URBANET CORPORATION CO., LTD.
3242・Standard Market・Real Estate
Business
Urbanet Corporation is a real estate developer listed on the TSE Standard Market, founded in 1997. The company focuses in principle on properties within a 10-minute walk of stations in Tokyo's 23 wards, and its core business is the development and en-bloc sale (wholesale) of urban-type rental apartment buildings, mainly investment-purpose studio units. Leveraging know-how derived from its design office origins, it develops proprietary-brand properties with high design quality and functionality, which it sells to domestic and overseas institutional investors, funds, REITs, and high-net-worth individuals. In February 2024, the company made Canine (K-9) a subsidiary, expanding its business domain into detached house and terrace house sales and apartment development. It also operates a hotel business (in Kamata, 48 rooms in total), conducting operations through a three-company group structure.
Business Model
The company minimizes the number of officers and employees and maximizes outsourcing to reduce fixed costs. It procures project funds through long-term borrowings from financial institutions, carefully acquires and develops sites near stations in Tokyo's 23 wards, and sells buildings wholesale on a one-building basis to major real estate companies such as Mitsui Fudosan Investment Advisors, Kenedix, and Tokyu Land, as well as domestic and overseas investors and high-net-worth individuals. Gross profit margin is treated as a key KPI, and the company achieved 19.0% in FY2025 (ended June 2025). It manages capital efficiency through a loan repayment design aligned with the timing of completion and sales.
Company Strengths
By focusing development areas in principle on Tokyo's 23 wards and locations within a 10-minute walk of a station, the company has continued development in areas with relatively stable real estate prices. In FY2025 (ended June 2025), it completed and delivered 607 units across 12 urban rental apartment buildings, recognizing sales of 650 units, exceeding the initial plan of 588 units. Sales track record to major players such as Mitsui Fudosan Investment Advisors, Kenedix, and Tokyu Land underscores the high quality of its properties.
As a developer that originated from an architectural design firm, the company thoroughly differentiates its properties from competitors' through monotone exterior designs, entrances displaying original artwork, and expanded storage space based on resident surveys. This product strength has earned high acclaim from domestic and overseas sales channels and investors, contributing to the achievement of a gross profit margin of 19.0% (up 2.4 percentage points year on year) in FY2025 (ended June 2025).
Drawing on its experience during the Lehman Shock, the company has formalized a financial policy of maintaining cash and deposits equivalent to 35% of total inventory real estate and holding two years' worth of fixed expenses. Cash and cash equivalents at the end of FY2025 (ended June 2025) stood at ¥11,398 million. In December 2024, the company raised ¥2,000 million in long-term working capital through a syndicated loan, securing a liquidity buffer.
ENVALITH's Perspective
Performance Trend
Revenue expanded for five consecutive periods, from ¥20,955 million in FY2021 to ¥33,934 million in FY2025, and is now in an accelerating phase, reaching ¥25,614 million (up 117.2% year on year) on a cumulative basis in the third quarter of FY2026 (ending June 2026). Operating profit for the same period was ¥3,315 million (a substantial improvement from ¥48 million in the same period of the prior year), ordinary profit was ¥2,588 million, and quarterly net income attributable to owners of the parent was ¥1,690 million. The main drivers of the increase in both revenue and profit were the dispersion of completion and handover timing across quarters, and sustained strong performance at Canine (K9) since the start of the period. External tailwinds include steady demand for rental apartments in central Tokyo and robust investor demand. The full-year forecast (revenue of ¥37,044 million, operating profit of ¥3,623 million) remains unchanged, and construction is proceeding largely as planned.
Growth Strategy
Pursuing sustainable growth and enhanced corporate value through deepening of core businesses, M&A, and new business development
The Company continues to strengthen its acquisition of prime central Tokyo sites near stations within Tokyo's 23 wards, and plans to sell 12 buildings comprising 552 units in FY2026 (ending June 2026) on a full-year basis. As of the cumulative third quarter, 7 buildings comprising 337 units have already been recorded as sales, and construction is progressing generally smoothly toward the delivery of the remaining 5 buildings (215 units) in the fourth quarter.
Consolidated subsidiary K9 has made a significant contribution to performance through Detached Houses/Townhouse Sales/Apartment Development (K9), generating synergy effects. In December 2025, the Company acquired Kagurazaka Heights Co., Ltd. as a grandchild company, expanding the scope of consolidation. In line with the medium-term management plan, the Company will continue to actively pursue M&A.
The Company is steadily advancing inbound-oriented apartment hotel development and a business targeting high-net-worth clients as new businesses, leveraging its real estate development expertise. The expansion of inbound demand serves as an external tailwind, and this is positioned as a key initiative under the medium-term management plan.
Through active investment in human capital, the Company has increased its site-acquisition personnel supporting its core businesses, enabling the acquisition of prime central development sites and large-scale properties. Real estate for sale in progress stood at ¥49,646 million as of the end of March 2026, an increase of ¥10,285 million from the end of the previous fiscal year, reflecting an expanding pipeline for future revenue recognition.
Last updated: July 17, 2026