SYLA Holdings Co.,Ltd. Q4 FY2026 earnings call

Corporate Background and Integrated Operation

• Seala Holdings was formed on June 1, 2025, when former Kumika acquired Seala Technologies via a full share-for-share exchange, and changed the corporate name to Seala Holdings on the same date.
• The company operates as an integrated comprehensive real estate group focused on the Tokyo 23 wards, Yokohama, and Kawasaki, handling the full value chain from land acquisition, planning, design, sales, to post-sale management, integrating traditional real estate business with the PropTech function of the real estate crowdfunding service 'Rimawari-kun'.

Core Competitive Advantages

• The company prioritizes high-demand properties in central and near-central Tokyo, and connects development, sales, and post-sale management in-house, which avoids the volatile performance swings common to condominium developers that rely only on one-time delivery revenue, generating stable recurring revenue after sales.
• The company maintains multiple exit strategies for properties, allowing it to secure sales opportunities even in challenging market conditions. It has a track record of selling properties to domestic and overseas individual investors, institutional investors including BlackRock's private equity funds, and operating companies, and can also secure property management contracts to maintain portfolio rotation of central Tokyo real estate.

Financial Position

• As of the interim period end of the 2026 May term, the company holds 10.62 billion yen in cash and cash equivalents, providing strong capital flexibility to acquire new central Tokyo properties, which is the core driver of the company's growth.
• The company has 36.65 billion yen in interest-bearing debt, with an equity ratio of 28.2%, making it a leveraged business model, but the large cash holding allows flexible response to delayed sales timelines and unexpected investment opportunities.

Shareholder Return Policy

• For the 2026 May term, the annual dividend forecast is 12 yen per share, which translates to a 3.05% expected dividend yield based on the closing price of 394 yen as of April 3, 2026, and an expected DOE (Dividend on Equity) of 2.8%.

Based on the 2026 May term company forecast, the four business segments have the following financial performance and revenue contribution: 1. Comprehensive Real Estate Business: 30.3 billion yen, 87.8% of total revenue; 2. Real Estate Management Business: 2.7 billion yen, 7.8% of total revenue; 3. Renewable Energy Business: 1.4 billion yen, 4.1% of total revenue; 4. Construction Business: 0.1 billion yen, 0.3% of total revenue. As of the end of May 2025, the real estate management segment had 3,953 rental units under management with a 99.8% occupancy rate, and 99 buildings under management with a 99.7% occupancy rate. The project SYFORME OMIYA, with 40 total units, sold out completely shortly after completion.

• The company targets reaching an ARR (Annual Recurring Revenue) of 2 billion yen (comprising rent income, rental management fees, building management fees, and management fees from 'Rimawari-kun' categorized as stable base 'bedrock revenue') within the current fiscal term.
• The company has set a long-term target of achieving a 4% DOE by the May 2030 term, and plans to continue increasing dividends while maintaining stable shareholder returns.
• The company will continue to offer shareholder benefits and implement treasury share acquisitions to provide shareholder return beyond regular dividend payments.

• The broader Tokyo metropolitan area new condominium market has seen weakening sales: in 2025, the first-month contract rate for new condominiums in the Tokyo metropolitan area was 63.9%, marking the second consecutive year below 70%, while average prices have risen to 91.82 million yen (136.13 million yen in Tokyo 23 wards), leading to stricter buyer selection and higher market pressure that could impact sales velocity.

No formal question and answer session was conducted in this published briefing material. A free online IR seminar with Seala Holdings' CEO is scheduled for April 14, 2026, which will include a live question and answer session for attendees.