Sansei Landic Co.,Ltd

Business Details

The company's sole business segment. It primarily purchases land subject to leasehold rights under the old Land Lease Act/Building Lease Act (jishaku, land encumbered with leasehold interests), "ikinuki" properties (land and buildings with lease/rental rights attached), and freehold properties from landowners, and after conducting rights adjustment such as boundary determination, negotiations with leaseholders, and vacating negotiations, sells them to real estate companies, business corporations, and individuals. The company operates from seven locations nationwide (Tokyo head office, Sapporo, Sendai, Nagoya, Kyoto, Kansai, and Kyushu). It also holds ancillary revenue sources such as the ground rent collection agency service "Owners Partner" and rental real estate income.

Recent Overview

In Q1 of FY2026 (ending December 2026), revenue increased across all categories, with purchases surging 173.6% year on year

In Q1 (January to March) of FY2026 (ending December 2026), revenue increased to ¥9,606 million (up 8.6% year on year) and operating income increased to ¥2,040 million (up 13.0% year on year), reflecting higher revenue and profit. Sales increased across all categories: jishaku, ikinuki, freehold properties, and others. Purchases expanded substantially to ¥7,724 million (up 173.6% year on year), with ikinuki purchases in particular surging 497.7% year on year. The balance of real estate for sale built up to ¥33,805 million, expanding future sales capacity. The full-year earnings forecast (revenue of ¥25,500 million, operating income of ¥2,400 million) remains unchanged. As a subsequent event, the company resolved to conduct a stock split (one share to two shares) effective July 1, 2026.

Key Products

Growth Drivers

• Stable revenue expansion driven by an increase in the number of jishaku properties sold (119 units in Q1, up 41.7% year on year)
• Buildup of future sales inventory (real estate for sale balance of ¥33,805 million) through a sharp expansion in purchases of ikinuki and jishaku properties (purchase amount of ¥7,724 million in Q1, up 173.6% year on year)
• Improved profitability through gross margin improvement (34.8% in Q1 versus 34.0% in the prior-year period)
• Increase in stable ancillary revenue from the expansion of the rental real estate balance (¥1,727 million, up ¥343 million from the previous fiscal year-end)
• Improved stock liquidity and expanded investor base through a stock split (one share to two shares, effective July 1, 2026)
• Promotion of sophistication in purchasing schemes and expansion of derivative businesses (co-ownership interests, fixed-term holdings, gratuitous loans for use, and leasehold rights business) based on the medium-term management plan

Risks

• Risk of sales fluctuation by property type, as seen in the decline in ikinuki sales units (19 units in Q1, down 26.9% year on year)
• Risk to inventory increase and cash flow associated with the sharp rise in purchases (¥7,724 million in Q1, up 173.6% year on year)
• Financial leverage risk stemming from a debt-dependent funding structure (short-term borrowings of ¥16,340 million and long-term borrowings due within one year of ¥7,024 million) and a decline in the equity ratio (from 33.3% to 32.9%)
• Downward pressure on ordinary income from a significant increase in interest expenses (¥134 million in Q1, up 78.1% year on year)
• Risk of recording valuation losses due to declines in the net realizable value of real estate for sale amid a deteriorating real estate market
• Risk of a decrease in acquirable properties and intensifying competition as the liquidation of properties subject to the old Land Lease Act progresses