ENVALITH
株式会社グッドライフカンパニー logo

GOOD LIFE COMPANY,INC.

2970・Standard Market・Real Estate

Official website
株式会社グッドライフカンパニー logo
GOOD LIFE COMPANY,INC.2970

Business

GOOD LIFE COMPANY, Inc. (renamed GLC GROUP, Inc. from January 2026) operates primarily in the Real Estate Investment Management Business, centered on its "LIBTH" brand of new investment whole-building rental apartments, providing a one-stop service covering land acquisition, design, construction, leasing brokerage, property management, and sales brokerage. Its main customers are real estate investors (owners) seeking asset formation and management, and it operates mainly in the growth cities of Fukuoka, Kumamoto, Naha, and Sapporo. The company's consolidated subsidiaries include Good Life Construction (construction work), Develop Design (development and design in the Greater Tokyo Area), and Good Life Energy (propane gas supply), forming a vertically integrated business structure. As of the end of December 2025, the cumulative number of completed buildings reached 194, with 7,708 units under management.

Business Model

Adopted a "Real Estate SPA Model" inspired by the apparel industry's SPA (Specialty store retailer of Private label Apparel) model. By internalizing the entire process—from land acquisition, design, and in-house construction to leasing brokerage, property management, sales brokerage, and energy supply—the company eliminates intermediary margins and optimizes its cost structure. A circular product development cycle reflects tenant needs and occupancy data obtained through property management into planning for subsequent properties, maintaining an occupancy rate of 96.5% (as of December 31, 2025) for self-developed properties. The company has a composite earnings structure combining flow income (land sales and construction contracting) with stock income (property management and energy supply).

Company Strengths

Through a "real estate SPA model" that internalizes the entire process from land acquisition to in-house construction and rental management, the company achieved a 96.5% occupancy rate (as of December 31, 2025) for self-developed properties. An in-house design and construction system with 15 first-class registered architects and 25 first-class certified construction management engineers supports advanced cost control that does not rely on outsourcing.

Revenue grew more than 3.3-fold over four years, from ¥7,390 million in FY2021 to ¥24,505 million in FY2025. Operating profit increased approximately 6.1-fold over the same period, from ¥419 million to ¥2,573 million, with the FY2025 operating margin reaching 10.5%. Net income also grew approximately 7.6-fold, from ¥217 million to ¥1,652 million.

At the end of FY2025, the order backlog for the real estate investment management business stood at ¥10,114 million (92.9% of the prior-year level). With 16 ongoing construction projects, revenue recognition is expected to continue into subsequent periods. In addition, the company secured 14 new design contracts and 15 construction contracts during the period, confirming continued pipeline accumulation.

ENVALITH's Perspective

1Q FY2026 (ending March 2026) revenue came to ¥3,300 million (down 52.6% year on year) and operating profit was ¥157 million (down 82.8% year on year), marking a substantial decline. However, the same period last year was an exceptional quarter in which completions of large properties were concentrated, whereas the current quarter reflects development projects in progress under the medium-term management plan, with revenue recognition dispersed into subsequent quarters. The full-year earnings forecast (revenue of ¥27,500 million, operating profit of ¥2,200 million) remains unchanged, and management has explained that progress is within the range initially assumed at the start of the fiscal year. The premise that performance will recover over the remaining three quarters continues to warrant close monitoring.

As of the end of March 2026, the balance of real estate for sale stood at ¥11,012 million, up ¥4,758 million from the end of the previous fiscal year, accounting for 52.5% of total assets. While this can be assessed as a leading indicator of ongoing development projects, it also carries inherent inventory risk in the event of delivery delays or a deterioration in market conditions. At the same time, the liability structure has also changed, with short-term borrowings at ¥3,038 million (down from ¥4,228 million at the end of the previous fiscal year) and contract liabilities surging to ¥4,205 million (up from ¥807 million), warranting continued monitoring of cash flow trends.

As external factors, rising financial costs (interest expense of ¥34 million) accompanying the upward trend in interest rates, along with rising property prices driven by soaring construction material and labor costs, are heightening uncertainty in the business environment. In addition, the company's own SG&A expenses expanded to ¥442 million, up 26.6% year on year, with fixed cost increases associated with growth investments such as the entry into the Tokyo market and the hotel business weighing on profit margins. The gross profit margin remained flat at 18.2% (18.2% in the same period last year), but the rise in the SG&A ratio to 13.4% (from 5.0%) is a notable change from a profitability perspective.

Growth Strategy

Under the Medium-Term Management Plan 2026-2028, the Company is advancing three key initiatives: expansion into Tokyo, entry into the hotel business, and deepening of the SPA model.

The Company positions expansion into the Tokyo area, a market of substantial scale, as the core pillar of its medium-term growth strategy. As of 1Q FY2026 (ending March 2026), development land for a second property in Tokyo has been acquired, and acquisition of two additional parcels is in progress. The Company aims to expand while securing profitability through an in-house construction system, leveraging the design and neighborhood-relations capabilities of its consolidated subsidiary Develop Design in the greater Tokyo metropolitan area.

Consolidated subsidiary GLC COMPASS Co., Ltd. has commenced operation of a self-developed hotel. Positioned as the third pillar of the Asset Management business, this initiative aims to diversify stock-type revenue sources alongside rental management and energy supply. Full-scale revenue contribution will depend on future opening and occupancy performance.

Based on a cumulative track record of 202 completed buildings and 8,137 managed units, the Company continues to expand stock-type revenue from rental management, propane gas supply, and telecommunications services. In 1Q FY2026 (ending March 2026), Asset Management segment sales reached ¥508 million (up 16.1% year on year) and segment profit reached ¥237 million (up 19.4% year on year), strengthening the buffer function against fluctuations in flow-type revenue.

With the aim of clarifying management responsibility under the holding company structure and optimizing the business portfolio, the Company reorganized its segments from 1Q FY2026 (ending March 2026) into two categories: the "Asset Creation business" and the "Asset Management business." Through greater visibility of flow-type and stock-type revenue, the Company is establishing a disclosure framework in anticipation of a future transition to the Prime Market.

Last updated: July 17, 2026