Business Segment*This page is updated semi-annually.

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

Single-Family Houses Business

Net sales for this segment amounted to 1,342,252 million yen (+17.3% year on year), while operating income came to 155,696 million yen (+123.0% year on year).

In the domestic housing business, the number of units sold increased in both the custom-built housing and built-for-sale houses categories, partly due to sales expansion of “Smart Made Housing,” which combines the advantages of both custom designs and standardized houses, and the effects of various sales campaigns. In addition, the renovation and purchase-and-sale businesses of the Livness business also contributed to performance.

Additionally, we made progress in strengthening our proposal capabilities and business foundations through initiatives to increase design efficiency, such as enhancing the functionality of “AI Plan Concierge ver.2,” an AI-based housing plan proposal tool, in February 2026.

Overseas, mainly in the United States, orders received and units delivered increased year on year, supported by the expansion of sales communities and strengthened sales initiatives. In addition, a large-scale land sale carried out at the end of October 2025 also contributed to business performance.

Rental Housing Business

Net sales for this segment amounted to 1,429,273 million yen (+3.9% year on year), while operating income came to 141,142 million yen (+8.6% year on year).

In the Rental Housing Business segment, through the development, management and operation of rental housing, the Company has been proposing and supporting rental housing management aimed at enhancing asset value for owners. In addition, the Company promoted the wider adoption of ZEH-M properties designed to reduce environmental impact through energy-saving and energy-generating features.

Daiwa Living Co., Ltd. in addition to providing rental housing under the “D-ROOM” brand, focused on improving living environments through equipment upgrades, resulting in an increase in the number of properties under management and maintenance of a stable occupancy rate.

Daiwa House Chintai Reform Co., Ltd. worked to strengthen relationships by conducting building inspections and diagnoses periodically at rental houses constructed by the Company, while also promoting warranty extension work and renovation proposals.

Overseas, the Company has been promoting collaboration in rental housing development with Alliance Residential Company, which became an equity-method affiliate in November 2024. As the first phase of a multifamily housing development initiative, in February 2026, the Company started construction of Prose Ownsby Farms, a rental housing development comprising 414 units in Celina, Texas, USA.

Condominiums Business

Net sales for this segment amounted to 279,622 million yen (+3.8% year on year), while operating income came to 5,993 million yen (-45.1% year on year). This was mainly due to a year-on-year decrease in the number of condominium units delivered.

In the Condominiums Business segment, the Company engaged in the sale of new condominiums, mainly in the Tokyo Metropolitan area and regional hub cities. Sales of PREMIST Tower Funabashi (Chiba Prefecture) and PREMIST Tower Oita, which have been on sale since February 2026, generally progressed steadily, supported by favorable evaluations of their prime station-front locations and mixed-use development features.

Daiwa Lifenext Co., Ltd. has also seen a steady increase in the number of condominium units under management. In the “L-Place” series of corporate rental dormitories, business remained steady, with the opening of “L-Place Sorimachi” (Kanagawa Prefecture), which is the 77th in the series.

Commercial Facilities Business

Net sales for this segment amounted to 1,290,192 million yen (+5.1% year on year), while operating income came to 162,492 million yen (+11.4% year on year).

In the Commercial Facilities Business segment, in addition to strengthening efforts for large-scale properties, sales and profit were supported by the built-for-sale business involving properties for which the Company acquired land and carried out integrated operations from development planning and tenant leasing through design and construction, as well as by the purchase-and-sale business for commercial facilities. In January 2026, “d_ll HIROSHIMA,” a mixed-use facility combining office and retail space and a multi-story car park, was completed, offering some of the largest office space in the Chugoku-Shikoku region.

Meanwhile, Daiwa Lease Co., Ltd. opened “Frespo Utsunomiya Market,” a commercial facility developed on the former site of Utsunomiya Central Wholesale Market, and “ARCTOWN Utsunomiya,” a comprehensive park developed through a Park-PFI project.

In the urban hotels business operated by Daiwa House Realty Mgt. Co., Ltd., the average occupancy rate increased year on year. In addition, as a result of strategically the strategic promotion of high unit-price sales, ADR (Average Daily Rate) and RevPAR (Revenue per Available Room) also increased year on year.

Logistics, Business & Corporate Facilities Business

Net sales for this segment amounted to 1,189,808 million yen (-13.1% year on year), while operating income came to 127,645 million yen (-20.0% year on year). This was mainly due to a decrease in sales of development properties.

Regarding logistics facilities, construction of DPL Saitama Fukaya and DPL Shizuoka Fukuroi commenced.

In the medical, nursing care and R&D facilities business, “D-Medicare+ Nagoya Issha,” a mixed-use development centered around a care facility, and a corporate employee dormitory were completed.

In support-related activities for offices, plants and other sites, orders received for large projects remained steady, and the Company commenced projects such as an automotive parts manufacturing plant, a frozen and refrigerated warehouse, and a marine parts manufacturing plant among others.

In the Livness business, we made progress with the replacement of assets through the sale of existing properties and the acquisition of new properties.

In the property management business, Daiwa House Property Management Co., Ltd. concluded new property management contracts for four facilities, including logistics facilities. As a result, as of the end of March 2026, the number of buildings under management reached 269, and the total area under management amounted to approximately 11.24 million square meters.

In the Daiwa LogiTech Group, which operates the logistics services business, orders centered on the IT business remained firm, supported by customer companies’ investments in DX. Meanwhile, Daiwa Logistics Co., Ltd. commenced commercial operations with Level 2 autonomous trucks developed by an outside partner as part of initiatives to address the “logistics 2030 Problem,” and Wakamatsu KONPOU UNYU SOKO, Inc. made progress acquiring new customers, pushing up the logistics center utilization rate.

Overseas, progress was made on leasing activities at “Blue Ridge Commerce Center” in the U.S. and at “DPL Malaysia Ⅲ” in Malaysia.

Environment and Energy Business

Net sales for this segment amounted to 133,136 million yen (+1.5% year on year), while operating income came to 13,835 million yen (+11.4% year on year).

In the Environment and Energy Business segment, the Group operates three businesses: the EPC business, the PPS business, and the IPP business.

In the EPC business, the Group steadily captured demand for the introduction of renewable energy through the expansion of off-site PPAs and on-site PPAs. As of the end of March 2026, the Group operates 104 off-site PPA projects with a total capacity of 152 MW.

In the PPS business, profitability improved due to stable spot prices in the wholesale electricity market, as well as measures such as the operation of constant backup systems.

In the IPP business, the Company operates 825 power generation facilities nationwide, mainly solar power plants, including wind and hydroelectric power plants, with a total generation capacity of 1,046 MW as of the end of March 2026.

Meanwhile, as a new initiative, the Company has been conducting a grid-connected power storage station demonstration project at its Kyushu Plant to enter the power storage station business. Construction has been completed, and the Company plans to commence operations in August 2026.

Overseas, in Thailand, the Company commenced operation of its first overseas on-site PPA project through a joint venture with WHA Corporation PCL.

Other Businesses