Message for Our Shareholders and Investors

We would like to express our sincere appreciation for your continued support.

Financial Results for the Fiscal Year Ended March 2026

For the fiscal year ended March 2026, our results exceeded our plan at all levels—from net sales through net income—driven by increases in average unit rent.

Compared with the previous fiscal year, net income declined due to the recording of a JPY 10 billion loss on the cancellation of stock acquisition rights in the Q1. However, from net sales through recurring profit, we achieved both revenue and profit growth year on year.

Update on the Medium-Term Management Plan

In our medium-term management plan, "New Growth 2028," formulated in May 2025, we have clarified our vision for the future in light of the anticipated business environment and are promoting the strengthening of our core business foundation, centered on Leasing Business and Development Business.

With "sustainable growth in revenue and profit" and "stable shareholder returns" as the two pillars of our financial strategy, we aim to achieve continuous growth over the three-year period by improving occupancy rates and unit rents.

Based on the results for the first year (fiscal year ended March 2026), we revised our plans in May 2026 for the fiscal years ending March 2027 and March 2028.

For the fiscal year ending March 2028, we are targeting net sales of JPY 477.8 billion and operating profit of JPY 43.1 billion.

In the Leasing Business, reflecting the current market environment and performance, we have revised upward the index of average unit rent for new contracts for the fiscal years ending March 2027 and March 2028 from 109 to 116.

In the Development Business, while there has been no change in the order intake plan itself, we have revised upward our outlook for the number of managed units to 534,000 units (an increase of 10,000 units), taking into account the fact that orders in the fiscal year ended March 2026 exceeded the plan.

Shareholder Returns

For the fiscal year ended March 2026, we set the annual dividend at JPY 10 per share, and for the fiscal year ending March 2027, we plan to increase the annual dividend to JPY 15 per share.

While maintaining a balance between our financial position and growth investments, we will continue to strengthen shareholder returns, aiming to achieve a dividend payout ratio of 30% by the fiscal year ending March 2028.

We sincerely ask for your continued understanding and support of our management going forward.

May 2026
Bunya Miyao
President and CEO