GOOD LIFE COMPANY,INC.

Business Details

A flow-type revenue business that consolidates the Group's "creation capabilities" (development, design, construction) into a single segment. Consolidated subsidiaries GLC Co., Ltd. and GLC Construction Co., Ltd. provide an integrated service in the Fukuoka, Kumamoto, Okinawa, and Tokyo areas, spanning land acquisition, sales, design, construction, and brokerage. Develop Design Co., Ltd. is responsible for real estate development, design supervision, and neighborhood relations management in the greater Tokyo area. The business is characterized by a vertically integrated model based on the "real estate SPA model."

Recent Overview

Revenue and profit declined 57.2% and 82.2% year on year respectively, but development progressed steadily with 8 properties completed and land acquired in Tokyo

In Q1 FY2026 (ending December 2026), the Asset Creation Business posted revenue of ¥2,791 million (down 57.2% year on year) and segment profit of ¥148 million (down 82.2% year on year), reflecting a substantial decline in both revenue and profit. This was mainly because the same quarter of the previous year was an unusual quarter with a concentration of large property completions. In the current first quarter, 8 properties were completed, bringing the cumulative total to 202 buildings and 8,137 units under management. The company acquired its second development site in Tokyo, with two additional site acquisitions currently in progress. It received orders for 4 new design contracts and 3 construction contracts, with 13 projects in progress at period end. Progress against full-year earnings guidance was described as within the initial expectations at the start of the fiscal year.

Key Products

Growth Drivers

• Accelerated full-scale entry into the Tokyo area based on the Medium-Term Management Plan 2026-2028 (second site already acquired, with two more planned)
• Maintained profitability through cost competitiveness in development and construction schedule management leveraging in-house construction capabilities
• Progress of development projects under the medium-term management plan is expected to distribute revenue recognition to Q2 onward, supporting a full-year earnings recovery
• Continued high level of investment appetite from domestic and overseas investors in domestic real estate, with solid rental demand in major cities
• Diversification of the revenue structure through new entry into the hotel business

Risks

• Seasonality risk inherent to flow-type revenue, whereby quarterly results fluctuate significantly depending on the timing of property completion and handover
• Rising funding costs and tightening of investment criteria by real estate investors due to additional interest rate hikes by the Bank of Japan
• Impact on profitability from rising property prices caused by surging labor costs and construction material prices
• Risk of difficulty securing skilled workers, rising labor costs, and extended construction periods due to labor shortages in the construction industry
• Risk of intensified competition for land acquisition and rising procurement costs accompanying accelerated expansion into the Tokyo area