Fiscal Year Ending September 2026 Q2 (Interim) Earnings Presentation Materials (October 2025 to March 2026)

Performance Overview

Consolidated net sales for the second quarter of the fiscal year ending September 2026 were 35.58 billion yen, a 43.9% decrease year-over-year. Operating income was 12.14 billion yen, down 19.7%, and interim net income attributable to owners of parent was 8.09 billion yen, down 25.3%. The Lease Fund Business performed strongly with net sales of 17.14 billion yen (YoY +18.0%) due to sales of highly profitable projects. In contrast, the Domestic Real Estate Fund Business experienced a significant decline in sales to 18.08 billion yen (YoY -60.0%) impacted by tax reform reports. The Overseas Real Estate Fund Business also saw a substantial decrease, with net sales of 0.03 billion yen.

Business Segment Trends and Future Outlook

In the Domestic Real Estate Fund Business, sales dropped sharply to 4.7 billion yen in Q1 but recovered to 11.9 billion yen in Q2 under a new sales strategy. Expansion of sales to new investors progressed, and collaboration with accounting firms and regional banks was strengthened. The business aims to return to the 100 billion yen sales level and growth trajectory, focusing mainly on real estate securitization products. The Lease Fund Business achieved a record high formation amount of approximately 270 billion yen over the past 5 years, including large maritime projects, aiming for over 500 billion yen for the full fiscal year, also a record high. The Overseas Real Estate Fund Business is in the final selection stage for formation and sale in the second half.