ENVALITH
株式会社イノベーションホールディングス logo

Innovation Holdings CO.,LTD.

3484・Standard Market・Real Estate

Official website
株式会社イノベーションホールディングス logo
Innovation Holdings CO.,LTD.3484

Business

Innovation Holdings Co., Ltd. is a holding company with the corporate philosophy of "Creating Contribution - Challenge and Evolution -," whose core business is the sublease business specializing in restaurant/retail store properties within the Tokyo metropolitan area (Tokyo and three surrounding prefectures). Its subsidiary, Tempo Innovation Co., Ltd., operates the Store Sublease Business, leasing store properties from real estate owners and subleasing them to restaurant operators and other businesses wishing to open stores. Asset Innovation Co., Ltd. conducts the Real Estate Sales Business, engaged in the Purchase and Sale of Commercial Real Estate, while Safety Innovation Co., Ltd. is responsible for the Store Rent Guarantee Business (Safety Innovation). The main customers are store operators, primarily individual and small-scale restaurant businesses, and the company supports the reduction of store opening costs through the utilization of "ideduki" (turnkey) properties with existing fixtures. As of the end of FY2026 (ending March 2026), the number of subleased properties reached 3,021.

Business Model

The core is a stock-type revenue model in which the company leases store properties from real estate owners and subleases them to prospective tenants, recognizing the rent spread (Running Revenue) on a continuous monthly basis. This is supplemented by a composite revenue structure that adds Initial Revenue (Key Money, Fixture Sales, etc.) at the time of sublease, guarantee fee income (Store Rent Guarantee Business), and gains from real estate sales. In FY2026 (ending March 2026), Running Revenue (Rent & Renewal Fees) totaled ¥15,689 million, accounting for approximately 78% of net sales, and net increases in the number of subleased properties directly drive the accumulation of revenue.

Company Strengths

The number of sublease properties at the end of FY2026 (ending March 2026) was 3,021 (a net increase of 315 from the previous fiscal year). Over the past five years, the number has consistently increased on a net basis from 1,951 to 3,021, forming a subscription-type revenue base in which the monthly rent margin accumulates. Given the structure whereby an increase in the number of sublease properties directly leads to an expansion of Running Revenue (Rent & Renewal Fees), Running Revenue (Rent & Renewal Fees) in FY2026 (ending March 2026) reached ¥15,689 million, up 12.6% year on year.

The number of members of "Ideduki-tenpo.com" (a website providing information on properties with existing fixtures/vacated stores), a proprietary channel realizing matching with prospective tenants, reached 118,235 as of the end of March 2026. In addition, the company also accepts direct offers from parties wishing to withdraw from properties through "Tenpo-Kaitori.com," thereby diversifying the collection of property information. The property appraisal know-how and management operations accumulated through years of track record form a barrier to entry.

According to the company's Annual Securities Report, the Store Sublease Business faces high difficulty in establishing property sourcing routes, and because it is a stock-type business that requires a long period of time to become profitable, participation by other companies is limited. The number of store properties in the Tokyo metropolitan area (Tokyo and three surrounding prefectures) is said to be approximately 132,000, and the number of sublease properties at 3,021 represents only a small fraction of this potential market. The Group, which operates as a pioneer in this field, recognizes that there is substantial room for expansion.

ENVALITH's Perspective

In FY2026 (ending March 2026), the company achieved net sales of ¥20,012 million (up 20.1% year on year), operating profit of ¥2,041 million (up 50.5%), and profit attributable to owners of parent of ¥1,356 million (up 31.7%), marking a substantial increase across all profit indicators. The operating margin improved to 10.2% (from 8.1% in the previous period), and ROE improved to 30.3% (from 28.1%). External factors, including a boom in the urban dining industry driven by rising inbound demand and price revisions, as well as an appreciating trend in central Tokyo real estate, provided a tailwind. Meanwhile, soaring raw material and utility costs along with labor shortages are squeezing the profits of restaurant operators, and the risk of lease cancellations due to deteriorating tenant business conditions warrants continued monitoring.

The consolidated earnings forecast for FY2027 (ending March 2027) anticipates net sales of ¥22,775 million (up 13.8% year on year), representing revenue growth, while operating profit is forecast at ¥1,953 million (down 4.3%), ordinary profit at ¥1,986 million (down 12.3%), and profit attributable to owners of parent at ¥1,276 million (down 5.9%), indicating a decline in profits. This is presumed to be mainly due to the disappearance of one-time non-operating income recorded in FY2026 (ending March 2026), including compensation received of ¥392 million. Cost increases from upfront investments such as the active hiring of property management staff and the opening of new branches may also weigh on profit, making it a key focus point whether the revenue growth effect can absorb the cost increases.

With the expansion of the number of subleased properties, the balance of security deposits paid reached ¥8,071 million (up ¥658 million year on year), accounting for 43% of total assets of ¥18,664 million. The equity ratio has remained at a low level of 26.5% (up from 25.6% in the previous period), reflecting a structure in which the funding needs accompanying property expansion increase financial leverage. Long-term borrowings increased to ¥529 million (from ¥103 million in the previous period). Risks stemming from concentration in the Tokyo metropolitan area and dependence on the restaurant industry also remain, and investors should continue to monitor the risk of property concentration in the event of disasters such as earthquakes or an economic downturn.

Growth Strategy

Continuous net increase in the number of subleased properties, combined with expansion of the Store Rent Guarantee and Real Estate Sales businesses, across three business lines

By actively acquiring properties that are "well-located, small-scale, and left-in-place (ideduki)" and strengthening recruitment of property management personnel, the company continues to build up the number of subleased properties. Achieved 3,021 properties at the end of FY2026 (ending March 2026) (a net increase of 315 properties year on year). Also promoting diversification of handled properties through the full-scale expansion into non-restaurant storefronts and above-ground-floor properties.

For the commercial real estate-focused rent guarantee business operated by subsidiary Safety Innovation, the company is promptly opening branches in major regions across Japan and substantially increasing personnel, aiming to expand stock revenue by accumulating guarantee contracts.

By dividing labor between property purchasing and sales, the company aims to stabilize transactions and improve reproducibility. On the purchasing side, it pursues speedy deal negotiations and active value-up initiatives, while on the sales side, it promotes expansion of sales channels and an organizational approach to accelerate property sales. In FY2026 (ending March 2026), segment profit reached ¥493 million (up 261.4% year on year).

Last updated: July 19, 2026