Syla Technologies sees FY25 mid-term revenue target 34B yen

SYLA Technologies announced its mid-term business strategy centered on M&A and mid-term revenue targets for the next three years from the fiscal year ending December 2024 through the fiscal year ending December 2026. In its mid-term business strategy, SYLA aims to further accelerate the growth of its existing businesses by actively pursuing M&A opportunities, following the Company’s successful acquisition of a solar power business, and a business transfer from ietty Inc., a Japanese based AI real estate broker. Sees FY24 mid-term revenue target 27.5 – 30.0 billion yen and FY26 41.0 billion yen…”The Japanese real estate industry has experienced substantial growth, particularly in the central Tokyo area, amid the recent low-interest-rate market conditions,” said Chairman, Founder, and CEO Hiroyuki Sugimoto. “Conversely, many companies in the real estate industry have price-to-book ratios below 1x, unable to leverage their robust net assets for their growth due to challenges such as industry-wide aging and the absence of business successors. With an estimated 23 trillion yen in unrealized profits for Japanese companies, attributed to the decade-long expansion of the central Tokyo real estate market, these low-growth companies have significant potential by taking advantage of leverage. Enriched with interconnected sectors, the real estate industry has the capacity to further stimulate the overall Japanese economy.” “SYLA is committed to fostering robust and steady organic growth by integrating our core real estate development and sales business with the Rimawari-kun business. Leveraging the cash generated from these businesses, we will concurrently pursue a growth strategy through M&A, targeting companies with a stable financial foundation and growth potential that are currently undervalued by the market. On the other hand, in the post-acquisition phase, it is imperative to create a secure work environment that empowers both management and employees to showcase their full capabilities. Therefore, we anticipate incurring reasonable post-merger integration costs, encompassing group integration and accounting audits. While these expenses may temporarily impact our short-term profits, we remain confident that this M&A strategy will drive substantial growth for SYLA in the medium to long term, ultimately delivering significant returns to our shareholders,” said management.