Management Interview

I would like to express my sincere gratitude to our shareholders and investors for their continued support.

Review of consolidated earnings for the fiscal year ended March 31, 2024

For the fiscal year ended March 31, 2024, we posted a year-over-year increase in net sales and profits with net sales of ¥86,418 million (an increase by ¥7,131 million year over year), operating income of ¥8,943 million (an increase by ¥517 million year over year), and ordinary income of ¥7,599 million (an increase by ¥319 million year over year). As a result, we achieved a record profit attributable to owners of parent of ¥4,806 million (an increase by ¥248 million year over year). Our mainstay new condominium apartments showed steady sales growth thanks to continued solid housing demand for prime locations in regional cities across the country while the future outlook remains uncertain due to concerns over an interest rate hike associated with the lifting of the negative interest rate policy. In the Real Estate Investment, the number of in-house developed new residences for lease sold increased year over year, supported by solid investment demand by investors for income-producing properties in Japan, which largely contributed to consolidated earnings.

Consolidated earnings forecast for the fiscal year ending March 31, 2025

Based on the sales forecast for new condominium apartments and the future outlook of the real estate market, we forecast a year-over-year increase in net sales and profits in consolidated earnings for the fiscal year ending March 31, 2025 with net sales of ¥97,000 million (up 12.2% year over year), operating income of ¥9,400 million (up 5.1% year over year), and ordinary income of ¥8,000 million (up 5.3% year over year), and another record high profit attributable to owners of parent of ¥5,100 million (up 6.1% year over year).

Shareholder return

For the fiscal year ended March 31, 2024, as business performance showed solid growth, we decided to pay year-end dividend per share of ¥28 as initially forecast, making annual dividend, including interim dividend, per share ¥55 (increase by ¥3 year over year). We plan to pay annual dividend per share for the fiscal year ending March 31, 2025 of ¥58, an increase by ¥3 year over year.

Sustainability initiatives

As for the initiatives for Environment, we endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in September 2023. In November 2023, we set a target to “reduce greenhouse gas emissions (Scope 1 and 2) by 50% by FY2030 compared to FY2022 (fiscal year ended March 31, 2023) level and achieve net-zero by FY2050.” As part of our efforts toward our goal to “make all new condominiums for sale to be supplied meet the requirements to ZEH-M Oriented or higher by FY2030,” we started sales of “Duo Hills Jonai (Saga city, Saga Prefecture),” our second property certified as “ZEH-M Oriented.” As for the initiatives for Society, we will develop specific plans under the policy to become a social impact developer. We are also promoting initiatives such as for human resource development and active participation of women toward human resource management.
We will continue to promote ESG management and aim to enhance mid- to long-term corporate value.

We look forward to your continued support.