Japan Property Management Center Co.,Ltd.

Business Details

The company operates rental management outsourcing (sublease, including Super Sublease and other services) as its core business, whereby it master-leases properties from rental property owners and subleases them to tenants, in cooperation with a nationwide Partner Network (rental management companies, construction companies, renovation companies, etc.). Built on property management income (approximately 91.9% of net sales) as its foundation, the business also comprises PM Ancillary Business (Rent Guarantee & Household Insurance) income and Other Income (Building Materials Sales Business, renovation, etc.). The number of managed units at the end of the first quarter of FY2026 (ending December 2026) was 108,337 units.

Recent Overview

In the first quarter of FY2026 (ending December 2026), both sales and profit increased, and the number of managed units turned to a net increase

In the first quarter of FY2026 (ending December 2026) (January to March), the company achieved net sales of ¥14,947 million (up 3.3% year on year) and operating profit of ¥832 million (up 16.3% year on year), representing an increase in both sales and profit. The number of managed units was 108,337, a net increase of 415 units from the end of the previous fiscal year, marking a recovery from the net decrease recorded for the full year of FY2025 (ending December 2025) (a decrease of 1,031 units from the end of the prior fiscal year). All income categories increased: property management income was ¥13,732 million (up 2.7% year on year), PM Ancillary Business income was ¥713 million (up 2.5% year on year), and Other Income was ¥502 million (up 27.2% year on year). As a change in the scope of consolidation, Reeks Property Co., Ltd. was excluded. There was no change to the full-year earnings forecast (net sales of ¥59,500 million, operating profit of ¥2,900 million).

Key Products

Growth Drivers

• Improved profitability per unit through expanded cross-selling of PM Ancillary Business (Rent Guarantee & Household Insurance)
• Increased occupancy rates and improved quality of the property stock through enhanced property management precision
• Acquisition of managed units through strengthened cooperation with the Partner Network and financial institutions (108,337 units at the end of the first quarter of FY2026 (ending December 2026), a net increase of 415 units from the end of the previous fiscal year)
• Strengthened stock-utilization revenue through Super Reuse (combining rental management outsourcing with renovation)
• Expansion of Other Income, including the building materials sales business (up 27.2% year on year in the first quarter)
• Strengthening of the management foundation through continued investment in human capital

Risks

• Risk of sustaining net increases in managed units (the full year of FY2025 (ending December 2025) saw a net decrease of 1,031 units from the end of the prior fiscal year, making the sustainability of the recovery trend a challenge)
• Risk of fluctuation in Other Income (revenue volatility due to instability in building materials sales and the presence or absence of sales of real estate for sale)
• Suppression of demand for newly built rental housing due to price and interest rate increases, limiting market growth potential
• Risks from an uncertain external environment, including financial market volatility associated with U.S. trade policy and escalating tensions in the Middle East
• Pressure on profit margins from rising SG&A expenses due to increased investment in human capital (first-quarter SG&A expenses of ¥1,330 million, up 5.7% year on year)
• Risk of a rising effective tax rate due to an increase in deferred income tax adjustments (total first-quarter income taxes of ¥266 million, up 30.4% year on year)