RISE Inc.
8836・Standard Market・Real Estate
Business
RISE Inc. is a real estate company listed on the Tokyo Stock Exchange Standard Market, originally founded in 1947 as Yoshida Construction Industry Co., Ltd. and renamed to its current trade name in 2009. Its business consists of two segments: Real Estate Leasing and Real Estate Management. In the Real Estate Leasing segment, the company leases amusement facilities, employee dormitories, and similar properties to corporate clients. In the Real Estate Management segment, the company has expanded the number of properties under management contracts by entering into asset advisory agreements with multiple limited liability companies through its consolidated subsidiary FRE Asset Management Co., Ltd. (to be excluded from consolidation in June 2026). Major customers include Tengai Co., Ltd. (31.0% of net sales) and SUMCO Corporation, among other corporate clients. Although revenue remains small at ¥433 million, profitability has continued to improve.
Business Model
In Real Estate Leasing, the company earns rental income by entering into long-term lease agreements with corporate clients for properties it owns. In Real Estate Management, the company earns management fees by taking on outsourced management from property owners, driving up occupancy rates through renovation and repair proposals. The segment profit margin for Real Estate Management is high at approximately 42%, forming a structure in which it drives overall company earnings while offsetting the segment loss in Real Estate Leasing.
Company Strengths
Real Estate Management posted a segment margin of approximately 42% (revenue of ¥258 million, segment profit of ¥109 million), a high level that secured consolidated operating profit of ¥47 million even as the leasing business recorded a segment loss of ¥17 million. Backed by the accumulation of management outsourcing contracts, Real Estate Management revenue for the FY2026 (ending March 2026) period is on an expansionary trend, up 22.3% year on year.
The company has entered into multiple long-term contracts that secure the stability of its rental income, including a lease agreement with Tengai Co., Ltd. (concluded in 2006, running through August 2026), an employee dormitory lease agreement with SUMCO Corporation (running through March 2026), and a fixed-term land lease agreement for business use with Chitose Distillery LLC (running through July 2033).
FRE Asset Management Co., Ltd. has a track record of concluding asset advisory agreements with more than 20 limited liability companies (godo kaisha) since 2019, starting with FVP LLC and most recently including Albano LLC in May 2026. Each agreement has no fixed term (cancellable with 30 days' prior notice), enabling continuous expansion of the management outsourcing portfolio.
ENVALITH's Perspective
Performance Trend
Revenue rose 19.6% over five periods from ¥362 million in FY2022 to ¥433 million in FY2026, with growth accelerating over the most recent two periods (FY2025 +9.8% → FY2026 +12.9%). Operating profit improved from ¥-6 million in FY2022 to ¥47 million in FY2026, bringing the operating margin to 10.9%. Expansion of new contracts in the Real Estate Management business (revenue +¥47 million) was the main driver of revenue growth. Net income of ¥50 million was largely attributable to extraordinary gains (gain on sale of fixed assets of ¥31 million and insurance income received of ¥15 million). Regarding the external environment, uncertainty stemming from the situations in Ukraine and the Middle East persists, but domestic demand for real estate management remains firm. On the other hand, the following fiscal year is expected to see a sharp deterioration, with revenue of ¥260 million and an operating loss of ¥6 million due to a subsidiary reorganization, making rebuilding the earnings base after this structural change a key challenge.
Growth Strategy
Rebuilding the earnings base through expansion of managed properties under outsourcing and new leasing income from a subsequent event
Through the conclusion of new management outsourcing contracts and property replacements, Real Estate Management segment revenue in FY2026 (ending March 2026) is expected to expand to ¥258 million, up ¥47 million year on year. Segment profit of ¥109 million (profit margin of approximately 42%) has been achieved, and the policy is to maintain and strengthen the structure whereby expansion of outsourced properties translates directly into profit.
Pursuant to a resolution of the Board of Directors dated April 22, Reiwa 8, the Company entered into a fixed-term building lease agreement (5-year term) to lease land, buildings, and a parking lot located in Noda City, Chiba Prefecture, to Seitsu Shoji Co., Ltd. for a monthly rent of ¥10 million (excluding tax). The lease is scheduled to commence on August 2, 2026, and is expected to generate new annual rental income of ¥120 million (excluding tax), which may contribute to eliminating the segment loss in the Real Estate Leasing business.
The Company plans to express its opinion in favor of the tender offer by JTM Holdings while remaining neutral on shareholders' decision to tender, and to transfer shares involving a change in consolidated subsidiary status. The next fiscal year's earnings forecast (net sales of ¥260 million, operating loss of ¥6 million) incorporates this series of transactions, and recovery of profitability in the remaining businesses after the restructuring will be a medium-term challenge.
Last updated: July 19, 2026