In the second year (the fiscal year ended in March 2018) of our five-year medium-term management plan, “Make NEW VALUE 2021—New Value Creation through Real Estate Solutions,” which began in the fiscal year ended in March 2017, we succeeded in carrying on the solid results of the plan’s first fiscal year with operating income, ordinary income, and net income all exceeding initial forecasts.
I would like to take this chance to explain our initiatives for the next fiscal year (the fiscal year ending March 31, 2019).
In the real estate management business, in condominium management, the Daikyo Group will strive to carefully manage and maintain the buildings and facilities that represent the residents’ assets, as well as raise quality of service. Moreover, we will capitalize on our experience in managing condominiums and buildings, together with feedback from our customers, to develop new services that make the Daikyo Group the optimal choice for customers.
The market for large-scale repair and maintenance work for condominiums is growing as buildings age. We plan to reinforce our marketing skills and contract work system to steadily bring in orders from this growing market, including orders for work on properties other than those managed by the Group.
In building and facility management, we aim to expand new orders for facility management, as well as build up orders for construction work stemming from management operations, such as renovation work aimed at making buildings more energy efficient and long-lived.
Next, in the real estate brokerage business, we are aggressively expanding our sales of renovated condominiums and detached houses to meet customers’ diversifying needs. A partial revision of the Real Estate Brokerage Act, which went into effect in April 2018, means that a written explanation of building inspections must be provided to the seller and buyer when the real estate mediation agreement is signed. The Daikyo Group has already begun providing inspection service free of charge when certain conditions are met. Through these efforts, we aim to take the lead in energizing the circulation of existing high-quality houses and also increase the number of units sold and brokerage transactions.
Finally, in the real estate development and sales business, redevelopment projects are being considered and promoted nationwide, particularly in regional cities. In addition to our initiatives thus far, we will actively participate in such projects in areas throughout the country through optimal use of the Group’s collective strengths and brand power. Moreover, we will strive to diversify our real estate-related revenue by enhancing our initiatives outside of our current new condominium business, including hotels and shared houses.
The next fiscal year represents the midpoint of our medium-term management plan, during which we will take the first step in achieving robust growth with further sales and income gains ahead of the plan’s final fiscal year. All executives and employees will work together to achieve our goals.
President and Representative Executive Officer