Keikyu Corporation
9006・Prime Market・Land Transportation
Business
Keikyu Corporation (Keihin Electric Express Railway) is a major private railway operator founded in 1899. Its core business is an 87.0km railway network connecting Shinagawa, Yokohama, the Miura Peninsula, and Haneda Airport, and it operates a diversified range of businesses including buses, hotels, real estate, department stores, and supermarkets. With 39 consolidated subsidiaries and 22 affiliated companies, the company's revenue is supported by the Transportation Business (operating revenue of ¥121,591 million) as the top contributor, followed by the Real Estate Business (¥50,996 million), the Retail Business (¥84,874 million), and the Leisure & Service Business (¥34,594 million). Its main customers are residents along the railway line, commuters and students, inbound travelers, and Haneda Airport users, and the company positions the mutual value co-creation between its "mobility platform" and "community creation platform" as the core of its management strategy.
Business Model
Built on the stable travel demand generated by the Railway Business and Bus Business, the group compounds earnings through interlocking operations in real estate leasing and sales, business hotels, and department stores/supermarkets along its rail corridor. It is also promoting the Real Estate Turnover Business (Securitization) — selling assets to private REITs and private funds while earning AM/PM/BM fees — as part of a broader transition toward a structure that improves capital efficiency on held assets. The "Other" segment, which includes intra-group construction and building management, internalizes demand within the group and also contributes to cost efficiency.
Company Strengths
As the only railway operator directly connecting Haneda Airport Terminal 1, Terminal 2, and Terminal 3 Stations, Keikyu recorded a 5.4% year-on-year increase in passenger traffic at Haneda Airport Station in FY2025 (a 6.1% increase at Terminal 1 & 2 Station). Airport transportation is a key driver of non-commuter revenue, and the company holds a route network advantage that competitors cannot easily replicate in the short term.
Segment assets of the Real Estate Business reached ¥325,167 million, comprising ownership and operation of mixed-use facilities such as "Yokohama Symphostage" and "BASEGATE Yokohama Kannai." In the Shinagawa Station West Exit area, the company has begun construction of a mixed-use facility jointly with Toyota Motor Corporation. Development sites and properties accumulated at key locations along the rail line form a long-term revenue base.
FY2025 operating revenue of ¥304,192 million is distributed across four segments—Transportation, Real Estate, Retail, and Leisure—resulting in low dependence on any single business. The Leisure & Service Business posted a 9.1% year-on-year increase in operating revenue and a 12.4% increase in operating profit, while the Retail Business also grew revenue by 4.5%. Segments other than the Transportation Business are growing steadily, enhancing the overall revenue stability of the group.
ENVALITH's Perspective
Performance Trend
Operating revenue for FY2026 (ending March 2026) reached ¥304,192 million (up 3.5% year on year), achieving five consecutive years of revenue growth. Growth was driven by the Transportation Business (passenger volume up 2.3% year on year), the Leisure & Service Business (up 9.1% year on year), and the Retail Business (up 4.5% year on year). On the other hand, operating profit declined to ¥33,553 million (down 5.9% year on year), impacted by the reversal effect from the prior period's sale of an equity interest in business-use land and by rising personnel expenses. A sharp increase in interest expenses (up 33.0% year on year) caused recurring profit to deteriorate significantly to ¥28,854 million (down 17.5% year on year). Profit attributable to owners of parent was secured at ¥27,492 million (up 13.1% year on year), supported by the recording of extraordinary gains such as gain on sale of fixed assets (¥19,751 million). The structural pressure on earnings from rising interest rates and rising personnel costs, as external factors, has become clear, and for FY2027 (ending March 2027), a substantial increase in operating profit is forecast (¥45,000 million, up 34.1% year on year) driven by real estate securitization (Real Estate Turnover Business (Securitization)).
Growth Strategy
Enhance corporate value through the Real Estate Turnover Business (Securitization) and large-scale line-side development centered on Shinagawa and Haneda
Preparations are underway for forming a private placement REIT through Keikyu SMTB Asset Management (capital alliance with Sumitomo Mitsui Trust Bank and Sumitomo Mitsui Trust Real Estate Investment Advisory), accelerating the cycle of acquiring, developing, and selling business-use land. In FY2027 (ending March 2027), gains on sale from real estate securitization are positioned as the main driver of the earnings forecast, and improvement in capital profitability is expected.
Construction of a mixed-use facility has commenced in the Shinagawa Station West Exit area in partnership with Toyota Motor Corporation. Shinagawa serves as the core hub of the "Growth Triangle Zone," and the mixed-use development combining offices, retail, and residential facilities aims to enhance line-side value and expand long-term rental income. Construction in progress has expanded to ¥190,251 million (from ¥147,240 million in the previous fiscal year), indicating that the investment phase is now in full swing.
Initiatives to enhance the tourism and resort value of the Miura area are being advanced, including attracting a luxury Hulic hot spring inn to Jogashima and signing an agreement with Mitsui Fudosan for joint consideration of a new resort area creation project at Abura-tsubo on the Miura Peninsula. These efforts simultaneously aim to enhance asset value at the terminal end of the rail line and generate transportation demand.
At the Board of Directors meeting on May 11, 2026, a resolution was passed to acquire up to 25,000,000 shares or ¥30.0 billion of treasury stock (acquisition period: May 12, 2026 to March 31, 2027). Combined with a dividend policy targeting a payout ratio of approximately 40% (actual payout ratio of 45.1% in FY2026 (ending March 2026)), the company aims to achieve both ROE improvement and enhanced shareholder returns. The amount of treasury stock acquired in FY2026 (ending March 2026) expanded significantly to ¥10,319 million from ¥1,269 million in the previous fiscal year.
Efforts to improve safety and support cashless payments are being advanced, including the installation of platform doors at Omorimachi, Rokugodote, Daishibashi, and Kojima-Shinden stations, and the full rollout of touch payment (credit card, etc.) boarding services across all lines and stations. The increase in tangible and intangible fixed assets expanded to ¥61,111 million (from ¥53,786 million in the previous fiscal year) in the Transportation Business alone, reflecting continued infrastructure renewal investment.
Last updated: July 19, 2026