TAIHEIYO KOUHATSU INCORPORATED
8835・Standard Market・Wholesale Trade
Real Estate Segment
A composite real estate business centered on "housing," combining leasing, sales, and management
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (Full Year) | ¥3,180 million | ¥3,041 million | ↑ |
| Operating Profit (Full Year) | ¥846 million | ¥912 million | ↓ |
| Segment Assets | ¥16,783 million | ¥16,283 million | ↑ |
| Depreciation | ¥346 million | ¥330 million | ↑ |
| Capital Expenditure (Increase in Tangible/Intangible Fixed Assets) | ¥495 million | ¥405 million | ↑ |
Business Details
Taiheiyo Kohatsu's Real Estate Segment operates Condominium Sales, Detached Housing & Residential Land Sales, Condominium/Building Leasing and Management, Non-Life Insurance Agency Business, and Contracted Construction Work. The core of revenue is the leasing business, with residential condominiums centered on Sapporo City continuously acquired since FY2014 (ending March 2014). While this serves as the Group's stable revenue base, in FY2026 (ending March 2026) increased repair costs for leased buildings pressured operating profit.
Recent Overview
Net sales increased due to improved vacancy rates, but operating profit declined due to higher repair costs
In FY2026 (ending March 2026), net sales rose to ¥3,180 million (up 4.6% year on year) due to improved vacancy rates at leased buildings, among other factors. Meanwhile, operating profit declined to ¥846 million (down 7.3% year on year) due to increased repair costs for leased buildings. Capital expenditure increased to ¥495 million (from ¥405 million in the prior period), reflecting expanded investment in property acquisition and facility renewal. Segment assets also increased to ¥16,783 million (from ¥16,283 million in the prior period).
Key Products
Growth Drivers
- Increased rental income from improved vacancy rates at leased buildings (net sales up 4.6% year on year in FY2026)
- Maintenance of high occupancy rates at residential condominium leasing properties centered on Sapporo City, acquired since FY2014 (ending March 2014)
- Continued near-full occupancy of commercial stores and leased properties
- Creation of new leasing and other revenue businesses utilizing company-owned land (explicitly stated as management strategy)
- Acquisition of new orders in the condominium management business through improved customer satisfaction
- Expansion of capital expenditure (¥495 million, up ¥90 million year on year) to expand income-producing properties
Risks
- Pressure on operating profit from increased repair costs for leased buildings (operating profit down 7.3% year on year in FY2026)
- Risk of cancellation or rent reduction requests from tenants of commercial stores and leased properties
- Risk of profitability deterioration if repair and other cost increases continue
- Risk of increased borrowing costs due to rising interest rates (given interest-bearing debt burden against segment assets of ¥16,783 million)
Last updated: June 26, 2026