MEIHO ENTERPRISE Co.,Ltd.

Business Details

A business handled by a consolidated subsidiary, centered on the property management (PM) business, which receives outsourced building management from owners of condominiums, buildings, etc., and handles rent collection, building management, and leasing on their behalf. The business also engages in the leasing of company-owned properties and sublease operations. It provides a "one-stop service" integrated with the development business for the flagship brands "EL FARO" and "MIJAS" series, generating synergies within the Group (promoting repeat purchases). The introduction of an AI appraisal system, a housing equipment warranty service (up to 20 years), and the Owner Information Sharing App aims to improve customer satisfaction and curb cancellations.

Recent Overview

Revenue declined slightly, but segment profit rose sharply by 183.6% year on year

In the Real Estate Leasing Business for the cumulative nine months of FY2026 (ending March 2026) (August 2025 to April 2026), revenue declined slightly to ¥1,204 million (down 1.1% year on year), while segment profit improved substantially to ¥68 million (up 183.6% year on year). With property management fees as the main revenue source, the business maintained a high occupancy rate through enhanced leasing activities utilizing the AI appraisal system and the network of brokerage companies in the greater Tokyo metropolitan area. The full-scale rollout of the housing equipment warranty service and the Owner Information Sharing App has been aimed at improving customer satisfaction, and the improvement in profitability has been notable.

Key Products

Growth Drivers

• Accumulation of managed properties through collaboration with the development and sales business of the flagship brands "EL FARO" and "MIJAS" series (promoting repeat purchases through the one-stop service)
• Maintaining high occupancy rates through optimal rent setting based on the AI appraisal system and transaction data, together with enhanced leasing utilizing the network of brokerage companies in the greater Tokyo metropolitan area
• Improved customer satisfaction and reduced cancellations through the introduction of the housing equipment warranty service (up to 20 years) and the Owner Information Sharing App
• Increased opportunities to secure managed properties amid the continued robust demand for domestic real estate from overseas investors
• Stable supply of a managed property pipeline through the Group's vertically integrated model (land acquisition → development → construction → sales → management)

Risks

• Risk of fluctuation in the number of managed properties depending on the number and timing of units sold in the real estate development business (a slowdown in the development business directly affects the pace of increase in managed properties)
• Risk of declining investor demand due to higher real estate prices resulting from rising land prices and construction costs
• Risk of cooling demand for investment real estate and declining occupancy rates of managed properties amid rising interest rates
• Risk of declining management fee rates due to intensifying price competition with competing PM companies
• Risk of structural changes in rental demand due to the increasing number of vacant houses and population decline, particularly in regional cities (partially mitigated by the urban-centered strategy)