ENVALITH
株式会社テーオーシー logo

TOC Co., Ltd.

8841・Standard Market・Real Estate

Official website
株式会社テーオーシー logo
TOC Co., Ltd.8841

Business

TOC Co., Ltd. is a group company whose core Real Estate Business owns and leases 12 commercial buildings in Tokyo, including the TOC Building in Nishi-Gotanda, Shinagawa-ku, Tokyo, and the Asakusa ROX building complex. In addition to real estate, the group operates a Linen Supply and Laundry Business (Atsugi City, Kanagawa Prefecture), a Pharmaceutical Business (Hoshi Pharmaceutical), a Sports Club and Bathing Facility Business, and a Building Management Related Services Business, among others. The company has a history dating back to 1970, when it opened the TOC Building with a total floor area of over 174 thousand square meters, and it attracts a diverse range of tenants by leveraging the building's multiple functions, including offices, commercial space, exhibition halls, and parking. Its main customers include office tenants, commercial tenants, and the hotel industry (for Linen Supply). The company transitioned to the Tokyo Stock Exchange Standard Market in April 2022.

Business Model

In the Real Estate Business, rental income from rooms, exhibition halls, and parking lots in self-owned buildings is the main revenue source, with Real Estate Business sales of ¥11,308 million (74.6% of the overall group) in FY2026 (ending March 2026). Capital expenditures are funded from internal resources, and the company maintains an extremely sound financial structure with interest-bearing debt of ¥899 million and an equity ratio of 85.2%. The Linen Supply Business complements this with an order-based revenue model for the hotel industry, while the Other segment complements it with a facility operation model within buildings.

Company Strengths

The company owns 12 operating buildings in Tokyo on a self-owned basis, including the TOC Building (Nishi-Gotanda, Shinagawa-ku), the four Asakusa ROX buildings (owned by TOR Asset Investment), and the TOC Osaki Building. Of total assets of ¥122,226 million at the end of FY2026 (ending March 2026), segment assets of ¥67,882 million are attributable to the Real Estate Business, and the asset base with a thick holding of tangible fixed assets serves as a source of stable earnings.

Interest-bearing debt balance stood at only ¥899 million (short-term borrowings of ¥539 million and current portion of long-term borrowings of ¥360 million) at the end of FY2026 (ending March 2026), with a D/E ratio of 0.01x. The equity ratio was 85.2%, and cash and cash equivalents amounted to ¥31,148 million. Capital expenditures of ¥2,520 million were funded entirely with internal funds, and the interest coverage ratio reached 395.9x, reflecting strong financial soundness.

The TOC Building is a large-scale complex building with a total floor area exceeding 174 thousand square meters, and possesses the rare facility characteristic of being able to provide rental rooms together with exhibition halls, conference rooms, parking, and logistics functions in an integrated manner. In FY2026 (ending March 2026), Exhibition Hall & Conference Room Leasing revenue was ¥1,132 million (up 39.5% year on year) and Parking Lot Leasing revenue was ¥664 million (up 38.6% year on year), confirming through actual results that the composite functions have been contributing to earnings following the resumption of operations.

ENVALITH's Perspective

In FY2026 (ended March 2026), the company achieved revenue of ¥15,155 million (up 15.2% year on year) and operating profit of ¥2,462 million (up 73.6% year on year), marking its first increase in both revenue and profit in five fiscal years. The company's forecast for FY2027 (ending March 2027) calls for further substantial growth, with revenue of ¥17,400 million (up 14.8% year on year) and operating profit of ¥3,800 million (up 54.3% year on year). The room for improvement in the TOC Building's occupancy rate (currently 65.9%) and the ongoing external tailwinds of a return-to-office trend and inbound demand are supporting the expansion of business performance, and the earnings trend is judged to have entered a clear recovery phase.

Cash flow from operating activities in FY2026 (ended March 2026) came to ¥5,731 million, a substantial improvement from ¥442 million in the prior fiscal year, confirming a genuine recovery in earnings power. Meanwhile, the annual dividend has been held flat at ¥10 per share (payout ratio of 38.0%), remaining at a low level relative to EPS of ¥26.32. Against the FY2027 (ending March 2027) forecast EPS of ¥35.14, the dividend forecast is also ¥10 (payout ratio of 28.5%), meaning retained earnings will continue to accumulate. There is considerable room for the company to strengthen shareholder returns going forward, such as through share buybacks or dividend increases, and initiatives to improve capital efficiency are likely to draw investor attention.

The company suffered a cyberattack on December 4, 2025, and strengthening information security risk countermeasures is explicitly stated as an urgent priority. In addition, construction on the rebuilding of the new TOC Building is not scheduled to begin until 2036 or later, a long time horizon that also carries cost-increase risk from factors such as rising construction costs. The TOC Building's current occupancy rate of 65.9% remains at a low level, and the pace of a full-fledged recovery in occupancy will determine whether the earnings forecast can be achieved. External uncertainties—including the direction of U.S. trade policy, yen depreciation, and rising prices—also remain factors that could cause earnings volatility.

Growth Strategy

Rebuilding the earnings base through recovery of the TOC Building occupancy rate, enhancing the added value of existing buildings, and the long-term rebuilding of the new TOC Building

The TOC Building, which has been progressively resuming operations since September 2024, had a period-end occupancy rate of 65.9% (including temporary use). While continuing renewals such as seismic retrofitting and chiller/refrigeration equipment replacement, the company is prioritizing customer attraction leveraging its event and logistics functions. Further improvement in the occupancy rate is a key driver for achieving the FY2027 (ending March 2027) earnings forecast (operating profit of ¥3,800 million).

For each individual building owned, the company is promoting a balance between differentiated services and cost reduction while focusing on safety and environmental measures. Detailed renewals are being carried out to enhance the added value of individual buildings. Capital expenditures on property, plant and equipment for FY2026 (ending March 2026) increased to ¥2,381 million from ¥1,456 million in the previous period, and investment is continuing.

Leveraging its abundant assets, including cash and cash equivalents of ¥31,148 million and investment securities of ¥27,361 million, the company is considering the acquisition of income-producing properties, investments in real estate investment funds, and active investment in fields with high growth potential and profitability. In FY2026 (ending March 2026), the company recorded a gain on investments in anonymous partnerships of ¥135 million, and investment activities are beginning to contribute to earnings.

Taking a long-term perspective, the company is formulating a new TOC Building plan that can respond to cost increases such as rising construction costs. The new construction start is assumed to be in or after 2036, and the plan is currently at the formulation stage. Responding to changes in the external environment, such as soaring construction costs, remains a challenge.

Last updated: July 19, 2026