Faith Network

Basic Information

Stock Code
3489
Industry
Real Estate
Category Detail
Real Estate & Housing
Prefecture
Tokyo
Establishment Year
October 2001
Listing Year
March 2018
Official Website
https://faithnetwork.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
TASUKI Holdings, Dia Life, FuJers Holdings, ZOA, Beerot, Agre Urban, Migaro Holdings, Cosmos Initia, Goldcrest, Eslead, Nippon Escon, MIRARTH Holdings, FJ Next Holdings

Overview

Faith Network is a real estate company established in 2001, primarily engaged in the development and sales management of investment apartments centered in Tokyo.

Current Situation

Faith Network recorded net sales of approximately ¥21 billion, operating profit of about ¥2.5 billion, and net profit of about ¥1.6 billion for the fiscal year ended March 2023, maintaining a solid management foundation. It specializes in the design, construction, sales, and management of investment apartments mainly in Tokyo's Jōnan area, with strengths in brands such as the GranDuo series and GrandStory series. In 2023, it made Iwamoto-gumi, a construction company, a wholly-owned subsidiary to strengthen its integrated system from construction to management. The company promotes sustainability and locally rooted management, emphasizing coexistence with local communities. Moving forward, it aims to improve competitiveness in the investment apartment market through diversification into used property renovations and Japanese tea cafe operations. Listed on the Tokyo Stock Exchange Standard Market, it combines financial soundness and growth potential. It is also actively pursuing collaborations with competitors and new business development.

Trivia

Interesting Facts

  • Achieved Tokyo Stock Exchange listing in just 17 years since founding in 2001.
  • Specialized investment apartment business in Tokyo's Jōnan area.
  • Proprietary brand 'GranDuo' highly evaluated locally.
  • Venturing into non-real estate with Japanese tea cafe business.
  • Achieved integrated management by making construction subsidiary wholly-owned.
  • Real estate company owning a first-class architect office.
  • Scale with total assets over ¥20 billion and 165 employees.
  • Major shareholder (88 Co., Ltd.) holds multiple stakes.
  • Balanced locally rooted and diversification strategies.
  • Launched used property renovation brand 'GrandStory'.
  • Fiscal year-end March 31, with annual financial updates.
  • Representative Director Jiro Hachiya serves as president.
  • Transitioned from Tokyo Mothers to Standard Market.
  • Holds real estate specified joint venture license for investment business.
  • Numerous related news articles featured in Nikkei.

Hidden Connections

  • Construction management by subsidiary Iwamoto-gumi is a key strength and synergy.
  • Japan Master Trust Bank is a prominent major shareholder.
  • Shares Tokyo Jōnan market with competitors like Goldcrest and Eslead.
  • Diversifies revenue beyond real estate via Japanese tea cafe 'Hachiya' operations.
  • Industry注目 company with numerous personnel change articles in Nikkei.
  • Expanded scale through absorption merger with former Five Senses Ltd.
  • Changed market from TSE Part 1 to Standard for optimization.
  • Head office building Faith Bldg. in Shibuya's Sendagaya symbolizes the company.

Future Outlook

Growth Drivers

  • Sustained increase in investment real estate demand in Tokyo
  • Expansion of used real estate renovation market
  • Business efficiency improvements through subsidiary collaboration
  • Revenue diversification effects from locally rooted cafe business
  • Synergies with long-term urban redevelopment plans
  • Innovation in sales and management via technology
  • Growing demand for environmentally considerate architecture
  • Expansion of rental management services tailored to customer needs
  • Competitive edge from swift regulatory adaptation
  • Further strengthening of financial base
  • Continuous brand enhancement
  • Strategic investments in new business areas

Strategic Goals

  • Achieve 30% market share in Tokyo's Jōnan area
  • Double sales in used property renovation business
  • Obtain sustainable architecture certifications for all properties
  • Achieve operating profit margin over 20% through efficiency gains
  • Multi-store expansion and brand establishment for Japanese tea cafe business
  • Customer service innovation via digital technology
  • Shorten construction periods through subsidiary collaboration
  • Systematic promotion and reporting of community contribution activities
  • Expand product development for diverse investor segments
  • Flexible strategies adapting to domestic and international real estate trends

Business Segments

Design and Construction Contracting Business

Overview
Provides design, construction contracting, and renovation services centered on investment apartments.
Competitiveness
Concentrated regional network and brand strength
Customers
  • Real estate developers
  • Individual investors
  • Architectural design firms
  • General contractors
  • Local governments
  • Apartment owners' associations
  • Building materials manufacturers
Products
  • Apartment design
  • Construction management
  • Renovation business
  • Construction contracting
  • Equipment work management
  • Seismic retrofitting
  • Architectural consulting

Real Estate Management Services

Overview
Provides maintenance, management, and operational services for investment properties.
Competitiveness
One-stop service system
Customers
  • Investors
  • Real estate owners
  • Owners' associations
  • Facility operators
Products
  • Building management
  • Maintenance
  • Cleaning services
  • Tenant management
  • Rental management
  • Patrol inspections

Real Estate Brokerage and Sales Support

Overview
Mainly sales support and brokerage services for investment apartments.
Competitiveness
Locally rooted sales strategy
Customers
  • Real estate sales companies
  • Individual investors
  • Corporate clients
Products
  • Property sales support
  • Sales agency
  • Marketing
  • Property referrals

Cafe Operations Business

Overview
Operations of Japanese tea cafe 'Hachiya' in Shibuya Ward, Tokyo.
Competitiveness
Locally rooted brand expansion
Customers
  • General customers
  • Tourists
  • Local residents
Products
  • Japanese tea
  • Light meals
  • Cafe services

Construction Materials Supply

Overview
Stable supply of materials through subsidiaries.
Competitiveness
Integrated procurement management
Customers
  • Construction companies
  • Renovation contractors
  • Real estate developers
Products
  • Building materials
  • Building equipment
  • Renovation materials

Competitive Advantage

Strengths

  • Regionally specialized investment apartment development
  • Design technology with in-house first-class architect office
  • Integrated construction system via construction subsidiary
  • Financial stability
  • Credibility as a listed company
  • Diversified real estate-related businesses
  • Established proprietary brands
  • Comprehensive management services
  • Locally rooted cafe operations
  • Renovation business expertise
  • High design and construction quality
  • Understanding of investor needs
  • Selective supply of premium properties
  • Unique sales network
  • Synergy between parent and subsidiaries

Competitive Advantages

  • Competitive edge from business focus on Tokyo's Jōnan area
  • High brand recognition of GranDuo and GrandStory
  • End-to-end response from construction to management via subsidiary
  • Strong community ties through Japanese tea cafe operations
  • Funding capabilities as a Tokyo Stock Exchange Standard Market listed company
  • High-quality design enabled by in-house first-class architect office
  • Expertise and track record in investment real estate market
  • Stable revenue base built on management services
  • Added value enhancement through used property renovation techniques
  • Balance of financial health and growth orientation
  • Diversification strategy for flexible market adaptation
  • Product development and sales strategies reflecting local needs
  • Business execution power from ample capital and workforce
  • Operational efficiency through smooth collaboration with affiliates
  • Reliability from regulatory compliance and licenses

Threats

  • Regional risk limited to Tokyo real estate market dependency
  • Performance impact from fluctuations in investment property demand
  • Cost increases from rising construction material prices
  • Intensifying competition from new entrants
  • Decline in real estate investment during economic downturns
  • Deterioration of funding environment due to monetary policy changes
  • Impact of demographic shifts
  • Decline in property values from natural disasters
  • Business constraints from strengthened regulations
  • Intensifying competition in used property renovation market

Innovations

2023: Iwamoto-gumi Wholly-owned Subsidiary Acquisition

Overview
Acquired construction subsidiary Iwamoto-gumi as a wholly-owned subsidiary to strengthen construction capabilities.
Impact
Achieved quality improvement and cost reduction through unified design and construction.

2021: GrandStory Series Launch

Overview
Launched renovation series for used whole buildings.
Impact
Successfully acquired new customer segments in the used real estate market.

2023: Expansion of Japanese Tea Cafe 'Hachiya' Operations

Overview
Advanced Japanese tea cafe business in Shibuya Ward to diversify customer base.
Impact
Secured locally rooted revenue sources and enhanced brand recognition.

2022: Promotion of Sustainability Certifications

Overview
Focused on introducing environmentally considerate architecture and obtaining certifications.
Impact
Improved social evaluation and gained customer trust.

2020: Enhanced Sales Promotion via IT Utilization

Overview
Expanded online sales channels and marketing.
Impact
Improved sales efficiency and increased new customer acquisition.

Sustainability

  • Promotion of environmentally considerate architectural design
  • Expansion of energy-efficient property development
  • Strengthening ties with local communities
  • Promotion of renewable energy adoption
  • Encouragement of construction waste recycling
  • Thorough selection of sustainable materials
  • Efficiency improvements via digital technology
  • Enhanced employee health and safety management
  • Active participation in CSR activities
  • Strict compliance with laws and regulations
  • High transparency in information disclosure
  • Promotion of diversity and inclusion