MEIHO ENTERPRISE Co.,Ltd.

Meiho Enterprise Co., Ltd. is a real estate developer whose core business is the development and sale of newly built, single-building investment rental housing specializing in the Johnan and Jozai areas within Tokyo's 23 wards. The company operates its core brands EL FARO, MIJAS, and LOS ARCOS, targeting domestic and overseas real estate investors as its primary customers. The Group consists of the Company and four consolidated subsidiaries, and has built a vertically integrated business model that handles everything from land acquisition to planning, design, construction, sales, management, and repairs. The Real Estate Sales Business accounts for approximately 80% of Group revenue, supplemented by a diversified business structure comprising the Real Estate Leasing (Management) Business, Contracting Business, Real Estate Brokerage Business, and Insurance Agency Business. In February 2025, the Taiwan local subsidiary commenced operations, marking the start of efforts to expand sales channels targeting overseas investors.

The vertically integrated business model, spanning land acquisition through construction, sales, and management within the group, achieves both reduced procurement costs and quality control. Main revenue comes from gains on sale of developed whole-building investment rental housing, with 31 buildings delivered and 14 development sites sold in FY2025 (ending July 2025). After sales, subsidiaries continue to earn PM fees and other income through the management business (Real Estate Leasing Business), forming a stream of recurring revenue. The Insurance Agency Business and brokerage business function as high-margin complementary revenue sources, underpinning the profitability of the group as a whole.

Revenue expanded approximately 2.9x from ¥10,181 million in FY2021 to ¥29,796 million in FY2025, and is expected to expand further with a full-year forecast of ¥37,600 million (+26.2% year on year) for FY2026 (ending July 2026). Cumulative results for the first nine months of FY2026 (ending July 2026) show revenue of ¥23,470 million (+18.3%), operating profit of ¥2,669 million (+28.1%), and net income of ¥1,569 million (+49.5%), entering an accelerating phase in which profit growth outpaces revenue growth. As an external factor, steady demand for domestic real estate from overseas investors, supported by the weak yen, has been supporting the increase in the number of units delivered. On the other hand, an increase in interest expenses (+27.0% year on year) accompanying the shift toward rising policy interest rates, along with soaring construction costs, continue to act as constraining factors on the upside for profitability. Total assets stood at ¥31,959 million (+¥2,860 million from the previous fiscal year-end), and the equity ratio improved to 35.1% (+2.3 percentage points from the previous fiscal year-end).