ENVALITH
株式会社アズ企画設計 logo

Azplanning Co.,Ltd.

3490・Standard Market・Real Estate

Official website
株式会社アズ企画設計 logo
Azplanning Co.,Ltd.3490

Business

As Kikakusekkei Co., Ltd. upholds the corporate philosophy of "creating vibrant neighborhoods with no vacancies," and operates three businesses—real estate sales, leasing, and management—primarily in the Tokyo metropolitan area (Tokyo and three neighboring prefectures). In its core Real Estate Sales Business, the company acquires used real estate with declining occupancy rates and rent levels, enhances profitability through renovation and leasing, and then sells the properties to domestic and overseas real estate investors. Properties handled range widely from residences to commercial buildings and sectioned condominiums, and the company is currently pursuing a strategy centered on large-scale properties valued at ¥500 million or more. The Real Estate Leasing Business (rental containers, minpaku (private lodging), sublease, etc.) and the Real Estate Management Business (management outsourcing, construction renovation, etc.) complement this with stable, recurring stock-type revenue. The company shifted into the real estate business in 1993, listed on the Tokyo Stock Exchange JASDAQ market in 2018, and transitioned to the Standard Market in 2022.

Business Model

The company acquires existing real estate using financing from financial institutions, enhances its earning power through renovation and leasing, and then sells it to real estate investors to realize gains on sale. During the holding period, rental income (Real Estate Leasing Business) is recorded, and after the sale, management fee income (Real Estate Management Business) continues to be earned on an ongoing basis. The division of roles is clear: the sales business serves as the growth engine, while the leasing and management businesses serve as stable revenue sources that cover fixed costs. Of the ¥13,543 million in net sales for FY2026 (ending March 2026), the Real Estate Sales Business accounted for ¥12,585 million, or 93%.

Company Strengths

The leasing and renovation methods accumulated over more than 30 years since the company entered the real estate business in 1993 constitute its greatest competitive advantage. It has systematized a regeneration process in which it acquires properties with declining occupancy rates and enhances profitability through interior construction work involving layout changes and leasing activities, achieving 27 sales in FY2025 (ending February 2025). The gross profit margin improved 1.5 points year on year to reach 15.6%.

After establishing a track record of handling properties worth ¥300 million or more under the previous medium-term management plan, the current medium-term management plan (FY2025–FY2027, ending February 2027) raised the target to ¥500 million or more. In addition to residences, the company has diversified its product types to include office buildings, retail buildings, and sectioned condominium units. In FY2025 (ending February 2025), Real Estate Sales Business net sales reached ¥11,494 million (up 8.0% year on year), with improvement in average unit sale price driving sales growth.

The balance of real estate for sale at the end of FY2025 (ending February 2025) rose to a level exceeding ¥7,930 million, significantly above the previous period, securing sales capacity for FY2026 (ending February 2026) and beyond. Segment assets (Real Estate Sales Business) for FY2026 (ending February 2026) expanded to ¥8,578 million, and this build-up of inventory contributed to achieving net sales of ¥13,543 million in the following period.

ENVALITH's Perspective

In the first quarter of FY2027 (ending February 2027), the company achieved net sales of ¥4,426 million (up 101.1% year on year), operating profit of ¥530 million (up 175.7% year on year), and profit attributable to owners of parent of ¥284 million (up 352.6% year on year), marking substantial increases in both revenue and profit across all metrics. Against the full-year forecast (net sales of ¥15,500 million, operating profit of ¥1,250 million), the first-quarter progress rate stood at a high level of 28.6% for net sales and 42.4% for operating profit, and taking into account the state of inventory buildup, the likelihood of achieving the full-year forecast is judged to be high. As an external factor, the persistent strength of demand for income real estate investment in urban areas and the rising attention to secondhand properties amid soaring new-build prices are functioning as tailwinds.

Interest-bearing debt (short-term borrowings of ¥2,444 million + current portion of long-term borrowings due within one year of ¥2,450 million + long-term borrowings of ¥7,142 million + bonds payable of ¥100 million) as of the end of the first quarter of FY2027 (ending February 2027) reached a total of ¥12,136 million, an increase of approximately ¥2,267 million from the end of the previous fiscal year. The equity ratio declined from 27.5% to 24.3%, and the risk that rising interest expenses (¥69 million in the current 1Q, up 45% year on year) amid a rising interest rate environment will pressure ordinary profit continues. Given the Bank of Japan's policy of gradual interest rate hikes, continued attention to sensitivity to rising funding costs is warranted.

First-quarter net sales of the Real Estate Leasing Business fell substantially to ¥154 million (down 19.3% year on year), with segment profit of ¥7 million (down 78.2% year on year). The main cause was a decrease in Rental Income from Real Estate for Sale due to diversification of handled properties, giving rise to a trade-off in which stock-type revenue shrinks in exchange for an improvement in the sales turnover rate. While the stable earnings function of the leasing business is declining, the Real Estate Management Business (net sales of ¥72 million, up 24.5% year on year) is steadily expanding thanks to the contribution of Fuji Home, and the center of gravity of stock-type revenue appears to be shifting from leasing to management, a point worth noting as a change in the medium- to long-term earnings structure.

Growth Strategy

Accelerating M&A and inventory expansion through larger, more diversified properties and fundraising via stock acquisition rights

As of the end of Q1 FY2027 (ending March 2027)/rather February 2027, the company held real estate for sale of ¥8,028 million and work-in-progress real estate for sale of ¥2,518 million (total ¥10,546 million). The company has maintained its full-year revenue forecast of ¥15,500 million, stating that "sales are expected to progress," making revenue realization through inventory consumption the top priority initiative.

Through stock acquisition rights resolved on July 8, 2026 (estimated net proceeds of ¥1,279 million), the company secured ¥979 million for procurement funds for the Real Estate Sales Business and ¥300 million for growth investment funds for M&A and strategic alliances. The exercise period runs from August 2026 to August 2029. The allottees are Macquarie Bank Limited and Hitoplan Co., Ltd.

In addition to single-building income real estate (office buildings and residences), the company has expanded property types to include sectioned offices and premium condominiums. In Q1 FY2027 (ending March 2027), the company sold 2 office buildings, 2 sectioned offices, and 1 residence building, achieving Real Estate Sales Business revenue of ¥4,200 million (up 115.2% year on year). The company is thoroughly pursuing planning capability and cost control in response to intensifying procurement competition and rising renovation costs.

The expansion of the management contract base through the M&A of Fuji Home Co., Ltd. (completed during FY2026, ending March 2026) continues to contribute. In Q1 FY2027 (ending March 2027), Real Estate Management Business revenue was ¥72 million (up 24.5% year on year), with segment profit of ¥30 million (up 49.4% year on year), showing steady growth. The company is promoting the accumulation of recurring-type revenue by increasing management contract acquisitions following sales.

Pursuant to a resolution of the Board of Directors on June 18, 2026, 10,000 shares of common stock (¥2,821 per share, total ¥28 million) were issued as restricted stock to four directors excluding outside directors. The purpose is to enhance motivation to contribute to sustainable increases in corporate value and to share value with shareholders. The payment date was July 3, 2026.

Last updated: July 17, 2026