Arealink Co.,Ltd.

Business Details

Comprised of two sub-segments: Storage Operation, which leases or owns land and buildings and provides them to users as rental storage space such as containers and trunk rooms under the "Hello Storage" brand, and Storage Securitization, which receives and sells orders for container installation and construction to landowners and investors. The unmanned operation system keeps personnel costs down and achieves stable earnings unaffected by market conditions. As of the end of the first quarter of FY2026 (ending December 2026), the business operated 129,143 rooms nationwide, accounting for 85.1% of the company's total sales, making it the core business.

Recent Overview

Sales decreased but profit increased; total rooms expanded to 129,143 due to accelerated new store openings, while the existing occupancy rate remained in the high 80% range.

In the first quarter of FY2026 (ending December 2026), the Storage Business posted sales of ¥6,079 million (down 4.4% year on year) and segment profit of ¥1,683 million (up 0.1% year on year), representing a decrease in sales but an increase in profit. The overall occupancy rate declined 1.55 points from the end of the prior fiscal year to 79.56% due to the increase in newly opened rooms, but the existing occupancy rate remained at a high 87.03%. Against the full-year store-opening target of 16,246 rooms for FY2026 (ending December 2026), 5,016 rooms were opened in the first quarter, representing a progress rate of 30.9%, which is on track. Storage Operation secured increased profit through the continued policy of focusing on company-operated store openings, discount rate suppression via campaign control, partial rent revisions, and efficient advertising activities.

Key Products

Growth Drivers

• Continued expansion of the number of rooms opened (FY2026, ending December 2026, store-opening target: 16,246 rooms; Q1 progress rate: 30.9%)
• Lower break-even point and improved profit margin resulting from the shift toward company-operated store openings
• Improved store-opening precision through data analysis (population, number of households, income levels, etc.) and improved contract rate through smaller-format property development
• Enhanced brand recognition and demand capture through strengthened public relations activities
• Increase in properties through the partner program, under which the company is entrusted with on-site operation and management of storage facilities by other operators
• Expansion of the rental storage space market (Japan's household usage rate is approximately 1%, indicating room for further development)

Risks

• Temporary decline in overall occupancy rate due to the increase in new store openings (79.56% as of the end of the first quarter of FY2026, ending December 2026)
• Intensifying competition for market share due to increased store openings by competitors, mainly around the Tokyo metropolitan area
• Increase in tangible fixed asset acquisition expenditures and expansion of interest-bearing debt accompanying the expansion of company-operated store openings
• Risk of impairment of fixed assets
• Reduced room for profitability improvement due to limits on rent revisions and discount rate suppression measures