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Meiho Enterprise Group's Vision for 2026

As we usher in the New Year, Meiho Enterprise Group reflects on a successful past year and sets its sights on ambitious goals for 2026. Under the leadership of CEO Mitsuru Yabuki, the group has solidified its reputation as a leading integrated developer in the Tokyo area, supplying over 250 newly constructed investment rental properties.

In 2025, the group has implemented a "vertical integration strategy" to enhance business foundations and increase corporate value. The real estate and construction sectors faced challenges, such as uncertainty in interest rate trends and rising costs for land and construction materials. However, the demand from domestic and international investors for real estate remains resilient.

The past five years have seen the strengthening of cooperative relations among group companies. This synergy has enabled the establishment of a comprehensive vertical integration business model, covering every aspect from land acquisition to planning, design, construction, sales, management, and repairs. As a result, the group's performance in the fiscal year ending in July 2025 exceeded initial expectations, achieving an increase of 44.9% year-on-year in sales, totaling approximately 29.8 million yen, and a net profit increase of 37.7% to about 1.9 billion yen. The group’s development projects also saw significant growth, with the "EL FARO" series reaching 129 buildings and the "MIJAS" series hitting 121, solidifying the group’s positioning as a top-tier developer.

In terms of recruitment, Meiho Enterprise Group has enhanced its hiring initiatives. Starting in April 2025, the group launched the documentary series "Developers’ Masters" on its official YouTube channel. This series is managed by young employees in their third year or less, as part of the ''MU-3 (Meiho Under 3 years)'' project. The monthly series has significantly increased viewership, growing from 17,000 to 89,000 views year-on-year.

Future Strategies

The group continues to press forward with its mid-term management plan announced on September 11, 2025, aiming for sales of 45 billion yen and operating profit of 5.2 billion yen by July 2028. The year 2026 is earmarked for accelerating growth under this plan.

Building upon the strengths of its vertical integration model, the group intends to implement a "horizontal expansion strategy" to diversify its business into other regions and sectors, thereby stabilizing revenue and broadening growth opportunities. In its real estate development segment, despite external challenges like rising interest rates and prices, the group plans to leverage its extensive experience and know-how gained in the southern and western Tokyo areas. It aims to expand its network of both domestic and international investors and diversify sales channels.

In addition, the group seeks to grow its fee-based business through project management and sales support, reducing self-financing burdens while enhancing service revenue for a capital-efficient operation. Notably, in March 2026, the group will unveil its new rental apartment brand "LOS ARCOS" in Bunkyo-ku, Tokyo, marking a significant addition to its investment rental offerings. This project is seen as a cornerstone of the group’s next growth phase.

Within the rental management segment, the market environment continues to see a rising trend in rents. To maximize profits for existing owners, the group will utilize area marketing and implement AI assessment systems alongside the best rental pricing based on market examples, enhancing leasing strategies to reduce vacancies and ensure high occupancy rates in managed properties.

The group is also focused on increasing its international footprint by attracting overseas owners to expand its management assets and diversify its revenue base. The flagship rental series "EL FARO" and "MIJAS" have received high praise for their one-stop services, maintaining high quality and occupancy rates. This success has led to repeat purchases of investment properties, reinforcing the group's synergistic capabilities with its development projects.

In the construction sector, Meiho has effectively managed the rising costs of construction projects by standardizing specifications in the "EL FARO" initiative. Long-standing relationships with contractors, expansion of new partnerships, contractual adjustments, and value engineering (VE) proposals have all contributed to mitigating material price fluctuations and improving cost management.

Furthermore, through reviewing labor structures, instituting working style reforms, and strengthening collaborations with subcontractors, the group is enhancing productivity. It plans to diversify its revenue streams starting in 2026 by actively applying its construction expertise to external projects, including renovations alongside new constructions.

As for human capital, the number of employees has tripled since 2022, laying a solid foundation for the group’s expansion. With an average age of 33 among employees, Meiho nurtures a culture of collaboration and proactive challenge within project teams. The implementation of career development plans and a cyclic growth system, where second-year employees aid in training new hires, is aimed at fostering ongoing talent development and organizational vitality.

Regarding shareholder returns, Meiho is committed to stable and sustainable distribution principles. From August 2025, it detailed a progressive dividend policy and introduced a shareholder benefit system to enhance returns alongside dividends, aiming for a long-term expansion of its shareholder base and an increase in shareholder value.

By 2028, when the mid-term management plan concludes, Meiho will celebrate its 60th anniversary. The group aims to secure its position as the top developer in southern and western Tokyo while exploring new business models, including international expansion, to challenge preconceived notions in the real estate industry. With the support of shareholders, investors, financial institutions, construction suppliers, and employees, Meiho Enterprise Group will work tirelessly to demonstrate its vast potential, urging continued support in this journey ahead.