■Company Overview

1. Company Overview

Real Gate ＜5532＞ is a growing company developing an FWP business to regenerate old small to medium buildings in the center of the city centered around the Shibuya area into small offices, shared offices, etc. Since its establishment in 2009, sales have increased for 15 consecutive terms. As a corporate philosophy, we have set “value for old things, creativity for real estate, and freedom in the way we work,” and we are working to embody them. Representative Director Iwamoto Hiroshi, who is qualified as a first-class architect and loves vintage architecture from overseas, has led the company since its establishment. Mr. Iwamoto became independent after gaining experience in site supervision, planning and sales at Goyo Construction (1893), Daikyo Co., Ltd., and Propast (3236). He also played an active role as an American football player at Goyo Construction, and he is still a powerful manager whose hobby is powerlifting. When it was founded in 2009, it was a business under the umbrella of Transit General Office Co., Ltd. The original business model was PM, but ML started in 2012, and from 2017 onwards, it also advanced into design and construction. The turning point came in July 2021 due to the COVID-19 pandemic. The company's shares were transferred due to the circumstances of the parent company, and it became a consolidated subsidiary of CyberAgent. Since it came under the umbrella of a major IT company, a business management and governance system was put in place, and two years later, it was quickly listed on the Tokyo Stock Exchange Growth Market in 2023/6. Currently, relationships of trust with financial institutions have also been strengthened, and properties are being owned and sold, and growth is accelerating due to the full use of various schemes.

2. income model

The company is a single segment of the FWP business, but since its establishment, businesses that serve as revenue models have been added. Currently, there are 5 main models, and the main business is ML. It is a business where buildings are leased and subleased with contracts of about 10 to 15 years from building owners, and rent payments take precedence at the beginning of business, but stable income can be obtained after full occupancy, accounting for 59.7% of the company-wide sales structure for the 2024/9 fiscal year. PM, which has been a business since its inception, is a business where planning and operation are entrusted by building owners, and receives fixed fee income, etc. from tenant rent income, and accounts for 6.7% of the company-wide sales structure. Regeneration property ownership (ownership) is a business where people own properties themselves and earn rent income, accounting for 3.0% of the company-wide sales structure. Design/construction is a business that obtains construction income, etc. upon completion by concluding design supervision agreements and construction contract agreements, and has characteristics that occur in connection with ML/PM, and accounts for 14.3% of the company-wide sales structure. Property sales, which the company has expanded into in recent years, are businesses that earn income from the sale of owned properties, account for 16.3% of the company-wide sales structure, and have business characteristics where large profits can be obtained from capital gains. In addition to improving the financial situation, it can also lead to stable stock type income by entrusting ML/PM after sale. ML/PM/holding is a stock type income model with high continuity and stability, and the total of the three accounts for about 70%. It is assumed that flow-type design/construction and property sales will eventually lead to ML and PM, and the company's strength is that it can stably accumulate stock type sales.

The company's business performance has been growing steadily since it was founded, but in particular, stock type sales (ML, PM) have been steadily piling up. Meanwhile, flow type sales (design/construction) tend to fluctuate up and down. A holding model was added from the 2022/9 fiscal year, and a sale model was added from the 2023/9 fiscal year. The company's strength is that it can make a variety of proposals, such as the pattern of entering from design/construction and connecting to ML, and then buying and selling (capital gain) from holding (rent) and then connecting to ML.

(Written by FISCO Visiting Analyst Hideo Kakuta)