Choei Inc.
2993・Standard Market・Real Estate
Business
Choei Co., Ltd. was founded in Kyoto in 1980 and incorporated in 1988 as a company specializing in rental real estate. It operates two core businesses: the Real Estate Management Business (rental management services for property owners) and the Real Estate Leasing Business (leasing of in-house properties). As of the end of March 2026, the company operates 25 management centers across 11 prefectures—Kyoto, Shiga, Osaka, Hyogo, Tokyo, Kanagawa, Chiba, Saitama, Aichi, Fukuoka, and Kumamoto—managing a total of 29,279 units (1,450 buildings). Its main customers are rental apartment owners and tenants, and it provides one-stop services through its "Bellevie" branded network of management centers. The company listed on the Second Section of the Tokyo Stock Exchange in December 2021 and moved to the Standard Market in April 2022.
Business Model
In the Real Estate Management Business, the company builds up peripheral revenue such as renovation work and leasing brokerage on top of management income based on management entrustment contracts (¥1,744 million in FY2026 (ending March 2026)). In the Real Estate Leasing Business, the company acquires quality properties with elapsed building age, in principle funded entirely by borrowings, and maintains high occupancy rates through renovations leveraging its management know-how to earn rental income. The two businesses are mutually complementary, forming a circular model in which the increase in in-house properties contributes to securing managed unit volume, reducing costs, and developing new areas.
Company Strengths
As of the end of March 2026, the company recorded a 98.7% occupancy rate for managed properties in the real estate management business and a 99.1% occupancy rate for company-owned properties in the real estate leasing business. The high occupancy rates are supported by a network of 25 management centers offering 24/7, 365-day support and a resident-first system built around property-dedicated Residential Creators, generating a virtuous cycle of improved owner satisfaction and new management contract acquisition.
The number of managed units (excluding company-owned properties) reached 22,131 units as of the end of March 2026 (up 744 units year on year), while company-owned units reached 7,148 units (up 748 units year on year), expanding on both fronts. Management revenue accumulates as a stock-type income stream in line with unit growth; in FY2026 (ending March 2026), real estate management business sales rose 9.4% year on year to ¥4,452 million, and real estate leasing business sales rose 10.2% year on year to ¥6,556 million.
The company employs a unique approach when entering new areas where its reputation has not yet been established, acquiring company-owned properties in advance to secure a volume of managed units before opening management branches. Its track record of expansion into 11 prefectures, including its first entry into Fukuoka Prefecture in August 2024, demonstrates the effectiveness of this model. Company-owned properties also serve as a testing ground for owner-facing services, contributing to the accumulation of management know-how.
ENVALITH's Perspective
Performance Trend
Revenue increased 30% over five periods, from ¥8,475 million in FY2022 to ¥11,008 million in FY2026, with FY2026 growth accelerating to 9.9% year-on-year. Meanwhile, operating profit, after peaking at ¥2,329 million in FY2023 and subsequently declining, showed a recovery trend in FY2026 at ¥1,969 million (up 9.3% year-on-year). However, interest expenses swelled to ¥816 million (up ¥221 million year-on-year), limiting recurring profit to ¥1,417 million (down 2.8%). Net income for the period fell sharply to ¥996 million (down 51.8%) due to the drop-off of the prior period's ¥1,537 million gain on sale of fixed assets. As an external factor, rising borrowing costs stemming from policy rate hikes have continued, and the company forecasts a 2.3% decline in recurring profit and a 7.1% decline in net income for FY2027 (ending March 2027).
Growth Strategy
Continued expansion of managed and in-house property units and revenue base build-up through new area expansion
Building up stock-type management income through strengthened sales activities for securing management contracts and measures to prevent management contract cancellations. In FY2026 (ending March 2026), the company achieved an increase of 744 units year on year, expanding management income to ¥1,744 million (up 6.1% year on year). For FY2027 (ending March 2026)... wait, an increase in management income etc. is also assumed as a premise for the earnings forecast for FY2027 (ending March 2027).
A strategy of acquiring and renewing older properties with high asset efficiency to maintain high occupancy rates. In FY2026 (ending March 2026), the company acquired 11 buildings comprising 748 units (4 buildings in Kyoto, 2 in Fukuoka, and 1 each in Chiba, Kanagawa, Aichi, Shiga, and Osaka), expanding Real Estate Leasing Business sales by 10.2% year on year to ¥6,556 million. For FY2027 (ending March 2027), an increase in rental income due to the increase in in-house properties is also expected.
Continuing to reduce dependence on Kyoto by expanding into Fukuoka, Chiba, Kanagawa, Aichi, Shiga, Osaka, and other areas. Of the 11 buildings acquired in FY2026 (ending March 2026), 7, or more than half, were outside Kyoto, indicating progress in geographic diversification. The company is capturing stable demand for rental housing centered on urban areas.
Using the increase in managed units as a foothold, the company aims to expand ancillary services such as renovation work and rental brokerage to achieve revenue growth exceeding the growth rate of management income. In FY2026 (ending March 2026), construction sales reached ¥1,860 million (up 12.0% year on year), exceeding the growth in management income, and operating profit of the Real Estate Management Business expanded to ¥791 million (up 15.5% year on year).
Last updated: July 19, 2026