Market Environment

(Market size) No. of rental housing for single-household

According to the Housing and Land Survey (Statistics Bureau, Ministry of Internal Affairs and Communications) for the year 2018, of the total 19 million rental housings in Japan, approximately 5.4 million are 29m2 or smaller, which is about the same size as our mainstay apartment rooms.

With approx. 560,000 units under management, the Company's main products account for approximately 10.3% share of the single-person-household apartment industry.
(approx. 560,000 /approx. 5,400,000 housing = approx. 10.3%)

(Outlook for rental housing demand) Estimated No. of Single-person Households

Although Japan's population peaked in 2008 and has begun to decline, the number of single-person households is expected to continue to increase. The number in the segment of our targeted working-age population (15-64 years old) is expected to remain unchanged for nearly 20 years between 10 million and 12 million.

We have identified young adults and single-person households especially in urban areas as our main customer base, and we have been trying to equip our apartments with facilities to meet their needs and prepare our services accessible to lead to contract signing.
We have also introduced monthly contract plan to meet the needs of corporate clients, such as company housing and business trips. As a result of these efforts, the Company gained its share of 3.4% in 2010, 3.0% in 2015, and 3.0% in 2020 in the single-person household market.

(Demand by corporate customers) Ratio of Job Offers to Job Hunters

From the collapse of Lehman Brothers to the COVID-19 pandemic, the ratio of job offers to job seekers grew steadily to 1.60. The active recruitment market boosted the Company's occupancy rate due to its high dependency on corporate customers business.
In September 2020, when the spread of COVID-19 infection was continuing, the ratio of job offers to job seekers plummeted to 1.03 and our occupancy rate also fell steeply, combined with the suspension of new tenant recruitment due to construction defects problem.
The ratio of job offers to seekers bottomed out in April 2021, and our occupancy rate has also reversed to an upward trend.
Currently, companies are actively recruiting as the COVID-19 impact weakened. We are committed to continuing to solve the problems of corporate customers and improve the occupancy rates by providing company housing solutions.

▼Occupancy Rates vs Ratio of Job Offers to Job Seekers (with seasonal adjustment)

As approximately 60% of our tenants are corporate clients, employment situation of the companies is one of the most important factors for us.

▼Share of Occupied Units by Customer Segment

(Demand by Foreign National Customers) Trends of Foreign Nationals Entering Japan

As the impact of the COVID-19 began to ease, the number of foreign nationals entering Japan has shifted to an upward trend helped by the measures to resume international human traffic.
The number of international students, technical intern trainees, and specified skilled workers as our main customers, are gradually increasing as well.

While the Company targeted approximately 13,000 contracts for foreign national customers for the fiscal year ended March 2023, the actual number of contracts was 12,011, 989 less than planned due to a decrease in the number of people entering Japan during the summer months.

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