Keihanshin Building Co., Ltd.
8818・Prime Market・Real Estate
Business
Keihanshin Building, founded in 1948, is a real estate leasing specialist company consisting of a single segment: the Real Estate Leasing Business. Its main assets fall into four types: Data Center Buildings (54.4% of sales), Office Buildings (23.0%), WINS Buildings (16.5%), and Commercial Facilities & Logistics Warehouses, etc. (6.1%). The company owns and leases a total of over 28 buildings, primarily in central Osaka, with major tenants including Equinix Japan (17.9% of sales), Japan Racing Association (16.4%), and SoftBank (11.8%). Based on the long-term management plan formulated in 2023 (covering FY2024 (ending March 2024) through FY2033 (ending March 2033)), the company is advancing equity investments, overseas investments, and expansion into new asset types, aiming to shift toward a revenue structure balanced between stock-type and flow-type businesses.
Business Model
The company's basic approach is a "stock-type" model of directly leasing self-owned properties, securing stable revenue through fixed-rent contracts (such as WINS Buildings) and long-term tenant agreements. In addition, it utilizes as revenue sources gains on property sales through an "asset rotation business (flow-type)" as well as investment gains and dividends received from domestic and overseas investment partnerships and equity investments. Under the long-term management plan, the company plans investments totaling ¥2,500 million over 10 years, simultaneously advancing both the expansion of its revenue base and the reorganization of its asset portfolio.
Company Strengths
The company owns a total of 8 data center buildings in central Osaka, with over 30 years of leasing track record. Its high reliability—backed by seismic isolation structures, large emergency power generators, and advanced security systems—along with comprehensive maintenance and management services, has earned strong recognition. In FY2026 (ending March 2026), data center building sales reached ¥11,012 million (54.4% of total sales), forming the company's core revenue source.
As a result of sales activities centered on leasing initiatives, the vacancy rate at the end of FY2026 (ending March 2026) remained at an extremely low level of 0.39%. For office buildings, vacancy rates improved through progress in re-tenanting, while for data center buildings, rental income increased due to some tenants transitioning to full contracts. This sustained high occupancy underpins the stability of earnings.
The equity ratio at the end of FY2026 (ending March 2026) stood at 43.8%, significantly exceeding the financial discipline target (30% or higher) set out in the long-term management plan. The net interest-bearing debt/EBITDA ratio was also 7.3x, remaining within the discipline target range (approximately 10x). Against total assets of ¥185,602 million, net assets of ¥81,397 million were secured. This sound financial structure underpins the company's capacity to execute large-scale investment plans.
ENVALITH's Perspective
Performance Trend
Net sales grew for five consecutive periods, rising from ¥17,816 million in FY2022 (ended March 2022) to ¥20,255 million in FY2026 (ending March 2026). Operating income had declined from its peak of ¥5,375 million in FY2023 (ended March 2023) to ¥4,984 million in FY2025 (ended March 2025), but recovered to ¥5,646 million in FY2026 (ending March 2026), reaching a record high level. The main drivers were an increase in rental income (up ¥559 million year on year) from the transition of some Data Center Building tenants to full contracts, and progress in re-tenanting at Office Buildings. Cost of sales decreased by ¥37 million year on year, and the gross profit margin also improved. As an external factor, the resilient vacancy rate in central urban areas provided a tailwind, while an increase in interest expense and bond interest expense (from ¥625 million in the previous period to ¥792 million in the current period) partially offset the boost to ordinary income.
Growth Strategy
Building on the achievement of Phase I of the long-term management plan, the company is advancing overseas expansion, expanding new asset types, and strengthening shareholder returns
The company is promoting the transition of some tenants at its eight Data Center Buildings located in central Osaka to formal contracts, thereby raising equipment room occupancy rates. A revenue increase effect of ¥559 million was confirmed in FY2026 (ending March 2026). Occupancy improvement will continue to be positioned as a growth driver in FY2027 (ending March 2026).
The company made equity investments in rental apartment complexes in Dallas, Texas and Charlotte, North Carolina in the United States, as well as in a large-scale hotel in Osaka City. Gains from investment partnerships increased from ¥224 million in the previous period to ¥373 million, indicating progress in revenue diversification.
The company sold the Asakusa Ekimae Building in September 2025 (recording a gain on sale of fixed assets of ¥454 million) and acquired a logistics warehouse in Komaki City, Aichi Prefecture, in March 2025. The company continues its asset replacement strategy of allocating sale proceeds to new investments, aiming to improve portfolio profitability.
The long-term management plan explicitly states entry into new asset types such as housing and healthcare facilities. The equity investment in a U.S. rental apartment complex marks the first step in this direction, and the company continues to gather information for potential opportunities domestically as well.
The company will implement a stock split of one share into two shares, effective July 1, 2026, aiming to improve liquidity and expand the investor base by lowering the investment unit. The dividend policy has also been revised, and the annual dividend for FY2027 (ending March 2027) is forecast at ¥30 per share after the split (equivalent to ¥60 before the split). The dividend payout ratio is expected to rise to 58.4%.
Last updated: July 19, 2026