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 in the Single-Family Houses Business amounted to 638,383 million yen (+18.0% year on year), and Non-GAAP operating income came to 30,789 million yen (+16.9% year on year).

In Japan, the Company focused on expanding sales of “Smart Made Housing.,” which combines the advantages of both custom designs and standardized houses, and “Ready Made Housing.,” built-for-sale houses that offer the quality of custom-built houses. The Company implemented various demand-capturing campaigns to improve communication with customers. Sales of products in the high price range continued to be strong, mainly in urban areas. In addition, the renovation and acquisition-and-sale businesses of the Livness business also contributed to performance.

In the United States, sales incentives have remained high amid an upward trend in mortgage rates, putting downward pressure on profit margins. At the same time, orders received and houses delivered from January to June 2026 increased year on year by 21% and 28% respectively, driven by an increase in sales communities and strengthened sales initiatives. In May 2026, the Company acquired all shares in United Homes Group, Inc., an operator of a single-family housing business in the states of South Carolina, North Carolina and Georgia, through Stanley Martin Homes, LLC. United Homes Group, Inc. has become a wholly owned subsidiary of the Group.

Rental Housing Business

Net sales in Rental Housing Business amounted to 735,917 million yen (+4.7% year on year), and Non-GAAP operating income came to 79,101 million yen (+4.3% year on year).

In this business, the Company provides proposals and support for rental housing management to help property owners build assets. For “MOKURIE,” wooden apartment complexes launched in May 2026, two buildings were completed by the end of September. The Company will continue to work to facilitate the creation of new lifestyles by providing valuable housing.

Daiwa Living Co., Ltd., under the “D-ROOM” rental housing brand, strengthened efforts to secure management contracts for ZEH-M properties (Net Zero Energy House Mansion) and enhance property value through renovations. These initiatives contributed to an increase in managed units while maintaining a high occupancy rate. It also works to address social issues through regional revitalization activities, including an agreement with Nara City, and strives to provide housing that continues to be chosen even amid population decline.

Daiwa House Chintai Reform Co., Ltd., worked to enhance asset value and address challenges faced by rental housing owners through its renovation, new construction of wooden apartment complex and real estate businesses.

Overseas, in the U.S., the Group works to improve the occupancy rates and profitability of its properties while closely monitoring supply and demand trends and transaction conditions in the U.S. rental housing market. The Group also promotes the development of rental housing in major U.S. cities in collaboration with Alliance Residential Company*.

* Alliance Residential Company is a collective name for ARC Venture LLC and other companies.

Condominiums Business

Net sales in Condominiums Business amounted to 140,161 million yen (+4.4% year on year), and Non-GAAP operating income came to 14,309 million yen (+75.2% year on year).

In this business, the Company engages in the sale of new condominiums, mainly in the Tokyo Metropolitan area and regional hub cities. In July 2026, the Company started selling “Mondomio Fukuoka Hakata Higashihie Station.” It is the first Mondomio-branded property in Fukuoka Prefecture. The Mondomio condominium brand meets a wide variety of needs, including primary residences, second homes and rental use. Sales were generally strong.

Daiwa Lifenext Co., Ltd. worked to develop the next-generation building management model using building equipment and cleaning robots at “Yodoyabashi Gate Tower,” (Osaka) with the aim of improving management quality and operational efficiency. In addition, it prepared to open “L-Place Sakaisuji-Hommachi,” (Osaka), its 77th corporate rental dormitory, while strengthening its business foundation in real estate management and operations. The business remained steady.

Commercial Facilities Business

Net sales in Commercial Facilities Business amounted to 669,950 million yen (+5.2% year on year), and Non-GAAP operating income came to 82,146 million yen (-5.9% year on year).

In this business, the Company proposes various plans tailored to the business strategies of tenant companies and area characteristics. The Company is strengthening its efforts on large-scale properties and expanding its built-for-sale, which handles the entire process from development and leasing to design and construction, as well as its acquisition-and-sale business. In August 2026, the “D-Scape Kanda” urban commercial building (Tokyo)* was completed.

Overseas, in Orlando, Florida, the dual-brand hotel comprising “EVEN Hotel Orlando Universal Blvd by IHG” and “Staybridge Suites Orlando Universal Blvd by IHG,” the Company’s first hotel development project in the U.S., held its grand opening in September 2026.

Daiwa Lease Co., Ltd. opened the “Hitachiota City Public-Private Partnership Complex” (Ibaraki Prefecture) in June 2026. Developed through a public-private partnership, the facility includes a bookstore, a cafe and other amenities that were highly requested by residents. It also has a study space and a lawn area, helping to promote community interaction and create a vibrant atmosphere in the area.

In the urban hotels business operated by Daiwa House Realty Mgt. Co., Ltd., “Daiwa Roynet Hotel Matsue Ekimae” opened in August 2026, bringing the total number of hotels in Japan to 77, with 16,352 rooms as of the end of September. As a result of implementing a sales strategy focused on room rates, ADR (Average Daily Rate) and RevPAR (Revenue per Available Room) increased year on year.

* Name of a high value-added urban commercial facility with a distinctive exterior that connects with the surrounding community and encourages people to explore and spend time in the area.

Logistics, Business & Corporate Facilities Business

Net sales in Logistics, Business & Corporate Facilities Business amounted to 697,002 million yen (+17.8% year on year), and Non-GAAP operating income came to 88,874 million yen (+39.9% year on year).

In this business, the Company provides comprehensive support for facility development tailored to the diverse needs of corporate customers and the effective use of real estate, while working to expand its business.

In logistics facility development, construction commenced on two properties: “DPL Ibaraki II” (Osaka) and “DPL Sapporo Minami V”. In addition, “DPL Osaka Nanko I,” a facility entirely dedicated to refrigerated and frozen storage, was completed, while sales of operating properties also progressed.

In the office and factory-related business, the Company worked to develop production facilities across a wide range of manufacturing fields, including the semiconductor industry, while orders for large-scale projects remained steady.

In the Livness Business, the Company sold “BIZ Livness Inage,” “BIZ Livness Inzai” (Chiba Prefecture) and “BIZ Livness Ibaraki Shimotsuma.” The Company also acquired “BIZ Livness Utsunomiya-shi Tonyamachi.”

In the data center business, construction commenced on the fifth of 14 planned buildings at “DPDC Inzai Park” (Chiba Prefecture).

Fujita Corporation received orders for large-scale offices, accommodation facilities and other projects, and construction orders remained steady.

At Semlinks Co., Ltd.*, power transmission line construction for electric power companies and data center-related construction in Japan and overseas contributed to steady levels of both orders received and the construction order backlog.

Daiwa House Property Management Co., Ltd. signed new property management agreements for three buildings: “DPL Osaka Nanko I” and “D Project Kawaguchi Ryoke B,” (Saitama Prefecture) which are both logistics facilities, and the “DP-Lab Kobe” (Hyogo Prefecture) research facility. As a result, the number of managed buildings reached 273, with a total managed floor area of approximately 11.49 million square meters as of September 30, 2026.

In the logistics services business, orders in the IT business remained firm at the Daiwa Logitech Group. It also worked on projects to reduce labor and automate logistics operations to acquire new customers.

Overseas, preparatory work for three buildings was started in “Blue Ridge Commerce Center Phase II,” the second logistics facility development project in the U.S. In addition, three of the five buildings in the first project, “Blue Ridge Commerce Center Phase I,” were sold, contributing to the monetization of the project.

* The company changed its name from Sumitomo Densetsu Co., Ltd. effective October 1, 2026.

Environment and Energy Business

Net sales in Environment and Energy Business amounted to 77,186 million yen (+18.4% year on year), and Non-GAAP operating income came to 8,840 million yen (+12.3% year on year).

In this business, the Group operates three businesses: the EPC business, IPP business and PPS business.

In the EPC and IPP businesses, the Group contributed to the wider adoption of renewable energy through the expansion of off-site PPAs (Power Purchase Agreements).

In the PPS business, the Group endeavored to maintain relationships with existing customers and worked to expand contracted capacity. Although wholesale electricity market prices rose due to higher fuel prices and other factors, the Group maintained stable operations and secured earnings by procuring most of its power supply through bilateral contracts.

As a new initiative, the Company entered the battery storage business, and its first grid-scale battery storage facility at its Kyushu Plant commenced operations in September 2026.

Overseas, the Company focused on exploring new on-site PPA project opportunities through its joint venture with WHA Corporation in Thailand.

Other Businesses