We wish to express our heartfelt appreciation to 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. We have now entered the final year of the term.

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 FY2025, the real estate investment market in the Tokyo metropolitan area, our main market, continued to see strong investment activity for office buildings and rental housing, supported by a favorable financing environment, stable rental demand, and rent growth driven by inflation, while concerns over rising interest rates remained moderate.

Under these business conditions, our performance for 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 2.66 trillion yen. As a result of these achievements, our consolidated revenue, consolidated profit before tax, and consolidated profit for the year reached record highs for the fourth consecutive fiscal year. Additionally, we achieved the consolidated profit before tax target set for the final year of our Mid-term Management Plan "Further Evolution 2026" one year ahead of schedule.

For FY2026, although a rise in policy interest rates by the Bank of Japan is anticipated, we expect the real estate investment market to remain active, supported by strong investment demand from overseas investors and the accumulation of abundant dry powder. Against this backdrop, we will continue to pursue portfolio management that balances growth and stability, striving for further evolution and growth of each business.

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