RISE Inc.
8836・Standard Market・Real Estate
Real Estate Leasing
A revenue-generating segment that leases owned real estate to corporate entities. Ongoing segment losses remain a challenge.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment sales | ¥174 million | ¥172 million | ↑ |
| Segment loss | △¥17 million | △¥21 million | ↑ |
| Segment assets | ¥1,444 million | ¥1,587 million | ↓ |
| Depreciation expense | ¥44 million | ¥45 million | ↓ |
| Sales to main customer (Tengai Co., Ltd.) | ¥134 million | ¥134 million | — |
Business Details
This segment involves leasing real estate owned by the Group (amusement facilities, employee dormitories for corporate clients, etc.) to corporate entities. The main customer is Tengai Co., Ltd. (sales of ¥134 million in the fiscal year under review, representing 30.9% of total sales). Lease contracts with tenants have been concluded and are in operation, but the segment continues to record losses due to the heavy burden of depreciation expense. In FY2026 (ending March 2026), sales were ¥174 million, up only 1.2% year on year, while the segment loss narrowed to ¥17 million, an improvement of ¥4 million year on year.
Recent Overview
An improving trend with a slight increase in sales and a narrowing loss; a large-scale lease contract was concluded as a subsequent event.
In FY2026 (ending March 2026), Real Estate Leasing recorded sales of ¥174 million (up ¥2 million from ¥172 million in the prior period) and a segment loss of ¥17 million (an improvement of ¥4 million from ¥21 million in the prior period), showing a gradual improvement in profitability. Depreciation expense decreased slightly to ¥44 million (from ¥45 million in the prior period). As a subsequent event, a five-year fixed-term building lease contract has been concluded to lease land, a building, and a parking lot in Noda City, Chiba Prefecture to Seitsu Shoji Co., Ltd. for a monthly rent of ¥10 million (excluding tax), and this is expected to contribute to earnings from FY2027 (ending March 2027) onward.
Key Products
Growth Drivers
- Securing stable lease income through the continued operation of existing lease contracts
- New revenue contribution from the fixed-term building lease contract with Seitsu Shoji Co., Ltd. concluded as a subsequent event (monthly rent of ¥10 million excluding tax, starting August 2026)
- Stable maintenance and growth of sales through long-term contracts with corporate lessees
- A trend toward a narrowing segment loss due to the gradual decline in depreciation expense (as depreciation of buildings progresses)
Risks
- Continued segment losses (△¥17 million in the fiscal year under review) due to the heavy burden of depreciation expense (¥44 million)
- Risk of sales concentration in the main customer, Tengai Co., Ltd. (accounting for approximately 77% of segment sales, or ¥134 million)
- Heightened economic uncertainty due to the situations in Ukraine and the Middle East, and the risk of a deteriorating leasing business environment
- The consolidated earnings forecast for FY2027 (ending March 2027) anticipates a significant decline in sales to ¥260 million (down 40.0% year on year), and structural changes such as share transfers involving changes in consolidated subsidiaries may affect the scale of revenue in the Real Estate Leasing segment
- Segment assets decreased to ¥1,444 million (from ¥1,587 million in the prior period), raising the risk of a shrinking lease revenue base if the reduction in owned real estate through sales, etc., continues
Last updated: June 25, 2026