Future development

Promotion of the Wellbeing City concept and the in-house brand "CANVAS" for condominiums.

First Corporation <1430> has highlighted the "Wellbeing City Concept" as an area of focus for future efforts. Based on this concept, they have launched the in-house brand "CANVAS" for condominiums, and currently, the sales of the first project, "CANVAS Minamiosawa," are underway.

"CANVAS" not only provides "residences" tailored to the 100-year life era, but also aims to provide a variety of services to achieve a rich lifestyle. By continuously offering diverse services to realize a life that is sustainably and multifacetedly fulfilled, they contribute to the construction of a sustainable society. Unlike traditional properties that mainly targeted the elderly with senior residences, the key feature of "CANVAS" is that it targets all generations. In the present era where there are various needs such as single-person households seeking diverse ways of working and young family households, all-generation condominiums that collaborate with external institutions to meet these needs are likely to become the mainstream of future condominium forms, according to our company.

Active Senior Citizens-oriented condominiums.

An area that should be noted for the company's future growth is the market for healthy elderly individuals, specifically the Active Senior Citizens-oriented condominiums. While many companies focus on service-equipped residences for the elderly, known as "sakou" housing (service-equipped residences for the elderly), there are few companies handling Active Senior Citizens, and our company is taking the lead in this area. Active Senior Citizens-oriented properties do not need to be located near train stations since they are not designed for commuting. Furthermore, by constructing additional facilities such as hot springs and gyms, the unit price can be increased, which also holds promise from a profitability perspective. Diamond Life Wakabadai in Inagi City, Tokyo, is a condominium constructed through a joint venture as a major project targeting Active Senior Citizens and has been completely sold.

There are cases where large projects are carried out through joint ventures with developers. As of the end of May 2024, multiple projects are under construction and for sale. Due to the efficient revenue generation from joint ventures, there is a strategy to focus on joint ventures in the medium to long term, and it is expected that there will be many more joint projects with developers in the future. In July 2024, a business site was purchased in Hakata-ku, Fukuoka City, with the promotion of joint ventures as the basis. The promotion of joint ventures is expected to lead to an increase in topline and profitability.

It is also noteworthy that the number of trading partners is increasing. In the fiscal year ending May 2020, there were 31 trading partners, but in the fiscal year ending May 2021, trades began with Mitsubishi Jisho Residence, Nomura Real Estate, in the fiscal year ending May 2022, with Fujas Corporation, in the fiscal year ending May 2023, with Daiwa House Industry <1925>, Nice <8089>, and in the middle of the fiscal year ending May 2024, trading started with Yamaichi Unihomes Estate and Tosin Partners, expanding the number of trading partners to 38. Other trading partners include Ernest One Corporation, Tokyo Tatemono <8804>, Chuo Jitaku Land, Nippon Steel Kowa Real Estate, Mitsui Fudosan Residential, Hankyu Hanshin Real Estate, and Chuo Jutaku among others. With the expansion of trading partners, the business is expected to broaden its horizons.

(Written by FISCO Guest Analyst Yoichiro Shimizu)