Business​

Business Overview

The New built-for-sale condominium business is a core business that accounts for more than half of the Group's consolidated sales, and is expanding nationwide with an integrated system from land acquisition to product planning and sales. There is the "LEBEN" brand, which mainly targets first-time buyers, and the "NEBEL" series, which mainly targets families, singles, and DINKS people in the Tokyo metropolitan area, and active seniors in central urban areas.

Review of the fiscal year ending March 2025

In the New built-for-sale condominium business, sales increased to 106,582 Millions of yen (up 14.0% year-on-year) and gross profit was 23,082 Millions of yen (up 9.9% year-on-year) for the fiscal year ended March 2025. Gross profit margin was 21.7% (down 0.8 percentage points year-on-year), 0.9 percentage points higher than the initial plan.
It accounts for 54.2% of consolidated sales and 54.6% of gross profit, and continues to play a role as the Group's main business.
New built-for-sale condominium sold 2,339 units, an increase of 125 units from the previous quarter, and performed well. Strengthening our brand power in rural areas has also progressed steadily, and profit margins have been maintained at a high level.
The supply area spans the whole country, from Hokkaido to Kyushu, and the supply ratio by region was 27% in the Tokyo metropolitan area, 5% in the Chubu area, and 12% in the area. Together, the supply ratio in metropolitan areas was 44.1% (up 9.9 points from the previous fiscal year), and growth was particularly noticeable in the area during the fiscal year.

Future Initiatives

New built-for-sale condominium In the market, selling prices are on the rise against the backdrop of a procurement environment such as soaring raw material prices and soaring construction costs due to severe labor shortages. On the other hand, the purchasing appetite of the real demand group for housing remains high, and demand continues to be strong. As of the beginning of the fiscal year ending March 2026, 1,349 units, or 47.8%, of the 2,820 units scheduled to be delivered for the full year, are expected to increase sales and profit by 110,900 Millions of yen and gross profit by 23,210 Millions of yen.
In the domestic market, where the population is concentrated in the Tokyo metropolitan area and the depopulation of regional cities, the ratio of metropolitan areas is expected to be 44.5% (an increase of 0.4 points) in the fiscal year ending March 2026. We will respond to prolonged construction periods and soaring construction costs with cost control, time control, and high-standard products. At the same time, as an ally of first-time buyers who are buying a house for the first time, we will strive to maintain an affordable price range.
In the future, it is predicted that the supply of condominiums will decrease as the number of households in Japan decreases. In order to achieve sustainable growth in such an environment, we will be more selective about site acquisition and supply more polite and attractive condominiums nationwide to our target customer base.

Business Overview

The Liquidation business, which is the second pillar of Real Estate Business, is engaged in the development of a variety of real estate assets by utilizing the know-how cultivated in the New built-for-sale condominium business. Specifically, we include residences, office buildings, hotels, etc., including the high-grade rental apartment "LUXENA" series. In addition, 6~70% of the properties we have developed so far have been sold to Takara Leben Real Estate Investment Corporation, and we also play a role in supporting the external growth of the corporation.

Review of the fiscal year ending March 2025

Gross profit increased by 19.0% to 7,375 Millions of yen compared to the initial plan due to the profit contribution of newly developed residences as the market environment continued.
Focusing on the "LUXENA" series, we promoted the development of new products such as "LUXENA+ OTO Minami-Senju" to meet soundproofing needs, and made steady progress in increasing the value of our real estate and leasing.
As a result of actively acquiring high-quality assets suitable for investment standards from all over the country, investment performance doubled approximately to 49,270 Millions of yen compared to the previous fiscal year.
In addition, we took advantage of the strong real estate market to strategically promote sales, recording sales of 30,898 Millions of yen. Gross profit margin improved significantly from 17.2% to 23.9% in the initial fiscal year, contributing to stable earnings for the entire group.

Future Initiatives

We will continue to actively acquire and develop assets nationwide. In order to achieve our goal of expanding the asset size of Takara Leben Real Estate Investment Corporation from the current 173.2 billion yen to 320 billion yen by the end of March 2031, we will accurately capture the demand in each area and ensure a stable supply of carefully selected investment opportunities.
While keeping a close eye on market trends, we will also take on the challenge of developing new concepts of products.
As of the end of March 2025, the Company held 45,109 Millions of yen (*including Liquidation assets recorded in real estate for sale), and in addition to this, it held 17,704 Millions of yen assets under development. This asset under development is expected to be 33,333 Millions of yen assets upon completion. The result will be 78,442 Millions of yen assets combined with existing assets.

Business Overview

Newly built detached houses The sales business has built an integrated system from development to construction and sales by Leben Home Build. We mainly provide 4LDK mid-priced housing on sites carefully selected based on our own criteria such as living convenience, educational environment, natural environment, and accessibility. In addition, through the Group's extensive after-sales service and long-term warranty, we have achieved both "an ideal home that anyone can purchase without difficulty" and "high-quality and affordable prices."

Review of the fiscal year ending March 2025

Although we were unable to achieve the initial plan of 230 units with 217 units sold, the progress was generally as planned. Gross profit was 1,501 Millions of yen and gross margin was 11.6%, both below the initial plan.
During the current fiscal year, we promoted a strategy to deepen brand synergies and collaboration within the region by developing our business in and around the areas where the Group supplies condominiums.

Future Initiatives

Newly built detached houses In the sales business, we will differentiate ourselves from other companies by promoting community-based development that further narrows down the area, centered on the "LEBEN PLATZ" series.
We recognize that there is room for improvement in market analysis by area, hybrid investment strategies according to scale, and the team structure responsible for strategy execution, and we will aim to build a stable and continuous supply system for detached houses by strengthening business development based on regional characteristics.

Business Overview

Renewal resale In the business, in order to meet the needs of used condominiums in areas with high convenience and location value, mainly in one Tokyo and three prefectures, we purchase properties with an average age of about 30 square meters per unit and renovate them after the tenants move out. In addition, we are also developing the "LéArt" brand, which has acquired used apartments in one building and has been renewed by taking advantage of its design and plan proposal capabilities.

Review of the fiscal year ending March 2025

Improved margins resulted in gross profit of 1,568 Millions of yen, exceeding the initial plan. The establishment of a mid-price range in all areas and an increase in the value of properties to the level of "near-new construction" contributed to our performance. Gross profit margin was 14.9%, 2.5 percentage points higher than the initial plan.

Future Initiatives

For the fiscal year ending March 31, 2026, we do not currently anticipate bulk sales of multiple properties (all-at-once sales) as was the case in the previous fiscal year, and therefore we plan for sales to decrease. As purchase prices continue to rise in the pre-owned condominium market, we will carefully proceed with property acquisitions after fully assessing profitability.

Business Overview

In the Real estate rental business, rent generated from rental real estate owned by the Group is the main revenue, of which approximately 90% consists of properties acquired as part of the future lineup of the Liquidation or Renewal resale businesses. While maintaining a high occupancy rate and occupancy rate, we are actively acquiring rental properties throughout Japan. In addition, we mainly conduct tenant acquisition business for rental real estate in Leben Trust.

Review of the fiscal year ending March 2025

Both rental apartments and offices were strong, with sales of 6,229 Millions of yen and gross profit margin of 27.1%, exceeding the initial plan.
The combination of rent inflation and higher occupancy rates for long-term properties has helped us steadily drive internal growth.

Future Initiatives

We will continue to supply excellently located properties, focusing on our specialty of floor plates of approximately 165 to 330 sq. meters. In addition, we aim to further expand our earnings by strengthening profitability by increasing the value of existing properties (promoting internal growth) and by strategically replacing assets in accordance with the market environment.

Business Overview

Leben Community is the center of the management of a wide range of real estate assets, including condominiums, rental residences, and offices. We provide optimal management services through repeated dialogue with the management association, including daily maintenance and maintenance work, long-term repair plans, building inspections, and proposals for large-scale repairs.

Review of the fiscal year ending March 2025

The increase in labor costs affected the gross profit margin and the decline. The number of units under management was 79,624, sales were 9,623 Millions of yen, and the gross profit margin was 16.3%, all of which were lower than the initial plan.
In terms of profit, rising costs had an impact, but the number of units under management increased by 2,963 units compared to the previous fiscal year, and the business base is steadily expanding. We expect the effects of measures to reduce costs and optimize management costs to be seen in the fiscal year ending March 2026 and beyond.

Future Initiatives

As labor costs are expected to continue to rise in the future, we recognize that balancing improving management services with cost reductions is an important management issue in order to ensure appropriate profit margins.
We have been working to strengthen the operational skills and customer service capabilities of our apartment management staff through regular training and training content comprehension tests, taking advantage of our strengths in high service quality achieved through the use of training and qualification systems. We will continue to further strengthen our efforts in these human resource development efforts, aiming to improve both customer satisfaction and profitability.

Business Overview

The Real estate Other business mainly provides real estate distribution services such as real estate sales brokerage and sales agency. In response to the diverse needs of our customers, we make optimal proposals by utilizing our specialized know-how and information capabilities, from adjusting contract conditions to delivering properties. In particular, a major strength of our business is that we can utilize the rich property information and customer base obtained from each of the Group's businesses, such as condominiums, managed properties, and rental properties.

Review of the fiscal year ending March 2025

Net sales were 1,674 Millions of yen, up 23.1% from the initial plan, and gross profit margin was 99.7%, down 0.3% from the initial plan. Although sales and profit decreased compared to the previous fiscal year, progress was strong against the initial plan.

Future Initiatives

We will continue to make the most of the Group's resources and aim for stable growth as a fee business. In the fiscal year ending March 2026, sales in the New built-for-sale condominium business are expected to increase by approximately 2.3 times compared to the previous fiscal year due to an increase in sales agency fee income due to an increase in joint venture (JV) projects.

Business Overview

MIRARTH Energy Solutions is promoting the development and sale of power plants that generate electricity from renewable energy sources such as solar and wind power, as well as O&M businesses, as well as biomass fuel projects using cashew nut shells. In order to expand these renewable Energy Business, we are not only securing stable profits through the feed-in tariff (FIT system), but also actively promoting PPAs (direct power purchase contracts with companies, local governments, etc.), and we are aiming for further growth as the second pillar after Real Estate Business.

Review of the fiscal year ending March 2025

In the fiscal year ended March 2025, the cancellation of the sale of power plant facilities was significantly impacted, resulting in net sales of 9,921 Millions of yen, a decrease of 21.9% compared to the initial plan, and gross profit of 2,551 Millions of yen, a decrease of 42.4% compared to the initial plan. As a factor that caused the electricity sales revenue to fall short of the planned ratio, we have incurred costs such as cable theft countermeasures and repairs, but this is a temporary cost, so we expect profit margins to improve in the fiscal year ending March 2026.
On the other hand, the cumulative power generation scale reached 385 MW by the end of March 2025 and is steadily progressing. In December 2024, we acquired the Hokkaido Otobe Power Plant (wind power generation), securing a new power generation source that has strengths in winter when solar power generation efficiency decreases. In addition, MIRARTH Energy Solutions is an on-site PPA (*contract method for supplying renewable energy electricity generated on the premises of the demand area. In January 2025, we signed power supply contracts with Yamanashi Prefecture and Sapporo City in February. These efforts are building a business model with an eye on the elimination of FIT.

Future Initiatives

In the fiscal year ending March 2026, we do not expect to sell facilities and focus on expanding the scale of power generation. In terms of installed power generation, we expect 410 MW, an increase of 25 MW from the fiscal year ending March 2025, with sales of 11,670 Millions of yen and gross profit of 2,950 Millions of yen.
MIRARTH Energy Solutions has prepared a medium- to long-term business plan and is working to strengthen business profitability. In the future, we will actively invest in energy storage plants, accelerate the development of Power generation facilities centered on solar power plants, and aim to grow in new areas such as the cashew business and fuel business. Since the energy storage station can secure high profitability even on relatively small land, we will make use of the network cultivated in Real Estate Business to acquire land and disperse the location.
In addition, as an initiative to diversify energy sources, we plan to build a biomass power plant that uses wood chips as fuel. Since biomass power generation is more difficult in terms of operation and maintenance than solar power, we will also work to strengthen our system for stable operation.
In the cashew and fuel businesses, products manufactured at the cashew nut processing plant completed in Cambodia in June 2024 are highly regarded, and we will continue to expand processing volume and accumulate technical know-how.
The 6th Basic Energy Plan announced by the Agency for Natural Resources and Energy sets out a policy to use renewable energy for 36~38% of the power supply mix in 2030, and we recognize this as a growth opportunity for the Group. Under these circumstances, we have positioned Energy Business as the second pillar after Real Estate Business, and will continue to strive to expand our business areas and strengthen our profitability.

Business Overview

Leveraging the MIRARTH Holdings Group's extensive real estate and renewable energy expertise, know-how and network, we are actively engaged in the management of J-REIT and private funds. These businesses are conducted by MIRARTH Asset Management and MIRARTH Real Estate Investment Advisors. In response to the diverse needs of investors, we provide optimal management according to the characteristics of assets and work to create excellent investment opportunities.

Review of the fiscal year ending March 2025

　2025年3月期においては、私募ファンドの組成が業績を大きく押し上げ、売上高1,162百万円で期初計画比29.2%増、売上総利益934百万円で期初計画比33.5%増と、いずれも大幅に計画を上回る結果となりました。
　取得物件の拡充を図るとともに、適切なタイミングで運用物件を売却するという資産の入れ替え戦略により、着実に成長を遂げてきました。　
　日本の不動産に対する国内外投資家の投資意欲の強さに加え、当社グループの企画開発力を生かしたスポンサー体制、堅実な物件調達力を背景に、業績は好調に推移しています。テナントの汎用性の高さ、物件自体の資産価値の高さを重視した厳選投資により、新たな物件の取得を推進しています。
　資産運用規模（取得価格ベース）では合計3,113億円となり、前中期経営計画における目標3,000億円の資産運用を達成しました。その内訳として再エネが779億円、REITが1 ,732億円、私募ファンドが602億円となっています。

Future Initiatives

Going forward, we will continue to work on strengthening our management structure, aiming to expand the scale of our assets under management and achieve steady internal growth. A strong organizational foundation is essential to expanding the scale of our assets, and creating good offices is also an issue, as it is important for securing and retaining talented personnel. We believe that securing personnel is as important as acquiring properties, and will continue to focus on this.
Furthermore, with regard to capital increases, we are conscious of the impact on NAV (Net Asset Value), but we will not be limited to the NAV level, and will respond based on the premise of at least maintaining the dividend level.
When making investment decisions, we adhere to the "duty of care of a prudent manager," carefully examining both profitability and asset value, and are committed to investing in properties that are expected to have high internal growth. Our responsibility as a business is to increase asset value through increased rents and improved property value, and we will continue to contribute to the growth of our group's stock fee business.

Business Overview

We are engaged in a wide range of businesses such as hotel management, construction, and nursing care at each group company. In the construction business, we have established a strict quality control system, including multiple in-house inspections in each process during construction, and provide buildings for various purposes such as apartment buildings, welfare facilities, and stores.
In the hotel management business, we are also developing an original brand called "HOTEL THE LEBEN" that utilizes the know-how of "creating spaces where people can spend a comfortable time" cultivated in the Group's housing development, and aims to create new value through the challenge of new areas.

Review of the fiscal year ending March 2025 and future initiatives

Other Businesses revenue, which includes construction contracting, hotel operations and rehabilitation services, was reported in sales of 6,927 Millions of yen, down 4.3% from the initial plan, and gross profit of 373 Millions of yen, down 58.9% from the initial plan. Rising costs in the construction and nursing care business impacted margins, but gross profit increased by 348 Millions of yen sequentially due to strong operating hotels in operation. In July 2024, "Nasu Mukunone" received a Michelin Award, and has received high praise.
In the future, we expect hotel operations to continue to have high occupancy rates and room unit prices, and we will further improve profit margins. As a strategy, we will accelerate the development of lodging-specialized hotels, strengthen the operations of existing hotels, and improve profitability. In addition, we will expand the scale of operations while promoting outsourcing the operation of other hotels and utilizing M&A, aiming to achieve an operating profit of Millions of yen 1,000 in the fiscal year ending March 2031.