SRE Holdings Inc.'s Real Estate AI Appraisal Service "SRE AI Appraisal CLOUD" Surpasses 2 Million Appraisals

SRE Holdings Inc. (Headquarters: Minato-ku, Tokyo; Representative Director, President and CEO: Kazuyoshi Nishiyama; hereinafter referred to as "the Company") is pleased to announce that its real estate AI appraisal service, "SRE AI Appraisal CLOUD," has surpassed a cumulative total of 2 million appraisals.

This milestone is a result of "SRE AI Appraisal CLOUD" being widely utilized in the practical operations of the real estate and finance industries, supported by continuous use. We position this as an important quantitative indicator supporting the expansion of revenue and profit in our AI Cloud & Consulting (AICC) segment.

Background: Challenges in the Real Estate Industry and Our Initiatives

For many years, the real estate industry has faced challenges such as the personalization of appraisal operations, heavy workloads, and variations in judgment among担当者 (personnel in charge). Amidst a worsening labor shortage, there is a growing need to establish a system that allows for swift and evidence-based proposals with limited staff.

The Company has been providing "SRE AI Appraisal CLOUD" since 2018, leveraging proprietary non-public transaction data accumulated from its own real estate brokerage and resale businesses, along with machine learning technology. Starting from practical issues faced on-site, we have continuously improved the service, refining it into an industry-specific AI cloud that is easy to integrate into daily operations.

Significance of Surpassing 2 Million Appraisals: "AI in Use" Integrated into Daily Operations

In addition to AI appraisals, "SRE AI Appraisal CLOUD" supports multiple appraisal methods, including the comparative sales approach, income capitalization approach (optional), and cost approach (optional), enabling appraisals for a wide range of properties from owner-occupied to investment properties. It also supports report output functions for purchase brokerage and API integration, and is utilized according to the operational workflows of real estate companies and financial institutions.

The service's track record of a 99.6% retention rate and a 0.4% monthly churn rate (※1) indicates "price increase resilience" and "depth of operational integration," demonstrating that users do not leave even after price revisions. Following the price revision in 2022, the churn rate improved (from 0.7% to 0.4%), indicating a high switching cost.

Concrete Value Being Generated on-Site

As measured by our own operations, the appraisal process, which traditionally took 180 minutes, has been reduced to 5 minutes (a 97% reduction), and the appraisal error rate has been achieved at 5.6%, compared to the industry standard of 9-10% (※2).

The following effects have been confirmed in implementation examples:

* Appraisal report creation: Over 1 hour → Under 10 minutes (Real estate brokerage businesses) * Number of cases that can be handled: Expanded 4-fold per担当者 (financial institutions) (※3) * Achieves a certain quality of output even for less experienced担当者, contributing to operational standardization.

Contribution to AI Cloud Revenue Base

The Company aims for a +26.1% year-on-year growth in AICC segment profit in the fiscal year ending March 2027 (※4), with "SRE AI Appraisal CLOUD" as a core product supporting this growth.

The achievement of 2 million appraisals directly contributes to our ARR growth through the following mechanisms:

* Churn suppression through a 99.6% retention rate → Stable ARR growth * Increased appraisal frequency and depth of utilization → Upselling to higher-tier plans * Accumulation of performance data → Improved model accuracy → Enhanced pricing power * Implementation examples with financial institutions → Reference for acquiring large enterprise clients

Key KPIs are as follows:

Impact on the Entire Industry: Cumulative Operational Efficiency Time Approx. 8.5 Million Hours

According to our estimates in the third quarter of the fiscal year ending March 2026, the cumulative operational efficiency time gained through "SRE AI Appraisal CLOUD" since 2021 has reached approximately 8.5 million hours, resulting in a cost reduction effect of approximately 27.2 billion yen in personnel costs (※6).

While this value is generated for our client companies, it flows back to our ARR in the form of a high retention rate of 99.6% and a low churn rate of 0.4%. This indicates that "SRE AI Appraisal CLOUD" is not just an appraisal tool but has become embedded as operational infrastructure for the field.

Future Outlook

We are proceeding with the full-scale deployment to megabanks, regional banks, and credit unions, centered around the "SRE AI Appraisal CLOUD Financial Institution Package" launched in March 2026. The financial institution package is an enterprise design that comprehensively supports collateral valuation and loan screening, and we anticipate an ARPU level exceeding that of our standard PropTech (PT) solution plans.

Moving forward, the Company will continue to enhance its functions based on feedback from the field and provide industry-specific AI clouds that are difficult to replace with general-purpose generative AI. Through these efforts, we aim to improve productivity in real estate and financial operations, realize a neutral and transparent valuation and judgment environment, and promote DX/AX (Digital Transformation/AI Transformation) across the industry. By doing so, we will support our customers' business growth and strengthen our business foundation, contributing to the Company's mid-to-long-term corporate value enhancement.

Notes

※1 Monthly churn rate of 0.4% and service retention rate of 99.6% are actual performance values for our AI cloud services (paid contracts). These have been maintained at low levels since the price revision in 2022. Source: Company Financial Results Briefing Materials (Q3 FY2026).

※2 Appraisal error rate of 5.6% and reduction in operational time from 180 minutes to 5 minutes are estimated values based on our operational performance and implementation examples. The comparison with the industry standard of 9-10% is our estimate based on public data. This may vary depending on individual properties and market conditions.

※3 The 4-fold increase in the number of cases that can be handled by financial institutions is the result of effectiveness measurement at a specific implemented financial institution. This may vary depending on individual conditions.

※4 The AICC segment profit growth target of +26.1% is based on our disclosed annual profit target for the fiscal year ending March 2027 (AI & Cloud Consulting segment profit from 3,474 million yen to 4,380 million yen). Source: Company Financial Results Briefing Materials (FY2027).

※5 Over 5,000 paid contract companies are based on the press release "Cloud Service Paid Contract Companies Exceed 5,000" announced on March 5, 2026.

※6 Cumulative operational efficiency time of approximately 8.5 million hours and personnel cost equivalent of approximately 27.2 billion yen are our estimates in the Q3 FY2026 financial results materials (cumulative since 2021). Calculation premise: 175 minutes saved per appraisal × cumulative 2 million appraisals, assumed hourly wage is our set value. Includes re-appraisals of the same property, test environments, and internal use. This is an effect generated for client companies and does not directly represent our sales or profits.

About SRE AI Appraisal CLOUD

"SRE AI Appraisal CLOUD" is a real estate appraisal system developed by our company. By utilizing AI and combining it with abundant data and machine learning technology, it achieves high-precision appraisals in a short time. It supports multiple appraisal methods such as the comparative sales approach, AI appraisal, and income capitalization approach (optional), and can appraise properties from owner-occupied to investment properties. It also includes a report output function that can be used for purchase brokerage, and the real estate price estimation AI engine supports API integration.

About SRE Holdings Inc.

With the vision of "Updating Life and Healthcare with Technology," our Company operates as a life-tech company that fuses real-world business with AI. Our core strengths lie in our unique circular business model, which leverages data generated in the field for AI and feeds it back into real-world business, centered around "AI Cloud & Consulting" that provides industry-specific AI, and "Life & Property Solutions" primarily in the real estate domain, including healthcare-related facilities.

Through the synergistic effect of real-world business and technology derived from this circular business model, we aim for sustainable corporate value enhancement.

Inquiries Regarding This Matter

SRE Holdings Inc. Planning and Administration Division, Public Relations & IR Office

TEL: (03)-6274-6550

https://sre-group.co.jp/ir/