Star Mica Holdings Co.,Ltd.
2975・Prime Market・Real Estate
Renovated Condominium Business
The core business investing in, operating rental portfolios of, and selling renovated used condominiums
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (H1 FY2026, ending November 2026) | ¥41,072 million | ¥32,843 million (H1 FY2025, ending November 2025) | ↑ |
| Segment operating income (H1 FY2026, ending November 2026) | ¥5,925 million | ¥3,692 million (H1 FY2025, ending November 2025) | ↑ |
| Sales revenue (H1 FY2026, ending November 2026) | ¥38,726 million | Up 27.0% year on year | ↑ |
| Sales profit margin (H1 FY2026, ending November 2026) | 19.3% | 14.6% (same period prior year, up 4.7 points) | ↑ |
| Rental revenue (H1 FY2026, ending November 2026) | ¥2,347 million | Down 0.2% year on year | ↓ |
| Valuation loss on real estate for sale (H1 FY2026, ending November 2026) | ¥12 million | — | — |
Business Details
The segment acquires used condominiums under lease (including via funds and similar vehicles), operates them as a rental portfolio while enhancing their value through renovation and other measures, and sells them to a broad range of consumers. The business centers on owner-change properties (units occupied by tenants), and pursues a strategy of concentrating on urban areas while diversifying exit strategies, including sales while properties remain under lease. This is the core segment, accounting for approximately 95% of consolidated Group revenue.
Recent Overview
Sales activity was extremely strong, achieving record H1 revenue and profit
In H1 FY2026 (December 2025 to May 2026), diversification of exit strategies for owner-change properties proved effective, increasing the number of units sold. Gains from urban-focused property purchases pushed up both sales prices and profit margins, improving the sales profit margin to 19.3% (up 4.7 points year on year). Segment revenue reached a record H1 high of ¥41,072 million (up 25.1% year on year), and operating income also reached a record H1 high of ¥5,925 million (up 60.5% year on year). Meanwhile, rental revenue declined slightly to ¥2,347 million (down 0.2% year on year) due to a decrease in the number of units under lease.
Key Products
Growth Drivers
- Expansion of purchase and sales volumes and higher sales prices through the strategy of returning to owner-change properties and concentrating on urban areas
- Improvement in sales profit margin (19.3% in H1, up 4.7 points year on year) through diversification of exit strategies, including sales while properties remain under lease
- Resilient demand for renovated condominiums against a backdrop of rising new condominium prices and reduced new supply
- Improved capital efficiency and expanded business scale through the promotion of fund utilization under the medium-term management plan "Find the Value 2026"
- Increase in average transaction value by pursuing higher price points and untapped urban market segments
Risks
- Rising borrowing costs from higher interest rates (funding structure centered on long-term borrowings; fixed liabilities of ¥88,158 million)
- Risk of a gradual decline in rental income (recurring revenue) due to a decrease in the number of units held as a result of strong sales activity (H1 rental revenue down 0.2% year on year)
- Softening market conditions, including two consecutive months of decline in the number of contracted used condominium sales in the Tokyo metropolitan area and the first decline in contract prices in 73 months (May 2026)
- Decline in personal consumption and housing purchase appetite due to rising prices and changes in monetary policy
- Risk of economic downturn and volatility in financial and capital markets stemming from factors such as Middle East tensions and U.S. trade policy
- Risk of recognizing valuation losses due to declines in the market value of real estate held for sale
Last updated: February 19, 2026