ENVALITH
東京テアトル株式会社 logo

TOKYO THEATRES COMPANY,INCORPORATED

9633・Standard Market・Real Estate

Official website
東京テアトル株式会社 logo
TOKYO THEATRES COMPANY,INCORPORATED9633

Business

Tokyo Theatres Co., Ltd. is a Tokyo Stock Exchange-listed company founded in 1946, operating three businesses: the Visual/Media-Related Business, centered on movie theater operations, film distribution, and production; the Food & Beverage-Related Business, led by the Sapporo-originated yakitori chain "Kushidori"; and the Real Estate-Related Business, built on the Used Condominium Renovation & Sales Business and the Real Estate Leasing Business. The company operates as a group of six companies, including five consolidated subsidiaries, and reported consolidated net sales of ¥20,655 million for FY2026 (ending March 2026). The Real Estate-Related Business accounts for approximately 54% of sales and serves as the main pillar of earnings, while the Visual/Media-Related Business continues to post losses, and the Food & Beverage-Related Business has turned profitable and is in an expansion phase. Under the corporate philosophy "Sound of Your Life ~ Bringing rich resonance to your life ~," the company has set "innovation toward becoming a produce company" as its medium-term management policy.

Business Model

The revenue structure is built on three layers. The Real Estate-Related Business combines stable rental income from near-100% occupancy of leased properties with revolving-type income from the Used Condominium Renovation & Sales Business in the greater Tokyo area. The Food & Beverage-Related Business builds up earnings through two pillars: store expansion of the "Kushidori" chain and the Prepared Foods & Wholesale Business (Takeout, Frozen Foods). The Visual/Media-Related Business aims for diversified monetization by combining the Movie Theater Business, the Film Production & Distribution Business, and solutions (such as cinema advertising), while also adding streaming rights income. The strategic goal is to capture human-resource-driven income that exceeds infrastructure-ownership-type income.

Company Strengths

In the Real Estate Leasing Business, meticulous leasing activities have maintained occupancy rates of nearly 100% for rental properties, securing stable rental income. Operating profit of the Real Estate-Related Business for FY2026 (ending March 2026) was ¥1,533 million (up 9.3% year on year), functioning as a revenue source that significantly exceeds the group's overall operating profit of ¥334 million.

In the Used Condominium Renovation & Sales Business conducted through Tokyo Theatres Remodeling Co., Ltd., an integrated structure has been built covering everything from procurement to renovation and sales. In FY2026 (ending March 2026), the number of units sold grew significantly, achieving Real Estate-Related Business sales of ¥11,076 million (up 20.3% year on year). The company is working to enhance its brokerage functions and expand web marketing, aiming to build a structure capable of procuring and selling 300 units annually.

The Yakitori Chain "Kushidori," mainly deployed in the Sapporo area, operated 47 restaurant locations and 7 retail outlets as of the end of FY2026 (ending March 2026). Through the opening of new formats, including dedicated takeout stores, and the expansion of the Prepared Foods & Wholesale Business (Takeout, Frozen Foods), operating profit in the Food & Beverage-Related Business improved substantially to ¥183 million (up 59.9% year on year). Expanded production capacity utilizing a central kitchen is a source of competitive advantage.

ENVALITH's Perspective

In FY2026 (ending March 2026), the operating margin remained at a persistently low level of 1.6% (versus 1.5% in the previous period). The operating loss in the Visual/Media-Related Business widened to ¥555 million (versus ¥420 million in the previous period), mainly due to increased amortization expenses on invested productions. The structure in which the highly profitable real estate business supports the entire company remains unchanged, and it appears that achieving the medium-term profitability target for the visual/media business will require considerable time. In FY2027 (ending March 2026), amortization expense burdens from the Film Production & Distribution Business are expected to decrease significantly, making the narrowing of the visual/media segment's losses a key point of focus.

Net income attributable to owners of the parent for FY2026 (ending March 2026) was ¥833 million (down 72.6% from ¥3,040 million in the previous period), mainly due to the reversal effect of the ¥3,530 million gain on sale of fixed assets recorded in the previous period. In FY2027 (ending March 2026), the company expects to record a ¥3,650 million gain on sale of fixed assets as extraordinary income from the sale of income-producing real estate in Minato Ward, which will account for the majority of the projected net income of ¥2,700 million. The divergence between the company's recurring earnings power from business operations (ordinary income forecast of ¥350 million) and its net income, which remains dependent on extraordinary gains, is a structural issue that investors should closely monitor.

The consolidated earnings forecast for FY2027 (ending March 2026) projects revenue of ¥19,800 million (down 4.1% year on year) and operating income of ¥300 million (down 10.3% year on year), reflecting an expected decline in both revenue and profit. The main factor is the risk that procurement difficulties for construction materials stemming from Middle East tensions could delay the completion of properties in the Used Condominium Renovation & Sales Business. This creates a structure in which external geopolitical risk factors directly affect the business plan, making the trend in the number of properties sold the largest variable factor for FY2027 (ending March 2026) results. In the food & beverage business, attention should also be paid to increased costs associated with the start of central kitchen construction in May 2026.

Growth Strategy

Transitioning from 'Innovation into a Produce Company' to a growth strategy execution phase, pursuing sustainable growth across three business segments

Redefining the business scope from 'film' to 'visual entertainment' to diversify revenue sources. Aiming to increase cinema advertising orders, strengthen the rights business, and expand secondary usage revenue for streaming. Amortization expense burden from the Film Production & Distribution Business is expected to decrease significantly in FY2027 (ending March 2027), and losses are expected to narrow.

Construction of a central kitchen for "Kushidori" is set to begin in May 2026. Equipment and system upgrades will strengthen the "Kushidori" brand and expand the Prepared Foods & Wholesale Business, including frozen foods and prepared dishes. In FY2026 (ending March 2026), 3 new stores were opened (47 restaurants, 7 retail stores), achieving net sales of ¥6,121 million and operating profit of ¥183 million (up 59.9% year on year).

Building a structure capable of stably achieving 300 property acquisitions and sales annually through improved brokerage functions and enhanced web marketing capabilities to raise quality. In FY2026 (ending March 2026), the number of properties sold grew significantly, achieving Real Estate-Related Business net sales of ¥11,076 million (up 20.3% year on year). However, there is a risk of delayed commercialization in FY2027 (ending March 2027) due to difficulties in procuring construction materials.

Strategically selling owned real estate to make effective use of management resources and strengthen the financial structure. In April 2026, income-producing real estate in Minato-ku was transferred, and a gain on sale of fixed assets of ¥3,650 million is expected to be recorded as extraordinary income in FY2027 (ending March 2027). Dividends will be stable with a minimum of ¥20 per share; the FY2027 (ending March 2027) forecast is ¥30 per share (dividend payout ratio of 7.6%). The policy is to increase dividends toward a consolidated dividend payout ratio of 40% as earnings expand.

Strengthening the development of human resources central to the business while promoting human capital investment, including improved employee treatment. Aiming for a structure in which steady cash flow funds business investment, human capital investment, financial structure strengthening, and shareholder returns. Moving into the implementation phase of the new theme "Toward an Organization That Continues to Grow" starting FY2027 (ending March 2027).

Last updated: July 19, 2026