AZUMA HOUSE Co., Ltd.
3293・Standard Market・Real Estate
Business
Azuma House Co., Ltd. is a comprehensive real estate group headquartered in Wakayama City, Wakayama Prefecture, established in 1977 and listed on the Tokyo Stock Exchange (currently the Standard Market) in 2013. It operates four segments: Real Estate & Construction Business (sales of subdivided lots and custom-built housing), Real Estate Leasing Business (2,298 company-owned units and 14,912 managed units), Asset Utilization Business (rental housing sales), and Hotel Business (three business hotels and three restaurants). The company operates multiple stores in Wakayama City, Iwade City, Osaka-Sayama City, and other locations, adopting a region-focused business model targeting general consumers and landowners as its main customers. It also holds Kokoku Real Estate Co., Ltd., a consolidated subsidiary based in Tokyo, as it seeks to expand its geographic footprint.
Business Model
The basic structure consists of two axes: selling housing and land through the Real Estate & Construction Business, and securing continuous rental income from properties owned or managed by the company through the Real Estate Leasing Business. In the Asset Utilization Business, the company proposes rental housing construction to landowners and creates inter-segment synergy by guiding clients toward rental management after construction is completed. The Hotel Business functions as a complementary revenue source that captures tourism and business demand within Wakayama City. The company has set management target indicators of an ordinary income margin on sales of 8% or higher and a capital adequacy ratio of 40% or higher.
Company Strengths
As of the end of FY2026 (ending March 2026), the company owned and managed a total of 17,210 units, comprising 2,298 company-owned units and 14,912 managed units. The Real Estate Leasing Business posted net sales of ¥3,881 million (up 1.5% year on year) and segment profit of ¥1,123 million (up 5.8% year on year), continuing stable growth and functioning as a revenue base for the group as a whole.
The equity ratio stood at 53.9% at the end of FY2026 (ending March 2026), substantially exceeding the company's own target of 40% or higher. Total net assets amounted to ¥17,293 million, and cash and cash equivalents totaled ¥3,488 million. The company has maintained financial soundness while continuing to invest in rental properties (property acquisition expenditure of ¥931 million during the period).
The company has 47 years of business history since its founding in 1977, and operates Real Estate & Construction Business locations comprising three branches in Wakayama City, one branch in Iwade City, and one branch in Osakasayama City, as well as Real Estate Leasing Business locations comprising four branches in Wakayama City, one branch in Iwade City, and one branch in Hashimoto City. This community-based multi-branch network forms a competitive advantage that is difficult to replicate in a short period of time.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥13,911 million in FY2022 before declining to ¥11,622 million in FY2026, marking the lowest level in five periods. Operating profit also fell to ¥1,010 million, roughly on par with FY2024's ¥1,012 million, while net income of ¥505 million was the lowest of the five periods. As an external factor, persistently high construction material costs and rising mortgage interest rates are believed to have suppressed housing purchase demand. On the other hand, restated operating cash flow of ¥1,393 million remained relatively solid compared to the profit level, and the company has been able to maintain continued investment in leasing real estate (¥931 million), which supports the maintenance of its revenue base over the medium to long term. The operating profit margin declined to approximately 8.7% from approximately 9.3% in the previous period.
Growth Strategy
Deepening presence in core markets, expanding into the Osaka vicinity, promoting DX, and building up rental assets to enhance the one-stop service system
A strategy of continuing to spend over ¥900 million per period on rental real estate acquisitions to build up the rental income portfolio. In FY2026 (ending March 2026), ¥931 million was invested, aiming to expand stable revenue sources that hedge against volatility risk in housing sales revenue.
Promoting high value-added proposals that do not rely on price competition, through the supply of IoT-enabled smart houses, ZEH-spec housing, and long-life quality housing. While aiming to capture demand backed by housing acquisition support measures for child-rearing households, the slump in housing sales in FY2026 (ending March 2026) has become a test of the strategy's effectiveness.
Continuing geographic expansion into the Osaka vicinity, centered on multi-store expansion into Wakayama City, Iwade City, and Osakasayama City. Strengthening customer supply to each of the housing sales, rental management, and asset utilization segments by expanding community-based customer touchpoints.
Aiming to improve operational efficiency and room rates through DX promotion via system changes in the Hotel Business. Leveraging the operating base of three hotels and three restaurants, the company aims to improve occupancy rates by capturing domestic travel demand.
A strategy of converting the Asset Utilization Business order backlog of ¥376,614 thousand (up 140.7% year on year) into next-period sales, functioning as a revenue source that offsets the slump in the Real Estate & Construction Business. The company continues a diverse channel approach toward landowners.
Last updated: July 19, 2026