bank of Japan implemented phased policy rate hikes, raising the policy interest rate from 0.25% to 0.5% in January and from 0.5% to 0.75% in December.
In the Group’s business model, a rise in interest rate is expected to increase borrowing costs for property purchase funds, decrease customers’ desire to purchase property due to higher interest rates on mortgages and other loans, and lower demand in the real estate market. Although no major impact from additional interest rate hikes is expected at this time, we will closely monitor interest rate trends and ensure business stability by diversifying funding sources, reviewing pricing with an eye on demand trends, improving inventory turnover, etc.