DAITO TRUST CONSTRUCTION CO.,LTD.
1878・Prime Market・Real Estate
Business
The Daito Kentaku Group is a comprehensive real estate company comprising the Company, 71 consolidated subsidiaries, and 5 affiliated companies. Its core businesses are the "Construction Business" and "Real Estate Rental Business," which provide landowners with vertically integrated services ranging from planning and construction of rental housing to tenant placement and comprehensive lease management (master lease). In addition, the Group operates the "Real Estate Development Business," which handles the development and sale of investment condominiums and income-producing real estate; the "Financial Business," which bundles construction financing, insurance, and trust services; and "Other Businesses," including LP gas, nursing care, and hotels. Its main customers are landowners (affluent individuals and landholders) and rental tenants, and it has established a stock-type earnings model underpinned by 1,351,329 units under management (as of the end of March 2026).
Business Model
In the rental housing construction proposal to landowners (construction business), completed construction revenue is recognized, and after completion, Daito Kentaku Partners enters into a master lease (sub-lease) agreement to continuously earn rental income. The structure features a cross-sell mechanism in which an increase in managed units automatically expands demand for peripheral services such as electricity, insurance, gas, and finance, and the revenue base becomes more stable as stock revenue accumulates. The real estate development business aims to diversify earnings through external growth via M&A.
Company Strengths
As of the end of March 2026, the number of managed units stood at 1,351,329 (up 2.2% year on year), the largest scale in the industry. The rent-based occupancy rate remained high, at 98.0% for residential units (up 0.2 percentage points year on year) and 99.4% for commercial units. This high occupancy rate supports the stable recognition of ¥1,065,410 million in guaranteed rent income under the master lease scheme and forms the basis of the company's competitive advantage by minimizing vacancy losses.
Through the "Chintai Keiei Jutaku System" (rental property management outsourcing system) introduced in 2006, the group completes land utilization proposals, design and construction, tenant placement, and master lease management all in-house. Backed by an order backlog of ¥783,634 million, the company stably recognizes construction revenue, while post-completion properties convert into management revenue, forming a cyclical structure that is difficult for competitors to replicate in a short period. This business design is the source of operating profit of ¥135,256 million for FY2026 (ending March 2026).
In the 2025 CDP assessment, the company achieved the highest rating, "A List," in all three categories of Climate Change, Forests, and Water Security, and was selected as a Triple A company (one of six in Japan), placing it in the top 0.1% of approximately 22,100 companies assessed worldwide. The accumulation of environmental technologies, including ZEH rental housing, LCCM rental housing, CLT construction methods, and biomass power generation (achieving RE100 domestically), enhances the company's ability to offer differentiated proposals to landowners, forming a competitive advantage amid tightening regulations.
ENVALITH's Perspective
Performance Trend
In FY2026 (ending March 2026), the company achieved net sales of ¥1,984,743 million (up 7.7% year on year), operating profit of ¥135,256 million (up 13.8% year on year), and profit attributable to owners of parent of ¥99,030 million (up 5.5% year on year), marking the fifth consecutive year of increased revenue and profit. The increase in net sales was primarily driven by the real estate development business (up ¥95.7 billion year on year) and the real estate leasing business (up ¥38.4 billion year on year). In terms of the external environment, continued wage increases provided support for personal consumption as a tailwind, while rising interest rates (interest expense surged from ¥611 million to ¥3,266 million) and soaring material prices partially squeezed profits. For FY2027 (ending March 2027), the company plans net sales of ¥2,050,000 million (up 3.3% year on year), operating profit of ¥142,000 million (up 5.0% year on year), and net income of ¥108,000 million (up 9.1% year on year), continuing efforts toward achieving the targets of the final year of the medium-term management plan.
Growth Strategy
Toward the final year of the medium-term management plan, the company is simultaneously advancing expansion of the real estate development business and strengthening of core operations.
Following the consolidation of Ascot (Ascot Corp.) as a subsidiary in March 2025, real estate development business revenue expanded sharply to ¥147,083 million (up 186.5% year on year). As a subsequent event, the company is proceeding with making THE Global Co., Ltd. a wholly owned subsidiary (acquisition price of ¥17,409 million), further strengthening its development and land-sourcing capabilities in central Tokyo metropolitan areas. The plan for FY2027 (ending March 2027) targets revenue of ¥180,000 million (up 22.4% year on year) and operating profit of ¥25,000 million (up 34.9% year on year).
The company aims to expand the number of managed units to 1,375,800 (up 1.8% year on year) by the end of March 2027, and to grow master lease business revenue to ¥1,094,000 million (up 2.4% year on year). The rent-based occupancy rate (residential) remained at a high level of 98.0% in FY2026 (ending March 2026), and while the FY2027 (ending March 2027) plan assumes 97.6% (down 0.4 points year on year), the company will continue to steadily build up stable stock-type earnings. Expansion of peripheral services such as the electric power business and rent guarantee business will also be promoted in parallel.
The company is promoting human capital management, which it positions as the top priority of its medium-term management plan, and plans to increase the number of construction sales staff from 2,940 (end of March 2026) to 3,000 by the end of March 2027. Leasing sales staff will move to a 1,600-person structure while pursuing efficiency gains. Consolidated total headcount is expected to expand from 19,326 (end of March 2026) to 19,900 (FY2027 (ending March 2027) plan). Although the increase in personnel expenses (up ¥8.1 billion year on year) is partly weighing on profit, this is regarded as an investment in strengthening medium- to long-term earning power.
Due to optimization of sales areas in light of soaring construction costs and tenant placement conditions, orders received in FY2026 (ending March 2026) decreased to ¥570,514 million (down 4.4% year on year), but the company plans a recovery to ¥580,000 million (up 1.7% year on year) in FY2027 (ending March 2027). The gross profit margin on completed construction is targeted to improve from 25.4% in FY2026 (ending March 2026) to a planned 26.1% in FY2027 (ending March 2027). Backed by an order backlog of ¥783,634 million, the company expects to achieve completed construction revenue of ¥589,100 million (up 1.6% year on year).
A transaction agreement was concluded on March 24, 2026, and the company plans to transfer all of its shares in Solasto Corporation to Solasto around August 2026. If this share transfer is executed, an extraordinary gain of approximately ¥10 billion is expected to be recorded. Solasto will cease to be an equity-method affiliate of the group, and the capital and business alliance agreement will also be terminated. By dissolving the capital and business alliance, whose effects had become limited, the company aims to improve capital efficiency and concentrate management resources on the real estate development business.
Last updated: July 19, 2026