MIRARTH HOLDINGS, Inc.

Business Details

The Company plans, develops, and sells new condominiums nationwide, and also engages in the full range of real estate businesses, including the Real Estate Securitization Business (sale of income-producing real estate to REITs, etc.), Renovation & Resale, new detached house development sales, Real Estate Leasing & Management Business (80,581 units under management), and real estate brokerage. In FY2026 (ending March 2026), the Company delivered 2,767 new condominium units (including JV interests), achieving sales of ¥192,446 million (up 7.8% year on year).

Recent Overview

Both sales and operating profit increased year on year, driven by higher delivery volumes and price increases.

In FY2026 (ending March 2026), Real Estate Business sales were ¥192,446 million (up 7.8% year on year), and segment profit was ¥15,552 million (up 18.4% year on year). In addition to the delivery of 2,767 new condominium units (including JV interests), sales of income-producing real estate and management fee income also contributed. On the other hand, cost of sales also increased due to rising construction prices for new condominiums and development properties, among other factors. For the next fiscal year (FY2027, ending March 2027), the planned number of units to be delivered is 2,480 (1,910 units attributable to the Company after JV allocation), of which 945 units (648 units attributable to the Company) had already been contracted.

Key Products

Growth Drivers

• Increase in the number of new condominium units delivered (2,767 units, including JV interests, in FY2026 (ending March 2026)) and higher selling prices (price pass-through reflecting rising raw material costs and construction cost inflation)
• Steady accumulation of stock-type revenue from real estate management and leasing income based on 80,581 units under management
• Generation of development profit through the sale of income-producing real estate (residences, offices, etc.) in the Real Estate Securitization Business
• Expansion of supply to regional core cities in addition to the greater Tokyo metropolitan area (ranked 5th nationwide in the 2025 supply volume ranking by seller group) and capture of compact condominium demand
• Visibility of next-period sales through progress in contracting for the 2,480 units planned for delivery in FY2027 (ending March 2027) (1,910 units attributable to the Company after JV allocation), with a contract progress rate of 38.1%

Risks

• Cost pressure from rising construction costs (higher raw material prices and labor shortages), and the impact of resulting price increases on purchasing appetite among genuine end-user buyers
• Interest rate risk: high reliance on borrowings means that rising interest rates would increase funding costs and raise the mortgage burden on buyers
• Fluctuations in real estate market conditions: risk that buyer sentiment may shift due to external factors such as economic trends, land price trends, housing tax policy, and consumption tax
• Risk of within-period earnings volatility due to the uneven timing of new condominium deliveries (fluctuations associated with new condominium deliveries are noted as a reason for differences from the prior period's non-consolidated results)
• Risk of price fluctuations or insolvency among subcontracted general contractors and other outsourcing partners, and the impact of changes in financial conditions on suppliers' supply behavior
• Inventory risk associated with the significant increase in segment assets (up ¥44,656 million year on year): the buildup of real estate for sale and real estate for sale in progress could lead to impairment or valuation loss risk if market conditions deteriorate