URBANET CORPORATION CO., LTD.
3242・Standard Market・Real Estate
Real Estate Business
The core segment centered on the development and bulk sale of urban rental apartment buildings near stations in Tokyo's 23 wards
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (nine months cumulative) | ¥25,435 million | ¥11,614 million (same period prior year) | ↑ |
| Segment profit (nine months cumulative) | ¥4,526 million | ¥1,255 million (same period prior year) | ↑ |
| Real estate development and sales revenue (nine months cumulative) | ¥24,446 million | ¥10,296 million (same period prior year) | ↑ |
| Gross profit (consolidated total, nine months cumulative) | ¥5,882 million | ¥2,233 million (same period prior year) | ↑ |
| Gross profit margin (consolidated total, nine months cumulative) | 22.9% | 18.9% (same period prior year) | ↑ |
| Real estate for sale in process (period-end balance) | ¥49,646 million | ¥39,361 million (prior period-end) | ↑ |
| Real estate for sale (period-end balance) | ¥7,026 million | ¥2,070 million (prior period-end) | ↑ |
Business Details
The segment centers on the development and bulk (wholesale) sale of urban rental apartment buildings located within Tokyo's 23 wards and within a 10-minute walk of a train station, complemented by detached house and townhouse sales (through subsidiary K-Nine), apartment development, real estate acquisition and resale (buy-and-resell), and real estate brokerage and leasing operations. Buyers are diversified across domestic and overseas investors, funds, REITs, high-net-worth individuals, and corporate clients. This core business accounts for 99.3% of the group's consolidated revenue. In the nine months cumulative of FY2026 (ending June 2026), the company recognized revenue from 7 urban rental apartment buildings (337 units), 2 apartment buildings (17 units), 28 detached houses/townhouses, and 9 land parcels.
Recent Overview
Revenue increased 119.0% and segment profit increased 260.6% year on year in the nine months cumulative period, marking substantial growth
In the nine months cumulative period of FY2026 (ending June 2026) (July 2025 to March 2026), the Real Estate Business achieved revenue of ¥25,435 million (up 119.0% year on year) and segment profit of ¥4,526 million (up 260.6% year on year). In addition to steady revenue recognition from 7 urban rental apartment buildings (337 units), results also benefited from a rebound effect, as revenue recognition in the prior fiscal year had been concentrated in the fourth quarter, resulting in substantial revenue and profit growth. Subsidiary K-Nine's performance has remained strong since the beginning of the fiscal year. Additionally, on December 26, 2025, the company made Kagurazaka Heights Co., Ltd. a consolidated subsidiary (generating goodwill of ¥318 million). Land acquisition in well-located areas of central Tokyo has proceeded smoothly, with real estate for sale in process increasing ¥10,285 million from the prior fiscal year-end. The full-year earnings forecast (revenue of ¥37,044 million, operating profit of ¥3,623 million) remains unchanged.
Key Products
Growth Drivers
- Increase in the number of completed and delivered urban rental apartment building development projects (full-year plan for FY2026 (ending June 2026) of 12 buildings/552 units, with 7 buildings/337 units already recognized as revenue in the nine months cumulative period)
- Additional revenue from detached house/townhouse sales driven by the realization of synergies with subsidiary K-Nine (which has maintained strong performance since the start of the fiscal year)
- Resilient demand for rental real estate from domestic and overseas investors, funds, and REITs
- Expansion of the demand base through diversification of buyers (high-net-worth individuals, corporations, overseas investors, etc.)
- Strengthening of land acquisition personnel through human capital investment and progress in acquiring land for well-located projects in central Tokyo (real estate for sale in process increased ¥10,285 million from the prior fiscal year-end)
- Expansion of consolidated subsidiaries through M&A (acquisition of Kagurazaka Heights Co., Ltd.) and large-scale projects and new area expansion under the medium-term management plan
- Steady progress in new businesses such as apartment hotel development targeting inbound demand and businesses targeting high-net-worth individuals
Risks
- Risk of rising acquisition costs and declining profit margins due to persistently high land prices for development and intensifying competition for land acquisition
- Risk of rising construction costs due to surging construction material prices and labor costs (the company is monitoring the supply and pricing of construction materials amid factors such as heightened tensions in the Middle East)
- Risk of significant fluctuations in quarterly and annual results because completion and revenue recognition timing varies substantially by project
- Risk of increased interest expense due to rising interest rates (long-term borrowings increased ¥10,687 million from the prior fiscal year-end to ¥40,556 million, and interest expense rose to ¥511 million year on year)
- Risk of revenue concentration in specific customers
- Risk of construction delays and cost overruns due to unforeseen additional work or shortages in the supply of construction materials
- Risk that dependence on the core development and sales business will increase further, as revenue from real estate acquisition/resale and other real estate operations has declined year on year
Last updated: October 23, 2025