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.

In the first half of FY2025, the real estate investment market in the Tokyo metropolitan area, our main market, continued to see active transactions against the backdrop of a moderate financial environment and steady rental demand. With the rise in long-term interest rates following the policy interest rate hike in January of this year, there were concerns that real estate investors' willingness to invest would decline, but the impact was limited. The trend of domestic and overseas real estate investors favoring high-quality Japanese real estate is expected to continue, driven by expectations of improved real estate profitability due to rising office rents and residential rents.

Under these business conditions, our performance for the first half of FY2025 progressed steadily, with sales of whole income-generating buildings and condominium units in our core real estate revitalization and development businesses proceeded smoothly, and all businesses, including the hotel business, performed well. In the fund and consulting Business, we successfully acquired new clients, including the asset management of "Tokyo Beta," one of the largest share house portfolios in Japan, from Warburg Pincus, a global investment company, and our assets under management reached 2.6 trillion yen. As a result of these achievements, revenue has reached 65%, and profit before tax has reached 89% of the initial plan. Considering the performance trends for the first half of the fiscal year and the outlook for the business environment going forward, an upward revision of its full-year profit forecast has been announced.

In the second half of the fiscal year, we will actively implement various measures to achieve our medium-term management plan, including strengthening procurement activities using real estate M&A, promoting tenant attraction activities, and launching a new product of small-lot real estate investment to expand exit strategies in the sales business.

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