TOC

Basic Information

Stock Code
8841
Industry
Real Estate
Category Detail
Real Estate & Housing
Prefecture
Tokyo
Establishment Year
April 1926
Listing Year
December 1983
Official Website
https://www.toc.co.jp/
TSE Information
TSE Information
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Overview

TOC is a long-established comprehensive real estate company based in Tokyo, founded in 1926, primarily engaged in leasing office buildings and commercial facilities as its core business.

Current Situation

TOC recorded consolidated sales of approximately 18.4 billion yen and operating profit of approximately 6.2 billion yen in 2020, maintaining solid management. Its primary rental business centered on Tokyo properties such as TOC Building, Osaki New City, and Asakusa ROX serves as the revenue pillar. The pharmaceutical business continues through subsidiary Hoshi Seiyaku, aiming for business diversification. TOC Building includes exhibition halls and an underground mall, functioning as a regional landmark and used for various purposes including exam venues. In recent years, while there is demand for building redevelopment, it faces impacts from labor shortages and rising material costs in the construction industry. Major shareholders include New Otani and Taisei Corporation, with Mr. Otani leading the management core, providing a stable business foundation. Moving forward, it plans to capture redevelopment demand in central Tokyo while focusing on sustainable asset management and leasing operations to ensure stable earnings and enhance asset value.

Trivia

Interesting Facts

  • Founded as Hoshi Seiyaku in 1926, with a historical shift from pharmaceuticals to real estate.
  • TOC Building functions as a rare wholesale-centered complex facility in central Tokyo.
  • Unique history with SF author Shinichi Hoshi serving as former president.
  • Multi-purpose building used as exam venue, rare in the region.
  • Equity-method affiliates involved in diverse real estate redevelopments.

Hidden Connections

  • Strong management collaboration with New Otani Group, ongoing under Otani family leadership.
  • Stable relationships with prominent construction firms and trust banks as major shareholders.
  • Business diversification via subsidiaries in linen supply, fitness operations, etc.
  • TOC Building adapts to unique market conditions as multi-sector urban infrastructure.

Future Outlook

Growth Drivers

  • Increased leasing demand from redevelopment in central Tokyo and waterfront areas
  • Enhanced draw through multi-functional complex diversification
  • Service expansion leveraging facility operation expertise
  • Value uplift of eco-friendly buildings via sustainability enhancements
  • Social value creation and brand strengthening through regional ties

Strategic Goals

  • Over 80% green building certification rate for key leasing facilities
  • 30% cumulative sales growth to secure and expand asset value
  • Boost diversified business growth via subsidiary collaboration
  • DX promotion to elevate tenant satisfaction
  • Corporate value enhancement through expanded community contributions

Business Segments

Real Estate Leasing Business

Overview
Provides leasing and management services for diverse facilities primarily to corporations.
Competitiveness
Operational capabilities in multi-functional complex facilities concentrated in central Tokyo
Customers
  • Corporate tenants
  • Exhibition organizers
  • Retailers
  • Restaurant operators
  • Government agencies
  • Educational institutions
Products
  • Office space leasing
  • Commercial facility leasing
  • Exhibition hall & conference room rental
  • Underground mall space provision

Pharmaceuticals & Medical-related Business

Overview
Manufacturing and sales of pharmaceuticals and related services through subsidiary Hoshi Seiyaku.
Competitiveness
Unique business structure integrated with real estate
Customers
  • Medical institutions
  • Pharmaceutical companies
  • Pharmacies
  • Medical wholesalers
Products
  • Pharmaceutical sales
  • Pharmaceutical manufacturing
  • Medical supplies

Building Management & Operations Services

Overview
Comprehensive building management and related services expanded through subsidiaries.
Competitiveness
Integrated facility management and service provision system
Customers
  • Tenant corporations
  • Facility operators
  • Management associations
Products
  • Building management services
  • Laundry services
  • Cleaning services

Fitness & Hot Spring Facility Operations

Overview
Operation of health promotion and hot spring facilities by related subsidiaries.
Competitiveness
Stable revenue base through business diversification
Customers
  • General members
  • Local residents
  • Corporate contractors
Products
  • Fitness clubs
  • Bath facilities

Competitive Advantage

Strengths

  • Long track record of real estate ownership and leasing in central Tokyo
  • Expertise in multi-functional complex facility operations
  • Stable major shareholders and management foundation
  • Diversified business portfolio
  • Community-oriented facility operations

Competitive Advantages

  • High customer draw and recognition of flagship facilities like TOC Building
  • Unique diversification strategy including pharmaceuticals
  • Strengths in redevelopment projects like Osaki New City
  • Long-term tenant relationships and stable profitability
  • Comprehensive building management services via subsidiaries

Threats

  • Rising construction material and labor costs
  • Intensifying competition from rival facilities in central Tokyo
  • Changes in tenant demand due to economic fluctuations
  • Uncertainty in event hosting from novel infectious diseases
  • Risk of sharp fluctuations in real estate market conditions
  • Increased burdens from strengthened regulations and environmental rules

Innovations

2022: Advancing Smart Upgrades for TOC Building Equipment

Overview
Implemented equipment renovations using IoT for energy savings and enhanced comfort.
Impact
15% reduction in energy consumption, improved tenant satisfaction

2023: Advancing Osaki New City Redevelopment Plan

Overview
Strengthening initiatives to refresh facility functions and enhance value through mixed redevelopment.
Impact
Future asset value improvement and strengthened revenue base

2021: Introduction of Environmentally Conscious Building Management System

Overview
Developed and introduced building management system with sustainability focus.
Impact
Reduced environmental impact, improved tenant evaluations

Sustainability

  • Promotion of energy-saving measures and renewable energy adoption
  • Operation and improvement of environmental management systems
  • Active participation in local environmental conservation activities
  • Advancement of sustainable urban development
  • Tenant-collaborative environmental awareness programs
  • Improvement of waste recycling rates