ENVALITH
株式会社エスコン logo

ES-CON JAPAN Ltd.

8892・Prime Market・Real Estate

Official website
株式会社エスコン logo
ES-CON JAPAN Ltd.8892

Business

Escon Co., Ltd. (formerly Nihon Escon) is a comprehensive real estate developer founded in 1995, listed on the Prime Market of the Tokyo Stock Exchange. As a consolidated subsidiary of Chubu Electric Power Co., Inc., it strengthens its financial base while operating four core businesses: Residential Condominium Sales, Real Estate Development, Real Estate Leasing, and Asset Management. The company operates nationwide, centered on the Greater Tokyo area, Kansai region, Chubu region, Kyushu, and Hokkaido, developing and managing diverse assets including the condominium brands "Le JADE," "Gran Le JADE," and "DIAMAS," the commercial facility "tonarie," the logistics facility "LOGITRES," and the rental condominium "TOPAZ." The company has built an asset recycling model through property supply to a listed REIT (Escon Japan REIT Investment Corporation) and private placement funds, aiming to balance flow income with stock income.

Business Model

The company has built an integrated system covering land acquisition, planning, development, sales, leasing, and asset management. It combines flow income from the development and sale of condominiums for sale and income-generating real estate with stock income from rental income on held income-producing properties and management fees/commissions from listed REITs and private funds. By continuously supplying developed properties to group-operated REITs and funds, the company expands AUM, building a structure that accumulates stable fee business in the Asset Management Business.

Company Strengths

Established an asset recycling model that continuously supplies self-developed properties to a listed REIT (Escon Japan REIT Investment Corporation) and private funds. In FY2026 (ending March 2026), the Asset Management Business's assets under management reached ¥103,200 million (up 30.8% year on year), with fee-based businesses such as management fees and acquisition fees accumulating steadily.

Became a consolidated subsidiary of Chubu Electric Power Co., Inc. through a third-party allotment of new shares in April 2021, achieving lower fundraising costs and diversified funding methods through improved corporate credit. Group synergies, including joint business promotion in the Chubu region and expanded opportunities to participate in large-scale urban development, have been incorporated into the business foundation.

In addition to residential condominium sales (Kansai 54.2%, Kanto 24.8%, Chubu and Kyushu), the company operates a diverse range of asset types including commercial facilities, logistics facilities, rental residences, hotels, offices, and commercial ground leases. In FY2026 (ending March 2026), Real Estate Development Business sales reached ¥52,019 million (up 83.0% year on year), and the Real Estate Leasing Business achieved a profit margin of 46.5%, realizing a revenue structure that avoids excessive dependence on specific assets or areas.

ENVALITH's Perspective

In FY2026 (ending March 2025), the company achieved record-high results with net sales of ¥137,029 million (up 20.6% year on year) and operating profit of ¥26,101 million (up 22.5% year on year). The Real Estate Development Business posted a significant increase in revenue, with net sales of ¥52,019 million (up 83.0% year on year), driven by property sales to listed REITs and private funds. As an external factor, the continued firmness of the domestic real estate market has contributed to maintaining property sale prices. On the other hand, ordinary profit came in at ¥17,190 million, down 0.8% year on year, due to a sharp increase in equity-method investment losses of ¥4,227 million (versus ¥426 million in the previous period), and the widening gap between operating profit and ordinary profit warrants close attention.

Total assets at the end of FY2026 (ending March 2025) expanded to ¥509,773 million (up ¥49,925 million from the previous period), while the total of long-term and short-term borrowings and bonds increased by ¥33,374 million year on year, and the equity ratio remained at a low level of 17.0% (down from 17.2% in the previous period). Interest expenses surged to ¥5,439 million (versus ¥3,685 million in the previous period), and in a rising interest rate environment, there is a risk that further increases in financial costs could put pressure on ordinary profit. The company has been carrying out successive M&A transactions, including Shiba Real Estate, Montedio Football Park, and Ark Real Estate (planned acquisition cost of ¥11,000 million), and continued attention is also warranted regarding the impairment risk of goodwill (period-end balance of ¥14,357 million).

The earnings forecast for FY2027 (ending March 2026) calls for net sales of ¥145,000 million (up 5.8% year on year), operating profit of ¥26,500 million (up 1.5% year on year), ordinary profit of ¥20,000 million (up 16.3% year on year), and profit attributable to owners of parent of ¥14,000 million (up 14.8% year on year), which would mark a new record-high profit. This outlook exceeds the operating profit target of ¥25.0 billion set for the final year of the medium-term management plan. However, the trend in equity-method investment losses, which surged to ¥4,227 million in FY2026 (ending March 2025), is a source of uncertainty for ordinary profit, and it will be necessary to assess the feasibility of the projected recovery in ordinary profit (forecast up 16.3% year on year) in the coming period. The company plans to pay a dividend of ¥53 per share (an increase of ¥5 year on year), and the continuation of its progressive dividend policy underpins the stability of shareholder returns.

Growth Strategy

Toward the final year of the 5th Medium-Term Management Plan, the company is advancing efforts to increase the stock revenue ratio, expand AUM, and pursue M&A

The AM business's assets under management expanded to ¥103,200 million (up 30.8% year on year). Through continuous property supply to the listed REIT (Escon Japan REIT Investment Corporation) and private funds, the company aims to maximize profits under an integrated system covering everything from development to management. The forecast for asset management business revenue in the following fiscal year is ¥2,800 million (up 26.8% year on year).

Following the consolidation of Shiba Real Estate (subsidiary as of April 2025) and Montedio Football Park (subsidiary as of March 2026), the company resolved to acquire shares of Ark Real Estate Co., Ltd. (planned acquisition cost of ¥11,000 million, scheduled to be executed on October 30, 2026). The company aims to improve the stock revenue ratio by building up operating income-producing properties centered on the Kansai region.

The company plans to deliver 910 condominium units in FY2027 (ending March 2027), and as of the end of March 2026, the contract progress rate stood at 70.7%. Continuing to roll out the high-end brands

The company has already acquired new project sites, including rental residences in Higashi-Osaka City, Osaka Prefecture and Ota Ward, Tokyo; commercial development in Tsukuba City, Ibaraki Prefecture; hotels in Furano City and Hakodate City, Hokkaido; mixed-use development in Kariya City, Aichi Prefecture; and reserved land from land readjustment projects in Sakai City and Ibaraki City, Osaka Prefecture. The company is expanding its development pipeline across diverse asset types such as Commercial Ground Leases, Logistics Facilities, etc., rental condominiums, and hotels, aiming for a forecast of ¥55,800 million in Real Estate Development Business revenue for the following fiscal year (up 7.3% year on year).

Last updated: July 19, 2026