Hulic Co.,Ltd.
3003・Prime Market・Real Estate
Business
Hulic Co., Ltd. was established in 1957 and listed on the Tokyo Stock Exchange in 2008 as a comprehensive real estate company. It holds a leasing portfolio of approximately 250 properties with a leasable area of approximately 1.31 million ㎡, centered on locations near stations in Tokyo's 23 wards, with real estate investment, development, and leasing as its core businesses. The Real Estate Business accounts for approximately 90% of consolidated operating revenue, and the company also engages in diversified businesses such as insurance agency, hotel & ryokan, child education, and environmental infrastructure. The group comprises 52 consolidated subsidiaries and 36 equity-method affiliates, and it also earns asset management revenue as a sponsor of a J-REIT (Hulic Reit Inc.) and private REITs.
Business Model
The company steadily accumulates rental income by acquiring, developing, and rebuilding prime real estate near stations in Tokyo's 23 wards, while realizing development profit through the sale of completed properties (real estate for sale). It also continues to earn asset management fees through sponsor support for J-REITs and private REITs. By combining rental income, sales, and management fees into a three-layer earnings structure, the company practices financial leverage management that combines low-cost fundraising through bank borrowings and corporate bonds with high earning power.
Company Strengths
As of end-December 2025, the company owned and managed approximately 250 leasing properties (excluding real estate for sale) with a leasable area of approximately 1.31 million sqm, mainly near stations in Tokyo's 23 wards. This highly location-advantaged portfolio underpins stable rental income and supports the Real Estate Business's operating revenue of ¥637,458 million and operating profit of ¥198,111 million.
Operating revenue increased 62.7% over five fiscal years, from ¥447,077 million in FY2021 (ending March 2021) to ¥727,447 million in FY2025 (ending March 2025). Operating profit also expanded over the same period from ¥114,507 million to ¥186,826 million, maintaining an operating margin of 25.7% in FY2025 (ending March 2025). Net income attributable to owners of parent also achieved five consecutive years of profit growth, reaching ¥114,334 million, demonstrating strong earning power.
The company continued to obtain an external rating of "AA-" from Japan Credit Rating Agency, Ltd. (JCR) in fiscal 2025 as well. Backed by high creditworthiness, it achieves stable and low-cost fundraising through bank borrowings, corporate bonds, commercial paper, and other means. While maintaining borrowings outstanding of ¥1,607,396 million (including ¥76,175 million in SPC non-recourse loans), the company is pursuing active capital expenditure (¥451,933 million in FY2025 (ending March 2025)).
ENVALITH's Perspective
Performance Trend
From FY2021 to FY2025, revenue grew from ¥447,077 million to ¥727,447 million, operating profit from ¥114,507 million to ¥186,826 million, and net income attributable to owners of parent from ¥69,564 million to ¥114,334 million, with all profit indicators increasing for five consecutive fiscal years. In Q1 of FY2026 (ending December 2026), operating revenue rose sharply to ¥226,841 million (up 44.8% year on year), but operating profit declined to ¥31,171 million (down 2.0% year on year) and ordinary profit declined to ¥26,986 million (down 3.6% year on year). External factors pressuring profit included increased interest expenses (up 53.7% year on year to ¥6,617 million) and ¥6,961 million in additional stock-price-linked goodwill amortization related to the Riso Kyoiku group (a special factor). Meanwhile, the real estate business segment remained solid, with operating profit of ¥38,534 million (up 15.4% year on year), indicating that the earnings power of core businesses has been maintained. Quarterly net income attributable to owners of parent increased to ¥18,141 million (up 5.6% year on year). There has been no change to the full-year earnings forecast, and the company states that progress is in line with plan.
Growth Strategy
New medium- to long-term plan (2026-2036) centered on the sophistication of the real estate business while incorporating diverse growth businesses
Continued acquisition of well-located properties, primarily near stations in Tokyo's 23 wards, along with rental income enhancement through development and redevelopment. Progress continues to accumulate, including the completion of Quartz Shinsaibashi in March 2026 and the new acquisition of Sapporo Network Center. The company aims to improve profitability through selective investment in highly liquid assets and inflation-resistant assets.
Multiple large-scale development projects in Ginza, Shinjuku, Shibuya, and Aoyama (Ginza 8-chome, Ginza 5-chome, Ginza 6-chome, Ginza 7-chome, G8, Shinjuku 318, Shiohama 2-chome, Aoyama Building reconstruction, Jiyugaoka 1-chome-29 redevelopment district, Shibuya 1-chome PPP project, etc.) are progressing smoothly. Increased rental income and realization of gains on sale are expected upon completion.
Operations are centered on the THE GATE HOTEL, View Hotel, and fufu series. In Q1 of FY2026 (ending December 2026), the company achieved operating revenue of ¥16,846 million (up 13.5% year on year) and operating profit of ¥2,047 million (up 10.7% year on year), driven by higher room rates amid robust inbound demand and revenue contributions from newly opened properties.
In FY2025, Koken Boring Machine (manufacture and sale of boring equipment and construction work) and Cook Deli (fully cooked food products for elderly care facilities) were newly consolidated. Operating revenue in the "Other" segment expanded 97.5% year on year to ¥20,541 million. However, due to special factors such as additional goodwill amortization, a segment operating loss of ¥4,808 million was recorded, making profitability a key challenge.
The company is promoting continued acquisition of management fees and AUM growth through sponsor support for the group's REITs and private funds. Building a high-quality fixed-asset portfolio in the real estate development business supports the pipeline of property supply to the REITs.
Last updated: July 17, 2026