Mullion Co.,Ltd. (3494) Stock Price

Marion owns and operates rental residential properties for individual residents, particularly single-person households, centered in the Tokyo metropolitan area and across major cities nationwide. The company securitizes these rental revenues into real estate investment products for investors and sells crowdfunding products via the internet, including Marion Bond, Salaryman Bond, and i-Bond.

In addition to residents, Marion's primary customers include Tokyo offices of local public authorities. Of the 751 units Marion owns in the Tokyo metropolitan area, 271 units (36.1%) are leased to meet such public sector demand, ensuring stable rental income. The revenue structure is primarily based on rental income, with investor returns from real estate securitization distributing a portion of rental revenue to investors. Anonymous partnership deposits total 4,953 million yen (35.3% of total liabilities) and serve as an important funding source.

The business operates as a single segment focused on rental property-related services, providing a complete lifecycle of services including property acquisition, rental income generation during the holding period, investor distribution through securitization, and property sales for maturity management and profit realization. Rental services are built on three pillars: direct long-term leasing, master lease and sublease arrangements where Marion leases properties and subleases them to tenants, and property management services for owners. The company is also expanding sales methods, including tokenization options for i-Bond.

The company pursues stable growth through two core pillars: rental property operations and the structuring and sale of real estate securitized products. The strategy focuses on key performance indicators including the operating profit margin relative to revenue and its trends, as well as maintaining and improving occupancy rates, with rental income serving as the foundation for stable earnings. Of the 751 rental units currently held, primarily in major cities, 271 units (36.1%) are leased to local government entities and similar organizations, providing stable income backed by public sector demand. The company also leverages investor funds—specifically anonymous partnership deposits totaling 4,953 million yen (35.3% of total liabilities)—as a funding mechanism to stabilize revenues.

The company's priority investment focus is residential rental properties, particularly those targeting single-person households, where it maintains competitive advantages. To preserve property quality, the company implements planned maintenance and equipment upgrades tailored to tenant needs, while strengthening operational capabilities through master lease arrangements, subleasing, and property management contracts. Given declining yields in the Tokyo metropolitan area, the company pursues a differentiated strategy by exercising caution in acquisitions there while actively seeking opportunities in designated cities outside the metropolitan area, thereby balancing profitability and risk.

For market expansion and business growth, the company is expanding real estate securitization services and cloud-based sales channels. By leveraging direct investor funding, the company can acquire rental properties even when financial institutions tighten lending, enabling the structuring of new securitization projects. The company also aims to maximize investment returns by realizing unrealized gains through timely asset sales and portfolio rebalancing in response to market conditions. Diversifying the funding base—combining both financial institution financing and anonymous partnership investments—remains an explicit strategic priority.

Regarding technological innovation, the company is advancing digitalization of sales and operations alongside enhanced information disclosure. The company has established a system enabling end-to-end web-based processing from application through contract execution for real estate securitized products including i-Bond, and provides investors with a searchable function displaying monthly occupancy data for underlying properties; this system holds a patent (Patent No. 5831989). Additionally, following the November 2024 regulatory changes, the company is preparing for blockchain-based securitization (tokenization), strengthening systems and compliance frameworks to support security token issuance under electronic trading authorization, thereby enhancing investor convenience and trust.