LandNet FY2026 Earnings Deep Dive: Surpassing ¥100 Billion in Revenue and Growth Strategy in the Secondary Real Estate Market via a Proprietary DX Model

Introduction

LandNet Co., Ltd. (Securities Code: 2991) reached a major milestone in its FY2026 full-year financial results , with revenue increasing by 14.5% year-on-year to ¥109.953 billion , successfully surpassing the ¥100 billion mark —a long-held goal since the company's founding. The company has established a unique position in the secondary real estate market by deploying a "Direct Real Estate" model that leverages its proprietary real estate database and in-house systems.

This report provides a detailed analysis of the company's performance highlights, revenue structure, sources of competitive advantage, and future growth strategies and KPI trends, based on the recently released earnings presentation materials.

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1. Performance Highlights: Surpassing ¥100 Billion in Revenue and Profit Trends

The key financial results for the fiscal year ended July 2026 are as follows:

• Revenue : ¥109,953 million ( +14.5% YoY, 99.4% of full-year budget)
• Gross Profit : ¥16,766 million ( +10.3% YoY, 96.9% of full-year budget)
• Operating Profit : ¥3,821 million ( +2.1% YoY, 84.8% of full-year budget)
• Ordinary Profit : ¥3,274 million ( -1.1% YoY, 82.5% of full-year budget)
• Net Profit : ¥2,369 million ( -0.6% YoY, 89.4% of full-year budget)

While revenue maintained double-digit growth, operating and ordinary profits fell short of the initial full-year budget. This was primarily due to losses on the sale of specific properties , such as large-scale urban assets, which the company had less experience handling. In response, the company is strengthening its appraisal and due diligence processes during the procurement phase to prevent similar losses in the future.

Looking at the company's revenue trajectory, it has maintained high top-line growth over the long term, with an average annual revenue growth rate of 25.6% over the past 10 years and an average growth rate of 20.7% since its listing in July 2022.

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2. Unique Strengths: Database and "Direct Procurement & Direct Sales" Model

The core of LandNet's business structure lies in its business model, which integrates a proprietary real estate database of 5.65 million records with its in-house core system, the " RCP (Real estate Cloud Platform) ."

① 68% Direct Procurement Ratio

By approaching owners directly rather than through traditional real estate brokerage firms, the company reduces brokerage fees and offers competitive pricing to both sellers and buyers. The ratio of direct procurement in the company's total acquisitions has reached 68% , an exceptionally high level within the industry.

② Industry-Leading Inventory Turnover Speed

To mitigate the risk of holding unsold properties, the company maintains a rapid resale cycle.

As shown in the slide above, while real estate for sale grew steadily to ¥29.792 billion at the end of FY2026, the inventory turnover period remained at just 103.59 days . This is significantly faster than competitors in the secondary condominium resale market (typically 244 to 701 days), demonstrating the company's strength in maintaining high capital efficiency while minimizing exposure to real estate price volatility.

③ Rapid Onboarding and High Productivity of Sales Staff

Through the "RCP," over 64,000 past transactions and negotiation histories are shared instantly, allowing even inexperienced young employees to become productive quickly with team-based support. Even during a phase of personnel expansion, revenue per sales employee reached ¥224 million (up from ¥209 million in the previous year), maintaining a high level of labor productivity.

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3. Shift in Property Mix: Profitability Improvement via Family-Type Expansion

LandNet has expanded its product lineup from its original focus on studio (single-occupancy) condominiums to higher-unit-price family-type (30㎡ or larger) condominiums , as well as detached houses, apartment buildings, and entire buildings.

Looking at the breakdown of condominium transactions, family-type units account for 53.2% (3,684 units) of total transactions and 73.5% (¥10.711 billion) of total gross profit. The increased ratio of family-type properties, which have larger transaction scales, has driven sustained growth in revenue and gross profit, even as the total number of transactions (7,442) remained flat year-on-year.

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4. Financial Foundation and Stock Business Status

① Funding Capability and Expansion of Overdraft Facilities

In line with the expansion of its real estate trading business, the company has increased its overdraft facilities with major financial institutions to ¥9.9 billion , ensuring the liquidity necessary to support stable procurement activities.

② Progress in Stock-Based Revenue (Leasing Management Business)

In addition to the trading business, the leasing management business, which generates management fee income, is steadily strengthening its foundation.

• Units Under Management : 10,531 units (surpassing the 10,000-unit milestone, +1,148 units from the previous year-end)
• Occupancy Rate : 98.59% (maintaining a high level of over 98% for 12 consecutive years)

Furthermore, as an after-sales service for buyers, the company has expanded its "Anshin Warranty" (covering contract non-conformity, equipment, and rent delinquency) to include detached houses and entire buildings, leading to higher customer satisfaction and increased management contracts.

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5. Dividend Policy and Future Outlook

The annual dividend for FY2026 was ¥11.10 per share (a dividend increase of ¥1.10 compared to the previous year, adjusted for stock splits), reflecting the company's commitment to shareholder returns.

Regarding the market environment, the ratio of existing home sales in Japan is 42.3%, which still leaves significant room for growth compared to Western countries (approximately 74–82% in the US, UK, and France). LandNet plans to strengthen its position as a leading independent player in the secondary real estate market by accelerating nationwide expansion, broadening its reach into detached houses, apartments, land, and entire buildings, and developing its real estate crowdfunding platform, "LSEED."