ENVALITH
パラカ株式会社 logo

Paraca Inc.

4809・Prime Market・Real Estate

Official website
パラカ株式会社 logo
Paraca Inc.4809

Business

Paraca Inc. was established in 1997 and listed on the Tokyo Stock Exchange Mothers market (now the Prime Market) in 2004, as a company specializing in pay-by-time parking lots. Under its management policy of "resolving Japan's parking lot shortage and realizing a comfortable car society," it operates nationwide, primarily in major metropolitan areas. The business consists of three formats: "Leased Parking Lots," which are operated on land leased from landowners; "Owned Parking Lots," which are operated on land acquired and owned by the company itself; and "Other," which includes real estate leasing and solar power generation. As of the end of September Reiwa 7, the company operated 2,598 locations with 48,232 parking spaces, setting new record highs in the number of newly opened locations, number of spaces, number of locations operated, and number of spaces operated. Through a capital and business alliance with ITOCHU Corporation (voting rights ownership ratio of 22.0%), the company is promoting the utilization of real estate information networks and the development of new projects.

Business Model

In Leased Parking Lots, the company pays rent to landowners and earns profit by deducting rent, equipment lease fees, and operating and management costs from time-based parking fee revenue. In Owned Parking Lots, since the company acquires the land itself, there is no cancellation risk, and the main costs are limited to fixed asset taxes and similar items, resulting in a high gross profit margin. In FY2025 (ending September 2025), the gross profit margin for Owned Parking Lots reached 81.3% (net sales of ¥2,907 million, gross profit of ¥2,365 million). This is a stock-type model that continuously accumulates the number of parking spaces, and improving profitability through flexible fee adjustments at existing parking lots is also a key pillar of revenue growth.

Company Strengths

There is almost no equivalent business deployment of the Owned Parking Lots model among competitors. In FY2025 (ending September 2025), gross profit from Owned Parking Lots was ¥2,365 million (gross margin of 81.3%), with assets carrying a book value balance of ¥39,696 million functioning as a "base earnings" source. This structure supports management with high profit margins even in phases of external environment deterioration.

In FY2025 (ending September 2025), the company newly opened 338 locations with 11,246 parking spaces (approximately 1.5 times the previous fiscal year), and the parking space balance reached 48,232 spaces, up 19.3% from the end of the previous fiscal year. All indicators—number of new openings, number of parking spaces, number of operated locations, and number of operated parking spaces—reached record highs. The opening of 24 facility-attached parking lot projects with 6,073 parking spaces was the driving factor behind this.

In August 2021, the company entered into a capital and business alliance with ITOCHU Corporation, which held a voting rights ownership ratio of 22.0% as of the end of September 2025. Through mutual provision and sharing of real estate site information, joint consideration and promotion of real estate development projects, and collaboration with group companies, the expansion of parking lot site information and access to large-scale facility-attached projects have been strengthened.

ENVALITH's Perspective

In the first half of FY2026 (ending March 2026), revenue was ¥9,142 million (up 5.8% year on year), maintaining revenue growth, but operating profit fell to ¥1,513 million (down 3.2%), ordinary profit to ¥1,328 million (down 6.3%), and interim net profit to ¥897 million (down 6.4%), with declines at every profit level. The main causes were an overshoot in initial costs such as brokerage fees and setup costs for Leased Parking Lots, sales losses and increased snow removal costs due to heavy snowfall in the Northern Japan area, and an increase in SG&A expenses (up 13.2% year on year to ¥1,138 million) due to office expansion and wage increases. Achieving the full-year forecast (operating profit of ¥3,430 million, up 5.0% year on year) will require a recovery in the second half, and progress on cost management needs to be monitored closely.

As of the end of March 2026, long-term borrowings (including the current portion due within one year) stood at ¥25,650 million, an increase of ¥1,637 million from the end of the previous fiscal year. Interest expense for the first half rose to ¥190 million (up ¥39 million year on year), an increasing trend, and as an external factor, rising financial costs amid a continuing period of rising interest rates are weighing on ordinary profit. The equity ratio also declined from 42.2% at the end of the previous fiscal year to 40.5%. While expanding borrowing to acquire land for Owned Parking Lots is unavoidable as part of the growth strategy, the impact of changes in the interest rate environment on earnings needs to be continuously monitored.

Revenue from properties opened in the Northern Japan area during the current period showed high growth of 69% year on year, while costs increased at a pace exceeding revenue, up 106%. Heavy snowfall in Hokkaido, Aomori Prefecture, and Niigata Prefecture from January to February 2026 caused sales losses and increased snow removal costs. While expansion into regional cities contributes to growth in the number of parking spaces, it is necessary to recognize the winter seasonality risk and the initial cost burden of newly opened properties as structural challenges that depress short-term profitability. Profit margins may continue to decline until utilization of existing properties stabilizes.

Growth Strategy

Continued accumulation of base earnings and parking space inventory through aggressive investment in Owned Parking Lots and expansion of facility-attached projects

Focus on acquiring land for Owned Parking Lots while considering demographic and other indicators. Achieved a net increase of 10 properties and 115 parking spaces during the first half of FY2026 (ending March 2026) (343 properties and 5,888 parking spaces operating as of the end of March). Land balance stood at ¥40,771 million, up ¥1,024 million from the end of the previous fiscal year. Land for a site scheduled to open in Sapporo City from the third quarter onward has already been acquired.

Leveraging business alliances with real estate developers and brokerage firms to secure redevelopment projects and parking lots attached to commercial facilities. During the first half of FY2026 (ending March 2026), opened 12 facility-attached parking lots (excluding those attached to convenience stores) totaling 2,350 parking spaces, achieving the capture of large-scale projects.

For existing properties (those more than one year since opening) in Leased Parking Lots, achieved sales of ¥6,483 million (up 6.5% year on year) and gross profit of ¥1,249 million (up 7.1% year on year). Against a market backdrop of tight supply-demand conditions in major metropolitan areas, fee adjustments were implemented flexibly to improve profitability.

Sales from properties opened during the current period in the Northern Japan area grew strongly, up 69% year on year. However, costs also rose 106%, reflecting a heavy initial cost burden, and heavy snowfall risk has also materialized. Earnings contribution is expected over the medium to long term through expansion of parking space count and stabilization of occupancy.

To recruit and retain talented personnel, office expansion and renovation as well as salary increases were implemented from March to April 2025 (Reiwa 7). While this is a factor increasing SG&A expenses, it is positioned as strengthening the organizational foundation for sustainable growth. SG&A expenses are expected to increase by approximately 10% for the full year.

Last updated: July 17, 2026