Star Mica Holdings <2975> consists of the company itself and five consolidated subsidiaries, operating in three business segments. Primarily investing in and managing rental-used condominiums, the company engages in renovation condominium business where properties are sold after improving their value through renovations following tenant departures; the investment business which primarily focuses on obtaining investment returns through financing real estate, business companies, and funds; and the advisory business that primarily handles real estate sales and rental brokerage, rental and building management, as well as consulting in the finance and real estate fields. For the third quarter of the fiscal year ending November 2024, the sales composition ratio by segment indicated that the renovation condominium business accounted for approximately 95.6%, making it the core business. Since its founding, the company has created a distribution market for owner-change properties (income-generating properties sold while tenants are still occupying), possessing strengths such as a network with brokerage companies, high operational capabilities, and advanced financial capabilities.

For the third quarter of the fiscal year ending November 2024, consolidated performance showed revenue increased by 9.5% year-on-year to 40,626 million yen, and operating profit grew 11.2% to 4,518 million yen. With steady execution of various strategies outlined in the medium-term management plan "Find the Value 2026," the renovation condominium business, investment business, and advisory business all performed well. In particular, strategies such as "return to owner-change properties" and "expansion of urban share" proved effective, leading to an increase in the gross profit margin of the renovation condominium business. Overall profitability was further boosted by solid profits recorded in the investment business, which restarted investments in single-income properties.

For the fiscal year ending November 2024, a consolidated performance forecast estimates revenue to increase by 10.8% compared to the previous period to 54,157 million yen, and operating profit is expected to rise by 3.8% to 5,028 million yen. Currently, both revenue and profits are steadily increasing, with the progress rates at the end of the third quarter at 75.0% for revenue and 89.9% for operating profit. Looking towards the fiscal year-end, the company aims to advance the business strategies set forth in the medium-term management plan, focusing on revenue expansion and profit accumulation. Although no changes are expected in the full-year performance forecast, reflecting the smooth accumulation of profits, the year-end dividend forecast has been revised upward to 12.5 yen per share (previous forecast was 10.5 yen). Consequently, the total annual dividend is expected to increase by 3.0 yen year-on-year to 23.0 yen, with a dividend yield of 3.23%. The company has set a policy for shareholder returns that prioritizes growth investment while also executing stable and increasing dividends, along with agile share buybacks, aiming for a total return ratio of 40%. Under this policy, there has been no dividend reduction since the company went public. Share buybacks and other measures are conducted flexibly, reflecting the company's focus on returning value to its shareholders.

Regarding the medium-term management plan, efforts will be made to maximize corporate value by implementing business, financial, and IR strategies under "Find the Value 2026." In the business strategy, key measures include "return to owner-change properties," "expansion of urban share," "structural reform of renovations," "shortening the sales business period," and "promotion of fund formation," with a focus on increasing profitability and efficiency while expanding performance. To further advance these strategies, the company announced an organizational change and personnel transfers effective December 1, 2024. This organizational transformation is expected to strengthen area strategies aimed at expanding urban share and further promote operational efficiency through the redistribution of management resources. It is anticipated that this reform will accelerate the company's performance growth in the future.