BANNERS CO.,LTD.
3011・Standard Market・Retail Trade
Real Estate Utilization
A high-margin, stable segment centered on the leasing of land, buildings, and parking lots
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (External Customers) | ¥434 million | ¥419 million | ↑ |
| Segment Profit | ¥313 million | ¥300 million | ↑ |
| Segment Profit Margin | approx. 72.1% | approx. 71.6% | ↑ |
| Segment Assets | ¥6,537 million | ¥6,234 million | ↑ |
| Depreciation | ¥117 million | ¥116 million | ↑ |
| Increase in Tangible and Intangible Fixed Assets | ¥418 million | ¥6 million | ↑ |
Business Details
The real estate leasing business directly operated by Banners Co., Ltd. (the parent company). The business primarily consists of leasing land, buildings, and parking lots, and also includes store leasing to the consolidated subsidiary Honda New Saitama Co., Ltd. Against net sales of ¥434 million, segment profit stood at ¥313 million, resulting in an extremely high profit margin (approximately 72.1%), making this a core segment supporting the group's overall earnings base. With Saitama Prefecture as its main area of operation, the segment develops leasing of stores and facilities closely tied to daily life.
Recent Overview
Asset base expanded through new property acquisition; both sales and profit increased year on year for stable growth
In FY2026 (ending March 2026), net sales rose to ¥434 million (103.5% year on year) and segment profit rose to ¥313 million (104.3% year on year), representing higher sales and higher profit. In October 2025, the company newly acquired land and a building in Iruma City, Saitama Prefecture, and the increase in tangible fixed assets and other assets expanded substantially to ¥418 million, up from just ¥6 million in the prior period. Redevelopment of an existing property in Honjo City, Saitama Prefecture is also continuing. Segment assets increased to ¥6,537 million, reflecting the ongoing expansion of the real estate portfolio.
Key Products
Growth Drivers
- Expansion of leasable floor area and earnings through continued redevelopment of a shopping center in Honjo City, Saitama Prefecture
- Additional rental income from a new property acquired in Iruma City, Saitama Prefecture in October 2025
- Maintaining a solid earnings base by keeping occupancy rates of existing properties stable
- A policy of acquiring additional quality properties based on real estate market conditions and interest rate trends
Risks
- A shortage of appropriate investment opportunities due to elevated price levels and declining yields in the income-producing real estate market
- Risk of rising redevelopment costs due to a worsening balance between soaring construction costs and rental price levels
- Increased borrowing costs from rising interest rates (group-wide long-term borrowings of ¥3,002 million)
- Long-term risk of declining tenant demand due to the declining birthrate and regional population decline
Last updated: June 29, 2026