KI Star Real Estate ＜3465＞ is a real estate company whose main focus is the condominium business. It is also developing custom-built housing businesses, investment apartment businesses, overseas businesses, etc.

The main force is the condominium business (96.0% compared to sales for the fiscal year ending 2024/3), and we are building a one-stop platform from land purchase to design/construction/sales, and support using the “real x technology” model that innovates the Japanese detached housing supply chain. Conventional condominiums are multi-building batch development on a scale of 4 to 10 buildings and were “small variety large lots,” but in the case of the company, many compact condominiums with high design are developed in small lot lots of 1 to 2 buildings where it is difficult for conventional businesses centered on multiple buildings to enter, and they are offered in “multi-variety small lots”. The average number of lots per sales site is 1.7, which is the lowest compared to other companies in the same industry. A large amount of data can be stored in a short period of time using a unique compact sales development business model, and the stored data is stored on the “KEIAI platform,” contributing to the advancement of land purchase/sales/marketing. In 2024, we will supply 8,202 houses per year, and we have a top-class track record in compact sales in Japan.

Also, the custom-built housing business was 1.9% of sales for the fiscal year ending 2024/3. In addition to aiming for differentiation by utilizing product power, land preparation input, and construction capabilities cultivated in the condominium business, Shin-Yamagata Home Tech Co., Ltd. joined the group in 2024/4 and Takasugi Inc. joined the group in July, aiming to continue expanding the group through M&A for the whole country. Others (overseas business, profitable real estate business, stock business, apartment business, remodeling business, condominium business) account for 2.1% of the same period.

Cumulative sales for the first half of the fiscal year ending 2025/3 reached 150935 million yen, up 20.3% from the same period last year, and operating profit reached 6992 million yen, up 50.6% from the same period last year. As market inventory adjustments progressed slowly, sales and number of sales buildings in the condominium business increased steadily. We have promoted nationwide expansion of stores and M&A to build a diverse regional portfolio that does not depend on one region, and it seems that the number of sales buildings has also increased in the Kyushu and Kinki areas, mainly in the southern Kanto region, where demand is strong. The unit sales price fluctuated between 30 million yen and 40 million yen. Also, while maintaining high inventory turnover, the total inventory volume has exceeded 10,000 buildings and is steadily moving towards growth from next fiscal year onwards. Full-year sales are expected to increase 13.0% to 320,000 million yen, and operating profit is expected to increase 27.6% to 14,500 million yen.

The company's condominium business has been growing steadily due to strategic store development, land procurement, and expansion of production capacity. Going forward, in the condominium business, we will expand our domestic market share through new store openings, business expansion through area strategies, and M&A. Furthermore, we aim for sustainable business growth by actively implementing growth investments for business expansion in custom-built housing businesses, overseas businesses, etc., and other businesses. Overseas, 7 development projects, including investment projects, are already underway in Australia, and the cumulative number of lots is over 400. This fiscal year, it is said that they will proceed with the expansion of other areas, mainly in Melbourne, and aim to secure a cumulative total of 600 lots or more of land.

On the numerical side, the medium-term management plan lists sales of 500,000 million yen and ordinary income of 30000 million yen for the fiscal year ending 2028/3. The size of the condominium market is approximately 4.5 trillion yen, and the company's current share is 6.3%. While utilizing the strengths of technology and compact condominium models, we aim to expand our market share over the medium to long term by 30% or more. According to the market share trend of the largest company in the industry, while competitors have a CAGR of -2.2%, the company is expanding its market share with a CAGR of 18.3%. In addition, shareholder returns are being implemented based on the balance between dividend payout ratio and share buybacks, and as a general rule, the policy is to increase dividends per share to the lower limit of 130 yen, and the current dividend yield is 3.01%. As profits recover, I would like to keep an eye on the company's trends, which continue to grow at the top line.