Future development

1. The promotion of the Well-being City concept and the company's own brand condominium "CANVAS".

First Corporation <1430> has identified the "Well-being City concept" as a key area of focus for the future. Under this concept, the company has launched its own brand condominium "CANVAS", and is currently conducting sales for the first project, "CANVAS Minamiosawa".

"CANVAS" is based on the mission of providing not only "residences" suitable for the 100-year life, but also continually providing various services to achieve a rich life sustainably and multifaceted, contributing to the creation of a sustainable society. Traditionally, senior condominiums have mainly targeted the elderly, but the distinguishing feature of "CANVAS" is that it is targeted at all generations. In the current era where there are various needs such as single households aspiring for diverse working styles and young family households, our company believes that condominiums targeting all generations that provide diverse services in collaboration with external organizations to meet these needs have the potential to become the mainstream of future condominium forms.

2. Condominiums for Active Seniors

An area that should be noted for the company's future growth is condominiums for healthy seniors, known as active senior condominiums. In the senior condominium market, many companies are focusing on service-enhanced housing for the elderly, and few are involved in active senior condominiums. The company is pioneering in this area. Active senior condominiums do not require a location near a train station and can increase unit prices through the construction of ancillary facilities such as hot springs and gyms, which can also be expected to be profitable. Diamond Life Wakabadai in Inagi City, Tokyo, is a condominium built through a joint venture specifically targeting active seniors and has already been sold out.

There are also cases of large-scale projects carried out in collaboration with developers. As of the end of May 2024, construction and sales are ongoing for multiple projects. Due to the efficient revenue generation through joint ventures, the company plans to focus on joint ventures in the medium to long term, and it is expected that there will be a greater number of projects with developers in the future. In July 2024, land for business in Hakata-ku, Fukuoka City, Fukuoka Prefecture was acquired under the assumption of promoting joint ventures. The promotion of joint ventures is expected to lead to expanded revenue and improved profitability.

It is also worth noting that the number of trade partners is increasing. In the fiscal year ending in May 2020, there were 31 trade partners, but in the fiscal year ending in May 2021, there were Mitsubishi Estate Residence Co., Ltd., Nomura Real Estate Co., Ltd., in the fiscal year ending in May 2022, Fojeas Corporation, in the fiscal year ending in May 2023, Daiwa House Industry <1925>, Nice <8089>, and in the middle of the fiscal year ending in May 2024, trade started with Yamaichi Unihomes Estate, Toshin Partners, expanding the trade partners to 38 companies. Other major developers such as Ernst & Young Co., Ltd., Tokyo Tatemono <8804>, Chuo Doyo Tatemono Co., Ltd., Nippon Steel Kowa Real Estate Co., Ltd., Mitsubishi Jisho Residence Co., Ltd., Hankyu Hanshin Real Estate Co., Ltd., Chuo Jutaku Co., Ltd. are also listed as additional trade partners. It seems that the business will continue to expand along with the expansion of trade partners in the future.

(Written by FISCO Guest Analyst Yoichiro Shimizu)