e'grand Co.,Ltd

Business Details

The company's core business is the "Used Home Renovation Business," in which used homes (condominium units, detached houses, and whole rental apartment buildings) purchased from the general distribution market and auction market are renovated and resold. It also operates the "Other Real Estate Business," which includes rental real estate. Its main area of operation is the greater Tokyo metropolitan area, and it has been expanding its handling of high-priced properties within Tokyo's 23 wards as well as income-producing whole apartment buildings. Sales are conducted through consignment to local real estate brokerage companies, enabling wide-area expansion with a small workforce.

Recent Overview

In FY2026 (ending March 2026), both revenue and profit increased substantially, achieving a record number of units sold

In FY2026 (ending March 2026), the company achieved substantial growth in both revenue and profit, with revenue of ¥40,091 million (up 31.4% year on year) and operating profit of ¥3,005 million (up 102.0% year on year). Enhanced purchasing of high-priced properties within Tokyo's 23 wards drove the number of residential properties sold to a record high of 1,073 units, while the average selling price rose to ¥31,507 thousand. Gross profit margin improved to 15.8%. Meanwhile, the company resolved to support the tender offer by Seibu Real Estate, and as it is expected to be delisted following a series of procedures, it has not disclosed earnings or dividend forecasts for FY2027 (ending March 2027). The company recorded ¥67 million in tender-offer-related expenses as an extraordinary loss.

Key Products

Growth Drivers

• Continued rise in the number of contracts and contract prices in the used condominium market in the greater Tokyo metropolitan area (March 2026: number of contracts up 0.2% year on year, average contract price up 11.6% year on year)
• Rising average selling price driven by enhanced purchasing of relatively high-priced properties within Tokyo's 23 wards (FY2026 ending March 2026: ¥31,507 thousand, up 19.1% year on year)
• Expansion in the scale of income-producing whole apartment building handling (FY2026 ending March 2026: 6 whole apartment buildings and 3 condominium units sold, revenue of ¥5,605 million)
• Continued substitute demand for used homes amid soaring prices of newly built condominiums and detached houses
• Improved profit margins accompanying strong sales of residential properties (gross profit margin improved from 14.0% to 15.8%)
• Moderate recovery trend driven by improving income conditions amid rising wages and a recovery in personal consumption

Risks

• The company is expected to be delisted following the tender offer by Seibu Real Estate, and earnings and dividend forecasts for FY2027 (ending March 2027) onward are undisclosed
• Increased inventory risk accompanying a rise in the number of properties purchased (1,059 units, up 18.2% year on year) and an increase in inventory assets (real estate for sale and real estate in process of development for sale totaling ¥27,549 million)
• Increased interest expense due to rising interest rates (FY2026 ending March 2026: ¥371 million, up 63% year on year)
• Rising financial leverage due to increases in short-term and long-term borrowings (equity ratio declined from 36.6% to 33.5%)
• Uncertainty over the economic outlook due to prolonged price increases stemming from surging energy prices amid heightened tensions in the Middle East
• Risk of declining gross profit margin due to rising purchase prices and renovation costs (outsourcing expenses of ¥4,864 million)
• Continued excess use of funds due to negative operating cash flow of ¥3,158 million resulting from increased inventory assets