The Good Life Company <2970> provides a one-stop service for the sale of investment land, design, construction, rental brokerage, rental management, and sales brokerage of newly built rental apartments for real estate investors (owners). It consists of two businesses: real estate investment management business and energy business. The real estate investment management business is divided into asset management business (90.6% of sales in the fiscal year ending December 2023) and property management business (7.6% of sales). In the asset management business, they handle everything from land acquisition to sales, and in the property management business, they handle rental management and brokerage. They develop projects mainly in Kumamoto, Fukuoka, Okinawa, and Sapporo. The accumulated development achievements include 158 buildings with a total of 5,056 units, and the occupancy rate is at a high level of 98.9%. The company's sales to customers in their development projects are mainly business owners and affluent individuals, and they have a characteristic of having a small number of customers who purchase only one building and a high rate of repeat purchases.
The revenue for the cumulative second quarter of the fiscal year ending December 2024, announced after the close of trading on August 9, increased by 25.7% to 7,581 million yen compared to the same period of the previous year, and the operating profit reached 797 million yen, an increase of 43.9%. The asset management business increased by 26.6%, and the property management business increased by 12.1%. The sales and gross profit margin in each business improved due to the increase in project size and the smooth occupancy of completed properties. The expected revenue for the full year is 17,000 million yen, an increase of 48.7% compared to the previous year, and the operating profit is expected to be 1,600 million yen, an increase of 50.7%.
Due to TSMC's entry, the announced land prices in Otsu-cho adjacent to Kikuyo-cho in Kumamoto Prefecture became the highest in the country for land price increases for all uses in 2024. While the average price of residential land in Kumamoto City continues to rise, Kikuyo-cho is also expected to see population growth due to the expansion of employment in the industrial area associated with TSMC's entry. In addition, Fukuoka, where the population growth rate and the proportion of young population are high and rental demand is expected, and Okinawa, where the number of domestic tourists exceeds the pre-pandemic level and reaches a record high, are areas where future demand is expected. It seems that the company's performance is also continuing to grow steadily by expanding its business in these areas. While double-digit growth in topline and operating profit continues, it is important to keep an eye on the company's future developments.
