DEAR LIFE CO.,LTD.
3245・Prime Market・Real Estate
Business
Dear Life Co., Ltd. is a company established in 2004 and listed on the Prime Market of the Tokyo Stock Exchange. In its core real estate business, the company develops and sells urban residences (rental apartments targeted at singles and DINKs) primarily within Tokyo's 23 wards and within a 10-minute walk of train stations, and also engages in Asset Design & Resale (converting properties into development-ready sites) and value-up and sale of income-producing real estate. Its customers span a wide range, including real estate investment funds, REITs, developers, overseas operators, and end users. As a second pillar, its consolidated subsidiary Alcier Co., Ltd. operates a staffing (sales promotion) business for the real estate, insurance, and financial industries, building a stable revenue base across the group as a whole.
Business Model
In the Real Estate business, the company acquires development land and income-producing real estate in Tokyo using long-term borrowings from financial institutions, and after development, refurbishment, and value-up work, sells the properties to investors and developers to earn gains on sale. The company also actively utilizes its Asset Design & Resale (ADR) business, which limits construction risk, to enhance capital efficiency. In the Sales Promotion business, the company dispatches personnel who have undergone specialized training to the real estate, insurance, and financial industries, maintaining a complementary, stable-revenue model that generates ongoing dispatch fees.
Company Strengths
Backed by a real estate information network and appraisal expertise accumulated in Tokyo through over 20 years of business track record. In FY2025 (ended September 2025), the company acquired 25 development sites and 44 income-producing properties, and achieved sales of 35 development-related properties and 43 income-producing properties. The strategy of concentrated investment in Tokyo's 23 wards within a 10-minute walk of a station underpins its high contract conclusion rate.
As of the end of FY2025 (ended September 2025), the equity ratio reached 59.3%, ROE reached 20.2%, and ROA reached 16.6%. Net assets expanded to ¥28,492 million, and fixed liabilities decreased 18.2% year on year, reflecting progress in reducing interest-bearing debt. Capital efficiency exceeded the medium-term management plan target (ROE of 18% or higher), achieving both financial discipline and profitability.
The company promotes the Asset Design & Resale (ADR) business, in which development sites are sold after undergoing improvements such as demolition, soil contamination surveys, adjustment of rights-related matters, and permit acquisition. This approach maximizes asset value while avoiding risks from persistently high construction costs and prolonged construction periods, and served as a key driver of the Real Estate business's net sales of ¥74,569 million (up 74.1% year on year) in FY2025 (ended September 2025).
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years expanded from ¥26,367 million in FY2021 → ¥51,905 million in FY2022 → ¥43,503 million in FY2023 → ¥46,880 million in FY2024 → ¥78,505 million in FY2025, reaching a record high in FY2025. In the first half of FY2026, the company posted revenue of ¥13,986 million (down 46.6% year on year) and operating profit of ¥405 million (down 79.5% year on year), a substantial decline. This reflects the concentration of property deliveries in the core real estate business toward the second half of the fiscal year. As an external factor, rising land prices in central Tokyo and robust demand from domestic and overseas investors continue, but intensifying competition for acquisitions is making it more difficult to select projects. Operating cash flow was an outflow of ¥27,656 million (inventory increased by ¥25,914 million), indicating that preparations are underway for revenue recognition concentrated in the second half.
Growth Strategy
By scaling up acquisitions focused on Tokyo's 23 wards, expanding the ADR business, and utilizing capital raised through the offering, the company targets ¥15.0 billion in ordinary income for FY2028 (ending September 2028).
Utilizing proceeds from the public offering (completed December 2025, net proceeds of ¥6,754 million), the company is aggressively acquiring development land and income-producing real estate in central Tokyo areas. In the first half of FY2026 (ending September 2026), the company executed 42 acquisitions and completed 7 additional acquisition contracts. The company is pursuing a strategy of concentrating on large-scale deals to increase the revenue contribution per project.
The company is expanding its ADR model, in which it designs and plans development land and sells it to developers without bearing construction risk, achieving both improved capital efficiency and avoidance of construction cost escalation risk. The model's competitive advantage is increasing amid the current environment of persistently elevated material prices and labor shortages.
Consolidated subsidiary Alcié is working to improve the quality of dispatched staff, strengthen recruitment, and expand education and training. In the first half of FY2026 (ending September 2026), net sales were ¥1,987 million (up 1.9% year-on-year), showing steady progress, but operating income was ¥22 million (down 42.7% year-on-year) due to upfront recruitment investment, leaving monetization as a future challenge.
Following the completion of the public offering and third-party allotment in December 2025, the company has expanded its equity capital. It secured net assets of ¥32,951 million at the end of the interim period (up 15.6% from the end of the previous fiscal year) while also increasing long-term borrowings to expand its capacity for acquisitions. The company is developing its financial base toward its target of ¥15.0 billion in ordinary income for FY2028 (ending September 2028).
Last updated: July 17, 2026