ENVALITH
株式会社リアルゲイト logo

REAL GATE INC.

5532・Growth Market・Real Estate

Official website
株式会社リアルゲイト logo
REAL GATE INC.5532

Business

RealGate Inc. was founded in 2009 under the corporate philosophy of "bringing value to old things, creativity to real estate, and freedom to the way people work." Focused on central Tokyo areas such as Shibuya, Minato, and Meguro wards, the company provides a one-stop service covering planning, design, construction, leasing, and operation for aging buildings that are 20 to 40 years old with a total floor area of around 500 tsubo. As of the end of September 2025, the company operated 65 properties with a total operating floor area of 104,253 square meters. Its main customers are young companies with less than 10 years of history, primarily startups in the information services industry, which account for approximately 60% of its client base. The company became a consolidated subsidiary of CyberAgent in 2021 and listed on the TSE Growth Market in June 2023.

Business Model

Revenue consists of stock-type income—comprising PM Contract (Property Management Model) fees (operation entrustment fees), ML Contract (Master Lease Model) rent (master lease sublease rent), and rent from company-owned properties—and flow-type income comprising Design & Construction Contracting (Design-Build Model) and sales of real estate for sale (capital gains). In FY2025 (ended September 2025), stock-type sales were ¥6,118 million (approximately 63% of the total), while flow-type sales were ¥3,673 million (approximately 37%). A characteristic feature is the cyclical model in which ML and PM contracts continue even after a property is sold, converting the transaction into stock-type income.

Company Strengths

The company concentrates operations in Shibuya, Minato, and Meguro wards, maintaining a monthly property occupancy rate above 98% every month in FY2025 (ending September 2025). The average rent per tsubo also showed an upward trend, rising from ¥25,523–26,189/tsubo in FY2024 (ending September 2024) to ¥25,568–26,729/tsubo in FY2025 (ending September 2025). This demonstrates competitiveness that exceeds the Shibuya ward market average rent of ¥24,248/tsubo and occupancy rate of 97.9% (Miki Shoji, September 2025).

The company has in-house 4 first-class registered architects, 7 first-class construction management engineers, and 47 licensed real estate transaction specialists (excluding officers), and holds a first-class architectural firm registration and a specific construction business license. By advancing projects with a one-team approach of 6 to 10 members from planning through leasing and operations, the company achieves faster business execution and accumulation of know-how. The construction period is half a year to one year shorter than new construction, reducing risks from construction cost and interest rate fluctuations.

Stock-type revenue expanded every fiscal period, growing from ¥4,983 million in FY2023 (ending September 2023) to ¥5,520 million in FY2024 (ending September 2024) to ¥6,118 million in FY2025 (ending September 2025). Operating profit in FY2025 (ending September 2025) reached a record high of ¥1,043 million (+36.0% year on year), and net income also rose to ¥559 million (+47.0% year on year). Despite bearing aggressive upfront investment costs, the company achieved 36% growth, significantly exceeding its target of 30% growth.

ENVALITH's Perspective

In the first half of FY2026 (ending March 2026), net sales decreased 11.2% year on year to ¥5,673 million, while operating profit increased 33.4% year on year to ¥1,043 million and net income for the interim period increased 24.4% year on year to ¥594 million, achieving substantial profit growth. This was mainly due to an improvement in the cost of sales ratio (from 82.6% in the same period of the previous year to 74.9% in the current period), with the accumulation of stock-type income and the contribution from property sales (THE MOCK-UP) being significant factors. However, property sale income tends to be concentrated in timing of recognition, and whether or not sale transactions occur in the second half will continue to determine whether full-year performance targets are achieved, requiring ongoing attention.

At the end of the first half of FY2026 (ending March 2026), total assets stood at ¥25,243 million (up ¥3,978 million from the end of the previous fiscal year), long-term borrowings were ¥14,356 million, and short-term borrowings were ¥1,490 million (newly incurred from zero at the end of the previous fiscal year), with interest-bearing debt expanding rapidly. The equity ratio remained at a low level of 15.8%. Interest expense nearly doubled from ¥68 million in the same period of the previous year to ¥126 million in the current period, and if the rising interest rate environment continues as an external factor, there is a risk that further increases in financial costs could put pressure on ordinary profit. Cash and cash equivalents decreased significantly to ¥551 million from ¥947 million at the end of the previous fiscal year, making liquidity management an important point to monitor as well.

The full-year forecast for FY2026 (ending March 2026) remains unchanged, with net sales of ¥10,500 million (up 7.2% year on year), operating profit of ¥1,470 million (up 40.9% year on year), and net income of ¥725 million (up 29.6% year on year). The progress rate for operating profit in the first half was high at 71.0%, but the progress rate for net sales remained at only 54.0%, indicating a need to build up property sale income toward the second half. As an external factor, the impact of building material shortages (stemming from the situation in the Middle East) is said to be limited at present, but uncertainty about the outlook remains. Progress in second-half procurement activities toward the annual acquisition target of 12 properties, along with the concrete development of new businesses such as the hotel business, will be key evaluation points over the medium to long term.

Growth Strategy

Targeting 12 property acquisitions annually leveraging JVs and co-investments, while expanding business scope through new ventures such as the hotel business

Continuing to strengthen property sourcing in existing areas of strength. In H1 FY2026 (ending March 2026), the company completed settlement on 4 new properties and concluded 2 master lease contracts, raising the annual acquisition target from the previous level to 12 properties. Progress is currently ahead of plan.

In February 2026, the company established a joint venture with Hulic Co., Ltd., and has begun acquiring new properties through JV projects. Collaboration with a major developer enables access to properties that would be difficult to acquire independently and complements the company's creditworthiness.

The company plans to acquire land and a building (a 15% quasi co-ownership interest in trust beneficiary interests) in Ginza, Chuo-ku, Tokyo, through a co-investment with HistoRy LLC. Delivery is scheduled for early July 2026, and the company expects this to contribute to earnings from the following fiscal year onward. Expansion into the Ginza area also contributes to geographic diversification.

In addition to the Flexible Workplace Business (Single Segment), the company aims to expand its business scope through new ventures such as the hotel business. Specific properties, scale, and timing of earnings contribution have not yet been disclosed, but this is positioned as an upfront investment for the second half of the fiscal year and beyond.

Last updated: July 17, 2026