Agratio urban design Inc.

Business Details

Engaged in the sale of detached houses and detached house land primarily in the Tokyo metropolitan area, centered on the Company's proprietary brand "Agrasio Series." The business employs a vertically integrated model covering land acquisition, block planning, in-house design and construction management, sales, and after-sales maintenance. The Sales Department, newly established in April 2024, has been central to strengthening and improving the efficiency of the Company's proprietary sales approach. Revenue for the fiscal year under review was ¥30,368 million, accounting for approximately 82% of consolidated revenue, making this the core segment.

Recent Overview

Delivery of 376 detached houses drove both revenue and ordinary income above the prior year, marking a record high

Full-year Housing Business revenue for FY2026 (ending March 2026) was ¥30,368 million (up 12.3% year on year), and ordinary income was ¥3,283 million (up 17.3%), achieving increases in both revenue and profit. The number of detached houses delivered increased substantially to 376 units (301 units in the prior period), with detached housing revenue of ¥28,526 million (up 20.2%). The Sales Department, newly established in April 2024, contributed to operational efficiency, stronger sales capability, and improved competitiveness in land acquisition. On the other hand, detached house land deliveries declined to 16 lots (29 lots in the prior period), with revenue down 44.7%. The order backlog at period end stood at 42 units and ¥3,227 million, securing a source of deliveries for the next fiscal year.

Key Products

Growth Drivers

• Expansion of sales areas and a dominant strategy centered on the 23 wards of Tokyo, Saitama Prefecture, and Kanagawa Prefecture
• Consolidation of sales functions and improved sales capability and land acquisition competitiveness through the establishment of the Sales Department in April 2024
• Strengthening of the Company's proprietary sales approach and reduction of advertising expenses through the use of social media (Facebook, Instagram), owned media, and email newsletters
• Product differentiation through high design quality and functionality achieved via in-house design and construction management
• Strengthened purchasing competitiveness through the sharing of business land information with Tama Kensetsu Co., Ltd. (a subsidiary of Ho-Yu Corporation), which joined the Group in April 2026
• Continued firm housing demand in highly convenient and scarce locations

Risks

• Risk of rising costs due to sustained high prices for business land, building materials, and housing equipment
• Risk of a chilling effect on home-buying sentiment amid expectations of rising interest rates
• Risk of delivery delays and price increases for building materials and housing equipment due to worsening or prolonged Middle East tensions
• Difficulty securing high-quality business land amid intensifying competition for land acquisition
• Uncertainty over the economic outlook due to deterioration in the external environment, including sharp foreign exchange fluctuations
• A financial covenant under the syndicated loan agreement requiring the Housing Business inventory turnover period to be maintained within 12 months