■ Performance Trends

4. Financial Condition and Management Indicators

As of the end of the second quarter of the fiscal year ending March 2025, the total Assets of Kuriaru <2998> increased by 6,666 million yen compared to the end of the previous period, amounting to 42,415 million yen. This was mainly due to an increase in cash and deposits of 3,263 million yen, an increase in properties for sale of 2,385 million yen, and an increase in tangible fixed assets due to transfer from properties for sale amounting to 548 million yen.

Total liabilities increased by 5,885 million yen compared to the end of the previous period, amounting to 37,827 million yen. This was mainly due to an increase in crowdfunding deposits of 450 million yen and an increase in anonymous association investment deposits of 5,709 million yen due to business expansion, an increase in long-term borrowings of 1,237 million yen, and a decrease in short-term borrowings of 1,578 million yen. The total net assets increased by 781 million yen compared to the end of the previous period, amounting to 4,588 million yen. This was primarily due to an increase in capital and capital surplus of 4 million yen each from the exercise of subscription rights, along with an increase in retained earnings from the recording of interim net profit attributable to Shareholders amounting to 741 million yen.

As a feature of the company's financial condition, crowdfunding deposits of 3,785 million yen and anonymous association investment deposits of 26,993 million yen were recorded in the liabilities section, balanced by cash and deposits related to crowdfunding of 8,938 million yen among total cash and deposits of 11,123 million yen, and properties for sale related to crowdfunding of 23,193 million yen among total properties for sale of 26,864 million yen. Crowdfunding-related accounts constitute 75.8% of the total Assets of 42,415 million yen. It should be noted that anonymous association investment deposits are not legally required to be repaid due to their nature as anonymous association investments, but are recorded as liabilities on the balance sheet. Therefore, while it is a reference value, the actual equity ratio excluding items related to crowdfunding-specific accounting treatment is at a level just below 40%*, which is higher than the equity ratio of 10.6% based on the balance sheet. The current ratio is shown as 113.5% from the balance sheet but is essentially 168.7%**, indicating that the level of financial soundness is deemed acceptable by the company.

*1 The main accounts and balances related to crowdfunding are excluded from the total Assets calculation.

*2 The main accounts and balances related to crowdfunding, such as properties for sale (only those solicited via crowdfunding, 23,193 million yen) and cash and deposits (related to crowdfunding, 8,938 million yen) are excluded from current Assets, while anonymous association investment deposits and crowdfunding deposits are excluded from current liabilities in the calculation.

5. Factors for Performance Expansion

(1) CREAL Fund Operation

Traditionally, the funds formed under 'CREAL' focused on single-unit residences in Tokyo, which accounted for 75% of the total in the fiscal year ending March 2022. However, with the increase of crowdfunding investors, it became necessary to provide stable fund offerings. This was achieved by expanding various asset types other than single-unit residences, resulting in a larger fund size and a wider range of options. The average fund size reached 1.18 billion yen per case, double compared to the same period last year, and the asset types expanded to include hotels, offices, commercial facilities, Health Care real estate, and Logistics facilities, while the proportion of single-unit residences decreased by 39.9 points to 26.7% year-on-year. For the company, the enlarged fund size significantly increased the profit amount per case, resulting in benefits for both the customers and the company. With the expansion of the operational system, a foundation was established to stably募集募集 large funds, and productivity improvements were also noted through operational efficiency.

(2) Diversification of Investor Acquisition Channels

Since the start of services, customer acquisition activities have primarily focused on digital marketing and online channels. However, following the capital and operational partnership with SBI Holdings in January 2023, the introduction of the company's services and properties to customers of SBI Money Plaza has been implemented, thus advancing the acquisition of investors. By the fiscal year ending March 2024, the implementation of a system to simplify investor registration procedures resulted in a cumulative total of 81,549 customers at the end of the second quarter of the fiscal year ending March 2025, approximately double compared to the end of the fiscal year ending March 2023. In fiscal year 2025, activities are being expanded not only through traditional online channels but also through offline channels for investor acquisition strategies. Specifically, employees of the company visit partners such as SBI Money Plaza and SBI Shinsei Bank to explain services directly to customers and hold explanatory meetings for SBI Shinsei Bank employees. Additionally, the increase in inquiries from corporate members due to the partnership with SBI Holdings has led to online completion of membership registration, allowing staff to provide face-to-face explanations and consultations tailored to customer needs, enhancing efforts to reduce the burden on customers. There are few investment products targeting real estate offered by financial institutions such as banks, and the company is feeling the potential needs of corporate clients through partnerships, thus planning to continue focusing on this area.

(3) Acquisition of Overseas Investors

In November 2023, CREAL ASIA was established in Singapore, having previously arranged many funds for overseas investors. This mainly contributes to the expansion of AUM (Assets Under Management) in the 'CREAL PRO' business. Additionally, overseas investors are also expected to be exit buyers for 'CREAL' funds. Domestic real estate prices in Japan are on the rise due to soaring raw material and labor costs; however, due to the weak yen, overseas investors who select investment targets from a Global perspective view domestic real estate as still undervalued. The company aims to increase the number of overseas investors by arranging a large number of attractive properties, such as upgrading dormitory-type hotels preferred by foreign customers and partnering with operators experienced in local hotel management to offer properties with a flavor of Japan.

(Writer: FISCO analyst Tomoichi Murase)