JINUSHI Co., Ltd.
3252・Prime Market・Real Estate
Business
Jinushi Co., Ltd. was founded in 2000 and is a real estate financial product manufacturer centered on the "JINUSHI Business," which invests only in land without owning buildings. The company develops leasehold land ("sokochi") products by concluding fixed-term land lease agreements of 20 to 50 years with tenants, and sells them to Jinushi Private REIT (Jinushi REIT), operating companies, institutional investors, private funds, and others. Its core real estate investment business is complemented by two other segments: a real estate leasing business based on properties it owns, and an asset management business that earns AM/PM fees from Jinushi REIT and others. As of the end of December 2025, cumulative development track record reached 487 projects totaling approximately ¥636.8 billion, with 171 tenant companies transacted. The company is listed on the Tokyo Stock Exchange Prime Market.
Business Model
Acquires land and develops fixed-term land-lease (soko-chi) properties under lease agreements with tenants, primarily selling them to Jinushi REIT to earn development profit (flow income). At the same time, AM/PM fees earned through Jinushi AM (profit margin 44.1%) and rental income from company-owned soko-chi (profit margin 54.1%) accumulate as recurring (stock) revenue. The company also retains the flexibility to hold properties in-house rather than sell when real estate market conditions deteriorate.
Company Strengths
The Jinushi REIT has achieved ten consecutive years of capital increases since the start of its operations, with asset scale reaching ¥291.1 billion (based on appraisal value at acquisition) as of January 2026. The Company grants preferential property information provision and preferential negotiation rights through a sponsor support agreement, and sales to the Jinushi REIT in FY2025 (ending December 2025) reached ¥43,918 million (approximately 2.5x year-on-year).
Profit attributable to owners of parent rose from ¥3,124 million in FY2021 to ¥7,369 million in FY2025, marking five consecutive years of profit growth and a new record high. The Company achieved the FY2026 (ending December 2026) target of ¥7,000 million set in the current medium-term management plan formulated in February 2022, one year ahead of schedule. ROE stood at 15.6% and the equity ratio at 34.1%, maintaining financial soundness.
Procurement (contract basis) in FY2025 (ending December 2025) reached ¥142,000 million (up ¥82,100 million year-on-year), substantially exceeding the initial-year target of ¥70,000 million or more. In addition to progress on the three growth strategies of JINUSHI Leaseback, diversification of tenant industries, and expansion of business areas, demand for CRE strategy reviews driven by Tokyo Stock Exchange reforms provided a tailwind, expanding the number of client tenants to 171 companies.
ENVALITH's Perspective
Performance Trend
Over the past five fiscal periods, revenue bottomed out at ¥31,597 million in FY2023 before recovering sharply to ¥57,068 million in FY2024 and ¥76,327 million in FY2025, renewing its all-time high. Net income also increased for five consecutive periods, reaching a record ¥7,369 million in FY2025. For the first quarter of FY2026 (ending December 2026), revenue was ¥14,568 million (down 52.3% year on year), operating income was ¥1,729 million (down 41.3% year on year), and net income attributable to owners of the parent was ¥876 million (down 51.6% year on year), representing a substantial decline in both revenue and profit. However, the company explains that this reflects a plan weighted toward the fourth quarter and that progress is as expected. There is no change to the full-year forecast (revenue of ¥100,000 million, operating income of ¥12,000 million, net income of ¥8,000 million). As an external factor, an increase in interest expense (up ¥209 million year on year) due to rising domestic interest rates is pressuring ordinary income, and the structure in which rising financial costs constrain margin improvement continues.
Growth Strategy
Under the medium-term plan (2026-2028), the company aims for net income exceeding ¥10.0 billion and assets under management exceeding ¥500.0 billion, advancing the three growth strategies and expansion of the Jinushi REIT.
Following the 10th public offering in January 2026, asset scale reached ¥291.1 billion (based on acquisition-time appraisal value). Achievement of the medium-term target of ¥300.0 billion during FY2026 (ending December 2026) is considered highly likely, and this is viewed as a milestone toward the early achievement of ¥500.0 billion. Expansion of asset scale directly contributes to increased AM/PM fee income, strengthening the recurring revenue base.
Driven by the three growth strategies undertaken following the company's name change, procurement (on a contract basis) in Q1 of FY2026 (ending December 2026) expanded significantly to ¥27,800 million, up ¥14,900 million year on year. Corporate real estate divestitures and CRE strategy reviews prompted by Tokyo Stock Exchange reforms are also serving as a tailwind, with a notable buildup in the procurement pipeline.
The medium-term plan sets targets of net income of ¥10.0 billion or more and assets under management of ¥500.0 billion or more. The full-year forecast for FY2026 (ending December 2026) remains unchanged at net sales of ¥100,000 million (up 31.0% year on year) and net income of ¥8,000 million (up 8.6% year on year). The company has stated that Q1 progress was in line with plan, and execution continues on the premise of profit concentration in Q4.
On March 9, 2026, the company disposed of 750,000 treasury shares to introduce a J-ESOP. The plan grants incentives for sustained enhancement of corporate value to directors (excluding audit and supervisory committee members and outside directors), promoting shared value creation with shareholders. As a subsequent event, 20,407 shares were disposed of to two directors on April 15, 2026 (at ¥3,185 per share).
Last updated: July 17, 2026