CENTRAL GENERAL DEVELOPMENT CO.,LTD.

Business Details

Central General Development's core business. A developer business that rolls out condominiums for sale under the company's own "Crea" brand series nationwide. The company handles everything from land acquisition for development projects to planning, sales, and after-sales service in an integrated manner. In FY2026 (ending March 2026), 18 properties (15 in regional areas, 3 in the Tokyo metropolitan area) were completed and delivered, of which 4 properties marked entries into new cities. This core segment accounts for approximately 89% of consolidated net sales.

Recent Overview

Net sales increased but planned delivery units were not achieved due to soaring construction costs and weaker consumer sentiment, causing a significant decline in profit margin

In FY2026 (ending March 2026), the company completed and delivered 18 properties as planned, achieving a significant increase in net sales to ¥34,333 million (up 27.5% year on year). However, against a backdrop of rising sales prices driven by soaring construction costs and continued inflation, consumer sentiment toward home purchases became more cautious, and the number of units delivered fell short of plan. Segment profit declined to ¥1,591 million (down 14.3% year on year). Four properties represented entries into new cities (Kasukabe City, Matsue City, Naka Ward in Hamamatsu City, and Kakegawa City). For FY2027 (ending March 2027), the company plans to complete and deliver 15 properties (2 in the Tokyo metropolitan area, 13 in regional areas) and expects segment profit to recover to ¥2,233 million.

Key Products

Growth Drivers

• Cultivating new demand through aggressive expansion into core regional cities (continued entry into new cities)
• Capturing relocation demand from suburbs to city centers, mainly among senior generations
• Creating development projects through strengthened partnerships with business partners, including construction companies
• Expanding the customer base through multi-region deployment of the compact condominium brand "Crea Homes Fran"
• Recovering profit margins through aggressive deployment of high-value-added properties such as ZEH and low-carbon buildings
• Leveling out business performance by correcting the uneven distribution of completion/delivery timing and securing sufficient sales periods before fiscal year-end

Risks

• Continued soaring construction costs keeping cost of sales elevated and squeezing profit margins
• Risk of worsening consumer sentiment due to continued rise in sales prices, leading to a risk of falling short of planned delivery units
• Increased borrowings and expanded interest expense burden as progress is made in acquiring land for development projects
• Risk of significant quarterly performance fluctuations due to concentration or dispersion of property delivery timing
• Shortage of land for development projects in the Tokyo metropolitan area and regional areas, and intensifying competition for land acquisition
• Risk of economic deterioration due to changes in the external environment, such as U.S. trade policy and the situation in the Middle East