INTRANCE CO.,LTD.

Business Details

Engages in real estate purchase and sale on own account, real estate operation, property management, and real estate leasing and brokerage. Also focuses on the development and sale of inbound-oriented lodging facilities, resale of lodging facilities, and the development and sale of detached-house lodging facilities, and is positioned as a stable revenue source for the Group as a whole. The segment aims to capture domestic real estate demand from overseas investors against the backdrop of low interest rates and a weak yen.

Recent Overview

Revenue up 55.4% year on year to ¥379 million, but operating profit down 6.3% year on year to ¥38 million

In FY2026 (ending March 2026), full year, as a result of focusing on the property management business, lodging facility resale, and development and sale of detached-house lodging facilities, revenue achieved substantial growth, reaching ¥378,773 thousand (up 55.4% year on year). On the other hand, segment profit (operating profit) declined slightly to ¥38,462 thousand (down 6.3% year on year). While some progress was made in the development and sale of detached-house lodging facilities, delays occurred, and profitability improvement remained limited.

Key Products

Growth Drivers

• Increase in lodging facility development and resale projects against the backdrop of continued expansion of inbound demand
• Rising domestic real estate demand from overseas investors amid the low interest rate environment and weak yen
• Accumulation of stock-type stable revenue through the property management business
• Short-to-medium-term monetization through the shift of human resources toward the development and sale of detached-house lodging facilities and lodging facility resale
• Strengthening of business profitability through the newly hired real estate personnel

Risks

• Risk of business progress delays due to difficulty in securing real estate sites for development (delays occurred again this period in detached-house lodging facility development)
• Increase in real estate prices and pressure on profitability due to rising costs such as land prices and construction costs
• Funding risk arising from the material event related to going-concern assumptions for the Group as a whole (four consecutive periods of operating loss and ordinary loss)
• Impact on lodging facility development projects due to fluctuations in inbound demand (trends in Japan-China relations, geopolitical risk, etc.)
• Risk that the real estate business alone may find it difficult to cover costs given the continued high level of selling, general and administrative expenses