Business​

Business Overview

The new built-for-sale condominium business, which we have developed across Japan through an integrated system covering everything from the acquisition of land to product planning and sales, is a core business accounting for more than half the units we sell on a consolidated basis. This business includes the mainstay LEBEN brand, which focuses on first-time home buyers, while the NEBEL series offers compact condominiums in urban areas. In the Tokyo metropolitan area, we mainly focus on units for single-family, single-person, and double income no kids (DINKs) households, and in regional city centers we concentrate our efforts around housing for active seniors.

Review of FY2024

For FY2024, the new built-for-sale condominium business recorded net sales of ¥106,582 million (up 14.0% from the previous fiscal year) and gross profit of ¥23,082 million (up 9.9%). The gross profit margin fell to 21.7% (down 0.8 percentage points), exceeding the initial plan by 0.9 percentage points. The new builtfor- sale condominium business thus continued to play its role as a core business for the Group, accounting for 54.2% of company- wide sales and 54.6% of total gross profit.
　The number of new built-for-sale condominiums sold stood at 2,339, an increase of 125 units from the previous year, marking a favorable shift. Steady progress was made on regional efforts to strengthen the brand, and the business was able to maintain its profit margin at a high level.
　The Company provides units across the country, from Hokkaido to Kyushu, with the 27% of units being supplied to the Tokyo metropolitan area, and the Chubu area and Kinki area accounting for 5% and 12%, respectively. Together, these three metropolitan areas accounted for 44.1% of units supplied, up 9.9 percentage points from the previous year, with higher results in the Kinki area in this period being of note.
　

Future Initiatives

Amidst a procurement environment where there have been sharp increases in material costs as well as an acute labor shortage causing similar increases in construction costs, sales prices in the new built-for-sale condominium market have also trended upward. On the other hand, real estate demand continued to reflect customers’ high and persistent willingness to purchase residences. As of the first quarter of FY2025, delivered units for the entire fiscal year are projected to reach 2,820 units, with contracts already finalized for 1,349, or 47.8%, of these units. This means net sales are estimated to grow to ¥110,900 million, with gross profit growing to ¥23,210 million.
　In the domestic market, where population is increasingly concentrated in the Tokyo area while regional cities face declining populations, we predict that the ratio of buildings in metropolitan areas will grow to 44.5% (up 0.4 percentage points) in FY2025. As for such issues as lengthening construction periods and sharply increasing construction costs, we are responding through cost controls, time controls, and high product standards. At the same time, we have a policy of striving to maintain desirable price levels as a partner for first-time home buyers.
　With the number of domestic households continuing to decline, it is estimated that the number of condominium units supplied will fall as well. To sustain growth in such an environment, we make careful selections when acquiring land and will provide our target customer groups across Japan with more appealing condominiums that are carefully designed to meet their needs.

Business Overview

The liquidation business is our second pillar of earnings in the Real Estate Business. This business draws on expertise cultivated within the new built-for-sale condominium business to help develop our diverse array of real estate assets. Specifically, this includes the high-grade rental condominiums “LUXENA” as well as residences, office buildings, and hotels. We have sold 60%– 70% of the properties developed to date to Takara Leben Real Estate Investment Corporation and support the company’s external growth.

Review of FY2024

As the market environment continues to be sound, beneficial contributions from newly developed residences led to gross profit of ¥7,375 million, which was 19.0% higher than initial targets.
　We also promote the development of new products centered on the LUXENA series, such as “LUXENA+ OTO MINAMI-SENJU,” which was created to meet the demand for soundproof facilities. In addition, steady progress has continued in efforts to increase the value of our owned real estate and around leasing.
　The amount we invested nearly doubled compared with the previous period, growing to ¥49,270 million, due to the acquisition at locations around Japan of superior assets matching our investment standards.
　We marked strategic progress by taking advantage of opportunities provided by a sound real estate market, resulting in sales increasing to ¥30,898 million. The gross profit margin improved far beyond the initial target of 17.2% to 23.9%, contributing to stable profit across the entire Group.

Future Initiatives

We will continue to actively acquire and develop assets nationwide. To achieve the targeted level of expansion in the Takara Leben Real Estate Investment Corporation’s asset scale, that is, increasing it from the current ¥173.2 billion to ¥320.0 billion by March 31, 2031, we strive to accurately assess demand in each area and carefully select and secure investment opportunities.
　With a focus on market trends, we will also challenge ourselves to develop new concept products.
　Regarding asset scale, as of March 31, 2025, we are holding ¥45,109 million* in assets in addition to owned assets undergoing development that are valued at ¥17,704 million. The projected value of these assets once development is completed is ¥33,333 million. Combined with existing assets this will bring total assets held to ¥78,442 million.　　　　　　　　　　　　　　　　　　　　　　　　　　　* Includes assets for liquidation that are included when calculating total real estate for sale

Business Overview

Through Leben Home Build, we have established an integrated system in the new detached house business covering development, construction, and sales. At quality sites that are selected based on our own high standards—covering such factors as lifestyle convenience, educational environment, natural environments, and accessibility—we provide mainly mid-priced 4LDK residences. We also offer an expansive array of after-sale services and extended warranties that enable us to achieve the dual goals of offering “the ideal home that anyone can purchase affordably and with peace of mind” and “high quality at an accessible price point.”

Review of FY2024

Although only 217 units were sold, fewer than the 230 units initially planned, we saw progress generally in line with our plans. Gross profit amounted to ¥1,501 million while the gross profit margin came to 11.6%, both falling short of initial plans.
　During the fiscal year, we promoted strategies aimed at improving the synergistic effects of our brand and deepened regional cooperation via business development in areas in and around which the Group supplies condominiums.

Future Initiatives

We are working to distinguish our new detached houses business from those of other companies by focusing on particular areas when developing homes and applying a community-rooted approach, with efforts centered on our LEBEN PLATZ series.
　We are aware of the need to improve our market analysis capabilities for individual areas; our hybrid investment strategies designed in accordance with scale; and the structure of teams that handle the execution of such strategies. By continuing to enhance business development that accounts for regional characteristics, we seek to create stable, long-lasting structures for supplying housing.

Business Overview

In the renewal and resale business, we focus on Tokyo and its three neighboring prefectures. We purchase second-hand condominium units that are about 30 years old with about 60 square meters of floor space to meet the needs of customers for preowned properties in highly convenient and favorable locations. Then, after the tenants have moved out, we renovate and resell them. We are also developing the Lé Art brand, where we acquire entire condominium buildings secondhand and utilize our design and planning capabilities to renew them.

Review of FY2024

Profitability improvements allowed us to surpass initial targets for total gross profit of ¥1,568 million. We have set the standard for average prices in each area, and efforts to raise the value of buildings to the level of “near newly built” have contributed to business performance. The gross profit margin was 14.9%, 2.5 percentage points better than initially planned.

Future Initiatives

At present, we do not expect a reccurrence of the bulk sales of multiple buildings seen in the first half of FY2025, so net sales are projected to fall. Because the price of purchases in the secondhand condominium market is continuing to rise, we are carefully proceeding with building acquisitions while paying close attention to the profitability of each property.

Business Overview

The rent generated from properties the Group owns is the real estate rental business’s main source of income, and around 90% of these properties were acquired by the liquidation business or the renewal and resale business for the purpose of securing a lineup for the future. This business is also actively acquiring rental properties across Japan while striving to maintain high occupancy rates. Operations such as those related to rental property tenant acquisition are handled mainly by Leben Trust.

Review of FY2024

Soundness in rental apartments and office buildings markets led to net sales of ¥6,229 million with a gross profit margin of 27.1%, showing results that exceeded initial plans.
　Inflationary trends in rent combined with enhanced occupancy rates for our owned properties over long periods allow us to steadily promote internal growth.

Future Initiatives

We will continue to supply products in exceptional locations centered on our specialty of floor plans for units sized 165 to 330 m2. In addition, we seek to further secure income by strengthening profitability through the enhancement of the value of currently held buildings (promoting internal growth) as well as by pursuing strategic asset exchanges in accordance with the market environment.

Business Overview

We manage a wide array of real estate assets, such as condominiums, rental residences, and office buildings, with Leben Community at the center of such efforts. Leben Community provides optimal management services ranging from everyday upkeep and maintenance to the planning of long-term repairs, building inspections, and proposals for large-scale repairs while maintaining dialogue with co-owner associations.

Review of FY2024

The gross profit margin declined slightly amid a rise in personnel costs. Falling short of initial targets, the number of housing units managed was 79,624, net sales were ¥9,623 million, and the gross profit margin was 16.3%.
　Although profitability was impacted by rising costs, the number of housing units managed increased by 2,963 compared to the previous period and the business base continued to steadily expand. We expect to see measures to reduce costs and make management costs more reasonable to begin yielding results after FY2025.

Future Initiatives

Personnel costs appear to be continuing to rise, and we recognize that enhancing management services and reducing costs are both important management issues towards ensuring suitable rates of profit.
　High quality service capabilities secured through the provision of training and certification systems is one of the Company’s fortes. Through measures that include regular training and proficiency tests, we have strengthened condominium managers’ business skills and ability to serve customers. We will further refine our initiatives to educate human resources to enhance both customer satisfaction and profitability.

Business Overview

In the real estate and other business, we mainly provide real estate distribution services that include acting as an intermediary or sales agent when real estate is bought and sold. This entails utilizing our expertise and informational capabilities to formulate the most suitable proposals to meet the diverse needs of customers and may include anything from determining contract terms to organizing handovers. Our ability to utilize both our customer base and wealth of knowledge pertaining to buildings that we have gained through our various other businesses, in such areas as properties for sale, managed properties, and rental properties developed by the Group, comprises a huge point of strength within the industry.

Review of FY2024

Net sales rose to ¥1,674 million, 23.1% above the initial target, while the gross profit margin was 99.7%, 0.3% below the initial target. Despite these results being down from the previous fiscal year, we saw sound progress in terms of initial targets.

Future Initiatives

We will continue to utilize Group assets to their fullest extent as we strive for stable growth as a fee business. In FY2025, we expect that income from fees collected through acting as a sales agent will increase due to a higher number of joint ventures (JVs) in the new built-for-sale condominium business, and net sales are expected to expand by a factor of roughly 2.3 times from the previous fiscal year.

Business Overview

With operations centered on MIRARTH Energy Solutions, we promote the development and sales of electricity produced by power plants that utilize solar energy, wind, or other such renewable energy resources along with the operation and maintenance of such facilities, as well as biomass fuel conversion using cashew nutshells. In addition to the stable profit generated through the Feed-in Tariff (FIT) system, we are actively pursuing the expansion of these businesses through Power Purchase Agreements (direct energy purchase contracts with such entities as corporations or municipal governments) as we seek further growth in what has become the second pillar of our main business efforts after the Real Estate Business.

Review of FY2024

In FY2024, net sales fell by 21.9% from initial targets to ¥9,921 million while gross profit fell by 42.4% from initial targets to ¥2,551 million due to the considerable impact of a halt in sales of power plant facilities. Factors that caused power sales to fall short of plans included costs incurred in taking measures against cable theft and repairs, but as these are temporary effects we expect profitability to improve in FY2025.
　On the other hand, power generation capacity expanded to 385 MW as of March 31, 2025, and we are making steady progress. We are also currently expanding our portfolio with the goal of securing stable power sources, having acquired the Hokkaido Otobe Power Plant (a wind energy plant) in December 2024. This has given us a new power source that is effective in the winter, when solar energy efficiency drops. MIRARTH Energy Solutions has also entered into an on-site Power Purchase Agreement (PPA)* with Yamanashi Prefecture as of January 2025, as well as with the city of Sapporo in February of the same year. Through these initiatives, we continue to create a non-FIT business model.                                                                                                                                              * A contract for providing renewable energy generated within sites where there is demand

Future Initiatives

For FY2025, we do not anticipate any facility sales and will focus on expanding our power generation capacity. For our operational power generation capacity, we expect an increase of 25 MW compared to FY2024, reaching 410 MW. We project net sales of ¥11,670 million and gross profit of ¥2,950 million .
　MIRARTH Energy Solutions is creating medium- to longterm business plans and is enhancing its ability to generate profits. We will actively invest in power storage sites and accelerate our power facility development, with efforts centering on solar power plants. In addition, we will also seek growth in new areas, including our cashew and fuel businesses. As even comparatively cramped power storage sites can be highly profitable, we will utilize the network we have cultivated in our Real Estate Business to acquire land and optimally distribute the sites where such facilities are built.
　In addition, in line with efforts to diversify our energy sources, we create a biomass power plant that uses wooden chips as fuel. Compared with solar power facilities, the operation and maintenance of biomass power generation facilities is more difficult, and we are strengthening systems in pursuit of stable operations.
　Regarding the cashew and fuel businesses, we completed construction of a cashew nut processing plant in Cambodia in June 2024. Products manufactured at this site have been rated highly, and we will continue with efforts that include the expansion of processing and the cultivation of technical knowledge.
　The 6th Strategic Energy Plan published by the Agency for Natural Resources and Energy contains a policy to have renewable energy account for 36%–38% of the energy generated in Japan by 2030, and the Group recognizes this as an opportunity for growth. As such, the Energy Business has been positioned as our second pillar after the Real Estate Business, and we will strive to expand business areas and strengthen profitability.

Business Overview

Utilizing the wealth of expertise, knowledge, and networking capabilities regarding real estate and renewable energy accumulated by the MIRARTH HOLDINGS Group, we actively manage J-REITs and private funds. The Asset Management Business is handled by MIRARTH Asset Management and MIRARTH Real Estate Advisory. We respond to the diverse needs of investors by properly handling the unique attributes of specific investments as well as by providing them with excellent investment opportunities.

Review of FY2024

In FY2024, the formulation of a private fund greatly drove performance, with net sales reaching ¥1,162 million, up 29.2% from the initial target. At ¥934 million, gross profit also grew, up 33.5% from our initial target. Thus, performance outstripped plans by a wide margin.
　In addition to expanding building acquisitions, we followed a strategy of turning over assets through timely sales, leading to steady growth.
　The appetite for investments in Japanese real estate was strong both at home and abroad, and performance remained favorable thanks to a sponsor system that utilized the Group’s planning capabilities along with our steady building procurement capabilities. Through careful investments undertaken with an eye to maintaining high levels of diversity in tenants and high asset value in individual buildings, we continued to acquire new buildings.
　Assets under management (the value base for acquisitions) totaled ¥311.3 billion, achieving the previous Medium-Term Management Plan goal of ¥300.0 billion assets in assets under management. This total breaks down into ¥77.9 billion related to renewable energy, ¥173.2 billion related to REITs, and ¥60.2 billion in the private fund.　

Future Initiatives

We will continue striving to expand assets under management and achieve steady internal growth as we strengthen our management systems. A robust organizational foundation is paramount when expanding assets, and the creation of favorable office environments becomes an important issue when securing and integrating exceptional human resources. We believe that securing these human resources is as important as acquiring buildings, and we are focusing our efforts on this goal.
　Regarding capital increases, we are aware that there is an impact on net asset value (NAV), but we adhere to a policy of maintaining a certain dividend level regardless of NAV.
　As an investment manager, we are aware of our duty of care and endeavor to ensure that our investment decisions are well-considered and prudent. To this end, we conduct careful examinations from the perspectives of profitability and asset value before investing in properties projected to see high levels of internal growth. This business’s duty is to increase asset value through higher rents and enhanced building values, and we will continue to contribute to the growth of the Group’s stock fee business.

Business Overview

Group companies are involved in a wide array of other businesses, such as the hotel business, the construction business, and the caregiving business. In addition, the construction business implements strict quality management systems, including internal inspections of various processes across multiple levels, and provides buildings for such various uses as apartment complexes, welfare facilities, and retail facilities. 
　 Moreover, in the hotel management business, we draw on the Group’s housing creation expertise and apply knowledge related to comfortable spaces to the development of the unique “HOTEL THE LEBEN” brand. In these and similar ways, we seek to create new value by taking on the challenge of expanding into new fields.

Review of FY2024 and Future Initiatives

Profit from other businesses was attributable to efforts including construction contracts, hotel management, and rehabilitation/day care services. Due to these efforts, net sales amounted to ¥6,927 million (4.3% below the initial target) while gross profit amounted to ¥373 million (58.9% below the initial target). Profitability was impacted due to rising costs in construction and nursing care businesses, but the operation of our managed hotels has produced favorable results, with gross profit rising ¥348 million above that of the previous fiscal year. We also received high ratings, including the acquisition of a Michelin Key for our Nasu mukunone project in July 2024. 
　We expect occupancy rates and individual room prices to remain high in our hotel management efforts and aim to further enhance profit ratios. Strategies toward this end include accelerating the development of hotels specializing in lodging accommodations as well as improving operations and enhancing profitability among our existing hotels. We are also promoting efforts to take charge of managing the hotels of other companies as well as expanding the scale of our management efforts, including via M&As. Through these efforts, we aim to achieve an operating profit of ¥1 billion in FY2030.