Good Com Asset Co.,Ltd. Q1 FY2025 earnings call

Corporate Purpose & Vision

• Purpose: Globally provide real estate as a safe, trusted asset and contribute to society
• Vision: Become a leading real estate company for the 21st century

Geographic Expansion

• Historically focused property supply on Tokyo's 23 wards and the 1 Tokyo and 3 prefectures region; recently expanded procurement to Osaka Prefecture, a high-growth area benefiting from Expo 2025 and integrated resort development
• Filed for dual listing on the Fukuoka Stock Exchange main market, as a strategic step to enter the Kyushu region, expand local brand awareness, strengthen sales and financial institution relationships, and support future national expansion; management is also open to additional dual listings and is considering an overseas listing long-term

Brand & Marketing Initiatives

• Entered a CSR partnership with J1 League soccer club Tokyo Verdy, aligned by shared green branding and Tokyo home base; the company's logo will appear on team uniforms and stadium displays, boosting brand recognition and supporting local sports development
• A new TV commercial starring Tomohisa Yamashita will launch in May, centered on the company's signature tagline; a dedicated CM landing page with behind-the-scenes and company explanation content will open on the corporate website concurrently

Property Pipeline & Procurement

• As of March 14, 2025, the company has already secured 14 buildings (624 units) for the current fiscal year, with a full-year target of approximately 3,000 units
• Including current fiscal year sale properties, the total development pipeline holds 68 buildings and 5,008 units, equal to 92.16 billion yen in total property value; 67.39 billion yen of this is already under signed procurement contracts
• Core owned brand GENOVIA has delivered 158 buildings in Tokyo 23 wards, and 190 buildings across the 1 Tokyo/3 prefectures region including Osaka

New Product Development

• Launched development of a new high-end luxury condominium brand positioned above the existing GENOVIA line, exclusively for Tokyo 23 wards
• New brand units are primarily 40-70 sqm priced around 0.1 billion yen per unit, with underground mechanical parking that can accommodate large vehicles, all-glass exterior walls and open rooftop designs to create bright, open, premium space
• Ground and first floors will be dedicated to child-rearing focused tenants (clinics, daycares, cram schools) to support convenience for target buyers
• The brand targets high-income buyers and inbound investors, moving away from industry-wide over-reliance on cost-cutting that has produced low-quality inexpensive condominiums

Real Estate Fund & REIT Business

• Current fiscal year targets forming the 3rd, 4th and 5th private funds, totaling 30 billion yen in commitments, with preparations ongoing
• Plans to launch private REIT operations to continue growing recurring stable stock-based income; this launch may be moved forward depending on market conditions and property availability

Shareholder Return

• Core policy: Pay a dividend every fiscal year, targeting a 35% payout ratio
• The current 2025 October term dividend forecast is 45 yen per share, marking 8 consecutive years of increased dividends since listing, with the dividend amount growing 9x over 8 years
• Actively repurchases own shares when possible, restricted only by insider trading windows

Long-Term Strategic Plan

• Target 600 billion yen in revenue and 60 billion yen in operating income by the 2030 October term
• 200 billion yen of revenue will come from existing business: national supply of new condominiums and expansion of fund and REIT operations
• 400 billion yen of revenue will come from M&A-driven expansion of the business portfolio, targeting local condominium developers, buy-renovate-sell firms, detached home builders, hotel operators, senior housing operators, construction firms and real estate management firms to capture synergies and grow corporate value

The provided transcript does not include detailed breakouts of financial performance by individual product/operating segment, with no absolute figures or revenue contribution percentages shared for discrete segments. It confirms that FY2024 full-year revenue hit an all-time high for the company, and only highlights segment progress for the real estate fund business: 1st and 2nd funds totaling 16 billion yen were successfully formed in the prior fiscal year.

• FY2025 (current 2025 October term) full-year operating profit is forecast at 5.88 billion yen, a 7.9% increase year-over-year, which is a conservative forecast that will represent a new all-time high operating profit
• Full-year revenue guidance for FY2025 is not disclosed, due to expected large fluctuations from aggressive M&A activity and the company's focus on prioritizing shareholder value
• Dividend guidance for FY2025 is set at 45 yen per share, continuing 8 consecutive years of increasing dividends

The provided transcript does not contain any explicit discussion of operational risks, business risks or operational failures. Management did note potential market risk from future interest rate movements that could lead to buyer hesitation for large purchases, but the company frames this as an opportunity to target the underserved market of 30-40 year old families raising children with its new high-end product line.

Q: Is the dual listing on Fukuoka Stock Exchange driven by difficulty maintaining listing on the Tokyo Stock Exchange? What is the core purpose of this listing? / A: The core purpose is to support expansion into the Kyushu region, not due to any Tokyo Stock Exchange listing issues. It will help boost local brand recognition, strengthen sales operations and relationships with regional financial institutions, as the company works toward broader national expansion. Management is open to future additional regional listings and even eventual overseas listing as expansion progresses. (176 characters)

Q: Is the new high-end condominium brand still focused on investment properties, and what is its target buyer group? / A: The new brand is still investment-oriented but positioned as a premium product above the existing GENOVIA line, exclusively for Tokyo 23 wards. Management is moving away from industry-wide excessive cost-cutting that produced low-quality, cheap condominiums, and will build high-quality properties for high-net-worth buyers and inbound investors. (217 characters)

Q: Will the target occupant/buyer change for the new high-end brand, and how is it different from GENOVIA? / A: The target does shift substantially: units are 40-70 sqm (centered on 70 sqm, the current Tokyo average size, priced at ~0.1 billion yen) targeted at 30 and 40 year old buyers raising children. The design adds underground parking for large vehicles, and ground/first floor tenant space for childcare, clinics and learning centers focused on supporting families. It is a fully distinct product concept from the existing GENOVIA line. (281 characters)

Q: What types of targets is Goodcom Asset considering for M&A to hit its 2030 growth target? / A: The company is actively evaluating a wide range of targets aligned with its 2030 plan, including regional local condominium developers, buy-renovate-sell firms, detached home builders, hotel operators, low-fertility and senior housing operators, construction firms, real estate management firms, and office operators. Acquisitions will support national expansion and create synergies across the Goodcom portfolio to hit the long-term 600 billion yen revenue target. (285 characters)