Koryojyuhan Co., Ltd.

Business Details

Centered on Ibaraki Prefecture, Chiba Prefecture, and Tokyo, this segment develops the planning and sale of the in-house planned investment real estate "Rega Bene" series, buy & resale of purchased real estate (land, used homes, investment properties), and leasing brokerage and sales brokerage. It is the core segment accounting for approximately 80% of the group's total sales. Its business model is characterized by handling everything from the planning of rental properties for investors through to sales and management contracting on an integrated basis. The company has also newly entered the Real Estate Fund Business, operating multiple projects including development-type funds.

Recent Overview

Sales of 9 in-house planned investment real estate properties contributed to year-on-year increases in both net sales and profit.

In the first half of FY2026 (ending March 2026) (October 2025 to March 2026), 9 in-house planned investment real estate properties were sold, including "Rega Bene Kashiwanoha I" and "Rega Bene Kashiwanoha II" (Kashiwa City, Chiba Prefecture), while sales of other land, detached houses, and mid-sized investment properties also progressed steadily. Leasing brokerage saw an increase in inquiries via the internet, and sales brokerage also exceeded prior-year results despite the impact of weakening consumer sentiment. The segment achieved net sales of ¥6,183 million (up 11.1% year on year) and segment profit of ¥760 million (up 10.7% year on year). This segment accounts for approximately 79.6% of the group's total net sales.

Key Products

Growth Drivers

• Strengthening the stable product development and supply system for the in-house planned investment real estate "Rega Bene" series (9 properties sold in the first half of FY2026, ending March 2026)
• Sales expansion through active buy & resale of purchased real estate products (land, detached houses, mid-sized investment properties)
• Expansion of the number of leasing brokerage transactions through internet-based customer acquisition and steady performance in sales brokerage
• Diversification of revenue sources through new development of the Real Estate Fund Business (including development-type funds)
• Building a new revenue pillar through the full-scale launch of order-taking activities for construction contracting of rental real estate (medium-term management plan "KORYO2027")

Risks

• Risk of delayed sale timing for real estate for sale (risk of period-to-period sales fluctuation due to concentration of large-scale property sales)
• Weakening consumer sentiment due to expectations of rising mortgage interest rates and price increases affecting sales brokerage and owner-occupier sales
• Increased costs of commercializing in-house planned investment real estate and constraints on wide-area expansion due to soaring material prices and supply delays
• Uncertainty in estimating the net realizable value of real estate for sale and real estate for sale in process (risk of inventory valuation losses)
• Risk of segment profit pressure from increased allocation of company-wide expenses (company-wide expenses in the first half of FY2026, ending March 2026, increased significantly to ¥536 million from ¥389 million in the same period of the prior year)