ENVALITH
東京建物株式会社 logo

Tokyo Tatemono Co., Ltd.

8804・Prime Market・Real Estate

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東京建物株式会社 logo
Tokyo Tatemono Co., Ltd.8804

Business

Tokyo Tatemono is a comprehensive real estate company founded in 1896 and listed on the Tokyo Stock Exchange Prime Market. It operates four segments: the Building Business (development, leasing, and sale of office, commercial, and logistics facilities), the Residential Business (condominiums for sale and rental apartments under the "Brillia" brand), the Asset Service Business (real estate brokerage, buy & resale, and parking lot operation), and Other Businesses (experiential facilities, fund business, and overseas operations). The group comprises 98 companies, including 44 consolidated subsidiaries and 41 equity-method affiliates, and covers a broad real estate value chain ranging from large-scale redevelopment in major domestic cities to overseas operations in the United States, the United Kingdom, Australia, Thailand, and elsewhere. Consolidated operating revenue for FY2025 was ¥474,586 million.

Business Model

The company employs a hybrid model that allocates self-developed real estate between leasing (stable income) and sales (asset-turnover income). Building Leasing & Facility Operations (¥94,434 million) forms a stable earnings base, while sales of properties to investors (Building real estate revenue of ¥86,162 million, Residential real estate revenue of ¥37,657 million) boost profits. Service revenue from brokerage, buy & resale, and parking lot operations complements this, and AUM expansion through the Fund Business builds up asset management fee income as well. Under the medium-term plan, the company aims to improve capital efficiency while maintaining a profit composition of "Leasing : Sales : Services = 30 : 60 : 10."

Company Strengths

In FY2025, the Building Business recorded operating revenue of ¥220,177 million (up 24.7% year on year) and operating income of ¥67,059 million (up 62.0% year on year). Building leasing floor area expanded to 1,122,379㎡ (up 83,882㎡ year on year), steadily capturing the trend of declining vacancy rates and rising rents in the central Tokyo office market. The sale of large-scale properties such as Grand Front Osaka and Hotel Gracery Asakusa also contributed to revenue.

The Asset Service Business recorded operating revenue of ¥63,454 million (up 15.9% year on year). Tokyo Tatemono Real Estate Sales Co., Ltd.'s retail and corporate brokerage revenue reached a record high, and operating revenue from Asset Solutions (Buy & Resale) expanded from ¥19,228 million to ¥27,314 million. The number of parking spaces also increased from 86,792 to 91,650.

FY2025 results included ROE of 10.4%, a D/E ratio of 2.3x, an interest-bearing debt/EBITDA multiple of 11.4x, and consolidated operating profit of ¥89.4 billion. The FY2027 targets (consolidated operating profit of ¥95.0 billion, ROE of 10%) are both expected to be achieved one year ahead of schedule in FY2026 (ending March 2026), demonstrating the company's strong execution capability in delivering on its plans.

ENVALITH's Perspective

Net income attributable to owners of parent for Q1 FY2026 (ending December 2026) fell sharply to ¥5,717 million (down 60.2% year on year). The main cause was a sharp decline in condominium sales in the Residential Business, with only 235 units and ¥15,952 million recorded, down significantly from the same quarter last year (772 units and ¥57,774 million). The company explains that "performance is broadly in line with plan," and there is no change to the full-year forecast (operating profit of ¥100,000 million, up 4.4% year on year). It should be noted that condominium sales are structurally subject to large quarter-to-quarter fluctuations depending on the concentration of handover timing, and it is not appropriate to judge the full-year outlook based solely on Q1 figures alone.

Interest-bearing debt (excluding lease obligations) at the end of Q1 FY2026 (ending December 2026) stood at ¥1,469,141 million, up ¥123,644 million from the end of the previous fiscal year. Interest expense rose 52% to ¥4,110 million from ¥2,703 million in the same quarter last year, and the expansion of financial costs amid rising interest rates is putting pressure on ordinary profit (ordinary profit fell 55.1% year on year to ¥9,249 million). As an external factor, in a phase of ongoing normalization of the Bank of Japan's monetary policy, there is a risk that increased interest burden on variable-rate borrowings could affect full-year performance, and continuous monitoring of the level of interest-bearing debt and interest rate sensitivity is required.

In Other Businesses for Q1 FY2026 (ending December 2026), the Overseas Business recorded an equity-method investment loss, resulting in a business loss of ¥43 million (compared with business profit of ¥1,169 million in the same quarter last year). The equity-method investment loss was recorded as ¥436 million in non-operating expenses, versus zero in the same quarter last year. The total balance of debt guarantees to overseas affiliated companies (Thailand-based XW/SC group companies) has also expanded to ¥18,056 million (up from ¥13,394 million at the end of the previous fiscal year), and as external factors, deterioration in the real estate market conditions of emerging economies and foreign exchange fluctuations exist as potential risks. Close attention should be paid to the trends in profit and loss of the Overseas Business and the progression of guarantee obligations.

Growth Strategy

Under the banner of "Becoming a Next-Generation Developer," the company aims to achieve operating profit of ¥120.0 billion by 2030 through accelerated asset turnover, overseas expansion, and the establishment of new businesses.

Accelerating the development and sale cycle for urban office, logistics, and commercial facilities to simultaneously expand gains on sales to investors and stock leasing income. In 1Q FY2026 (ending March 2026), Real Estate Revenue increased sharply to ¥20,405 million (up 247% year on year), and leasing floor area expanded to 1,182,168 sq.m. Large-scale redevelopment projects such as "TOFROM YAESU" are also progressing.

Continuing to supply Brillia-branded condominiums for sale in urban and suburban areas while enhancing property value through environmental performance features such as ZEH-M. In 1Q FY2026 (ending March 2026), units delivered were limited to 235, but deliveries are expected to proceed as planned for the full year. Residential Leasing floor area expanded to 140,471 sq.m., strengthening the stable earnings base.

Expanding sales of properties to investors under Asset Solutions (Buy & Resale), achieving ¥6,404 million in 1Q FY2026 (ending March 2026) (up 115% year on year). The number of parking spaces also expanded to 91,404. The number of brokerage transactions declined year on year to 254, with recovery in retail brokerage remaining a challenge.

Promoting global expansion through participation in projects in the United States, the United Kingdom, Australia, and Thailand. In 1Q FY2026 (ending March 2026), an equity-method investment loss was recorded under Other Businesses, resulting in a business loss of ¥43 million. The balance of debt guarantees to overseas affiliated companies also increased to ¥18,056 million, making monetization of the overseas business an urgent priority.

The Experiential Facility Operations Business, covering resort facilities, hot spring bathing facilities, golf courses, and other facilities, secured revenue of ¥3,703 million in 1Q FY2026 (ending March 2026), maintaining steady performance. The company is also advancing new business initiatives, including entry into the Spatial Media Business (WonderScape Co., Ltd.) through the establishment of WonderScape Co., Ltd.

Last updated: July 17, 2026