TAISEI CORPORATION
1801・Prime Market・Construction
Development Business
A highly profitable, stable segment of the Taisei Corporation group handling real estate sale, leasing, and management
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (segment total, including intersegment transactions) | ¥154,269 million | ¥146,788 million | ↑ |
| Net sales to external customers | ¥144,174 million | ¥137,589 million | ↑ |
| Operating income (before goodwill amortization) | ¥23,952 million | ¥23,487 million | ↑ |
| Operating margin | 15.5% | 16.0% | ↓ |
| Depreciation and amortization | ¥2,653 million | ¥2,748 million | ↓ |
| Orders received (external customers) | ¥145,755 million | ¥150,729 million | ↓ |
| Impairment loss | ¥532 million | ¥58 million | ↑ |
Business Details
This segment engages in real estate sale and purchase, residential land development, sales, and leasing of owned real estate. It comprises Taisei Corporation itself in addition to subsidiaries and affiliates such as Taisei Yuraku Real Estate Co., Ltd. (residential land and condominium development/sales, real estate leasing management) and Taisei Yuraku Real Estate Sales Co., Ltd. The segment aims to contribute to high-value-added community development by combining general contractor technical capabilities with development know-how. Although it accounts for only about 7% of group-wide net sales, it maintains a highly profitable structure with an operating margin exceeding 15%.
Recent Overview
Achieved higher sales and profit, supported by recovery in the building leasing market and an increase in consolidated subsidiaries
In the fiscal year ended March 2026, the Development Business achieved net sales of ¥154,269 million (up 5.1% year on year; ¥144,174 million to external customers), driven by an increase in consolidated subsidiaries. Operating income increased 2.0% year on year to ¥23,952 million, reflecting higher sales and an increase in gross profit on development business due to margin improvement at the company. In the real estate industry, the continued return-to-office trend has led to lower vacancy rates and rising rents. On the other hand, it should be noted that orders received declined 3.3% year on year to ¥145,755 million, and impairment losses increased to ¥532 million from ¥58 million in the prior period. The order backlog carried forward to the next period has accumulated to ¥19,367 million (up 8.9% year on year).
Key Products
Growth Drivers
- Continued decline in vacancy rates and rising rent trends in the building leasing market amid the ongoing return-to-office trend
- Sustained strength in the real estate sales market backed by robust investor appetite
- Expansion of the group's development business due to an increase in consolidated subsidiaries (including the full consolidation of Toyo Construction)
- Focus on high-value-added community development combining "development know-how" and "technical capabilities" based on the TAISEI VISION 2030 achievement plan
- Stable securing of sales through the accumulation of the carried-forward order backlog for the next period (¥19,367 million, up 8.9% year on year)
Risks
- Downward pressure on medium-term sales due to a decline in orders received (¥145,755 million, down 3.3% year on year)
- Risk of impact on profit from increased impairment losses (¥532 million in the current period versus ¥58 million in the prior period)
- Fluctuations in the real estate market (risk of reduced investment appetite due to rising interest rates or economic downturn)
- Potential downward pressure on the economy from geopolitical risks such as the Middle East situation and the impact of US trade policy, which could lead to suppressed capital investment by manufacturers
- Geopolitical risk and foreign exchange risk in the overseas real estate business conducted through overseas subsidiaries and affiliates
- Downward pressure on margins from increased selling, general and administrative expenses (operating margin declined from 16.0% in the prior period to 15.5%)
Last updated: June 18, 2026