property technologies Inc

Business Details

The business is built on two pillars: HOMENET Co., Ltd., which purchases and sells renovated pre-owned condominium units through 15 nationwide locations under 'Used Home Renovation (Renovated Pre-Owned Condominium Units),' and SUNCO HOME Co., Ltd. and First Home Co., Ltd., which handle custom-built housing under 'Detached Housing.' Differentiation is achieved through the KAITRY Platform, which organically combines an actual-transaction performance database and brokerage network with technologies such as AI appraisal. In addition to transactions via brokerage companies, the company also operates an iBuyer function and an externally-facing SaaS model.

Recent Overview

Q2 cumulative results showed higher sales and profit, with the full-year forecast unchanged; Used Home Renovation led performance while the Detached Housing loss narrowed

For the six months (cumulative Q2) of FY2026 (ending November 2026), net sales were ¥24,511 million (+1.3% YoY) and operating profit was ¥1,189 million (+10.3% YoY), reflecting higher sales and profit. The core HOMENET (Used Home Renovation) business posted net sales of ¥21,317 million (flat YoY), while operating profit improved to ¥1,284 million (+9.6% YoY), reflecting improved profitability. The company is expanding its handling of Premium condominiums in addition to Standard condominiums and advancing its 'carefully selected sourcing' strategy. The combined results of the two Detached Housing companies showed net sales of ¥3,174 million (+10.6% YoY) and an operating loss of ¥69 million (narrower than the ¥71 million loss in the prior-year period). The number of contracted sales of pre-owned condominiums in the Tokyo metropolitan area totaled 24,172 units from December 2025 to May 2026 (+3.59% YoY), indicating an expanding market. The full-year forecast (net sales of ¥58,000 million, operating profit of ¥2,500 million) remains unchanged. Operating cash flow was negative ¥80 million due to an increase in real estate held for sale in process and payments of corporate taxes and interest, while financing cash flow was positive ¥1,212 million, supported by a net increase in short-term borrowings of ¥2,121 million and other factors.

Key Products

Growth Drivers

• Market expansion driven by an increase in contracted sales of pre-owned condominiums in the Tokyo metropolitan area (December 2025–May 2026: 24,172 units, +3.59% YoY)
• Improved competitiveness of property supply and inventory quality through the 'carefully selected sourcing' strategy
• Higher average customer spending through expansion of higher-priced product lineups such as Premium condominiums
• Strengthening of direct sourcing routes through maintenance and expansion of the brokerage network and the iBuyer function
• Accumulation of recurring revenue through expansion of SaaS models such as KAITRY finance to financial institutions and real estate professionals
• Profitability improvement at the two Detached Housing companies through strengthened land acquisition, new product development, and renovation services

Risks

• Decline in purchasing appetite due to rising mortgage interest rates, putting pressure on profitability in the Detached Housing business
• Risk of cost ratio deterioration due to rising construction material and logistics costs and rising labor costs
• Risk of recording valuation losses on inventory and increasing interest-bearing debt due to prolonged inventory of real estate held for sale (short-term borrowings balance of ¥28,101 million)
• Risk of economic deterioration due to unstable foreign exchange markets, geopolitical risks, and changes in domestic and overseas monetary policy
• Risk of product and service obsolescence due to increasingly sophisticated consumer preferences (requiring continuous 'carefully selected sourcing' response)
• Risk of cash flow pressure as operating cash flow turned negative (△¥80 million), due to increases in real estate held for sale in process and increased payments of corporate taxes and interest