Innovation Holdings CO.,LTD.

Business Details

A business in which Tenpo Innovation Co., Ltd. leases store properties from real estate owners and subleases them to restaurant and other tenants seeking to open stores. Revenue is categorized into Running Revenue (Rent & Renewal Fees), which is recorded continuously, and Initial Revenue (Key Money, Fixture Sales, etc.), which is recorded on a one-time basis. Revenue from the Store Rent Guarantee Business operated by Safety Innovation Co., Ltd. is also included in this segment. The business specializes in "well-located," "small-scale," and "turnkey (business-transfer condition)" properties in Tokyo and the surrounding three prefectures, developing a stock-type business model that captures the demand for store openings from individual and small-scale restaurant operators.

Recent Overview

Number of subleased properties reached 3,021, with substantial increases in both sales and profit

In the Store Sublease Business for FY2026 (ending March 2026), sales reached ¥17,803 million (up 17.4% year on year) and segment profit reached ¥1,548 million (up 26.9% year on year). The number of subleased properties at period-end increased by a net 315 properties from the prior period-end to 3,021. The number of sublease contracts (new + successor placements) reached 607 (up 24.4% year on year), capturing robust demand for store openings. In addition, the company began full-scale handling of well-located upper-floor properties occupied by non-restaurant tenants (clinics, gyms, etc.), advancing diversification of properties handled. The company also actively recruited property management staff, strengthening its management framework.

Key Products

Growth Drivers

• Continued net increase in the number of subleased properties (3,021 at end of FY2026 (ending March 2026), up 315 from the prior period), driving accumulation of Running Revenue
• Robust demand for store openings from individual and small-scale restaurant operators and high demand for turnkey properties
• Sales growth in the restaurant industry centered on urban areas and tourist destinations, driven by increased inbound demand and price revisions
• Diversification of properties handled through full-scale handling of well-located upper-floor properties occupied by non-restaurant tenants (clinics, gyms, etc.)
• Strengthening of sales capability and management framework through active hiring of property management staff and a shift to a division-of-labor approach in leasing operations
• Accelerated growth in the Store Rent Guarantee Business through prompt opening of branches in major regions of Japan and substantial staff increases

Risks

• Weak demand for store openings at properties in areas with limited brand appeal, such as outlying station areas and suburban rail lines outside Tokyo's major districts
• Risk that profit pressure on the restaurant industry from soaring raw material and utility costs and chronic labor shortages leads to deteriorating tenant operations and increased store closures
• Increasing property management costs and rising difficulty in maintaining management quality as the number of subleased properties grows
• Continued stagnation in corporate earnings and consumer thrift due to macroeconomic uncertainty such as U.S. tariff policy
• Barriers to acquiring tenants and property owners due to low awareness of the sublease business and negative perceptions of sublease contracts