We wish to express our heartfelt appreciation for our shareholders for their excellent cooperation.

The Tosei Group conducts a wide range of real estate-related businesses in line with its corporate philosophy "To create new value and inspiration in all aspects of real estate as a global-minded group of seasoned professionals".

The business environment surrounding the Group in the recent years has become increasingly uncertain amid revolutionary changes, including the escalation of climate change issues, the emergence of geopolitical risks, the declining birthrate and the aging of society in Japan, the acceleration of behavioral changes triggered by the COVID-19 pandemic, and rapid advances in digital technology. In order to adapt to such changes in the business environment, ensure the Group's sustainable growth over the future, and enhance corporate value by contributing to the realization of a sustainable society, we formulated "Tosei Group Long-Term Vision 2032" and the medium-term management plan "Further Evolution 2026" (December 2023 - November 2026), which started from the fiscal year ended November 30, 2024, and were announced in January 2024.

What we aim to be in the Tosei Group Long-Term Vision 2032 is as follows: "We will contribute to the realization of a sustainable society as a unique real estate portfolio manager with diverse solution capabilities". We will further strengthen and expand the Tosei Group's core competencies to achieve both business growth and contribution to sustainable society.

FY2025 has started.

In the domestic real estate investment market, which is the Group's mainstay market, the proactive investment stance of both domestic and overseas real estate investors continued, engaging in active real estate transactions. Additionally, despite mounting expectations of higher domestic interest rates ahead, demand remained strong amid growing anticipation for greater profitability in each asset type, due to factors such as strong corporate performance driving up the need to expand office space, rising hotel guest room rates backed by the increase in inbound guests, and rising rents in line with rising inflation.

Amid this operating environment, for the first three months ended February 28, 2025, the Group's financial results were off to an extremely good start backed by strong performances in each of the Group's businesses including real estate sales, with consolidated revenue of ¥46.0 billion (+32.1% YoY), operating profit of ¥12.3 billion (+28.5% YoY), and profit before tax of ¥11.8 billion (+28.7% YoY), achieving 45.1% of the full-year forecast based on revenue and 62.9% based on profit before tax.

As for the operating segments, in the Trading Business, sales of properties to investors were strong and we have achieved more than 60％ (on a gross profit basis) of our full-year sales plan which combines the Revitalization Business and the Development Business. Furthermore, in the Fund and Consulting Business captured management contracts relating to new large-scale investment projects of existing customers, among others, and assets under management (AUM) increased by ¥84.0 billion from the end of the previous fiscal year to surpass ¥2.5 trillion. Additionally, in the Hotel Business, both occupancy rates and average daily rates have exceeded the plan, driven by strong inbound demand.

In terms of the outlook of the business environment, although the BOJ is expected to raise interest rates again this year, we believe that the superiority of domestic real estate investment will continue going forward, as domestic real estate maintains high liquidity while sufficient yield spread vis-à-vis other countries is assured. Meanwhile, rising construction costs resulting from soaring steel prices, changes in workstyles, and other factors, and extended construction periods are also expected to continue for the time being.

Accordingly, we will promote business activities by being selective in the acquisition of properties and carefully considering development plans.

We will continue to improve our corporate value to meet the expectations of all our stakeholders.　We would appreciate your continued support.