3300.T

• Overall Financial Performance

  • For the first half cumulative second quarter, total revenue was 23.9 billion yen and operating profit was 1.35 billion yen. The year-over-year decline in revenue and profit is entirely attributable to concentrated sales of in-house developed properties in the prior year second quarter; this fiscal year's property completion and sales are scheduled for the second half, so the current performance is in line with expectations.
  • Compared to the 2015 June fiscal year, total revenue has grown 8x and operating profit has grown 21x, with 5 consecutive years of growth in both revenue and profit, validating the company's unique real estate-technology integrated business model.
  • Total assets reached approximately 42 billion yen, an increase of around 2.7 billion yen year-over-year. For-sale real estate and work-in-progress for-sale real estate have grown steadily, with high inventory turnover maintained while high-quality properties are sourced to drive second half and future growth.
  • Approximately 40% of total company revenue comes from annual recurring revenue (ARR), creating a very stable financial base that supports aggressive DX investment. The company was selected as a government-certified DX-accredited business.

• DX Product Development & Implementation

  • The company has built a proprietary end-to-end DX system covering the entire real estate value chain from customer acquisition to contract, move-in and post-move-in support, designed to boost tenant engagement and maximize customer lifetime value (LTV). Key in-house developed products include:
  • AMBITION Cloud: The core integrated system that manages all property management workflows (listing, contracting, maintenance, receivables management). Automated integration via API and RPA eliminates human error and drastically improves per-staff productivity. The system has delivered a 98% occupancy rate for in-house operations, and the company plans to expand it to external clients to become the industry standard infrastructure.
  • AMBITION Sign: A blockchain-powered electronic contract system that completes the entire process from important matter disclosure to signing online, cutting contract lead time by 69% while improving client convenience and operational efficiency.
  • AMBITION Me: A tenant-exclusive app with 24/7 multi-lingual AI concierge support that resolves tenant requests from online medical appointments to utility change requests, boosting tenant satisfaction and creating new revenue streams. The company has integrated Google's Grounding with Google Maps technology to improve information accuracy and deliver better local area guidance.
  • Rakutec: An AI profit-doubling engine that automates all traditionally manual brokerage tasks (property information collection, data entry, image recognition, listing publication, vacancy checks), cutting work time by 75%. Rakutec has grown 600% year-over-year.
  • The company has developed proprietary Clone AI, an AI avatar trained on the company's sales knowledge and communication style that eliminates inconsistent sales messaging and enables 24/7 high-quality sales coverage.
  • AI is also used for internal employee training: Google's Gemini is used to auto-generate manuals and run role-play training for new hires to quickly share veteran expertise and standardize organizational skill levels.
  • Generative AI is used to automate presentation creation for renovation projects, cutting presentation creation time by 50% and manual search time by 93%, eliminating over-reliance on individual staff and freeing up time for creative client proposals.

• Strategic Transformation

  • The company is in an aggressive transformation to become a full-fledged real estate DX platform provider. After validating its internally developed DX systems through in-house use (delivering 70% lower work time, 98% occupancy, and 21x operating profit growth), the company will now expand to external sales of its AI-powered DX systems as an industry real estate operating system (OS) to drive exponential growth.
  • Unlike competitors that compete in niche "point" solutions, Ambition DX covers the entire 15 domains of proptech across the full value chain (sourcing, brokerage, management, insurance, utilities) creating a holistic "surface" coverage of the 2.6 trillion yen Japanese analog real estate market. Data accumulated across this full coverage creates a strong competitive moat for the company's real estate OS offering.
  • The company is building a proprietary Ambition economic ecosystem via AMBITION Me that integrates infrastructure, insurance, AI FAQ and other services to monetize all tenant life events, shifting from transactional "point" profits to LTV-maximized holistic "surface" profits.
  • The company's core competitive advantage is organizational capability: the company is accelerating in-house development of AI engineers, upskilling all employees to become AI professionals, and digitizing veteran knowledge via generative AI. While systems can be copied, organizational capability to leverage technology cannot, creating an unassailable competitive moat.

• ESG Initiatives

  • The company's DX-driven business transformation inherently improves social efficiency and reduces environmental impact. The company cut printing volume by 16.7% in the 2025 June fiscal year via aggressive paperless initiatives, particularly via fully digital contracting that reduces paper waste.
  • Contract process digitalization drastically reduces the time spent on paperwork, freeing people to focus on more creative activities.
  • The company has been certified as a Health & Productivity Management Outstanding Organization, provides support for employees to obtain real estate broker licenses, and prioritizes employee well-being.

• Full-year 2026 June fiscal year guidance is maintained: Revenue is projected at 64.1 billion yen, a 22.5% increase year-over-year; operating profit is projected at 4.8 billion yen, a 21.6% increase year-over-year; net income is projected at 2.7 billion yen, an 18.1% increase year-over-year. The company expects to achieve a new all-time high in full-year revenue and profit. Full-year growth is supported by the synergies between stable recurring rental DX revenue and growing real estate sales business.
• The existing medium-term management plan is continuing to outperform. A new medium-term management plan starting from the 2027 June fiscal year will be announced during this current fiscal year, which will lay out a new scenario to accelerate growth toward exponential expansion.
• Dividend guidance is maintained: The company plans to pay an annual dividend of 110 yen per share, up from 105 yen per share in the prior fiscal year (which included a special commemorative dividend). This marks the 6th consecutive year of dividend increases, consistent with the company's priority on returning profit growth to shareholders.

1. 賃貸DXプロパティマネジメント事業 (Rental DX Property Management Business): Operating profit reached 1.368 billion yen, a 35.4% increase year-over-year, marking a new all-time high profit for a second quarter. This segment accounts for 47.4% of total company revenue. Total managed units grew 6.7% year-over-year to 27,224 units, and sub-lease managed units grew 5.8% year-over-year. Occupancy rate was maintained at 96.6%, far above the industry average of 90.1%.
2. 賃貸DX賃貸仲介事業 (Rental DX Brokerage Business): Revenue was 419 million yen, with improved earnings year-over-year. Automation of routine tasks via the in-house AI×RPA tool Rakutec drove growth in contract volume while cutting costs.
3. 売買DXインベスト事業 (Sales DX Investment Business): This segment accounts for 48.2% of total company revenue. 120 units were sold in the first half, in line with plan. Completion and sales of properties, including the recently launched PREMIUM CUBE Nishi-Ogikubo #mo, are concentrated in the second half. The company has been selectively sourcing high-value-added properties in central Tokyo, and full-year target achievement is considered highly likely.
4. Other Segments:

• 少額短期保険事業 (Hope Small Amount Short-Term Insurance Business): Alliance partnerships with real estate companies have driven steady growth in policy count.
• ライフライン事業 (DRAFT Lifeline Business): Alliance count decreased, but customer acquisition strategy is being rebuilt, and a rebound is targeted in the second half.
• Incubation Business: The company has invested in 33 DX-related venture companies, 6 of which have gone public. The segment generates investment returns and also integrates cutting-edge technologies (AI, blockchain, etc.) from portfolio companies into Ambition DX's core business to build competitive advantage.

• The only identified risk discussed is the impact of rising interest rates on funding costs. Management noted that while there is some minor impact from rising rates, current rates remain within what the company considers normal levels after the prolonged period of abnormally low rates in Japan, and the impact is not material. The company's strong product positioning means that it has not seen significant changes to market demand, and the overall impact is expected to remain manageable.

• Q: The second quarter results show a year-over-year decline in revenue and profit, and operating profit progress toward the full-year target is only ~28%, which looks low. Is full-year target achievement still possible?

A: The low progress rate is entirely by design, as we planned from the beginning that property handovers from our group company Veritas Investment would be concentrated in the second half. At the end of the second quarter, work-in-progress for-sale real estate totaled 7.3 billion yen, an increase of 1.2 to 1.3 billion yen compared to the prior year. We already have sufficient inventory for the second half, all property sales are already lined up to be recognized in the second half, so I believe full-year target achievement is definitely achievable.

• Q: The operating margin of the core Rental DX Property Management business has improved significantly. What are the drivers of this improvement, and is the improvement sustainable?

A: The biggest driver is the impact of DX. DX-driven productivity gains have been the most important factor contributing to profit growth over the past several years. While headcount has grown, per-employee productivity has improved drastically, so we expect margins to continue to rise and the improvement in profitability to be highly sustainable.

• Q: Will the dividend be paid as planned, and is there room for a larger increase than currently guided?

A: We maintain our plan to pay a 110 yen annual dividend as scheduled. We prioritize shareholder returns, so as long as performance progresses as planned we will deliver the promised dividend. Given our stance of targeting consecutive dividend increases aligned with profit growth, the possibility of further upside is high.

• Q: Can we expect continued dividend increases in future fiscal years after this year?

A: We consider shareholder returns one of our top management priorities, so you can expect us to continue pursuing dividend increases going forward.

• Q: We are in a rising interest rate environment. What impact does this have on your funding costs, and what countermeasures do you have?

A: It is true that rates are rising, but we are not overly concerned about the impact at this point. Our product strength is high, and current rate levels are still within normal ranges after the prolonged period of extremely low rates that was an abnormal market condition in Japan. There has been no major change in market demand, and we have only seen a very minor impact. We will monitor the situation closely, but we do not expect any major negative impact.

• Q: Under your real estate DX platform strategy, what size do you expect the company to become in terms of revenue and profit?

A: I cannot share specific figures at this time, but we expect external sales of DX products and the real estate OS business to become our third and fourth core pillars of growth, alongside our existing rental DX and sales DX businesses, in the near future.