TOSEI CORPORATION (8923) Stock Price

Tosei is a comprehensive real estate company centered in Tokyo's special wards, handling everything from revitalizing deteriorated properties to new development projects. The company's core business is "real estate regeneration," where it acquires office buildings and commercial facilities with declining asset values, renovates them according to value-up plans, and sells them to investors and corporate end-users. The company also pursues new development to maximize land value, offering diverse development options including office buildings, hotels, residential apartments, and logistics facilities.

The company's primary customers are investors, real estate funds, and corporate end-users. Its revenue structure combines one-time gains from property sales with recurring rental income from company-owned properties. By handling the entire process from property acquisition through renovation, operation, and sale, the company secures revenue opportunities at each stage and enables flexible business operations in response to market changes.

The company operates six major business segments. The real estate regeneration segment handles property renovation and rehabilitation; the real estate development segment manages new construction; and the real estate leasing segment operates company-owned properties. Additionally, the real estate fund and consulting segment provides real estate investment as a financial product, the property management segment offers building management services, and the hotel segment operates its proprietary brand "TOSEI HOTEL COCONE," delivering comprehensive services from real estate planning through operation.

Tosei aims to become a "unique real estate portfolio manager with diverse solution capabilities" as its long-term vision through 2032, and has formulated the medium-term management plan "Further Evolution 2026." The company targets consolidated net sales of 122.9 billion yen and consolidated pre-tax profit of 22.0 billion yen for the fiscal year ending November 2026, and has revised its plan upward based on steady performance to date. The company maintains an ROE of 14.0% and continues to pursue capital-efficient management.

The company's priority investment areas are the provision of environmentally conscious products and the promotion of sustainability management. In real estate rehabilitation and development operations, the company seeks differentiation through increased utilization of existing real estate stock and expansion of product offerings, aiming to establish the Tosei brand. Additionally, by maintaining a stable business ratio of 45% or higher, the company strengthens resilience against market fluctuations and adopts a strategy to expand its continuous revenue base in rental and fund operations.

In new market development, the company promotes expansion and brand penetration of its proprietary hotel brand "Tosei Hotel Cocone" and diversifies revenue sources through the provision of differentiated accommodation services. Furthermore, the company advances business expansion and revenue opportunities through improved property valuation efficiency and enhanced procurement competitiveness via M&A, as well as strengthened service capabilities in real estate fund operations.

In technological innovation, the company actively develops real estate tech businesses that integrate real estate, finance, and digital transformation. Specifically, the company has introduced real estate crowdfunding, security token issuance, and digital matching services for condominium sales, providing new customer segments with real estate investment opportunities. Through these digital transformation initiatives, the company promotes operational efficiency while diversifying exit strategies for its rehabilitated and development properties, aiming to build innovative business models that transcend the traditional real estate industry framework.