KI-STAR REAL ESTATE CO.,LTD

Business Details

The core segment providing stable supply of "high-quality yet low-priced designer housing." The company has built a unique business model that provides housing designs tailored to each region and surrounding environment while based on standardized designs. Its growth strategy centers on expansion into new areas, deepening of existing sales areas, and market share expansion through M&A. Under the Medium-Term Management Plan 2028, the company targets 15,000 units sold per year and an average annual growth rate of 10% or more. It is also promoting a full transition to ZEH-level specifications across all units.

Recent Overview

A partial correction to the FY2026 (ending March 2026) financial results summary was announced on June 12, 2026.

Regarding the FY2026 (ending March 2026) financial results summary announced on May 14, 2026, misstatements were found in the breakdown of SG&A expenses within the consolidated statement of income (Salaries and Allowances: ¥6,295 million → ¥5,821 million; Provision for Bonuses: ¥492 million → ¥966 million) and were corrected. There is no change to the total SG&A expenses of ¥29,125 million, and there is no impact on major profit and loss figures such as net sales and gross profit. In addition, the average number of treasury shares held in trust during the period in the notes on per-share information (prior period: 140,530 shares → 281,060 shares; current period: 217,060 shares → 435,200 shares) and the number of treasury shares in the additional information (prior period: 239,044 shares → 478,088 shares; current period: 203,222 shares → 406,444 shares) were also corrected. These corrections reflect the retroactive application of the 1-for-2 stock split effective April 1, 2026, and there is no change to the actual figures for net assets per share and net income per share.

Key Products

Growth Drivers

• Strengthening store openings and expanding market share in major metropolitan areas (focused expansion in metropolitan areas with robust housing demand)
• Expanding coverage through entry into new areas and deepening of existing sales areas
• Expanding business scale through M&A (an aggressive investment strategy based on the Medium-Term Management Plan 2028)
• Enhancing added value and capturing demand for energy-efficient housing through full transition to ZEH-level specifications across all units
• Continued recovery trend in gross profit margin through improved productivity and market inventory adjustments
• Improved profitability through reorganization with the Used Housing Renovation Business in suburban areas

Risks

• High sales prices remaining elevated due to rising construction material and labor costs, affecting customer purchasing sentiment
• Risk of suppressed demand due to expectations of further increases in mortgage interest rates
• Medium- to long-term declining trend in new housing starts due to the declining birthrate, aging population, and decreasing number of households
• Inventory turnover risk associated with a significant increase in inventory assets (real estate for sale and real estate under development for sale)
• Risk of breaching financial covenants (net assets, ordinary income, LTV, inventory turnover months, D/E ratio)
• Impact on material procurement costs from changes in international trade policy and geopolitical risks