Elitz Holdings.Co,Ltd.

Business Details

Eritz Co., Ltd. operates stores primarily in Kyoto and Shiga, expanding across the Kinki region, and encompasses leasing brokerage, sales brokerage, real estate leasing, real estate development, and overseas business. Main revenue sources are leasing brokerage commissions (from both tenants and landlords) and outsourcing fee income, generating synergy effects in the brokerage of group-managed properties. In the first half of FY2026 (ending March 2026), external customer sales were ¥1,766 million (up 2.4% year on year), making it the core segment accounting for approximately 50% of group sales.

Recent Overview

Sales rose slightly, but profit declined 10.2% year on year due to increased expenses

In the first half of FY2026 (ending March 2026) (October 2025 to March 2026), the Real Estate Brokerage Business saw outsourcing fee income (up 5.7% year on year) and product sales (up 12.8% year on year) grow steadily, while a decline in tenant transactions caused leasing brokerage commissions to fall 0.2% year on year, real estate sales brokerage commissions to fall 32.3% year on year, and sales of real estate for sale to fall 27.9% year on year. Combined with increased expenses such as personnel costs, advertising expenses, and rent associated with new store openings, segment profit came to ¥263 million, down 10.2% year on year.

Key Products

Growth Drivers

• Stable growth in outsourcing fee income (¥507 million in H1 FY2026 (ending March 2026), up 5.7% year on year)
• Expansion of product sales (¥219 million in H1 FY2026 (ending March 2026), up 12.8% year on year)
• Continued aggressive new store openings in the Kinki region (from 51 stores at end of FY2021 (ended September 2021) to 68 stores at end of FY2025 (ended September 2025))
• Brokerage synergy with group-managed properties (approximately 90% brokerage rate for company-managed properties)
• Maintenance and expansion of brokerage transaction volume through resilient leasing demand

Risks

• Fluctuations in spot transaction sales (real estate for sale and sales brokerage commissions) significantly affect profit (in H1 FY2026 (ending March 2026), sales of real estate for sale fell 27.9% and sales brokerage commissions fell 32.3%)
• Profit pressure from upfront increases in personnel costs, advertising expenses, and rent associated with new store openings (the main cause of the 10.2% decline in segment profit in H1 FY2026 (ending March 2026))
• Stagnation in leasing brokerage commission growth due to structural demand changes such as a decline in tenant transactions
• Fluctuations in brokerage commissions due to seasonal and timing factors such as delays in key handover timing
• Sluggish housing market among genuine demand buyers due to rising mortgage interest rates and worsening consumer sentiment
• Medium- to long-term risk of shrinking leasing demand due to the gradual population decline in Kyoto Prefecture