TOSEI CORPORATION
8923・Prime Market・Real Estate
Business
Tosei Corporation is a comprehensive real estate company with its primary operating area in the wards of Tokyo. Centered on its Real Estate Restructuring Business, which involves value-up resale of deteriorated real estate, the company pursues portfolio management that organically combines six businesses: new development, leasing, asset management, property management, and hotel operations. Its major clients span a wide range, including domestic and overseas institutional investors, real estate funds, and end users. Consolidated net sales for FY2025 (ended November 2025) reached ¥94,689 million, with operating profit of ¥22,337 million. The company is listed on the Tokyo Stock Exchange Prime Market and the Main Board of the Singapore Exchange, and is working to expand its business foundation through a capital and business alliance with Nagoya Railroad (May 2024).
Business Model
Revenue is structured in two layers. The first layer consists of gains on property sales from the Real Estate Restructuring Business and Real Estate Development Business (total sales of ¥62,218 million in FY2025 (ending November 2025)), achieving high profit margins through a cycle of sourcing → value-up → sale. The second layer comprises the "stable businesses" of leasing, fund AM, management, and hotels (¥32,469 million for the same period), which accumulate continuous fee and rental income. In FY2025 (ending November 2025), the stable business ratio (on an operating profit basis) reached 54.4%, enhancing resilience against economic fluctuations.
Company Strengths
Revenue increased for 5 consecutive periods, from ¥61,726 million in FY2021 (ended November 2021) to ¥94,689 million in FY2025 (ended November 2025). Operating profit also roughly doubled over the same period, from ¥10,966 million to ¥22,337 million. Pre-tax profit and net income both reached record highs for 4 consecutive periods, and the pre-tax profit target for the final year of the medium-term management plan was achieved one year ahead of schedule.
Consolidated subsidiary Tosei Asset Advisors is entrusted with AM operations for a J-REIT (Tosei Reit Investment Corporation) and private funds. AUM balance at the end of FY2025 (ended November 2025) was ¥2,662,737 million (up ¥218,929 million from the end of the previous period). The company has newly secured large-scale global mandates such as Warburg Pincus's "Tokyo Beta," and AM fee income forms a stable revenue base.
In addition to direct property purchases, the company achieves competitive property acquisition through diverse sourcing methods including Real Estate M&A Sourcing, acquisition of secured receivables, and payment in kind. Properties acquired through restructuring and development are operated via leasing, management, and hotel businesses, and are ultimately sold to funds through the AM business, forming an internal group circulation model in which each business segment mutually supplies customers, properties, and know-how to one another.
ENVALITH's Perspective
Performance Trend
Five consecutive years of revenue and profit growth from FY2021 to FY2025 (revenue: ¥61,726 million → ¥94,689 million; operating profit: ¥10,966 million → ¥22,337 million). In H1 FY2026 (ending November 2026), revenue was ¥85,956 million (up 30.1% year on year), operating profit was ¥21,214 million (up 20.5% year on year), and profit attributable to owners of parent for the six months was ¥13,806 million (up 12.9% year on year), with growth accelerating. The main driver was substantial expansion of the Real Estate Restructuring Business (revenue up 93.2% year on year), supported by external tailwinds from tight supply-demand conditions in the Tokyo metropolitan area office and rental condominium markets and robust investment demand from institutional investors. Meanwhile, the Real Estate Development Business struggled, with revenue down 38.2% year on year. Operating cash flow improved significantly to ¥25,419 million (up 92.2% year on year), and cash and cash equivalents increased to ¥48,072 million.
Growth Strategy
Pursuing Long-Term Vision 2032 through the evolution of the six-business portfolio, maximization of synergies, and sustainability initiatives
The company continues to acquire competitive properties through diverse sourcing methods, while differentiating itself by expanding sustainability-oriented and environmentally conscious products. In the interim period of FY2026 (ending March 2026), it sold 38 whole buildings and 82 used sectional-ownership units, resulting in a highly favorable progress rate of 95.7% against the full-year plan.
The company continues to build up its AUM balance by expanding new AM contract acquisitions and continuing management of existing funds. AUM at the end of the interim period of FY2026 (ending March 2026) reached ¥2,735,523 million (up ¥72.7 billion from the previous fiscal year-end), continuing its expansion. Transaction-related fee income has also contributed to performance.
With the opening of "TOSEI HOTEL COCONE Kamata" in December 2025 and "TOSEI HOTEL COCONE Chiba Chuo" in February 2026, the company established a full ten-property network. By capturing inbound demand from markets other than China (such as South Korea, Europe, and the US), GOP increased 3.9% year on year. Continued monitoring is required regarding the potential impact of the deteriorating Middle East situation on inbound demand.
Centered on portfolio management that balances the sales business and the stable business, the company aims to achieve its final-year targets while flexibly responding to geopolitical risks and fluctuations in financial and capital markets. In the interim period of FY2026 (ending March 2026), progress against the full-year plan was highly favorable, with revenue progress at 69.9% and pre-tax profit progress at 91.5%.
Last updated: July 17, 2026