MAINICHI COMNET CO., LTD.

Business Details

Comprises three divisions: the Real Estate Development division (development and sale of student rental housing), the Real Estate Management division (sublease, rental management, tenant recruitment), and the Energy Management division (solar power generation). The main customers are university students, primarily in the greater Tokyo metropolitan area, and the company provides one-stop services covering everything from land acquisition to design, construction, master lease, tenant recruitment, and operational management. Built on a stable, stock-type revenue business model, it is positioned as the driving force behind the Group's overall growth.

Recent Overview

Sale of a large-scale project in the Real Estate Development division drove segment revenue up 25.6% year on year

In FY2026 (ending May 2026), the Real Estate Solutions Business recorded revenue of ¥22,402 million (up 25.6% year on year) and segment profit of ¥3,529 million (up 12.2% year on year). The Real Estate Development division completed three property sales, one of which was a large-scale project, resulting in a substantial increase in revenue to ¥5,923 million (up 146.8% year on year). The Real Estate Management division achieved full occupancy from the outset for both sublease and company-owned properties amid strong tenant recruitment, generating revenue of ¥16,147 million (up 6.7% year on year). The Energy Management division saw the effects of the previous fiscal year's theft damage resolve, with all five plants operating fully, resulting in revenue of ¥333 million (up 8.7% year on year). Segment assets were reduced to ¥18,451 million (down ¥3,394 million year on year) reflecting progress in the sale of real estate for sale.

Key Products

Growth Drivers

• Planned promotion of sales of real estate for sale within the Real Estate Development division (development of high-value-added properties, including dormitory types with meal plans, and expanded rollout into regional cities)
• Continued maintenance of stable full-occupancy operations through the promotion of tenant DX in the Real Estate Management division (24-hour web-based contracts, VR viewings, online customer service, etc.)
• Build-up of stock-type revenue through expansion of managed units under sublease properties (212 buildings, 10,517 units as of the end of FY2026, ending May 2026)
• Continued expansion of demand for student rental housing driven by the trend toward university enrollment in the greater Tokyo metropolitan area, a rising proportion of female university students, and growing awareness of security
• Expansion of property development opportunities through strengthened consulting-based sales in partnership with financial institutions and proposals for corporate CRE strategies
• Revenue contribution from stable operation of the five solar power plants in the Energy Management division

Risks

• Demand fluctuation risk dependent on trends in the number of university entrants and total university student population in the greater Tokyo metropolitan area (long-term impact of the declining birthrate)
• Risk of increased borrowing costs due to rising interest rates (development funds are primarily raised through borrowing from financial institutions)
• Risk of timing mismatches in Real Estate Development division earnings due to fluctuations in the timing of sales and scale of properties held for sale (revenue in FY2027, ending March 2027, is expected to decrease year on year due to differences in property scale)
• Risk of decline in the sale price of real estate for sale due to deterioration in real estate market conditions (net sale value is calculated using the income capitalization approach by an external real estate appraiser)
• Risk of increased property management costs due to natural disasters, theft, and similar incidents (theft damage occurred at a solar power plant in the previous fiscal year)
• Risk that future fluctuations in real estate market conditions could cause significant changes in investment income and other items, affecting results in the following fiscal year