Musashi Corporation Records All-Time High Occupancy Rate of 98.85% for Managed Properties, Successfully Increases Rent in 45% of Vacant Rooms Advertised

Musashi Corporation (Representative Director: Yoshitake Otani, Headquarters: Saitama City, Saitama Prefecture, hereafter: Musashi Corporation), which engages in the trading, brokerage, rental management, and construction of income-producing real estate, is pleased to announce that the occupancy rate of its managed rental properties reached an all-time high of 98.95% as of the end of March 2026.

Maintaining High Operation in Challenging Conditions: 88% of Managed Properties are Over 20 Years Old

Our company manages a large number of older properties in the Kanto region, with 88% of the total being properties over 20 years old. These include many properties in suburban areas, and notably, properties that are a '20-minute walk or more from the station' account for about half of the total. The majority of our portfolio consists of properties with conditions generally considered difficult for securing tenants.

However, even under such conditions, we have achieved a record high of 98.95%.

Occupancy Exceeds 99% in Tokyo and 3 Surrounding Prefectures; Northern Kanto Sees Settlement Trend Surpassing Past Averages

The occupancy rates by prefecture for our managed properties as of the end of March 2026 are shown in the table below.

Prefecture | Past 2-Year March Average Occupancy | End of March 2026 Occupancy | Fluctuation Saitama | 99.01% | 99.28% | Increased by 0.27 points Tokyo | 99.02% | 99.68% | Increased by 0.66 points Kanagawa | 98.23% | 99.17% | Increased by 0.94 points Chiba | 98.58% | 99.08% | Increased by 0.50 points Tochigi | 97.34% | 97.64% | Increased by 0.30 points Gunma | 97.19% | 97.49% | Increased by 0.30 points Ibaraki | 95.68% | 94.81% | Decreased by 0.87 points Total | 98.51% | 98.95% | Increased by 0.44 points

In addition to the occupancy rate exceeding 99% in Tokyo and three surrounding prefectures (Tokyo, Saitama, Kanagawa, Chiba), the two Northern Kanto prefectures of Tochigi and Gunma exceeded their historical average occupancy rates. According to the Ministry of Internal Affairs and Communications' 'Report on Internal Migration in Japan Derived from the Basic Resident Registers 2025', net migration into Tokyo and the three surrounding prefectures reached 123,534 people. These factors are believed to have increased rental demand in the metropolitan area, bolstering our high occupancy rates.

Furthermore, a factor for the increased occupancy rate in the Northern Kanto area is presumed to be a growing trend towards 'settling down'—staying longer in current residences—due to the recent soaring costs of moving. In fact, the number of contract cancellations in the Northern Kanto area for our managed properties decreased by 6.52% compared to the past two-year average, further inferring this settlement trend.

Successful Rent Increases in 45% of Advertised Properties / High Occupancy Rates Strongly Support Rent Growth

In addition to improving occupancy rates, we have also seen substantial results in rent increases. During the period from January 2021 to March 2026, the percentage of rooms contracted at a higher rent than the previous lease among our advertised vacant properties reached 45.2%. The number and percentage of increases by prefecture, and the average amount of increase/decrease, are shown in the table below.

<Number of Rent Increases for Vacant Properties Advertised from 2021 to 2026>

*Calculated for properties that have been advertised twice or more in the same unit during the target period, allowing for a rent comparison with the previous contract.

Prefecture | Advertised Cases | Increased Cases | Increase Ratio | Average Rent Increase/Decrease Saitama | 3,045 | 1,501 | 49.3% | 1,937 JPY Tokyo | 1,437 | 696 | 48.4% | 2,395 JPY Kanagawa | 1,300 | 547 | 42.1% | 1,071 JPY Chiba | 1,099 | 528 | 48.0% | 1,690 JPY Tochigi | 527 | 156 | 29.6% | 721 JPY Gunma | 656 | 217 | 33.1% | 710 JPY Ibaraki | 70 | 34 | 48.6% | 1,571 JPY Total | 8,134 | 3,679 | 45.2% | 1,665 JPY

Rent increases were particularly prominent in Tokyo and the three surrounding prefectures, with rent increases successfully achieved in about half of the advertised properties. These areas match the regions where the occupancy rate exceeds 99% as mentioned above, creating a situation where rent increases are possible against the backdrop of robust rental demand.

Furthermore, our company has established a system that realizes aggressive rent increases by systematically practicing the following items as our unique know-how.

<Our Unique Know-How Enabling Rent Increases> - Analysis and utilization of response data and contract speed of other rooms in the same property - Re-evaluation of rent based on market rates for properties whose rent has not changed for many years - Aggressive rent proposals made possible precisely because it is an area with many affiliated rental brokerage companies

The foundation of these efforts is the 'PM (Property Management) style management' adopted by our company. By not keeping tenant recruitment exclusively in-house but distributing it to the market through an extensive external network, we maximize visibility and secure favorable terms.