KOSE R.E. Co.,Ltd.
3246・Standard Market・Real Estate
Business
Kosé R.E. Co., Ltd. was founded in 1990 and is headquartered in Fukuoka City, listed on the Tokyo Stock Exchange Standard Market as a comprehensive real estate company. Under the "GRAN FORÊT" brand, the company plans, develops, and sells condominiums for both family use and investment purposes in the Fukuoka metropolitan area, the Greater Tokyo area, and core cities across Kyushu prefectures, while also operating a Real Estate Leasing & Management Business (3,502 units under management) and a Building Maintenance Business through consolidated subsidiaries. Its main customers are families purchasing homes for actual residential use and real estate investors, and the company has built an integrated value chain extending through to management outsourcing after sales.
Business Model
Flow-type revenue is the core, with the company leading land acquisition through planning, construction, and sales in-house, recognizing revenue upon property handover. In addition, stock-type stable revenue is formed through contracted rental management of sold properties (Real Estate Rental Management segment: revenue of ¥324 million) and condominium management and maintenance (Building Maintenance segment: revenue of ¥344 million). As the number of units supplied accumulates, the number of units under management increases, creating a structure in which both the flow-type and stock-type revenue bases expand.
Company Strengths
The "Grand Foret" series, developed since 2005, emphasizes high quality and high added value, achieving simultaneous sales across multiple areas including Fukuoka City, Kasuga City, and Kagoshima City. In FY2025 (ended January 2025), contracted sales of family condominiums during the period increased sharply by 152.7% year on year, demonstrating the brand's strong customer acquisition power as a proven track record.
The equity ratio at the end of FY2025 (ended January 2025) remained at a high level of 60.0%. Against total assets of ¥17,021 million, net assets stood at ¥10,265 million, maintaining a stable financial foundation even amid rising interest-bearing debt associated with upfront development investment. The company also continues to maintain favorable relationships with financial institutions, securing ¥4,341 million in proceeds from long-term borrowings.
In addition to condominium sales (flow-type business), the real estate leasing and management business (revenue of ¥324 million, segment margin of 19.7%) and the building maintenance business (revenue of ¥344 million, segment margin of 16.1%) generate stable earnings. Stock-type revenue based on 3,502 managed units functions to smooth out fluctuations in performance during lulls between sales periods.
ENVALITH's Perspective
Performance Trend
Revenue over the past five fiscal years fell sharply from ¥11,289 million in FY2022 to ¥7,649 million in FY2025 due to a decline in properties delivered, before recovering to ¥10,046 million in FY2026. Q1 of FY2027 (February–April 2026) accelerated further to ¥1,755 million (up 81.7% year-on-year). Operating profit followed a recovery trend, falling from ¥1,142 million in FY2022 to ¥322 million in FY2025 before rebounding to ¥769 million in FY2026, with the full-year FY2027 forecast at ¥545 million (up 29.1% year-on-year). Q1 posted a seasonal operating loss of ¥35 million (a significant improvement from the ¥179 million loss in the same period the previous year). As external factors, rising labor costs, higher building material costs, and increasing mortgage interest rates are pressuring profitability on both the procurement cost and customer burden sides, but a substantial buildup in contract backlog supports an earnings recovery in the second half.
Growth Strategy
Stable growth and strengthened earnings structure through broader area expansion, sales diversification, and growth in units under management
Starting from the Fukuoka metropolitan area, expansion continues into Kagoshima, Yamaguchi, Tochigi (Oyama City), and other areas. In Q1 of FY2027 (ending January 2027), the company began new sales of Grand Forêt Shiraki-bara Residence in Onojo City, continuing simultaneous sales across multiple areas to disperse handover timing and build up contract balances.
The company continues to develop both family-type condominiums (28 units handed over in Q1, net sales of ¥1,089 million) and investment-type condominiums (25 units, ¥478 million) in parallel, aiming to diversify its customer base and stabilize sales. The contract balance at the end of Q1 reached a total of 118 units and ¥3,642 million, up 87.4% year on year.
The company aims to recover the number of units under management through an increase in management contracts following the completion of new investment-type condominium properties. At the end of Q1, the number stood at 3,312 units (versus 3,468 units in the same period of the previous year), a decrease, and responding to changes in management companies due to property sales remains a challenge. It is also necessary to resolve the segment loss caused by increased depreciation expenses from newly built warehouses.
The company continues its condominium management and maintenance inspection operations, aiming to build up the number of management contracts as group-supplied properties increase. Q1 net sales were ¥96 million (up 1.4% year on year) with segment profit of ¥19 million, showing stable performance and functioning as a foundation for recurring revenue.
Last updated: July 17, 2026