Sapphire Terra Capital Proposes Goldcrest's Listing on the Tokyo Stock Exchange Prime Market

Sapphire Terra Capital (hereinafter "Sapphire Terra"), an investment management company based in Chicago, USA, specializing in engagement investing in Japanese equities. Sapphire Terra has been continuously investing in Goldcrest Ltd. (TSE Code 8871, hereinafter "Goldcrest") since 2024.

Background

Sapphire Terra has previously proposed that Goldcrest implement the following corporate value enhancement measures as a listed company:

1. Optimization of financial leverage and improvement of capital efficiency (ROE) 2. Disclosure of a shareholder return policy with a strong message and introduction of restricted stock (RS) 3. Appointment of a CFO and establishment of a dedicated IR team

Regarding "1. Optimization of financial leverage and improvement of capital efficiency (ROE)", we estimate that the company has achieved this through aggressive acquisition of urban properties and participation in real estate development projects funded by bank borrowings since last year, increasing its financial leverage (DOE) to approximately 1.4x as of the end of March 2026. As a result, we expect that the foundation for improving the company's ROE has been laid.

Furthermore, Sapphire Terra appreciates the commitment shown by management to expand shareholder returns in the form of an increased dividend to 160 yen regarding "2. Shareholder return policy".

In addition, Sapphire Terra continues to engage with management towards the realization of "2. Introduction of stock incentives such as RS" and "3. Appointment of a CFO and establishment of a dedicated IR team".

New Proposal: Raising Growth Capital and Improving Market Liquidity Through Listing on the TSE Prime Market

In addition to these proposals, Sapphire Terra is newly proposing the following corporate value enhancement measures:

1. Achieve listing on the Tokyo Stock Exchange Prime Market

Currently, Goldcrest is listed on the Tokyo Stock Exchange Standard Market. However, Sapphire Terra believes that as a company with a unique and profitable real estate business model, it should rightfully be listed on the TSE Prime Market.

Sapphire Terra believes that by achieving early listing on the TSE Prime Market, Goldcrest can enhance its corporate value by enjoying the following listing benefits:

<Benefits of Listing on the TSE Prime Market>

* Increased financial credibility, enabling the procurement of more growth investment funds. * Enhancement of brand value. * Expansion of the potential investor base by becoming a stock available to a wider range of institutional investors. * Improvement of incentives for the company's officers and employees through systems such as stock-linked compensation, including RS and employee stock ownership plans.

2. Raise growth capital through new share issuance

We propose raising growth investment funds by issuing new shares upon listing on the TSE Prime Market. With expanded equity capital, the company will be able to make agile investments in promising investment and development projects by applying additional leverage through bank borrowings.

3. Enhance market liquidity through a secondary offering of shares

We propose enhancing the market liquidity of shares by conducting a secondary offering of a portion of the shares held by major shareholders, including President Yasukawa, as necessary, upon listing on the TSE Prime Market. Sapphire Terra believes that the current stock price of Goldcrest does not appropriately reflect its corporate value, partly due to the low market liquidity of its shares. By conducting a secondary offering and increasing market liquidity, we expect to achieve an appropriate stock price that reflects the company's corporate value.

<Sapphire Terra's New Proposals>

1. Achieve listing on the Tokyo Stock Exchange Prime Market 2. Raise growth capital through new share issuance 3. Enhance market liquidity through a secondary offering of shares

We expect Goldcrest's management to consider and promptly implement the above proposals.

Contact: info@sapphireterra.com Website: sapphireterra.com