Daiwa House Group

Daiwa House Group

Business Segment*This page is updated semi-annually.

The percentage figures for breakdown of net sales and operating income by segment

Net sales by segment(FY2023):Single-FamilyHouses18%,Rental Housing24%,Condominiums8%,CommercialFacilities23%,Logistics, Business and Corporate Facilities24%,Environmentand Energy2%,Other Businesses 1%

Operating income by segment(FY2023):Single-FamilyHouses8%,Rental Housing26%,Condominiums8%,CommercialFacilities33%,Logistics,Business and Corporate Facilities28%,Environment and Energy2%,Other Businesses 1%

  • *Net sales represents sales to external customers.
  • *Adjustments are included in the total but not shown on the graph. The percentage of each segment does not add up to 100%.

Single-Family Houses Business

Single-Family Houses Business:imege

Single-Family Houses Business:FY2023 Net sales ¥951.0billion,Operating income ¥35.1billion,FY2024(Forecast) sales ¥1,112.0billion,Operating income ¥58.0billion

In the Single-Family Houses Business segment, we provided energy-efficient, resilient and high-quality housing according to diverse requirements. We stayed close to residents' lives and their changing values to propose lifestyles that will enhance their lives.

In the domestic housing business, the Company sought to strengthen initiatives for built-for-sale houses. In addition to “ComfortWood,” a wooden housing product specifically for built-for-sale houses, from November 2023, the Company began promoting a “Ready Made Housing.” concept for built-for-sale houses that inherit the quality of custom-built houses and began providing high-quality houses in built-for-sale houses that aim to be worth more than their price, offering the same design excellence and quality as custom-built houses, a reassuring long-term home warranty, and after-sales support.

With regard to custom-built houses, the Company primarily promoted sales of “xevoΣ,” their mainstay steel-framed housing product, and “skye,” a three- to five-story steel-framed house, to increase the ZEH (net zero energy house) sales ratio. Additionally, the Company sold the “xevo GranWood” wooden housing product and its most luxurious “Wood Residence MARE” housing product, which caters to the wealthy, to contribute towards the achievement of carbon neutrality and meet diverse needs of customers.

Anticipating a society with a high demand for housing stock, the Company is focusing on the revitalization and regeneration of existing buildings. Especially in housing complexes developed by the Company, it works on the Livness Town Project, which aims to regenerate and redevelop communities by addressing social issues such as community revitalization and the problem of vacant houses. The Company tries to put itself in the shoes of those who live there and maintains a close relationship with the communities and the residents' daily lives, so as to enhance the value of communities and ensure they remain attractive places to live for many years more.

Overseas, the Group has been expanding its operations in the eastern, southern and western regions of the United States, which it calls the smile zone. Three Group companies, Stanley Martin Holdings, CastleRock Communities and Trumark Companies play a key role in the east, south and west respectively. While housing loan interest rates and housing prices remained high, the existing home inventory was low. This led to firm demand for new homes, and the market has continued to move toward recovery. Furthermore, in October 2023, Trumark Companies acquired the business of JP Holdings, LLC, which is engaged in the Single-Family Houses Business in the United States. Additionally, in January 2024, CastleRock Communities signed an agreement to acquire the business of The Jones Company of Tennessee, also engaged in the Single-Family Houses Business in the United States. Through such moves, the Company aims to further expand the supply of single-family houses in the United States.

As a result, net sales for this segment amounted to 951,083 million yen (+8.5% year on year), while operating income came to 35,164 million yen (-24.5% year on year).

Rental Housing Business

Rental Housing Business:image

Rental Housing Business:FY2023 Net sales ¥1,250.2billion,Operating income ¥115.7billion,FY2024(Forecast) sales ¥1,300.0billion,Operating income ¥125.0billion

In the Rental Housing Business segment, we have been proposing and supporting rental housing management that maximizes the asset value for owners by providing sustainable value while considering tenants, the global environment and the community. In addition, the Company sought to popularize ZEH-M (net Zero Energy House Mansion) properties that reduce environmental impact and support the saving and generation of energy.

Daiwa Living Co., Ltd. provides D-room rental housing properties that offer high-quality and comfortable living and are chosen by a wide range of tenants. The company also expanded its renovation business. As a result, the number of units under management increased and the occupancy rates remained high.

Daiwa House Chintai Reform Co., Ltd. worked to strengthen relationships with the owners of rental housings constructed by the Company by conducting building inspections and diagnoses periodically, while also promoting work to extend warranty periods and submit renovation proposals.

In March 2024, three Daiwa House Group companies involved in the Rental Housing Business (*1) and three Daito Trust Construction Group companies (*2) signed a disaster cooperation and support agreement. During ordinary times, the parties to the agreement will jointly hold disaster management events and raise awareness about disaster management among tenants and local residents and, in the event of disaster, they will make their vacant spaces available to those affected by the disaster to further increase the disaster management capabilities of communities and to provide homes where tenants can live with peace of mind. The two Groups also aim to further improve the public perception and value of rental housing.

Meanwhile, overseas in the United States, our main operating area, market conditions remained unfavorable due to stubbornly high interest rates. However, the Group aims to maximize rental revenues while closely monitoring the real estate market trends, including interest rates. The Group will strive to increase occupancy rates and profitability with the goal of promptly selling properties when the market improves.

As a result, net sales for this segment amounted to 1,250,288 million yen (+5.7% year on year), while operating income came to 115,791 million yen (+5.5% year on year).

*1 Daiwa House Industry Co., Ltd., Daiwa Living Co., Ltd., and Daiwa House Chintai Reform Co., Ltd.

*2 Daito Trust Construction Co., Ltd., Daitokentaku Partners Co., Ltd. and Daitokentaku Leasing Co., Ltd.

Condominiums Business

Condominiums Business:image

Condominiums Business:FY2023 Net sales ¥441.8billion,Operating income ¥37.3billion,FY2024(Forecast) sales ¥258.0billion,Operating income ¥14.0billion

In the Condominiums Business segment, we sought to provide basic housing performance essential for a long housing life, comfort, safety and a management structure, drawing on our knowhow as a home builder to meet the diverse lifestyle needs of potential residents. We are also striving to create high added-value condominiums which, in addition to asset value for the customer, also consider the environment and society and aim to contribute to local communities.

At “ONE Sapporo Station Tower”, a North 8 West 1 District Type One Urban Redevelopment Project where sales began in November 2021 and delivery began in March 2024, all units were sold in August 2023 before completion, due to expectation for large-scale mixed-use redevelopment projects over many years and appreciation of the property's excellent location in terms of transport convenience and living convenience, as it is connected to/one-minute walk from Sapporo Station on the Toho and Namboku Lines of Sapporo Municipal Subway.

Daiwa LifeNext Co., Ltd. signed an agreement to acquire all shares of MARIMO COMMUNITY Co., Ltd., a subsidiary of TOKYU COMMUNITY CORP., in March 2024. Going forward, Daiwa LifeNext Co., Ltd. will continue tackling the issues facing each condominium, aiming to offer safe, secure and comfortable lifestyles.

Cosmos Initia Co., Ltd. made good progress selling units at “Initia Nippori” (Tokyo), where sales began in January 2024. This reflects high evaluations of living convenience since the property is a four-minute walk and a five-minute walk from Nippori Station and Nishi-Nippori Station on the JR Yamanote Line respectively and has shopping facilities and bars and restaurants nearby, as well as high levels of comfort and energy efficiency as a property that has acquired ZEH Oriented certification. Additionally, as of the end of the fiscal year under review, Cosmos Initia Co., Ltd. is no longer a consolidated subsidiary of the Company but rather an affiliate accounted for by the equity method.

Overseas, the Group is participating in a condominium development project in London, UK in addition to projects in China, their primary operating area. The Group is steadily working towards completion in 2026, to help solve the social problem of the chronic housing shortage in Europe.

However, due to a decrease in the number of condominiums delivered in China and other factors, net sales for this segment amounted to 441,867 million yen (-8.8% year on year), while operating income came to 37,372 million yen (-8.6% year on year).

Commercial Facilities Business

Commercial Facilities Business:image

Commercial Facilities Business:FY2023 Net sales ¥1,181.5billion,Operating income ¥143.6billion,FY2024(Forecast) sales ¥1,220.0billion,Operating income ¥144.0billion

In the Commercial Facilities Business segment, we offered various plans that meet the needs of tenant corporations, taking advantage of their business strategies and the characteristics of each region. In particular, we strengthened our efforts in the field of large-scale properties and in built-for-sale business in which we sell to investors properties for which we have acquired land, planned development, designed and constructed, and conducted leasing-out to tenants. In February 2024, at Minato Mirai in the Nishi Ward of Yokohama in Kanagawa Prefecture, the Company started construction on the “Minato Mirai 21 Central District 52 District Development Project” featuring the world's first video game art museum, a district heating plant, and an office building.

In the urban hotels business, Daiwa House Realty Mgt. Co., Ltd. opened Daiwa Roynet Hotel Omiya-Nishiguchi (Saitama Prefecture) in March 2024, and managed a total of 76 hotels with 16,209 rooms in Japan as of the end of March 2024. The average occupancy rate from January to the end of March 2024 was around 86.6%.

In the fitness club business, Sports Club NAS Co., Ltd. revised club membership fees from March 2024, seeking recovery in the number of members.

In the home center business, Royal Home Center Co., Ltd. signed a distribution agreement with Daiso Industries Co., Ltd. and began providing sales space for Daiso products at its Sakai store in February 2024 and its Tsushima store in March 2024.

Overseas, the Group operated TRADE and Village Center commercial facilities in California, USA. The Group consistently maintained high occupancy by soliciting Japanese tenants.

As a result, net sales for this segment amounted to 1,181,561 million yen (+8.2% year on year), while operating income came to 143,630 million yen (+8.0% year on year).

Logistics, Business and Corporate Facilities Business

Logistics, Business and Corporate Facilities Business:image

Logistics, Business and Corporate Facilities Business:FY2023 Net sales ¥1,294.4billion,Operating income ¥123.2billion,FY2024(Forecast) sales ¥1,280.0billion,Operating income ¥128.0billion

In the Logistics, Business & Corporate Facilities Business segment, we worked to enhance the Group’s business scope by constructing a variety of facilities to suit the differing business needs of our corporate customers, and by providing total support services that enable customers to utilize their assets most effectively.

Regarding logistics facilities, eight facilities were completed in the three months from January 2024, including “DPL Sakado B” (Saitama Prefecture) and “DPL Sendai-Izumi” in February 2024 and “DPL Gunma-Ota” in March 2024. Despite the changing market environment, the Company leveraged the leasing capabilities that are its strength and continued developing facilities to tap into strong tenant needs. These leasing activities paid off, with “DPL Sendai-Izumi”, “DPL Gunma-Ota” and “DPL Okayama-Tamashima” leased up before completion and lease agreements also gradually being signed for “DPL Sakado B”, “DPL Sendai Rifu II” and “DPL Matsudo II” (Chiba Prefecture).

Daiwa House Property Management Co., Ltd., a company that mainly manages and operates logistics facilities developed by the Company, concluded new property management agreements for 8 logistics facilities including “DPL Sakado B” that was completed in February 2024, increasing the number of facilities and the area under management to 247 facilities and approximately 9.86 million square meters.

The Daiwa LogiTech Group is a logistics service provider that caters to the IT businesses of corporate customers. These customers have been increasing their investments in IT since the beginning of the digital transformation. Going forward, the Daiwa LogiTech Group will encourage the adoption of labor-saving automation systems for logistics operations and release new products to address the so-called 2024 problem, and translate these initiatives into the acquisition of new customers.

In the logistics business, Daiwa Logistics Co., Ltd. established the Chubu Vehicle Allocation Center (Aichi Prefecture) as a center for vehicle allocation operations in the Chubu area in January 2024. The center aims to eliminate issues such as the over-dependence of vehicle allocation operations in each region on specific individuals and imbalance in workloads, and to increase efficiency. By centralizing vehicle allocation information in cooperation with the operations of each logistics center, the center is working to improve transportation efficiency in the region as a whole.

Overseas, in ASEAN, the main area for this segment, the Company started construction of “DPL Vietnam Minh Quang” (tentative name), a multi-tenant logistics facility in an industrial park around 40km east of the capital Hanoi in March 2024. The facility will meet growing logistics needs in Northern Vietnam. Going forward, the Company will continue promoting further infrastructure development and employment through the large-scale development of logistics facilities and others in ASEAN and East Asia.

As a result, net sales for this segment amounted to 1,294,455 million yen (+14.5% year on year), while operating income came to 123,244 million yen (+23.7% year on year).

Environment and Energy Business

Environment and Energy Business:image

Environment and Energy Business:FY2023 Net sales ¥139.4billion,Operating income ¥9.1billion,FY2024(Forecast) sales ¥148.0billion,Operating income ¥9.2billion

In the Environment and Energy Business, amid the current acceleration of transition toward decarbonization and the growing demand for renewable energy, the Group promoted three businesses, the EPC business (design and construction of power plants for renewable energy), the PPS business (electric power retail business) and the IPP business (electric power generation business).

To facilitate initiatives in the EPC business with the termination of Japan’s FIT program (the feed-in tariff scheme for renewable energy), the Group is working to expand two PPA-related businesses, off-site PPA with the goal of supplying renewable energy to a purchaser far from a solar power generation facility and on-site PPA (Power Purchase Agreement) with the goal of supplying renewable energy directly from a solar power generation facility installed on a roof or in an adjacent area. Demand for renewable energy is increasing steadily. The Company will leverage the land development knowhow it has built up since its foundation to secure sites for solar power generation facilities in suitable locations and will collaborate with major energy companies to develop users, and will continue focusing efforts on the EPC business as a mainstay business for the future.

In the PPS business, profitability improved as a result of the stabilization of spot prices in the electricity wholesale market alongside initiatives such as control of the supply of power according to the amount of power procured, transition to a new tariff structure, and introduction of power procurement adjustment costs (fuel cost adjustments set independently). However, it is difficult to predict trends in the business environment in the electric power industry, so we will work to stabilize the PPS business while taking measures to address the risks of the business.

In the IPP business, the Company engages in the operation of wind power generation and hydroelectric power generation, as well as solar power generation, which is its main business, at 551 locations nationwide.

This business segment will continue to play a key role in initiatives to “realize carbon neutrality by making all our buildings carbon-free,” one of the focal themes in the 7th Medium-Term Management Plan. We will promote these efforts throughout the Group and contribute to the further expansion of renewable energy.

As a result, net sales for this segment amounted to 139,441 million yen (-26.1% year on year), while operating income came to 9,131 million yen (+45.3% year on year).

Other Businesses

Other Businesses:FY2023 Net sales ¥68.0billion,Operating income ¥2.4billion,FY2024(Forecast) sales ¥52.0billion,Operating income ¥0.0billion

Net sales for this segment amounted to 68,043 million yen (-16.9% year on year), while operating income came to 2,450 million yen (-55.4% year on year).


1. Net sales for each segment include internal (inter-segment) sales and transfers in addition to sales to external customers.

2. The above monetary amounts are exclusive of consumption tax, etc.

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