3475.T

1Q 2026 Financial Summary

• Net sales came in at 4.693 billion yen, an 82.6% year-over-year increase, driven by active high-net-worth client acquisition and the addition of Livenup Group's single-family sales revenue
• Operating loss of 0.235 billion yen, ordinary loss of 0.356 billion yen, and net loss attributable to parent company shareholders of 0.356 billion yen; management positions this red ink as strategic upfront investment for future revenue growth
• Selling, general and administrative expenses increased by 0.1 billion yen from borrowing and registration fees tied to expanding property purchases (including for funds), and 0.3 billion yen from the consolidation of Livenup Group
• Balance sheet: inventory and borrowings increased due to focus on acquiring high-quality properties in preparation for future fund sales; cash and deposits decreased temporarily due to deposit/purchase payments for expanded property acquisition and dividend payments for shareholder returns

Pipeline & Property Acquisition

• As of March 16 2026, 1Q 2026 property acquisition already hit 10 buildings and 795 units, outpacing the prior year's pace and on track to exceed full year 2025 acquisition (34 buildings, 2,105 units). Management confirms the segment is on track to return to the record acquisition volume seen in 2023, after disruption from 2024 work reform regulations
• The company's signature deposit-only acquisition model allows it to control 118.86 billion yen equivalent of properties, with only advance deposits recorded on the balance sheet
• Capital and business alliance with Nissei Advance to expand property acquisition in the Kansai region, which is expected to see sustained economic growth from inbound migration, the 2025 Osaka Kansai Expo, and the upcoming IR opening

Brand Expansion

• Existing core GENOVIA brand condominiums focus on 25-40 sqm units for single/DINK households, with a high ratio of whole-building leases for corporate housing that maintains a near 100% occupancy rate
• New high-end G-classt brand focuses on 40-70 sqm units for dual-income and high-end households, including ground-floor commercial/medical tenancy, to address reduced demand for larger (over 70 sqm) units driven by rising Tokyo condominium prices
• G-classt properties feature high ratios of reinforced glass for an open, premium exterior; the first 4 projects are on track for start of construction within 2026, with each project costing ~10 billion yen (land + construction)

M&A & Strategic Partnership History

• Nissei Advance alliance: Strengthen property supply and sales in the Kansai region
• Livenup Group acquisition: Enter the single-family and pre-owned home market, expand managed unit count in Tokyo/Kanagawa to increase stable recurring revenue, leverage Livenup's M&A expertise for Goodcom's future growth strategy
• Roombank Insure acquisition: Eliminate rent default risk by acting as guarantor for tenants, increase tenant retention to expand property management revenue

Mid-Term Management Vision

• Goal: Enter the top tier of Japanese real estate companies by market capitalization by the 2030 October term, with a long-term vision to become a leading 21st century real estate firm
• 2030 October term target: 600 billion yen in net sales
• Core growth strategies: Expand operating areas, launch new concept brand condominiums, grow real estate fund scale, expand into listed REITs, pursue global expansion via M&A, expand product lineup (hotels, etc.) via M&A, achieve end-to-end in-house production via construction company M&A to boost supply capacity

Shareholder Returns

• 2026 marks the 10th anniversary of Goodcom Asset's listing on the Tokyo Stock Exchange
• 10th anniversary commemorative shareholder benefit: A 100 thousand yen equivalent digital gift per year for shareholders holding 1,000+ shares, distributed twice per year (with record dates at end of April 2026 and end of October 2026)
• 9 consecutive years of dividend increases planned, with full year 2026 dividend planned at 46 yen per share; total yield (including dividend and anniversary benefit) reaches ~10.4% for 1,000 share holders
• Active and flexible evaluation of additional share buybacks; previously acquired treasury shares have been effectively used for equity compensation and M&A consideration

• Full year 2026 (October term) guidance calls for significant top-line and bottom-line growth, with targets of: 79.28 billion yen in net sales, 7.72 billion yen in operating profit, 6.84 billion yen in ordinary profit, and 4.54 billion yen in net profit attributable to parent company shareholders; management confirms that the probability of hitting these targets is high
• Real estate fund business: 60 billion yen in total new fund commitments planned for full year 2026; all properties planned for sale this year have already been acquired, and the company is already advancing acquisition of properties for future fiscal years
• Second phase expansion of the fund business will launch listed and private REITs to expand access to retail and institutional investors; management expects to grow AUM and recurring revenue by selling properties to the REIT, with new funds formed regularly to add assets to the REIT structure over time
• Organizational optimization: Approximately 40% of retail sales staff have been reassigned to wealth management, wholesale, and real estate management to optimize personnel allocation; retail sales will operate with a lean, high-performance team focused exclusively on efficient sales targeting high-net-worth individuals
• The company plans to achieve 100 billion yen in cumulative AUM across all funds by the end of 2026, after adding the 60 billion yen in new planned funds
• Management confirms that the impact of 2024 work reform overtime regulations on construction timelines and costs has been fully absorbed, with no remaining material headwinds to property acquisition and construction schedules

1. Core Condominium Sales Segment (Goodcom Asset own brand): 1Q 2026 sales contributed 4.693 billion yen to total group revenue, with 82.6% year-over-year growth driven by active uptake of properties by high-net-worth individuals. As of March 16 2026, the segment has secured 118.86 billion yen equivalent of properties via deposit-only purchase agreements, with 70.73 billion yen of contracted purchases already completed. The segment's current pipeline totals 71 buildings and 5,365 units, with cumulative supply of 180 buildings in Tokyo's 23 wards and 233 buildings (12,735 total units) across the 1 Tokyo and 3 prefecture region plus Kansai. Occupancy of completed properties has maintained near 100% through the COVID-19 pandemic and into the current period. This segment accounts for approximately 88.6% of the full year 2026 projected group revenue. 2. Livenup Group (Consolidated Subsidiary - Single-family Homes & Pre-owned Home Resale): 1Q 2026 performance shows continued steady upward growth, driven by acquisition of a property management subsidiary and improved credit access to major megabanks. Livenup Group is projected to contribute 9 billion yen in full year 2026 revenue, equal to approximately 11.4% of projected total group revenue. As of March 1 2026, Livenup's pipeline includes 162 income-generating property units and 51 single-family/land parcels, with sales of its core single-family product (focused on Tokyo center and southern Tokyo districts) remaining strong on high demand. 3. Real Estate Fund Management: The segment currently has 43.2 billion yen in total assets across 4 established funds. It is targeting 60 billion yen in new fund formation in full year 2026, which will bring cumulative total assets under management to over 100 billion yen.

• Large-scale G-classt brand projects require upfront land purchase by Goodcom (a departure from the existing off-balance sheet model for the smaller GENOVIA brand), creating incremental capital requirements
• Construction is currently the only core step in the property development value chain that has not been internalized, acting as a bottleneck for future supply growth; failure to complete targeted construction sector partnerships/acquisitions could limit growth
• 1Q 2026 net loss reflects upfront investment for growth; if future sales of acquired properties do not meet targets, profitability will be negatively impacted

Q: The first quarter posted a net loss; was this in line with expectations?

A: Our core focus is not on 1Q standalone numbers, but on meeting our full year commitments and progressing on the 5-year mid-term management plan. All 1Q initiatives are progressing as planned: the 5th fund (~20 billion yen) is being formed as scheduled, we have kicked off work to prepare for a listed REIT launch, all full year 2026 sales properties are already acquired, we have already started acquiring properties for the next fiscal year, our 40% reallocation of retail sales staff to build an elite high-net-worth focused sales unit is complete, and Livenup Group sales are on track to hit the 9 billion yen full year target. All operational indicators are progressing in line with plan, so we see the 1Q deficit as expected and aligned with our strategic upfront investment plan.

Q: What is the profile of the construction companies that are being targeted for future M&A/partnership?

A: We are focused on companies that operate in key high-demand regions: the Tokyo metropolitan area (Tokyo, Kanagawa, Chiba, Saitama) and the Kansai region's major designated cities (Osaka, Hyogo, Kyoto). We are also open to companies headquartered outside these regions as long as they have active branch operations in these target cities. We are primarily targeting capital alliances and non-equity method collaborations initially, with a target of 10 to 20 partnership targets long-term; we will pursue full consolidation as a subsidiary if it makes strategic sense in specific cases.

Q: If we acquire a construction company, will we be able to fully internalize all construction operations, addressing the current supply bottleneck?

A: That is the core goal. Currently our model relies on bringing land to external construction companies to build our condominiums, which works with our off-balance sheet strategy. We plan to pursue partnership first to test alignment, and move to consolidation only when it adds strategic value. This process will be done step-by-step.

Q: What is the current state of the property acquisition pipeline, and is the pace expected to pick up?

A: In full year 2025 we acquired 34 buildings (2,105 units), and as of March 16 2026 (1Q 2026) we have already acquired 10 buildings (795 units), so the current pace is on track to exceed last year's full year volume. 2024 saw an extreme reduction in acquisition because the new work reform overtime regulations that took effect April 1 2024 forced a shift to fully 5-day workweeks for construction firms, which created delays in construction scheduling, extended timelines, increased labor costs, and created uncertainty that slowed acquisition activity. That uncertainty has now been fully resolved, so we see no remaining concerns, and we are on track to return to the record acquisition volume we achieved in 2023.

Q: Is the full year 2026 earnings target achievable after prior year declines?

A: Investors can be confident that the probability of achieving the full year guidance is very high, so there is no need for excessive concern. Beyond the current guidance, investors should also expect meaningful growth from the real estate fund business going forward: we have completed 4 funds prior to this year, we will add 3 more funds (5th to 7th) this year, and our long-term target is to launch the REIT phase of growth, which will accelerate our expansion trajectory.