ENVALITH
株式会社T.S.I logo

Terminalcare Support Institute Inc.

7362・Growth Market・Services

Official website
株式会社T.S.I logo
Terminalcare Support Institute Inc.7362

Business

T.S.I Co., Ltd. (Terminalcare Support Institute), whose company name derives from its role as a "support institution for end-of-life care," operates Service-Provided Senior Housing "Anjesu" nationwide, comprising 36 buildings and 1,210 units (as of end of December 2025), targeting primarily those on waiting lists for special nursing homes for the elderly. The company employs a vertically integrated model in which its consolidated subsidiary, Kitayama Jutaku Hanbai Co., Ltd., handles design and construction, while the company itself manages operations. It provides integrated Home-Visit Care, Home-Visit Nursing, and Home Care Support services, achieving an end-of-life care completion rate of 51.2% (versus the national average of 38.2%). The company has pursued dominant regional expansion across 11 prefectures centered on Kyoto and Shiga, establishing a fee structure that allows elderly residents requiring Care Level 2 to 3 support to live through to end of life within the scope of their employees' pension benefits.

Business Model

Revenue is built on three pillars: nursing care room rent (approximately 20% of sales), living support-related income (approximately 24%), and long-term care insurance-related income (approximately 56%). For company-owned properties (11 buildings across the group), the company acquires land and buildings using long-term borrowings and recovers costs through rental income, forming a real estate investment-type revenue base. For externally-owned properties, the company operates tenants under a master lease arrangement, expanding the number of locations while limiting initial investment. The company's own sales force acquires residents with zero referral fees, and by maintaining an average occupancy rate of 96.5% at locations open for one year or more, revenue is stabilized.

Company Strengths

The average occupancy rate at facilities open for one year or more has improved year by year, from 94.1% at the end of December 2023, to 96.2% at the end of December 2024, to 96.5% at the end of December 2025. A system in which the company's own sales force directly approaches care managers and social workers to acquire residents with zero referral fees supports the sustained high occupancy rate.

Consolidated subsidiary Kitayama Jutaku Hanbai Co., Ltd. has accumulated construction expertise specializing in 29-room and 50-room models, achieving shorter design periods and reduced costs. As of the end of December 2025, the group owned 11 buildings in total, and by internalizing the entire process from land acquisition through operation, the company eliminates risks associated with external dependency.

The terminal care mortality rate for FY2025 (ending December 2025) was 51.2%, significantly exceeding the national average of 38.2%. An in-home end-of-life care system built on collaboration among home-visit physicians, home-visit nursing, and care staff, together with the shift since 2023 to a hybrid medical model with attached home-visit nursing stations, has enabled the expanded acceptance of residents with high medical dependency.

ENVALITH's Perspective

For 1Q FY2026 (ending December 2026) (January to March), net sales were ¥1,370 million (up 25.6% year on year), and operating profit was ¥13 million, turning profitable from an operating loss of ¥43 million in the same quarter of the previous year. Against the full-year forecast (net sales of ¥5,951 million, operating profit of ¥162 million), the 1Q progress rate was 23.0% for net sales and 8.0% for operating profit. While the pace of profit progress is modest even considering seasonality, given the structure in which earnings accumulate toward the second half as newly opened facilities' occupancy rates rise, maintaining the forecast unchanged at this stage is considered reasonable.

As of the end of March 2026, short-term borrowings stood at ¥751 million (up ¥300 million from ¥451 million at the end of the previous fiscal year), and long-term borrowings (including current portion) reached ¥3,083 million, with the equity ratio at a low level of 23.5%. As a subsequent event, the company resolved to borrow ¥400 million (variable interest rate, 20 years and 10 months) from Resona Bank for the construction of "Anjesu Hamamatsu Moritamachi," and interest-bearing debt is expected to expand further. Amid a continuing environment of rising interest rates, interest expenses increased from ¥10 million in the same quarter of the previous year to ¥15 million, and attention should be paid to the fact that rising financial costs will continue to be a factor pressuring profits.

In the Real Estate Business, net sales to external customers were ¥51 million in 1Q FY2026 (versus zero in the same quarter of the previous year), generating segment profit of ¥7 million. In contrast, the same quarter of the previous year recorded a segment loss of ¥3 million, and the structure in which quarterly profit fluctuates significantly depending on the presence and progress of external contracting projects remains unchanged. Since the timing of recognition of contracting revenue in the Real Estate Business is an important variable for achieving the full-year forecast (net sales of ¥5,951 million, operating profit of ¥162 million), continued quarter-by-quarter progress management is necessary.

Growth Strategy

Continued opening of Service-Provided Senior Housing with co-located home-visit nursing, and profitability improvement through the accumulation of company-owned facilities

Anjesu Kamimizo opened in March 2026, bringing the total to 37 buildings and 1,158 units. As a subsequent event, the company resolved to borrow ¥400 million in construction funds for Anjesu Hamamatsu Moritamachi (first drawdown planned for July 2026). New facilities have a track record of reaching full occupancy within one year of opening, and scale expansion directly translates into an accumulation of recurring revenue.

The home-visit nursing business, launched in 2023, has gained traction, and a fifth office was opened in March 2026 in conjunction with the opening of Anjesu Kamimizo. By providing home-visit nursing across five buildings equipped with a total of 106 medical-care rooms, the company aims to diversify revenue outside of long-term care insurance and strengthen its capacity to support residents with more severe care needs.

The company has been actively hiring since 2025, leveraging the acceptance of Specified Skilled Worker foreign nationals at home-visit care offices, which was liberalized in April 2025. With the effective job openings-to-applicants ratio for home helpers remaining at a high level, retention of foreign workers is expected to help curb rising labor costs and maintain occupancy/utilization rates.

"CareMaster," developed to improve productivity, is being rolled out in stages within the company, and external sales marketing began with the company's exhibition at "Tokyo Care Week '26" in February 2026. If external sales gain traction, it will function as a revenue source outside the Nursing Care Business, contributing to improved profit margins.

Last updated: July 17, 2026