WADAKOHSAN CORPORATION

Founded in 1899, the company began full-scale development of its condominium business under the "Wacore" brand in 1991. With Kobe City, Akashi City, and the Hanshin area (Ashiya, Nishinomiya, Amagaki, Itami, Takarazuka, Himeji) as its main areas, it has a track record of supplying 22,377 units across 572 buildings on a construction-start basis as of the end of February 2025. In addition to its core Condominium Sales business (accounting for approximately 76% of sales composition), the company operates Detached House Sales, Other Real Estate Sales, and Real Estate Rental Income (holding 2,170 units across 106 buildings, with an occupancy rate of 96.96%). In recent years, the company has also been expanding its business area into Osaka Prefecture (Sakai City, the Hokusetsu area, etc.) and pursuing new businesses such as storage battery facility development. Its main customers are end-users centered on first-time home buyers.

Starting from land acquisition at appropriate prices leveraging its long-standing regional network, the company plans and develops designer condominiums, specializing in "building condominiums that sell" by outsourcing all sales activities to external parties. The balance of contracted but undelivered units (707 units, ¥39,988 million as of end-February 2025) enhances visibility into next period's sales. The rental business (revenue of ¥3,282 million) generates stable cash flow through maintaining high occupancy rates, complementing the volatility risk of the sales business.

Over the past five fiscal years, net sales maintained a gradual expansion trend, rising from ¥38,826 million (FY2024) to ¥40,131 million (FY2025) to ¥42,145 million (FY2026), but operating profit peaked at ¥5,286 million in FY2025 before falling back to ¥4,988 million in FY2026. In Q1 of FY2027 (ending March 2027), net sales came to ¥11,068 million (down 10.1% year on year) and operating profit fell to ¥1,030 million (down 40.6% year on year), a substantial year-on-year decline. The main cause was a decrease in the number of condominium units handed over to 135 units (versus 201 units in the same period of the previous year). As external factors, elevated construction costs remaining high and increased interest expenses associated with policy rate hikes squeezed profits. The full-year forecast (net sales of ¥46,000 million, operating profit of ¥4,300 million) has been left unchanged, projecting an increase in revenue but a decrease in profit compared with the previous fiscal year, with a structure in which the backlog of contracted but not yet handed-over units—859 units worth ¥48,464 million—underpins a recovery in performance in the latter half of the year.