Choei Inc.
2993・Standard Market・Real Estate
Real Estate Management Business
A revenue-generating segment centered on rental property management services for owners, expanding the number of managed units
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (external customers) | ¥4,452 million (FY2026, ending March 2026) | ¥4,071 million (FY2025, ending March 2025) | ↑ |
| Operating income | ¥791 million (FY2026, ending March 2026) | ¥685 million (FY2025, ending March 2025) | ↑ |
| Management revenue | ¥1,744 million (FY2026, ending March 2026) | ¥1,644 million (FY2025, ending March 2025) | ↑ |
| Construction sales | ¥1,860 million (FY2026, ending March 2026) | ¥1,661 million (FY2025, ending March 2025) | ↑ |
| Number of managed units (excluding own properties) | 22,131 units (end of March 2026, +744 units year-on-year) | 21,387 units (end of March 2025) | ↑ |
| Depreciation expense | ¥50 million (FY2026, ending March 2026) | ¥44 million (FY2025, ending March 2025) | ↑ |
| Segment assets | ¥1,386 million (end of March 2026) | ¥1,176 million (end of March 2025) | ↑ |
Business Details
To support stable rental property management for real estate owners, the segment provides a one-stop service comprising tenant management, building maintenance, renovation construction, leasing brokerage, and sales brokerage. It operates management centers (Bellevie) with 24/7, 365-day support systems. The business operates across multiple prefectures centered on Kyoto Prefecture, with diverse revenue sources including management revenue, construction sales, and brokerage income. Synergies with the real estate leasing business also contribute to cost reduction.
Recent Overview
An increase of 744 managed units drove growth in management revenue and construction sales, achieving higher revenue and profit
In FY2026 (ending March 2026), the real estate management business saw the number of managed units (excluding own properties) increase by 744 units year-on-year to 22,131 units, with management revenue rising to ¥1,744 million (up 6.1% year-on-year) and construction sales rising to ¥1,860 million (up 12.0% year-on-year). Segment sales reached ¥4,452 million (up 9.4% year-on-year), and operating income reached ¥791 million (up 15.5% year-on-year), achieving both higher revenue and profit. The pace of growth in managed units accelerated significantly from the prior period (+240 units).
Key Products
Growth Drivers
- Accumulation of management revenue through continued growth in the number of managed units (excluding own properties) (22,131 units at end of March 2026, +744 units year-on-year)
- Securing volume of managed units and synergies through acquisition of company-owned properties (11 buildings, 748 units added in FY2026, ending March 2026) as a foothold
- Revenue growth exceeding the growth rate of managed units through expansion of ancillary management businesses such as renovation construction and brokerage income
- Improved owner satisfaction and acquisition of new management contracts through maintaining high occupancy rates at managed properties
- Synergies with the real estate leasing business: increases in company-owned properties contributing to growth in managed units, cost reduction, and accumulation of management expertise
- Strengthening of the sales infrastructure through geographic expansion into new areas and expansion of the management center network
Risks
- Risk that fluctuations in the number of managed units and occupancy rates directly affect management revenue and have a significant impact on business performance
- Risk of rising construction costs due to increases in construction expenses and labor costs
- Risk of increased cost burden from rising borrowing interest rates driven by policy rate hikes (primarily floating-rate borrowings)
- Risk of delays in acquiring management contracts when entering new areas (as building reputation takes time)
- Risk of slowing growth in the number of managed units due to intensifying competition for management contracts from rival companies
- Risk of profit pressure from one-time expenses such as retirement benefits recorded upon executive resignations
Last updated: June 19, 2026