Daitobo Co., Ltd.
3202・Standard Market・Textiles & Apparels
Commercial Facility Business
Real estate leasing and commercial facility operation business centered on "Sun Moon Kakitagawa" in Shizuoka Prefecture
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥2,305 million | ¥2,221 million | ↑ |
| Operating income | ¥955 million | ¥898 million | ↑ |
| Operating margin | 41.4% | 40.4% | ↑ |
| Depreciation and amortization | ¥492 million | ¥466 million | ↑ |
| Capital expenditures (increase in tangible/intangible fixed assets) | ¥387 million | ¥262 million | ↑ |
| Segment assets | ¥17,176 million | ¥17,236 million | ↓ |
Business Details
The Company (Daito Boshoku Co., Ltd.) leases real estate, while its subsidiary Daito Boshoku Estate Co., Ltd. operates and manages commercial facilities. The segment's core base is "Sun Moon Kakitagawa," one of the leading commercial facilities in Shizuoka Prefecture, and the segment aims to improve customer and tenant satisfaction through tenant recruitment, enhanced sales promotion events, and facility renewal investment. The majority of net sales consists of rental income and other revenue (based on the "Accounting Standard for Lease Transactions"), and this is the core segment generating the bulk of the group's overall operating income.
Recent Overview
Increased revenue and profit driven by hit Japanese films and resilient market conditions, with accelerated capital expenditure
In FY2026 (ending March 2026), the Commercial Facility Business achieved increased revenue and profit, with net sales of ¥2,305 million (up 3.8% year on year) and operating income of ¥955 million (up 6.4% year on year). Against a backdrop of resilient market conditions, being blessed with hit Japanese films contributed to overall facility performance growth. Meanwhile, accelerated facility renewal investment increased depreciation and amortization to ¥492 million (up ¥26 million year on year) and capital expenditures to ¥387 million (up ¥125 million year on year), but the segment absorbed these increases and grew profit. Note that the ¥3,873 million in borrowings that had been recorded as current liabilities at the end of the third quarter has since been refinanced into ultra-long-term (approximately 18-year) borrowings during the fiscal year.
Key Products
Growth Drivers
- Higher unit sales prices at "Sun Moon Kakitagawa" through enhanced seasonal sales promotion events and improved market conditions
- Demand for content such as hit Japanese films contributing to overall facility footfall and performance growth
- Maintaining and enhancing facility competitiveness through renewal investment based on the medium- to long-term capital expenditure plan
- Strengthening the facility's brand as a community-oriented facility through partnerships with local governments and SDG promotion
- Diversifying revenue through new property management (PM) business and consideration of investments in startup companies
Risks
- Risk that increasing depreciation and amortization expenses associated with the medium- to long-term capital expenditure plan will continue to weigh on profit margins
- Risk that deteriorating consumer sentiment due to price inflation will suppress visitor numbers and spending at commercial facilities
- Risk of worsening economic sentiment due to geopolitical risks such as the situation in the Middle East and volatility in financial and capital markets
- Risk of declining rental income due to tenant departures and rising vacancy rates
- Risk of elevated interest-bearing debt (borrowings and lease obligations) remaining high due to large-scale capital expenditure, combined with rising interest rate risk
Last updated: June 22, 2026