CEO Message

Navigating the dynamic currents of the real estate market, through ambidextrous management, we mitigate risks and enhance profitability through proactive investment initiatives.

Due to increased liquidity from financial easing and rising energy and material prices due to the Ukraine conflict, the real estate market is experiencing asset inflation. Property values, especially in central Tokyo, are rapidly rising, with this trend spreading to other areas as well.
This sharp increase in property prices presents difficulties for prospective first-time homebuyers, resulting in a decrease in real estate transactions and prompting shifts in the types of properties being bought and sold, thereby creating a more varied housing market.
While sales prices in central Tokyo continue to rise, there has been a significant increase of over 20% in the inventory of pre-owned condominiums in the Tokyo Metropolitan Region compared to last year. This indicates imbalances in supply and demand at both local and property-specific levels suggesting that first-time homebuyers may become more selective in their choices.
In the previous fiscal year, we experienced a boost in revenue due to higher property sales prices and transaction volumes. However, our profitability was impacted as we could not fully offset the rising costs.

For the current fiscal year, our primary focus is adopting an ambidextrous management approach, aiming to strengthen our existing operations while also exploring new ventures.By allocating management resources to these areas, our objective is to mitigate business risks in uncertain market conditions and actively expand our range of products and services to meet changing market and consumer demands.
Specifically, we plan to enhance our core Renovation Business to improve turnover and profitability, thereby improving our capital efficiency. As part of our differentiation strategy, we will be pioneering the visualization of energy efficiency ratings for pre-owned condominiums in the industry and promote our real estate direct purchase platform FLIE, offering immediate economic benefits to our customers.
As our market capitalization and average daily trading volume of circulating shares did not meet the listing maintenance criteria for the Prime Market as of May 2023, we have decided to move to the Standard Market effective July 14th.
Throughout this transition, we remain committed to advancing our business goals to realize our vision of "Enriched Life for Everyone Through Renovation," positioning ourselves as leaders in the renovation sector. Additionally, we will continue to strengthen governance practices and investor relations, enhancing corporate value in the medium to long term.

President & Representative Director: Seiji Toshinari