ENVALITH
株式会社FJネクストホールディングス logo

FJ NEXT HOLDINGS CO., LTD.

8935・Prime Market・Real Estate

Official website
株式会社FJネクストホールディングス logo
FJ NEXT HOLDINGS CO., LTD.8935

Business

FJ Next Holdings Co., Ltd. is a real estate group holding company whose core business is the planning, development, and sale of its proprietary brands "GALA Mansion Series" (asset-management-type condominiums for single occupants) and "GALA Residence Series" (for families), primarily in the Tokyo metropolitan area. The company also actively engages in the purchase, brokerage, and sale of used condominiums, and maintains a diversified business portfolio that includes real estate management (20,307 units under leasing management and 385 buildings under building management), in-house group construction, operation of hot spring inns in the Izu area, and financial services. Its main customers are individual investors seeking asset management and families seeking owner-occupied housing. The company transitioned to the Prime Market of the Tokyo Stock Exchange in April 2022.

Business Model

The Real Estate Development Business (net sales of ¥127,725 million) accounts for approximately 90% of the total, with newly built condominium sales and Used Condominium Sales, Brokerage & Purchase serving as the primary revenue sources. Developed properties are handed over to the Real Estate Management Business for management contracting after completion, with ongoing fees from leasing management and building management forming stable recurring revenue. The Construction Business primarily handles construction work within the group while also taking on external orders, and the Financial Services Business complements cross-selling through loans for condominium purchasers and management associations. Land acquisition funds are procured through financial institution borrowings, while working capital is principally funded through internal funds, maintaining financial discipline.

Company Strengths

In FY2026 (ending March 2026), Real Estate Development Business revenue was ¥127,725 million (up 27.9% year on year), with 3,878 units sold. The GALA Residence Series achieved 341 units and ¥17,184 million, up 196.8% year on year. For FY2027 (ending March 2027), the company has set a plan to sell a record 4,000 units, with brand recognition and accumulated sales channels underpinning the expansion in unit volume.

As of the end of FY2026 (ending March 2026), the equity ratio stood at 71.2% (69.1% in the previous fiscal year), with total net assets of ¥81,127 million. Interest-bearing debt remains limited, and the company maintains financial discipline whereby working capital other than land acquisition is funded in principle from internal resources. Net income attributable to owners of parent of ¥10,010 million pushed net assets up by ¥8,204 million year on year, further strengthening the financial base.

Upon completion of self-developed properties, consolidated subsidiaries are entrusted with leasing management and building management, forming a vertically integrated model. As of the end of FY2026 (ending March 2026), the company managed 20,307 units under leasing management and 385 buildings (26,262 units) under building management, with the management business achieving a segment profit margin of 25.9%. The Construction Business, centered on intra-group construction work, recorded revenue of ¥8,988 million and profit of ¥829 million, with intra-group synergies enhancing earnings stability.

ENVALITH's Perspective

In FY2026 (ending March 2026), net sales reached ¥142,374 million (up 26.6% year on year), operating profit reached ¥14,402 million (up 51.8%), and net income attributable to owners of parent reached ¥10,010 million (up 54.4%), with both the revenue growth rate and profit growth rate significantly exceeding those of the previous fiscal year. The operating profit margin improved from 8.4% to 10.1%, and ROE rose from 9.2% to 13.0%. The structure of "revenue growth accompanied by declining margins," which had been a concern through the previous fiscal year, has been resolved, and the fact that both scale expansion and improved profitability were achieved simultaneously deserves recognition.

Operating cash flow, which had been sharply negative at ¥-13,880 million in the previous fiscal year, turned positive at +¥7,103 million in FY2026 (ending March 2026). However, inventory (real estate for sale plus real estate for sale in process) remained at a high level, totaling ¥64,712 million, and the funding needs associated with continued property acquisition remain substantial. In financing activities, repayments of long-term borrowings of ¥7.5 billion exceeded new borrowings of ¥4.0 billion, resulting in net repayment, and cash and cash equivalents decreased to ¥22,690 million (from ¥24,418 million in the previous fiscal year). Securing acquisition funds will remain a challenge for achieving the planned sales volume of 4,000 units (the highest ever) targeted for FY2027 (ending March 2027).

The company's forecast for FY2027 (ending March 2027) calls for net sales of ¥152,000 million (up 6.8% year on year) and operating profit of ¥15,000 million (up 4.2%), projecting continued revenue and profit growth, though the profit growth rate is expected to slow markedly from the +51.8% recorded in FY2026 (ending March 2026). Rising raw material prices and construction costs are anticipated across each segment, suggesting a slight decline in the operating profit margin from 10.1% to approximately 9.9%. As for the external environment, the number of newly supplied condominium units in the greater Tokyo metropolitan area continues to hit its lowest level since fiscal 1973, and while this supply constraint is providing support for sales prices, it should be noted that rising land and material costs are limiting the scope for further margin improvement.

Growth Strategy

Record-high plan of 4,000 units for new and used condominium sales combined with expansion of managed units to strengthen the revenue base

The sales plan for FY2027 (ending March 2027) in the Real Estate Development Business has been set at a record-high 4,000 units (including 343 units of the GALA Residence Series). The company aims for net sales of ¥152,000 million (up 6.8% year on year) through expansion of both new and used sales channels and improved sales efficiency driven by DX promotion.

The family-oriented brand "GALA Residence Series" expanded rapidly in FY2026 (ending March 2026), reaching 341 units and ¥17,184 million (up 196.8% year on year). For FY2027 (ending March 2027), 343 units are planned, and by establishing a two-pillar structure alongside the mainstay single-person-oriented brand, the company aims to diversify its customer base and stabilize its earnings foundation.

In response to the buoyant used condominium market, the company continues to strengthen its purchase, brokerage, and resale system. In FY2026 (ending March 2026), contracted used condominium sales reached a high level of 3,008 units and ¥87,343 million (up 127.2% year on year). In FY2027 (ending March 2027), used property distribution will continue to be positioned as a core driver of earnings.

In addition to new management contracts arising from the completion and handover of properties developed by the group, the company continues to expand the number of units under leasing management and buildings under building management by promoting the acquisition of management contracts for external properties. Cost increases are absorbed through operational efficiency gains from IT investment and DX promotion, while stable recurring revenue continues to accumulate.

The basic policy is a progressive dividend that increases in line with medium- to long-term profit growth. The company continues to raise dividends, with an annual dividend of ¥66 for FY2026 (ending March 2026) (up from ¥54 in the prior fiscal year) and a forecast of ¥80 for FY2027 (ending March 2027). The payout ratio stands at a comfortable 21.6% for FY2026 (ending March 2026), leaving room for further dividend increases as profit growth continues.

Last updated: July 19, 2026