9816.T

• Corporate Overview & Core Philosophy

  • Striders operates as a holding company managing 7 subsidiaries across three core business segments: Real Estate, Hotels, and Investment. The corporate slogan is "Stride With Challengers", with a long-term strategy focused on capturing short-term profit opportunities while delivering compound growth in corporate value over the medium to long term. FY2026 March Term is a new starting point centered on challenge and transformation after post-COVID changes.
  • Governance: 6-person board consisting of 3 internal directors and 3 independent external audit & supervisory committee directors, improving objectivity and transparency of management to support rapid, accurate decision-making.

• Consolidated Financial Performance

  • Consolidated revenue: 6.012 billion yen, YoY +3.6%. Consolidated operating profit: 156 million yen, improving sharply from a year-ago deficit. EBITDA: 236 million yen. Key financial metrics: Equity ratio 47.2%, D/E ratio 0.73x, ROE 5.5%, all maintaining healthy levels. Progress against full-year forecast: Revenue 73.3%, Operating profit 92.2%, Ordinary profit 101.6%, Net income 108.3%, with operating margin at 2.6% already exceeding the full-year plan of 2%.
  • Balance Sheet: Total assets 5.7 billion yen as of 3Q end. Cash and deposits increased from 2.142 billion yen to 2.267 billion yen driven by third-party allotment capital increase in Q1, net assets increased to 2.716 billion yen, improving financial soundness and increasing room for growth investment. Fixed assets decreased due to reduction in long-term loans, reflecting improved asset efficiency and shift to flexible capital allocation.

• Segment Operational Highlights

  • Real Estate: Centered on rental management business in the Tokyo 1-3 prefecture area. Favorable external tailwinds include rising real estate prices in the Kanto region (+8% YoY as of April 2025), continuing net inflow of population (135,843 net inflow to 1-3 prefectures in 2024, +7.3% YoY) driven by young single migrants and returning international students/inbound. DX/AI-driven operational efficiency improvements supported profit growth. The residence business maintains stable revenue, while real estate transaction revenue grew strongly.
  • Hotel: Operates two properties: Narita Gateway Hotel (307 rooms, 10 minutes from Narita Airport) and Kurashiki Royal Art Hotel (71 rooms, walking distance from Kurashiki Bikan Historical Quarter). Favorable external tailwinds include: 2025 inbound tourist numbers on track to hit a new all-time high, government tourism policy acceleration, Narita Airport infrastructure expansion, and upcoming large-scale events (Osaka Kansai Expo, Setouchi International Art Festival). Operational improvement initiatives focused on 4 core areas: 1) Sales Enablement: strengthened customer touchpoints and focused on group sales; 2) Revenue Management: implemented dynamic pricing and demand forecasting; 3) DX & AI Utilization: rolled out auto check-in and voice AI guides to improve productivity; 4) Cross-functional collaboration: achieved seamless cross-department operations. These improvements drove the swing to profit from deficit.
  • Investment Business: Current profit was driven by unrealized gain on convertible bonds recorded in Q2. The segment is currently developing its first fund, the $20 million Omusubi Venture Fund based in Singapore, which is in active fundraising targeting a first close. The fund focuses on deep tech startups in healthcare, agriculture, and smart city focused on the Asian market. The company is also exploring startup investment in agritech, insurtech, healthtech, and greentech, and acts as a gateway for Asian investors entering the Japanese market.

• Financial Policy

  • Core financial targets: Maintain equity ratio around 40%, maintain 3x liquidity ratio to ensure buffer against market volatility, target a continuous annual dividend of 5 yen per share to deliver stable shareholder returns.
  • Balance sheet management: Focuses on inventory and accounts receivable management to optimize working capital, reviews unnecessary fixed assets for sale/reallocation to improve asset efficiency, targets D/E ratio below 1.0x to maintain financial flexibility, and secures stable low-cost long-term borrowing from financial institutions.

• The company maintains a policy of expanding into related new business areas with synergies to existing operations, starting with fields that drive cost structure transformation for existing businesses, pursuing related diversification close to core operations. Targeted new businesses include real estate renovation (Real Estate segment), regional tourism (Hotel segment), and private villa rentals (Investment segment).
• Cash allocation for FY2026 March Term to FY2027 March Term: Expects 220 million yen in operating cash inflow, allocates over 50 million yen to shareholder returns targeting a 40% payout ratio and continuous 5 yen per share dividend, retains internal reserves for medium to long-term investment focused on financial soundness, prioritizes strategic investment in new growth drivers, equipment, and human resources for new business, and allocates investment to existing business for productivity improvement, employee remuneration and training.
• Real Estate Segment growth guidance: Targets expansion into the renovation market, which has a target serviceable obtainable market of 200 billion yen, with strong underlying demand from aging housing stock and energy-efficient renovation requirements. Will launch lean starting with restoration work for internally managed properties, leverage existing management hubs to implement area concentration strategy in 1-3 prefectures, integrate rental management and renovation to maximize customer lifetime value. Medium-term focuses on growing the renovation business as a new growth engine while maintaining stable core rental revenue, with long-term plans for gradual expansion into adjacent real estate related fields.
• Hotel Segment growth guidance: Short-term: Invest to improve competitiveness, including mobility investment to improve regional access and occupancy, DX investment to digitize front desk and housekeeping management, implement dynamic pricing and AI operational support to improve productivity and profitability, and invest in training focused on customer service, multi-lingual capability, and health and safety to improve customer and employee engagement. Medium to long-term: Pursues a regional trading company concept positioning hotels as regional gateways, builds a regional circular ecosystem by driving regional circulation of visitors through collaborative experience programs with local businesses,送客 to local attractions and restaurants, and post-trip consumption of local specialty products through e-commerce and overseas sales channels. Will leverage Narita Airport expansion and large-scale regional events for growth.
• Investment Segment growth guidance: Launches a new private villa rental business targeting inbound tourists seeking private, nature-focused travel in regional areas, leveraging existing hotel operating experience in Narita and Kurashiki to enter the higher average daily rate, longer-stay villa market. Will combine with investment and real estate capabilities to offer diverse business models including ownership, sale, and managed operations. Targets two high-growth segments: inbound travel and pet-friendly travel, with plans to introduce smart front desk and contactless operations. The market is projected to grow to $173 billion by 2030.

1. Real Estate Segment: Revenue of 4.961 billion yen, YoY +5.4%. Operating profit of 216 million yen, YoY +57%. Segment assets of 1.514 billion yen. This segment contributed 82.35% of total segment revenue and is the most solid performer driving group growth. Breakdown of internal revenue: Residence leasing business: 3.298 billion yen, YoY -1.6%; Residence other revenue: 820 million yen, YoY +0.5%; Real estate transaction business: 842 million yen, YoY +156.3%. Key KPIs: 4,198 managed leased units, occupancy rate of 99.1%.
2. Hotel Segment: Revenue of 1.02 billion yen, YoY +17.8%. Operating profit of 104 million yen, turning to profit from a year-ago deficit. Segment assets of 2.206 billion yen. This segment contributed 16.93% of total segment revenue. For Narita Gateway Hotel (NGWH): Average ADR 7,527 yen, YoY -0.5%; Average occupancy (OCC) 82.3%, YoY +6%; Average RevPAR 6,205 yen, YoY +7.5%. For Kurashiki Royal Art Hotel (KRAH): Average ADR 15,383 yen, YoY +4.5%; Average OCC 79.5%, YoY +12.4%; Average RevPAR 12,284 yen, YoY +17.4%.
3. Investment Business & Others: Revenue of 42 million yen, YoY -81.8%. Operating profit of 13 million yen, YoY +40.5%. Segment assets of 561 million yen. This segment contributed 0.70% of total segment revenue. Total segment revenue across all three segments reached 6.024 billion yen, up from 5.806 billion yen YoY, while total segment operating profit reached 334 million yen, up sharply from 117 million yen YoY.

• The hotel industry faces competitive pressure from price competition driven by inflation and rising labor costs, which may pressure margins.
• All forward-looking statements contained in this presentation are based on current available information and assumptions, and actual results may differ materially due to various unforeseen factors.
• No other material operational risks or failures were discussed in this earning call transcript.

No structured question and answer section was included in the provided transcript.