ENVALITH
いちご株式会社 logo

Ichigo Inc.

2337・Prime Market・Real Estate

Official website
いちご株式会社 logo
Ichigo Inc.2337

Business

Ichigo Inc. has adopted the corporate philosophy of "Making Japan Richer," and operates as a sustainable infrastructure company with three business segments: the "Shinchiku Business," which creates new value in existing real estate; the "Asset Management Business," which manages three J-REITs and private funds; and the "Clean Energy Business," centered on solar and wind power generation. Founded in 2000, the company moved to the TSE First Section (now the Prime Market) in 2015. Under its long-term VISION "Ichigo 2030," the company is targeting a stock-type revenue ratio of 60% or more and an average ROE of 15% or more over the period, promoting the establishment of a stable revenue base that is less susceptible to real estate market conditions. Its main customers span a wide range, including institutional investors, J-REIT unitholders, individual real estate investors, and hotel operators.

Business Model

In the Shinchiku (Value-add Renovation) business, the company acquires and holds real estate to earn rental income (stock revenue) while enhancing property value through proprietary real estate technology and know-how, realizing capital gains upon sale (flow revenue). In the Asset Management business, the company receives base management fees and performance fees from three J-REITs and private funds. In the Clean Energy business, the company accumulates stable electricity sales revenue based on the FIT (Feed-in Tariff) system. The three businesses complement one another, forming a stable foundation with a stock revenue fixed-cost coverage ratio of 195%.

Company Strengths

Stock income (rental income, electricity sales income, base asset management fees, etc.) covers 195% of fixed costs, establishing a stable earnings structure. As of the fiscal year ended February 2022, the stock income ratio reached 60%, achieving the target of the long-term VISION "Ichigo 2030" ahead of schedule. A characteristic feature is an earnings base that is less susceptible to real estate market business cycles.

Manages three J-REITs—Ichigo Office REIT Investment Corporation (8975), Ichigo Hotel REIT Investment Corporation (3463), and Ichigo Green Infrastructure Investment Corporation (9282)—in addition to private funds. It is the only company in the J-REIT market to have introduced a fully performance-based fee structure linked to unitholder value, achieving both transparency in asset management fees and promotion of active management.

As of the end of the fiscal year ended February 2022, held 60 operating power plants (generation output of 169.1MW). During the same period, 9 new power plants (19MW), including the wind power plant "Ichigo Yonezawa Itaya ECO Power Plant," came online, and stable electricity sales income under the FIT (Feed-in Tariff) scheme contributed for the full period. The Clean Energy segment recorded sales of ¥5,362 million and profit of ¥2,134 million.

ENVALITH's Perspective

For Q1 of FY2027 (ending February 2027), sales were ¥10,497 million (down 15.9% year-on-year), operating profit was ¥2,587 million (down 25.4%), and ordinary profit was ¥1,448 million (down 37.8%), representing a decline in both revenue and profit on the surface. On the other hand, business profit, which incorporates the gain/loss on sale of Shin-Chiku assets recorded under extraordinary income, rose sharply to ¥6,822 million (up 45.3% year-on-year). Investors need to accurately understand the divergence structure between "business profit" and "operating profit," and the fact that the timing of flow revenue recognition amplifies the volatility of quarterly results is a point that warrants continued monitoring.

In the Ichigo Owners business, there were zero real estate sales in Q1 of the current fiscal year, resulting in a segment loss of ¥40 million. The full-year forecast for real estate sales (revenue) of ¥620 million is planned to be concentrated from Q2 onward, resulting in a revenue structure weighted toward the second half. The full-year earnings forecast (operating profit of ¥20,600 million, net income attributable to owners of the parent of ¥18,000 million) represents modest increases of 0.7% and 8.2%, respectively, versus the previous fiscal year, but execution of Ichigo Owners sales and the continuation of Shin-Chiku flow revenue hold the key to achieving these targets.

At the end of Q1 of the current fiscal year, total assets stood at ¥445,099 million (up 2.1% from the end of the previous fiscal year), and total liabilities stood at ¥336,044 million (up 5.3%), with borrowings increasing by ¥19,470 million. The equity ratio was 24.4% (down 2.3 percentage points from the end of the previous fiscal year), and total net assets were ¥109,054 million (down 6.6%), as shareholder returns—dividends of ¥4,623 million and share buybacks of ¥4,856 million—combined with growth investment to compress net assets. With domestic interest rates continuing to rise as an external environment factor, maintaining the fixed-rate ratio at 56% and avoiding breaches of financial covenants remain important items to monitor going forward.

Growth Strategy

Under the long-term VISION "Ichigo 2030," pursuing sustainable growth through deepening Shinchiku, expanding Asset Management, and diversifying Clean Energy

Promoting setup office deployment for mid-sized office buildings ("THE VILLAGE OSAKA" and "THE VILLAGE SAPPORO" to commence operations between March and May 2026) and regional branding. Generating flow income through the sale of real estate and subsidiary shares after value enhancement via Shinchiku, while also building up stock income.

Promoting the planning and development of the GRAN PASEO series, with new premium residences acquired for ¥18.4 billion mainly in central urban areas during the first quarter, primarily in the city center. Progress is on track against the full-year acquisition target of ¥58.0 billion. Sales activities from the second quarter onward are expected to result in full-year sales (revenue) of ¥62.0 billion.

In addition to solar power generation (64 locations, approximately 188.2MW), commenced operation in June 2026 of the first grid-connected battery storage facility, the "Ichigo Onjuku Iwawada ECO Power Storage Station" (Chiba Prefecture, 8.9MWh/1.9MW), under the Grid-Connected Battery Storage Business. Also promoting the Regionally Integrated Biomass Power Generation Business, achieving both power source diversification and the resolution of regional issues.

Raised the DOE target from the previous "4% or more" to "5% or more," and set the dividend forecast for FY2027 (ending February 2027) at ¥15.5 per share (up 35% year on year). Combined with agile share buybacks conducted for the 10th consecutive fiscal period (totaling ¥4.8 billion in the first quarter), the company seeks to maximize shareholder value through improved EPS.

Newly raised ¥4.2 billion through ESG loans in the first quarter. Maintaining a fixed interest rate ratio of 56% to manage interest rate rise risk. Continuing to extend borrowing terms, secure unsecured financing, and reduce borrowing costs, thereby ensuring a highly reliable financial foundation that achieves both management stability and flexibility.

Last updated: July 17, 2026