NISSHIN FUDOSAN Co.,Ltd.

Business Details

Nissin Real Estate Co., Ltd. is responsible for the planning and sale of condominiums for sale (newly-built and buy-and-resell) and real estate leasing, while Nissin Real Estate Investment Advisors Co., Ltd. undertakes the formation and management of real estate funds and asset management of investment corporations. RECORD Co., Ltd. handles the development and sale of detached houses. The main operating area is the greater Tokyo metropolitan area (Tokyo's 23 wards, Yokohama, Kawasaki, Omiya, etc.), with the compact condominium series "Duo Stage Series" and asset-management-focused studio condominiums as core products. In the Real Estate Securitization Business, the company promotes the development of rental real estate, mainly for private placement REITs.

Recent Overview

Segment profit sharply recovered, up 76.1% year on year, driven by an increase in newly-built condominiums and whole-building sales

In FY2026 (ending March 2026), Real Estate Business segment sales were ¥31,415 million (up 10.0% year on year), and segment profit was ¥1,515 million (up 76.1% year on year). The number of newly-built condominium units delivered increased to 347 units (up from 286 units in the prior period), and whole-building sales of 4 properties / ¥8,273 million newly contributed. On the other hand, the Real Estate Securitization Business decreased 47.2% year on year to 5 properties / ¥5,835 million. Year-end business expenditures accumulated to ¥27,084 million (equivalent to approximately ¥80,700 million in planned sales), leaving substantial capacity for sales recognition in future periods. The year-end contract balance for condominiums for sale also increased significantly from the prior year-end to 322 units / ¥13,445 million, enhancing visibility for future deliveries.

Key Products

Growth Drivers

• Sales expansion driven by an increase in newly-built condominium units delivered (347 units in FY2026, ending March 2026, up 21.3% year on year)
• Accumulation of large-scale sales through the new contribution of whole-building sales (4 properties / ¥8,273 million)
• Abundant pipeline with year-end business expenditures of ¥27,084 million (equivalent to approximately ¥80,700 million in planned sales)
• Enhanced visibility of future deliveries from the accumulated year-end contract balance for condominiums for sale of 322 units / ¥13,445 million
• Accumulation of stock-type revenue through expansion of the Real Estate Leasing Business (¥808 million, up 42.0% year on year)
• Steady demand for condominiums for sale supported by continued population inflow back into the greater Tokyo metropolitan area

Risks

• Rising procurement costs and margin pressure due to persistently high land prices and construction costs (segment profit margin remains low at 4.8%)
• Extended construction periods and shifting delivery timing due to overtime work regulations in the construction industry (year-end inventory in FY2026, ending March 2026, surged to 65 units from 26 units at the prior year-end)
• Risk of reduced purchasing appetite due to increased mortgage burden amid rising interest rates
• Increasing difficulty securing quality properties and rising business costs due to intensifying competition for land acquisition
• Period-to-period fluctuation in sales due to variability in the number of properties sold in the Real Estate Securitization Business (5 properties in the current period vs. 8 in the prior period)
• Risk of recording valuation losses if the net realizable value of real estate for sale and real estate business expenditures falls below book value