Notice on Change of Purpose of Rental Real Estate Ownership

Overview

Our group, JALCO, approved at the Board of Directors meeting the decision to change the purpose of ownership of some rental real estate from rental to sale. The targets are properties in Kanazawa City, Ishikawa Prefecture, and Niigata City, Niigata Prefecture. Going forward, based on market trends, asset value, and liquidity, we will dynamically consider whether to continue ownership or sell. Rental income does not disappear immediately, and the current rental business will continue.

Future Outlook and Impact

While advancing the sale plans for the for-sale real estate and reclassifying asset segments, we expect a minor impact on the FY2027 consolidated results. Considering market conditions, investor needs, and growth opportunities, we will dynamically determine asset utilization from the perspectives of capital efficiency and shareholder returns.