ENVALITH
飯野海運株式会社 logo

IINO KAIUN KAISHA, LTD.

9119・Prime Market・Marine Transportation

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飯野海運株式会社 logo
IINO KAIUN KAISHA, LTD.9119

Business

Iino Kaiun (Iino Lines) is a Tokyo Stock Exchange-listed shipping company founded in 1899, operating three business segments: Ocean-going Shipping Business, Coastal & Near-Sea Shipping Business, and Real Estate Business. In ocean-going shipping, the company operates crude oil tankers, chemical tankers, Large LPG/Ethane Carrier Transport vessels, and dry bulk carriers worldwide, entering into long-term contracts with customers in the Middle East, Asia, and Europe/America. In coastal and near-sea shipping, the company transports LNG, LPG, and petrochemical gases domestically and in nearby overseas waters. In the Real Estate Business, the company owns and operates office buildings in central Tokyo (including the Iino Building) and central London, and also operates a photo studio business (Iino Media Pro Co., Ltd.). Across the group, which includes 66 consolidated subsidiaries and 8 equity-method affiliates, the basic policy is portfolio management designed to enhance resilience to market fluctuations.

Business Model

In the shipping business, the company combines owned vessels with chartered ships, building a foundation of fixed income from long-term and medium-to-long-term contracts while capturing opportunities from favorable spot market conditions. In the real estate business, stable cash flow is generated through high-occupancy leasing of office buildings in prime locations in Tokyo and London, cushioning fluctuations in shipping market conditions. By combining business segments with differing earnings characteristics, the company aims to improve capital efficiency while enhancing resilience to changes in the external environment.

Company Strengths

In Ocean-going Shipping Business, large crude oil tankers, LPG carriers, and dedicated dry bulk carriers continue to be deployed under medium-to-long-term contracts, securing stable revenue even amid market fluctuations. Dedicated dry bulk carriers operate mainly under medium-to-long-term contracts with domestic electric power companies and paper manufacturers, while Coastal & Near-Sea Shipping Business also maintains utilization based on existing medium-to-long-term contracts.

Iino Building (Uchisaiwaicho, Chiyoda-ku, Tokyo), a high-environmental-performance building with LEED Platinum certification, continues to maintain high office floor occupancy. London properties, including "111 STRAND" acquired in March 2024, are also performing steadily. In FY2026 (ending March 2026), operating income from the Real Estate Business reached ¥4,350 million, up 25.7% year on year, fulfilling a buffering function against fluctuations in shipping market conditions.

The company owns and operates a broad range of vessel types, including crude oil tankers, chemical tankers, large LPG carriers, large ethane carriers (VLEC), dry bulk carriers (Panamax and Handy), and domestic gas carriers. In September 2025, the company's first VLEC, "IINO INEOS VESTÁ," was completed, with a second vessel joining the fleet in January 2026, demonstrating a track record of expansion into new vessel types.

ENVALITH's Perspective

The earnings forecast for FY2027 (ending March 2027) has been formulated on the premise that transit through the Strait of Hormuz will resume by June 2026. Ordinary profit is projected to decline sharply to ¥6,700 million (down 60.3% year on year), and the downside risk should the closure be prolonged is considerable. On the other hand, it is worth noting that a sharp recovery in Middle East transport demand once the closure is lifted, along with gains on the sale of large crude oil tankers (approximately ¥7,100 million), are expected to support net profit.

Real Estate Business operating profit of ¥4,350 million in FY2026 (ending March 2026) accounts for 32% of total company operating profit of ¥13,439 million, up from 20% in the previous fiscal year, showing an increasing presence. In addition to firm conditions in the Tokyo central office market (an external factor), a recovery in commercial floor space and rent improvements upon contract renewals have contributed, further clarifying the business's function as a stabilizer of earnings during downturns in shipping market conditions. Continued investment in real estate under the new medium-term management plan may further enhance its profit contribution going forward.

Long-term borrowings at the end of FY2026 (ending March 2026) stood at ¥116,204 million (a substantial increase from ¥72,076 million at the previous fiscal year-end), reflecting a sharp rise in capital expenditure financing associated with vessel completions. The new medium-term management plan calls for approximately ¥200 billion in investment over five years, explicitly indicating the use of financial leverage. The equity ratio has declined from 47.5% to 45.6%, and attention should be paid to the further decline expected as investments proceed, as well as the impact of rising interest rates (an external factor) on financial costs.

Growth Strategy

New medium-term plan to invest approximately ¥200.0 billion over five years to transform the business portfolio

Over the five years from April 2026 to March 2031, the Company plans to allocate approximately ¥200.0 billion to growth/new businesses and core businesses, driving a rebalancing of its business portfolio. It aims to pursue growth investments exceeding the cost of capital while leveraging financial leverage and enhancing capital efficiency simultaneously.

In January 2026, the Company's second large LPG/ethane carrier was completed, establishing a two-vessel fleet. This marks the Company's entry into the growth field of ethane transport, with plans to build up stable revenue through mid- to long-term contracts.

At the Board of Directors meeting held on March 6, 2026, a resolution was passed to sell one large crude oil tanker held by a consolidated subsidiary. A gain on sale of fixed assets (extraordinary income) of approximately ¥7,100 million is scheduled to be recognized in the first quarter of FY2027 (ending March 2027), contributing to improved asset efficiency and supporting net income for the next fiscal year.

Under the new medium-term management plan, the basic policy is to continue dividends based on a benchmark payout ratio of 40% of full-year earnings, with a newly introduced minimum dividend of ¥30 per share. The annual dividend for FY2026 (ending March 2026) is ¥59 (payout ratio of 40.6%), and the forecast for FY2027 (ending March 2027) is ¥46 (payout ratio of 40.2%).

The Company continues to carry out upgrade renovation work on properties it owns in central Tokyo and London, UK, aiming to improve rent levels and maintain occupancy rates. Operating profit in the Real Estate Business for FY2026 (ending March 2026) reached a record high of ¥4,350 million, and the Company will continue to develop this business as a stable revenue source that complements fluctuations in shipping business earnings.

Last updated: July 19, 2026