Company Overview

1. Company Overview

LeTech ＜3497＞ is an independent comprehensive real estate developer headquartered in Kitaku, Osaka City, actively expanding its business in the Tokyo area. It offers a range of services from brokerage and consulting to land acquisition and development, providing optimal solutions for land utilization.

The company was founded in September 2000 and started its business as a real estate brokerage consulting company under the name 'Legal Real Estate, Inc.' As indicated by its name, which includes 'law,' it began by mediating voluntary sales related to civil litigation cases from lawyers, and loan delinquency cases from financial institutions and guarantee companies, along with real estate consulting based on legal understanding. Initially, it relied on individuals' capabilities, but after opening a Tokyo branch in 2012, it expanded its real estate development business nationwide, primarily around the Osaka and Tokyo areas, transitioning from a 'personal shop' era to a 'team management' era.

The company has experienced events that shook its very business, such as the bursting of the bubble, the Lehman Shock, and the implementation and expiration of new laws like the Financial Facilitation Law, which aims to facilitate finance for small businesses, responding flexibly to each change while repeating contraction and growth. To build a stable management foundation that remains resilient in any market, it has actively engaged in diversified businesses such as real estate development, leasing, sales, remodeling, and nursing care services based on the voluntary sale business. Through agile management strategies aligned with the trends of the times, it has grown into a comprehensive real estate developer. The company has positioned its low-rise rental apartment for wealthy individuals, 'LEGALAND,' which is developed primarily in the Tokyo area, at the center of its real estate development, with 123 buildings as of July 2024, including properties under development.

Furthermore, while embracing the founding spirit cultivated as Legal Real Estate, the company set its course for the future and changed its name to 'LeTech, Inc.' in February 2021 to create new corporate activities by merging 'LEGAL' and 'TECHNOLOGY.' The new name reflects the company's commitment to actively pursuing DX (digital transformation), which will become increasingly important for its strengths, aiming for further business expansion and enhancement of corporate value.

In October 2023, Naoki Miyaji succeeded Tetsuji Hirano, who has led the company since its inception and is currently the chairman of the board. In April 2024, under the new system, a new corporate philosophy consisting of Mission, Vision, and Values was announced. The purpose is to clarify the future the company should pursue in the next generation and the value it wants to provide to society. All employees, regardless of their position, department, or years of service, participated in discussions to create a handmade new corporate philosophy through a bottom-up approach. The Mission is 'to discover the 'not yet' and open doors to possibilities,' and 'not yet' serves as a keyword for penetrating corporate activities. Notably, the terms 'real estate' do not appear in any of the Mission, Vision, or Values, reflecting a strong intention to evolve as a company that creates new experiential value.

By leveraging top-level knowledge from various domains related to real estate developed through experience in different industries and other companies, regardless of academic or corporate ties, the employees aim for prompt business promotion. It successfully debuted on the Tokyo Stock Exchange Mothers market in October 2018, and during the Tokyo Stock Exchange reorganization in April 2022, it transitioned to the Growth Market.

2. Business content

The company divides its business activities into three segments: "real estate solutions business", "real estate leasing business", and "qitabankuai" and discloses information accordingly. The real estate solutions business involves purchasing real estate, enhancing its value, and selling it mainly to high-net-worth individuals and business corporations for asset holding purposes. This business constitutes 93.4% of the revenue composition and 88.7% of the segment profit composition for the fiscal year ending July 2024, and is the core business of the company. The flagship product is the low-rise rental apartment series "LEGALAND". The real estate leasing business primarily generates rental income from the company's income-generating properties and those owned until sale. It also engages in property management, including ongoing management of apartments and buildings, and facility management focused on repairs and restoration work. For the fiscal year ending July 2024, this business represents 6.4% of the revenue composition and 9.7% of the segment profit composition, with rental income from lodging facilities performing well and contributing to profits. In the "qitabankuai", the company utilizes its expertise and network in legal case management and real estate consulting to conduct real estate brokerage services. The primary focus is on brokerage of real estate transactions tailored to the needs of both corporate and individual clients.

(Written by FISCO Guest Analyst, Hideo Kakuta)