Daito Trust Construction

Basic Information

Stock Code: 1878
Industry: Real estate industry
Category Detail: Real Estate & Housing
Prefecture: Tokyo
Establishment Year: June 1974
Listing Year: March 1989
Official Website: https://www.kentaku.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Higashi Nihon Jisho, Tokken Corporation, Sumitomo Forestry, Daiwa House Industry, Sekisui House, ABC-Mart, Toyo Suisan, Choei, ZOZO, Nomura Real Estate Holdings, JPMC, Ambition DX Holdings, J.S.B., Marion, Sere Corporation, Amano, Tamron, Leopalace21, Mainichi Comnet

Overview

Daito Trust Construction, founded in 1974, is Japan's largest building rental business company. It provides integrated entrusted management and construction of rental housing, and deploys the industry's top-class revenue guarantee master lease system.

Current Situation

Daito Trust Construction recorded consolidated sales of approximately 1.8423 trillion yen and operating profit of approximately 118.5 billion yen for the fiscal year ending March 2025, boasting the highest number of managed rental housing units in the industry. Its core rental management entrustment system seamlessly provides services from rental housing planning and construction to tenant recruitment and management, returning stable profits to owners. Subsidiary Daito Trust Construction Partners handles building management, and it is diversifying through related businesses such as LP gas supply and small short-term insurance. Since 2023, under President Kei Takeuchi, it has been promoting service quality improvements and sustainable growth strategies. While paying close attention to legal issues related to master lease contracts, it pursues a balance between profitability and customer satisfaction. With a network of 235 branches rooted in local communities nationwide, it aims to expand its business backed by steady rental housing demand. It also actively engages in sports sponsorship and regional contributions to enhance social trust.

Trivia

Interesting Facts

Boasts one of the largest rental management unit counts in Japan
35-year lump-sum leaseback master lease model is industry standard
Founder Katsumi Tada is from Nagoya
Operates 235 bases across all 47 prefectures nationwide
Actively supports sports organizations and women's professional golf
Employs famous actors as CM characters
Aims for stable owner income with revenue guarantee system
Provides multifaceted related services through subsidiaries
Past reports of employee working environment issues

Hidden Connections

Multiple major trust banks listed as shareholders, deep ties to financial sector
Shareholder relationship with Sumitomo Realty & Development, exists industry collaboration
Main sponsor of Fukuoka SoftBank Hawks, influence in sports world
Integration with HouseCom strengthens brokerage power in Kansai area
Also engages in real estate development in Malaysia and other Asian regions
Company drawing industry attention for legal precedents on lump-sum leaseback contracts
Head office relocated from founding place Nagoya to Tokyo, concentrating business in capital region
High brand recognition from employing numerous celebrities in CMs

Future Outlook

Growth Drivers

Sustained steady rental housing demand
Strengthening customer base through community-rooted sales system
Promotion of sustainable construction technology introduction
Customer satisfaction improvement through multifaceted services
Business efficiency via new technology utilization
Enhanced service development responding to demographic changes
Improvement of revenue guarantee model and legal risk management
Overseas business expansion centered on Asia

Strategic Goals

Surpass 1.5 million managed units and expand revenue
Achieve 50% ratio of ZEB / low environmental impact housing
Align sustainability management with international standards
Popularize smart management using AI and IoT
Enhance brand power through strengthened community collaboration
Further diversification of diverse housing-related services
Complete employee satisfaction improvement and working environment reform
Expand portfolio in overseas markets

Business Segments

Building Rental Management Proposals

Overview

Proposes rental housing management plans to landowners and investors, providing stable revenue models.

Competitiveness

Nationwide sales network and lump-sum leaseback system

Customers

Landowners
Individual investors
Real estate owning corporations
Asset management companies

Products

Rental housing construction proposals
Revenue guarantee master lease contracts
Property management

Construction and Management

Overview

Provides comprehensive services from construction to maintenance management, centered on rental housing.

Competitiveness

Integrated service system for construction and management

Customers

Building owners
Real estate management companies
Local governments

Products

Rental housing construction
Building maintenance services
Equipment maintenance

Real Estate Brokerage Services

Overview

Supports efficient rental management through tenant recruitment and real estate brokerage.

Competitiveness

Industry-leading brokerage network

Customers

Tenants
Corporate customers
Brokerage firms

Products

Rental housing brokerage
Tenant recruitment marketing

LP Gas Sales

Overview

Supplies safe and stable LP gas to create comfortable living environments.

Competitiveness

Nationwide LP gas supply infrastructure

Customers

Rental housing owners
Individual residents

Products

LP gas supply
Gas equipment maintenance

Small Short-Term Insurance

Overview

Provides insurance products to address housing-related risks.

Competitiveness

Insurance lineup specialized for the housing industry

Customers

Rental housing owners
Tenants

Products

Fire insurance
Liability insurance

Nursing Care Service Provision

Overview

Deploys community-based nursing care services to support the elderly.

Competitiveness

Community-rooted nursing care network

Customers

Elderly
Families
Nursing facilities

Products

Visiting nursing care
Nursing support services

Competitive Advantage

Strengths

Top number of rental housing management units in Japan
Established revenue guarantee master lease
Sales network of 235 branches nationwide
Diversified business through subsidiaries
Strong brand 'Ii Heya Net'

Competitive Advantages

Owner revenue stabilization through lump-sum leaseback system
Quality assurance with integrated system from planning to construction and management
Customer touchpoints leveraging nationwide local network
Improved customer satisfaction through diverse related services
Speedy response to market needs

Threats

Legal risks related to master lease contracts
Revenue fluctuation risks from declining occupancy rates
Rising construction costs
Cost increases from improving employee working conditions
Diversification of competitors' services
Declining rental demand due to population decrease

Innovations

2023: Enhanced AI Utilization in Building Management Operations

Overview: Introduced AI technology for building diagnostics and tenant management systems.
Impact: Achieves efficiency improvements and enhanced customer satisfaction

2022: Development of ZEB-Compatible Rental Housing

Overview: Promotes high-insulation, energy-saving housing to reduce environmental impact.
Impact: Takes lead in environmentally friendly housing market

2024: Strengthening Sustainability Management Framework

Overview: Initiates environmental and social activities to improve ESG ratings.
Impact: Contributes to enhanced social credibility

2023: Strengthened Legal Compliance with Master Lease Contract Revisions

Overview: Implemented contract reviews and enhanced customer explanation systems.
Impact: Improves reliability and reduces legal risks

Sustainability

Promotion of ZEB-standard housing
Expansion of energy-saving equipment introduction
Active regional community contribution programs
Efforts to improve working environment
Long-term measures to reduce environmental impact