Katakura Industries Co.,Ltd.
3001・Standard Market・Textiles & Apparels
Real Estate Business
Core segment underpinning the revenue base of the Katakura Group
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (Q1 FY2026, ending March 2026) | ¥2,944 million | ¥2,746 million (Q1 FY2025, ending March 2025) | ↑ |
| Operating profit (Q1 FY2026, ending March 2026) | ¥1,231 million | ¥1,056 million (Q1 FY2025, ending March 2025) | ↑ |
| Revenue (Full-year results, reference) | – | ¥11,699 million (FY2025, ending December 2025, full year) | — |
| Operating profit (Full-year results, reference) | – | ¥4,395 million (FY2025, ending December 2025, full year) | — |
| Real estate for lease, fair value at period-end | ¥136,398 million | – | — |
| Real estate for lease, book value (period-end balance) | ¥26,535 million | – | — |
Business Details
The segment operates real estate leasing and commercial facility operations centered on Cocoon City, a shopping center run on the company-owned land in Saitama-Shintoshin. Tenant rent income is the main revenue source, and the subsidiary Sanzen Co., Ltd. also handles real estate utilization, purchase/sale, development, and leasing. In the first quarter of FY2026 (ending December 2026), this segment accounted for approximately 60% of the group's overall operating profit, serving as a stable earnings pillar that supports consolidated performance. The fair value of real estate for lease at fiscal quarter-end reached ¥136,398 million, representing substantial unrealized gains relative to book value.
Recent Overview
Increased Cocoon City rent income drove higher revenue and profit, with operating profit up 16.5% year-on-year
In the first quarter of FY2026 (ending December 2026) (January to March 2026), the Real Estate Business posted revenue of ¥2,944 million (up 7.2% year on year) and operating profit of ¥1,231 million (up 16.5% year on year). The main driver was increased rent income from tenants at Cocoon City. The company continues to pursue strategic tenant renewals and facility environment improvements to enhance area value.
Key Products
Growth Drivers
- Increased rent income through strategic tenant renewals at Cocoon City
- Continued facility environment improvements to maintain and enhance competitiveness in the Saitama-Shintoshin area
- Maintaining profitability through appropriate reinvestment in regional properties
- Advancement of rental apartment development plans around Cocoon City
- Potential asset value from the large gap between fair value (¥136,398 million) and book value (¥26,535 million) of real estate for lease
Risks
- Impact of rising prices and labor costs on personal consumption (risk of spillover to tenant sales and rent negotiation power)
- Risk of delay or scale reduction of the Saitama-Shintoshin company-owned land redevelopment plan due to rising construction and labor costs
- Risk of additional investment burden and declining profitability due to aging of regional properties
- Risk of increased development financing costs due to rising interest rates
- Impact on Cocoon City's tenant attraction and rent levels from the emergence of competing commercial facilities
Last updated: March 26, 2026