3494.T

• Company Overview

  • Founded in 1986, currently in its 40th fiscal year, operates with a lean team of 32 total employees including external staff. Capital stock is 1.38764 billion yen, with major shareholders including SBI Holdings, the Marion Foundation, and Belluna Co., Ltd. Holds nearly all required licenses for real estate and financial services, plus ISO 14001, Privacy Mark, and ISMS registrations for compliance and security.
  • Follows a management philosophy of "Act based on love for humanity, create a society kind to people and kind to the earth", and its purpose is to support individuals' lives by supplementing pension, medical, long-term care, and environmental needs through Marion's real estate services.

• Core Real Estate Rental Business Operations

  • Focuses exclusively on residential condominiums now, with a focus on accommodating local government officials and trainees studying/working in Tokyo. Provides added value services including free morning shuttle buses to Kasumigaseki, and free rental of home appliances for rotating trainees. The number of contracts with local governments has been growing steadily.

• Real Estate Securitization Business and Strategic Transformation

  • Current flagship product i-Bond is a small-lot securitized real estate product that allows investment starting from 10 thousand yen per unit. It has evolved from in-person paper-based offerings to fully electronic 24/7 trading accessible via PC and smartphone.
  • Position i-Bond as the "third place to keep money" addressing unmet consumer needs: it offers free deposits and withdrawals (with a 5-day clearing period), zero transaction fees, an expected annual distribution rate of 1.5% (7-8x higher than standard Japanese savings deposit rates), and diversified risk across a portfolio of multiple underlying properties.
  • Strategic shift to blockchain-based tokenization: Following 2024 revisions to Japan's Financial Instruments and Exchange Act, the company will transition i-Bond to a regulated security token called FIEA ST, branded as M Coin, which will be approved as a tradable security and distributed through securities companies across Japan, greatly expanding market access.
  • Plans to acquire the required security token license and launch M Coin in 2026, retaining all of i-Bond's existing consumer-friendly features while adding the benefits of blockchain-enabled tamper-proof record keeping.
  • Security measures include two-factor authentication to prevent identity theft and unauthorized withdrawals, encrypted communications, intrusion prevention, and dedicated threat detection tools to defend against cyberattacks.

• ESG and Social Contribution

  • Operates the public interest Marion Foundation, which provides grants to child welfare institutions supporting children displaced by domestic violence. In 2024, the foundation awarded 6 million yen in grants to 12 institutions, and plans to expand into addressing food waste and community children's cafeteria initiatives.

• For the 2026 September full fiscal year, management expects lower revenue than the prior year, as the company will reduce property sales to shift all existing real estate into tokenization. The guidance is: 2.6 billion yen in total revenue, 630 million yen in operating profit, 400 million yen in ordinary profit, and 240 million yen in net profit. The guidance does not include any expected contributions from the new M Coin security token business.
• For shareholder returns: The prior year dividend was 6 yen per share. For the current 40th anniversary year, management plans a 0.4 yen special dividend increase, bringing the total planned dividend to 6.4 yen per share. The dividend payout ratio is expected to exceed the company's 20% target. A 1 thousand yen QUO card shareholder benefit is still offered per 100-share unit.
• Management expects that after tokenization, the company's total asset base will grow gradually from its current 18-20 billion yen range to 20-30 billion yen and higher. Management also targets achieving a PBR of 1.0x or higher (up from 0.75x at the end of September 2025) after the tokenization transformation is complete.

For the 2025 September full year, total company revenue is 3.254 billion yen. 1. Real Estate Rental Business: Accounts for 48% of total revenue, forms the company's stable core income base. The business owns 43 residential condominium buildings across major Japanese cities, with 80% concentrated in Tokyo, and achieved a high average occupancy rate of 97.28%. 2. Real Estate Sales/Securitization Business: Accounts for 52% of total revenue, forms the company's growth-focused business segment. Cumulative sales of the company's i-Bond product reached 10.7 billion yen as of the end of September 2025, and 11 billion yen as of the end of the following month, with 47% of the total being stable average outstanding balance.

No explicit risks or operational failures were discussed in the provided transcript. The company noted that its diversified real estate portfolio for i-Bond/M Coin reduces single-property underperformance risk, and has implemented multiple layers of cybersecurity measures to mitigate the risk of unauthorized activity and cyberattacks.

There is no question and answer section included in the provided transcript.