Hulic Co.,Ltd.
3003・Prime Market・Real Estate
Real Estate Business
The core business of the Hulic Group. A real estate investment, development, and leasing business that accounts for more than approximately 80% of consolidated operating revenue.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment operating revenue (Q1 2026 cumulative) | ¥191,360 million | ¥133,385 million (Q1 2025 cumulative) | ↑ |
| Segment operating profit (Q1 2026 cumulative) | ¥38,534 million | ¥33,381 million (Q1 2025 cumulative) | ↑ |
| Segment operating revenue (full-year results, reference) | ¥637,458 million (FY2025 (ending December 2025) full year) | – | — |
| Segment operating profit (full-year results, reference) | ¥198,111 million (FY2025 (ending December 2025) full year) | – | — |
| Number of leased properties (excluding real estate for sale) | Approx. 250 properties (as of end of March 2026) | Approx. 250 properties | — |
| Leasable floor area | Approx. 1.27 million sqm (as of end of March 2026) | Approx. 1.31 million sqm (as stated in existing report) | ↓ |
Business Details
The company owns and operates a leasing portfolio of approximately 250 properties (excluding real estate for sale) with a leasable floor area of approximately 1.27 million sqm, centered on properties near stations within Tokyo's 23 wards. The three pillars of the business are real estate leasing (investment and value-add), development and rebuilding, and asset management, and the company promotes continuous replacement of properties with competitive advantages and carefully selected development. Against a backdrop of inflation and rising rent levels, the company is strengthening investment in highly liquid assets and inflation-resistant assets.
Recent Overview
Sales of real estate for sale progressed favorably, and segment operating revenue expanded 43.4% year on year to ¥191,360 million.
In Q1 2026 (January to March), real estate leasing income from offices and other properties completed or acquired in the previous consolidated fiscal year and the current quarter remained stable, and in addition, sales of real estate for sale such as Hulic Minato Mirai and Hulic Fuchu Tower progressed favorably. Segment operating revenue was ¥191,360 million (up ¥57,974 million, or 43.4%, year on year), and segment operating profit was ¥38,534 million (up ¥5,153 million, or 15.4%, year on year). The company acquired Sapporo Network Center (Kita-ku, Sapporo) as a new fixed asset, and Quorz Shinsaibashi (Chuo-ku, Osaka) was completed in March 2026.
Key Products
Growth Drivers
- Stable expansion of office and other real estate leasing income through the accumulation of newly completed and acquired properties
- Increase in gross profit through favorable sales of real estate for sale (Hulic Minato Mirai, Hulic Fuchu Tower, etc.)
- Continued buoyancy in the real estate investment market against a backdrop of expanding inbound demand and a full-fledged inflationary, rent-rising phase
- Accumulation of profits from future completed properties through the smooth progress of multiple large-scale development projects in Ginza, Shinjuku, Shibuya, Aoyama, and other areas (Ginza 8-chome, Ginza 5-chome, Ginza 6-chome, Ginza 7-chome, G8, Shinjuku 318, Shiohama 2-chome, Aoyama Building rebuilding, etc.)
- Acquisition of large-scale development opportunities through public-private partnerships via PPP projects (Shibuya 1-chome District Joint Development Project, etc.)
- Continuous acquisition of management fee income and AUM expansion through sponsor support for Hulic REIT and Private REIT
- Improved profitability through selective investment in highly liquid assets and inflation-resistant assets
Risks
- Increase in interest expenses due to additional BOJ rate hikes (interest expenses in Q1 2026 were ¥6,617 million, up ¥2,311 million year on year)
- Rising development costs and construction delay risk due to soaring construction costs
- Difficulty in forecasting operating revenue because trends in the sale and purchase of real estate for sale are heavily influenced by economic conditions and the real estate market (full-year revenue forecast not disclosed)
- Risk of falling rents and rising vacancy rates due to deterioration in the real estate market
- Risk of impairment losses occurring (an impairment loss of ¥1,564 million was recorded in Q1 2026)
- Interest rate fluctuation risk and refinancing risk associated with borrowings outstanding of ¥1,582,333 million (of which SPC non-recourse loans account for ¥45,951 million)
Last updated: March 17, 2026