Backed by its solid base in the field of sales of rental apartment buildings, Daiwa House has continued to improve its performance in this segment. In the term under review it achieved an 8.8% year–on–year increase in unit sales, which rose to 24,392 units, and 7.5% growth in sales revenue, which reached ¥208.0 billion on a non–consolidated basis.

With respect to products, we have catered to the increasingly diverse tastes of residents by launching new models designed with the distinctive characteristics of individual localities in mind. On the marketing side we not only ensure very close contacts with local communities, but also engage vigorously in proactive marketing of our apartment management service, which utilizes leasehold rights incorporating a special agreement for the transfer of buildings. The cumulative number of these properties has reached 1,100.

Great importance is also attached to the sphere of after–sales service, such as the solicitation of tenants and management, maintenance, and repairs. In conjunction with our subsidiary Daiwaliving we provide long–term, comprehensive owner support covering up to a maximum of 40 years of long–term building diagnoses and guarantees, 24–hour tenant handling, and asset–management consulting. As a result, the number of buildings under its management rose by 16.8% during the term under review, to 66,934.