Tokyu Fudosan Holdings Corporation
3289・Prime Market・Real Estate
Urban Development Business
The Group's largest revenue-generating segment, built on the two pillars of office & retail facilities and residential properties
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (external customers + internal) | ¥399,946 million | ¥348,841 million | ↑ |
| Segment operating profit | ¥75,235 million | ¥70,544 million | ↑ |
| Segment assets | ¥1,752,952 million | ¥1,713,812 million | ↑ |
| Office & retail facility vacancy rate (period end) | 0.7% | 0.3% | ↓ |
| Condominiums recognized as revenue | 899 units | 1,006 units | ↓ |
| Condominium contracted units | 1,584 units | 1,121 units | ↑ |
Business Details
Led primarily by Tokyu Land Corporation, this segment develops, leases, operates, and sells office buildings and retail facilities, and develops, sells, and disposes of condominiums and rental housing. The Greater Shibuya Area is positioned as a strategically important region, with large-scale mixed-use developments being promoted. In FY2026 (ending March 2026), segment operating profit was ¥75,235 million, accounting for approximately 45% of the Group's total operating profit of ¥166,882 million, making this a core segment.
Recent Overview
Revenue and profit grew on a surge in investor sales within Residential Other; vacancy rate ticked up slightly but remained low
In FY2026 (ending March 2026), the Urban Development Business posted revenue of ¥399,946 million (+14.6% year on year) and operating profit of ¥75,235 million (+6.6% year on year), representing growth in both revenue and profit. Sales to investors, etc. within "Residential Other" surged approximately 2.3-fold year on year, driving the residential segment. Meanwhile, "Office & Retail Facilities" saw a decline in revenue and profit due to a decrease in sales to investors, etc. Office leasing continued to see improved occupancy, centered on the Greater Shibuya Area, with the vacancy rate remaining low at 0.7% (a slight increase from 0.3% at the prior period end). Condominium units recognized as revenue decreased year on year to 899 units, but contracted units increased substantially to 1,584 units, and revenue contribution is expected from the next period onward. For FY2027 (ending March 2027), revenue is forecast at the equivalent of ¥475,500 million (¥475.5 billion), and operating profit is forecast at the equivalent of ¥75,300 million (¥75.3 billion).
Key Products
Growth Drivers
- Continued occupancy and revenue contribution from large-scale developments in the Greater Shibuya Area (maintaining a low office vacancy rate of 0.7%)
- Continued revenue contribution from sales of residential-related assets to investors, etc., supported by a robust real estate transaction market
- Accumulation of 1,584 contracted condominium units (up 463 units year on year), supporting revenue recognition from the next period onward
- Steady demand for condominiums, primarily in central urban areas (76% of next period's revenue forecast already contracted)
- Continued focus on asset-utilization businesses under the Mid-Term Management Plan 2030
Risks
- Rising construction costs (due to soaring material prices and labor shortages) increasing condominium construction costs
- Risk of declining condominium demand due to rising mortgage interest rates
- Profit volatility due to the timing of large asset sale gains (increasing reliance on investor sales within Residential Other)
- Risk of rising vacancy rates due to changes in office market supply and demand (the vacancy rate rose as high as 4.8% at the end of FY2024 (ending March 2024); it rose again to 0.7% at the end of the current period)
- Impairment loss risk (in FY2026 (ending March 2026), impairment losses totaling ¥5,666 million were recorded, including ¥5,420 million related to an operating facility in Tokyo)
- Uncertainty in the business environment due to instability in international affairs, rising domestic interest rates, and continued inflation
Last updated: June 24, 2026