Portfolio Management and Asset-Light Strategy for Domestic Development Businesses

「In development and other operations, we plan to sell multiple real estate properties, mainly in the second half of the fiscal year. In addition, the design and engineering business is progressing steadily, so we expect to achieve our full-year forecast for gross profit.」

「In multiple domestic and overseas development projects, the company reduced business risk and improved capital efficiency by bringing in joint venture partners and using external capital.」

「In Japan, the development business is steadily building up its business assets, and we expect multiple property sales to contribute to performance.」

「During the current interim consolidated fiscal period, the company acquired an equity interest in a silent partnership operated by 合同会社クレイン・アンド・スターズ, which conducts real estate development and related businesses, and made it a consolidated subsidiary.」

「During the current interim consolidated fiscal period, the company newly established 元赤坂特定目的会社, which conducts real estate leasing and related businesses, and made it a consolidated subsidiary. It also acquired an equity interest in ジーピーティー特定目的会社, which conducts real estate leasing and related businesses, and made it a consolidated subsidiary.」

「In the domestic and overseas real estate development businesses, the company will promote investment based on market trends in each region and recover capital through timely sales to expand earnings.」

「As sales of the planned real estate sales projects progressed steadily during the current consolidated fiscal year, both net sales and operating profit exceeded the same cumulative period of the previous fiscal year. Net sales increased 64.4% year on year to ¥52.5 billion, compared with ¥31.9 billion, while operating profit increased 72.9% to ¥9.4 billion, compared with ¥5.4 billion.」

「In the development and other businesses, performance progressed steadily, including the completion of the delivery of one of the real estate sales projects scheduled for sale during the current consolidated fiscal year. As part of new investment that will contribute to future profits, the company also entered the logistics facility development business.」

「In the development business, the planned sale of development properties in Japan and overseas is contributing to results. The company will continue to establish a highly efficient investment cycle by investing in diverse assets while thoroughly managing risk and recovering capital through timely sales.」

「During the third quarter of the current consolidated fiscal year, the company newly established イートンリアルエステート株式会社, which conducts real estate sales, purchases, and leasing businesses, and made it a consolidated subsidiary. イートンリアルエステート株式会社 qualifies as a specified subsidiary.」

「The new construction of the company's Yokohama Gate Tower, which had been planned at the end of the previous consolidated fiscal year, was completed in October 2021.」

「The development and other businesses recorded lower sales and profit than in the same cumulative period of the previous fiscal year, but performance was generally solid against the full-year forecast, which anticipates few real estate sales projects. The company continues to steadily invest in creating high-quality projects.」

「In the development business, the company is working to plan businesses adapted to new social and customer needs and diversify its portfolio. It aims to establish a highly efficient investment cycle by pursuing active investment while recovering capital through sales.」

「From the third quarter of the current consolidated fiscal year, the company included in the scope of consolidation a silent partnership operated by OK大宮開発合同会社, as it became a subsidiary through the acquisition of an equity interest.」

「Mainly because of the delivery of a large property in the real estate sales business, net sales increased 55.8% year on year to ¥32.5 billion, compared with ¥20.9 billion in the same cumulative period of the previous fiscal year, while operating profit increased 136.5% to ¥8.3 billion, compared with ¥3.5 billion.」

「Net sales increased 126.0% year on year to ¥22.3 billion, compared with ¥9.8 billion in the same cumulative period of the previous fiscal year, mainly because real estate sales revenue increased following the delivery of a large property. Operating profit increased 336.4% year on year to ¥6.1 billion, compared with ¥1.4 billion, owing to higher net sales and an improved gross profit margin.」

「Condominium deliveries progressed during the current consolidated fiscal year, and the company sold projects that had been enhanced after acquisition. In addition, it acquired projects, including large rental business-use properties in the Kansai region, that would secure rental income and lead to the creation of property management and building management work for the Kajima Group. As a result, both the real estate sales business and the rental business recorded increases in net sales and gross profit compared with the previous consolidated fiscal year. Projects being advanced under the investment plan in the medium-term management plan are expected to be completed successively from the fiscal year ending March 2021 and contribute to results.」

「The development and other businesses secured solid results against the full-year forecast while steadily advancing investment to strengthen earnings power. Domestic affiliates maintained stable results and contributed to consolidated performance, while the company worked to further diversify sources of earnings, including by strengthening its building management company.」

「During the cumulative first quarter of the current consolidated fiscal year, the company invested in a silent partnership operated by 合同会社桜島開発 and made it a consolidated subsidiary.」

「Operations of the private REIT Kajima Private REIT Investment Corporation, for which an unconsolidated subsidiary of the company serves as asset manager, began in June 2018, and during the current consolidated fiscal year the group sold multiple assets it held to the investment corporation. The investment corporation aims to expand its assets under management, and the group plans to expand earnings opportunities and strengthen earnings power through asset-light businesses and other activities related to its development business.」

「In these segments, the company is working to secure diverse sources of earnings and further strengthen earnings power through active investment in domestic and overseas real estate development and expansion into promising markets and growth fields.」

「In the development and other businesses, during the cumulative second quarter of the current consolidated fiscal year, the group sold multiple assets it held to Kajima Private REIT Investment Corporation, for which an unconsolidated subsidiary of the company serves as asset manager, and the investment corporation began operations. The group is working to expand earnings opportunities and strengthen the earnings power of its development business in anticipation of growth in the investment corporation's assets under management.」

「In the development and other businesses, operations of the private REIT Kajima Private REIT Investment Corporation, for which an unconsolidated subsidiary of the company serves as asset manager, began in June 2018. During the cumulative first quarter of the current consolidated fiscal year, the group sold multiple assets it held to the investment corporation. The investment corporation aims to expand its assets under management, and the group plans to expand earnings opportunities and strengthen earnings power through asset-light businesses and other activities related to its development business.」

「In the domestic development business, the company aims to actively create high-quality projects, with a focus on balancing properties for sale that generate a quick return of capital and rental properties that generate stable income, to strengthen earnings power. It is also working with group companies on related businesses such as real estate management.」

「In the domestic development business, the company is working to create high-quality projects with consideration for its business portfolio and promote asset-light businesses.」