Landnet, Inc. uses its main bases in its headquarters in Toshima-ku, Tokyo, Yokohama branch, and Osaka branch to engage in the trade, purchase, and sale of used real estate, as well as the renovation and brokerage of purchased properties. The business has expanded primarily in the sale and brokerage of investment-grade used one-room apartments in the metropolitan area, expanding its coverage area to include the entire Kanto region, Kansai area, and major cities throughout Japan. In recent years, they have also been involved in the renovation of used apartments and the revitalization of used real estate.

The company has constructed a database that is unrivaled, based on its unique real estate data and sales system that collects all real estate information from its establishment. It also maintains its competitive edge with a short stock turnover period and a top-tier direct procurement ratio in the industry. In the previous period, 98.6% of sales revenue came from the real estate trading business of “purchase-and-sale,” “renovations and sales after purchase,” and “brokerage.” They purchase and sell used real estate (especially used apartments), targeting real estate agents and investors. The remaining 1.4% is from the real estate leasing and management business.

In the third quarter of the fiscal year ending July 2024, cumulative net sales totaled ¥552 billion, up 19.1% from the same period last year, and operating profit landed at ¥154.7 billion, an increase of 37.4% from the previous year. Sales ratio in the third quarter saw a significant increase in the “family” category, reaching approximately 63%. The average selling price was ¥11,353. As a result of expanding transactions, sales properties have increased to ¥14.7 billion (compared to ¥13.2 billion in the same period last year), and while the stock turnover days have lengthened slightly due to the increase in purchase and renovation cases, the company still achieves an extremely short stock turnover period compared to other companies in the same industry. Furthermore, they continue to expand their share of transactions by leveraging their know-how in the Tokyo metropolitan area and exceptional level of information, and the percentage of regional trades has increased to 11.5% in Kyushu (compared to 9.0% at the end of the previous period). Annual net sales are expected to be ¥73.857 billion, a 16.0% increase from the previous period, while operating profit is expected to be ¥1.794 billion, an 18.0% increase.

Despite the fact that sales per sales department employee have continued to fluctuate around ¥200 million annually, there is still potential for growth if the favorable real estate market conditions continue. Additionally, there are plans to expand the types of newly constructed, family-type residences and handle all subdivided apartments. They will expand from the conventional 1R (old/ new building) and family (old) categories to handle detached houses, land, and apartments and may even further expand to entire buildings and condominiums in the future. While current operations are focused on the Tokyo and Osaka metropolitan areas for detached houses and apartments, there is still potential for expansion to all 47 prefectures in Japan, which may have a positive impact on the company's performance. In addition, the crowdfunding platform LSEED has been very well received, providing an alternative to borrowing money from banks. In the future, due to high material and labor costs in addition to an aging population, there is a possibility for Japan to shift from a focus on new construction to a focus on used real estate. The company aims to be the leader in the used real estate distribution industry, targeting more than ¥100 billion in net sales in the period ending July 2026, and we need to keep an eye on whether they will continue to achieve continued double-digit growth.