Keihanshin Building Co., Ltd.
8818・Prime Market・Real Estate
Real Estate Leasing Business
Single-segment business owning and leasing offices, data centers, WINS Buildings, and other properties
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (full year) | ¥20,255 million | ¥19,584 million | ↑ |
| Operating income (full year) | ¥5,646 million | ¥4,983 million | ↑ |
| Ordinary income (full year) | ¥5,603 million | ¥4,829 million | ↑ |
| Profit attributable to owners of parent (full year) | ¥4,675 million | ¥4,388 million | ↑ |
| Business profit before amortization (full year) | ¥10,207 million | ¥9,099 million | ↑ |
| Operating margin | 27.9% | 25.4% | ↑ |
| Vacancy rate (as of period end) | 0.39% | － | ↓ |
| Data Center Building sales | ¥11,012 million | ¥10,452 million | ↑ |
| Office Building sales | ¥4,661 million | ¥4,488 million | ↑ |
| WINS Building sales | ¥3,351 million | ¥3,359 million | ↓ |
| Commercial Facilities & Logistics Warehouses, etc. sales | ¥1,229 million | ¥1,285 million | ↓ |
Business Details
The Group's sole reportable segment. The company owns and leases 8 Office Buildings mainly in Osaka and Tokyo, 8 Data Center Buildings in central Osaka, 5 WINS Buildings in Kyoto, Osaka, and Kobe, and 7 Commercial Facilities & Logistics Warehouses, etc. mainly in the greater Tokyo and Kansai areas. Major tenants include Equinix Japan K.K., the Japan Racing Association, and SoftBank Corp. The vacancy rate as of the end of FY2026 (ending March 2026) remained extremely low at 0.39%. The company is also actively pursuing equity investments both domestically and overseas.
Recent Overview
Achieved increased sales and profit across all segments, maintaining high occupancy with a vacancy rate of 0.39%
In FY2026 (ending March 2026), the company achieved increased sales and profit, with sales of ¥20,255 million (up 3.4% year on year), operating income of ¥5,646 million (up 13.3%), and ordinary income of ¥5,603 million (up 16.0%). The main driver was an increase in rental income due to the transition of some Data Center Building tenants to main contracts. As part of its domestic and overseas equity investments, the company invested in rental apartment complexes in Dallas, Texas and Charlotte, North Carolina, USA, as well as a large-scale hotel in Osaka City. The company sold the Asakusa Station-front Building, recording a gain on sale of fixed assets of ¥454 million. For FY2027 (ending March 2027), although the suspension of operations due to the renovation of WINS Kyoto will be a downward factor, the company forecasts sales of ¥20,500 million (+1.2%) and net income of ¥4,900 million (+4.8%).
Key Products
Growth Drivers
- Increased rental income due to improved equipment room occupancy at Data Center Buildings and the transition of some tenants to main contracts
- Increased gains from investment partnership operations and dividend income related to domestic and overseas equity investments (US rental apartment complexes, Osaka hotel, etc.)
- Maintenance of a low vacancy rate (0.39% at period end) through strengthened leasing activities
- Improved vacancy rates and rent revisions at Office Buildings through progress in re-leasing
- Expansion of the revenue base through the asset-turnover business (recording gains on property sales) and acquisition of new properties
- Expansion into new asset types such as residential and healthcare facilities based on the long-term management plan
Risks
- Upward pressure on vacancy rates and intensifying competition due to increased new supply of large-scale properties (particularly in the central urban office market)
- Changes in office demand due to diversification of working styles
- Downward pressure on rental income due to suspension of operations from the WINS Kyoto renovation work (FY2027, ending March 2027)
- Increased costs due to persistently high construction material prices and rising labor costs
- Increased interest expense due to rising interest rates (interest expense of ¥341 million in FY2026 (ending March 2026), up ¥126 million year on year)
- Declining trend in the proportion of betting ticket sales at WINS Buildings due to the spread of internet betting
- Foreign exchange risk and country risk related to US real estate equity investments
- Impact on real estate demand from price increases and economic downturn due to geopolitical risks
Last updated: June 17, 2026