SYLA Holdings Co., Ltd.
8887・Standard Market・Real Estate
Business
Syla Holdings, Inc. (formerly Kumika) traces its origins to its 1970 founding as a formwork construction company, and has developed into a comprehensive real estate group operating in four segments: development and sale of condominiums and hotels (Development Business), contract construction and formwork construction (Construction Business), real estate procurement and sales targeting wealthy individuals and investors (Real Estate Sales Business), and leasing management and brokerage (Other Businesses). The company is listed on the Standard Market of the Tokyo Stock Exchange. In June 2025, it completed a business integration with SYLA Technologies Inc. through a share exchange and changed its trade name to Syla Holdings. Its main customers include wealthy individuals, corporate investors, and major real estate companies such as Haseko Corporation. Net sales for the fiscal year ended May 2025 were ¥5,419 million, with the Real Estate Sales Business accounting for approximately 74.6% of sales, making it the company's core segment.
Business Model
The core is a vertically integrated model in which the Construction Business achieves low-cost operations through in-house construction (internalization), while the Development Business sells condominiums and hotels. In the Real Estate Sales Business, the company avoids competition through flexible and swift procurement tailored to market needs, and secures high-margin deals through consulting-based sales of inheritance-planning and investment properties targeted at wealthy clients. The leasing management and brokerage fees in Other Businesses complement this structure with stable, stock-type recurring revenue. Following the integration of SYLA Technologies in June 2025, the company aims to diversify revenue by adding AI- and big-data-driven procurement and sales, as well as the real estate crowdfunding platform "Rimawari-kun".
Company Strengths
The Construction Business division, which originated from formwork construction operations, suppresses construction costs by internalizing the construction of group development projects. In FY2025 (ended May 2025), orders received in the Construction Business reached ¥2,075 million (up 2,386.1% year-on-year), with the order backlog at fiscal year-end accumulating to ¥1,988 million, establishing a foundation for further promotion of in-house construction within the group going forward.
The Real Estate Sales Business recorded net sales of ¥4,044 million (up 92.7% year-on-year) and segment profit of ¥531 million in FY2025 (ended May 2025), accounting for 74.6% of consolidated net sales, making it the core business. The company has established transactions with major clients such as SYLA Co., Ltd. (32.6% of sales) and Haseko Corporation (28.9% of sales), maintaining a stable sales channel.
Other Businesses, which handles rental housing brokerage/management and real estate sales brokerage, achieved net sales of ¥496 million (up 12.6% year-on-year), segment profit of ¥168 million (up 36.1% year-on-year), and a segment profit margin of 33.9% in FY2025 (ended May 2025). As stock-type revenue less susceptible to economic fluctuations, it underpins overall company earnings.
ENVALITH's Perspective
Performance Trend
On a non-consolidated basis, revenue had been sluggish, declining from ¥6,065 million in FY2022 to ¥5,419 million in FY2025, but in FY2026 it expanded sharply to ¥39,331 million due to consolidation (adding four companies including Syla Technologies to the scope of consolidation). Operating profit also improved substantially to ¥3,186 million (operating margin of 8.1%). However, net income attributable to owners of the parent of ¥6,684 million includes a one-time extraordinary gain of ¥7,909 million from negative goodwill. Ordinary income remained limited at ¥2,067 million (ordinary income margin of 2.9%), weighed down by a heavy burden of ¥935 million in interest expenses. Regarding the external environment, while resilient rental demand continues in the greater Tokyo income-producing condominium market, risks remain from soaring construction material prices and concerns over rising interest rates, which could suppress profitability. For FY2027 (ending May 2027), revenue is forecast at ¥38,000-40,000 million and operating profit at ¥3,700-3,900 million, with an underlying improvement in profitability expected.
Growth Strategy
Aiming to enhance corporate value through concentrated supply in the Greater Tokyo area, in-house construction, expansion of the renewable energy business, and the use of generative AI
The plan is to supply 14 new buildings in FY2027 (ending May 2027), with construction contracting projects (percentage-of-completion basis) in Akihabara, Taito Ward, and Irie, Kanagawa Ward also contributing, resulting in a projected net sales of ¥38,000-40,000 million. Active acquisition of business land for supply in subsequent periods is also continuing.
Cost reduction is being pursued through the deepening of in-house construction and the promotion of standardized building specifications. In FY2026 (ending May 2026), the Construction Business remains in a segment loss of ¥603 million, but the company has also begun acquiring contracting projects from external developers and investment funds, diversifying revenue sources.
The company acquired a grid-connected storage battery facility using financing from Kagawa Bank, and is currently conducting trial operations ahead of its entry into the balancing market in September 2026. The acquisition of a solar power generation-related business in Saitama City, Saitama Prefecture, has also enabled in-house civil engineering work, strengthening the company's fully integrated system.
Generative AI is being incorporated into business processes to promote efficiency across land acquisition, design, sales, and management operations. Specific numerical targets and details of initiatives have not been disclosed at this time, but this is positioned as a mid- to long-term measure to enhance corporate value.
A new scheme has been introduced in Akihabara, Taito Ward, and Irie, Kanagawa Ward, whereby a building construction contract is concluded simultaneously with the sale of land. This is expected to enhance capital turnover while leveraging synergies with other business segments, with revenue recognition on a percentage-of-completion basis scheduled to begin in FY2027 (ending May 2027).
Last updated: July 17, 2026