LANDNET Inc.

Business Details

This segment consists of two business formats: "purchase-resale and purchase-renovation-resale," in which used condominiums and other properties are purchased directly from real estate owners and sold to domestic and overseas real estate agents, investors, and end users; and "brokerage," in which transactions are intermediated. Properties handled are managed by floor area (studio type: under 30㎡ / family type: 30㎡ or more) and building age (newer: within 20 years / older: over 20 years). The company also conducts sales to overseas investors through its Taiwan and Hong Kong subsidiaries. Expansion of the handling of detached houses and apartment buildings through database enhancement is also being pursued.

Recent Overview

Achieved 9-month cumulative revenue of ¥79,081 million and profit of ¥6,419 million, up 16.0% and 20.1% year on year, respectively

In the 9 months cumulative of FY2026 (ending July 2026) (August 2025 to April 2026), the company handled 4,465 purchase-resale and purchase-renovation-resale transactions and 1,031 brokerage transactions. By property type, family type accounted for 55% and older properties accounted for 84% of the total. By buyer, individuals represented the largest share at 46%. Against a backdrop of a favorable market environment marked by 72 consecutive months of increase in the per-square-meter contract price of used condominiums in the greater Tokyo area, profit margins improved through expanded handling of detached houses and apartment buildings via database enhancement and strengthened direct sales through LSEED Real Estate Investment. LSEED Crowdfunding formed 11 funds, all of which received applications exceeding their fundraising targets. On the other hand, the number of contracted sales fell below the prior-year month for the first time in 18 months in some periods, warranting continued attention to market trends.

Key Products

Growth Drivers

• Market expansion driven by 72 consecutive months of increase in the per-square-meter contract price of used condominiums in the greater Tokyo area (as of April 2026) and 18 consecutive months of year-on-year increase in contract prices
• Diversification of property types handled through expansion of handling of detached houses and apartment buildings via database enhancement and promotion of internal education and training
• Strengthened direct sales and improved profit margins through function enhancements of LSEED Real Estate Investment
• Stable fund formation through LSEED Crowdfunding (11 funds cumulative in Q3, all exceeding fundraising targets) and strengthening of the fundraising base
• Improved profitability through maintaining and expanding the sales ratio of family-type properties (55%) and sales to individuals (46%)
• Competitive advantage in property sourcing through direct approaches to real estate owners using the company's proprietary real estate database

Risks

• Some signs of weakness observed, such as the number of contracted sales of used condominiums in the greater Tokyo area falling below the prior-year month for the first time in 18 months, indicating a risk of market demand slowdown
• Risk of decline in net realizable value and inventory aging associated with the increase in inventory (real estate for sale) due to strengthened purchasing activity (up ¥5,789 million from the previous fiscal year-end to ¥28,553 million)
• Risk of rising interest rates and liquidity risk associated with the substantial increase in short-term borrowings for purchase funding (up ¥6,006 million from the previous fiscal year-end to ¥15,421 million)
• Increased financial cost burden due to higher interest expense (from ¥197 million in the same period prior year to ¥296 million in the current period, up 50.3% year on year)
• Risk of overseas economic slowdown and spillover to the domestic real estate market amid heightened tensions in the Middle East and uncertainty over trade policies in various countries
• Pressure on consolidated operating profit from expanded company-wide expenses (adjustment amount of -¥3,508 million, versus -¥2,994 million in the same period prior year), including increased depreciation expense associated with the implementation of a new system in the real estate leasing management business