Developing a Premium Business Originating from Income-Producing Properties

「We are pursuing expanded earnings opportunities and improved capital efficiency through expansion into large-scale resale projects and asset management mandates.」

「In the domestic entire-building income-producing property sales business, revenue for the interim period was ¥23,058 million, or 124.5% of the previous year’s level. Our ability to identify attractive properties when acquiring income-producing real estate and our measures to increase property value after acquisition, both group strengths, contributed to gross profit of ¥3,916 million, or 135.9% of the previous year’s level. We will continue to improve margins and capital turnover, expand initiatives in Osaka and Fukuoka, and diversify asset types, including hotels, for further growth.」

「In the domestic entire-building income-producing property sales business, revenue for the current consolidated fiscal year increased to ¥35,744 million, or 118% of the previous year’s level. Measures to increase the value of income-producing properties proved effective, and gross profit increased to ¥5,774 million, or 142% of the previous year’s level, substantially outpacing revenue growth. For further growth, we have acquired and commercialized a new hotel and are pursuing measures to diversify our asset types.」

「In anticipation of entering the hotel operations business as our group's business activities diversify, we are proposing to add a business purpose to Article 2 of the current Articles of Incorporation.」

「We have newly acquired a hotel for further growth and are pursuing measures to diversify our asset types.」

「In particular, in sales, we sold out “ARISTO Hiroo” (total sales: ¥4 billion) in the fractional real estate business, steadily expanding revenue.」

「In particular, in sales, we sold out the two properties “ARISTO Aoyama II” (total sales: ¥1.77 billion) and “ARISTO Sapporo” (total sales: ¥777 million) in the fractional real estate business, steadily expanding revenue.」

「The business performed well because competitiveness improved through a favorable acquisition-to-sales cycle centered on accurate product planning based on supply and demand, while sales network expansion through partnerships with financial institutions and tax accountants for fractional real estate products and our first entry into the Tenjin/Daimyo area also proved effective.」

「Against this business backdrop, our principal business, income-producing property sales, produced steady results above the previous year’s level by pursuing acquisitions and sales in an integrated and strategic manner, centered on product-planning capabilities that accurately capture investor and tenant needs and contribute to higher rents.」

「By making product-planning capabilities that accurately capture investor and tenant needs and contribute to higher rents the central focus, we have pursued acquisitions and sales in an integrated and strategic manner, producing steady results above the previous year’s level.」

「Going forward, we aim to transform ourselves into an “investment solutions company” by combining diverse operating methods for the entry and exit strategies involved in commercializing income-producing properties with a diverse range of products beyond real estate, while expanding our target customer base and strengthening the breadth of our group businesses.」

「Amid a favorable environment surrounding income-producing properties, our competitiveness improved through a virtuous cycle from acquisitions to sales centered on accurate product planning based on demand analysis, and both acquisitions and sales progressed steadily.」

「Against this business backdrop, our principal business, income-producing property sales, made steady progress in selling entire medium-sized office and retail buildings and fractional real estate product “ARISTO” during the second quarter. On the acquisition side, we were able to acquire medium-sized office and residential properties despite overheated market conditions, and will continue to pursue further acquisitions.」

「Against this business backdrop, our principal business, income-producing property sales, delivered steady results in both acquisitions and sales during the first quarter, as our flexible-office strategy in product planning proved effective.」

「A new cycle of rapidly and accurately executing acquisitions and product planning after identifying the specific demand characteristics of individual income-producing properties proved effective, and both acquisitions and sales remained strong. Setup offices, in particular, are accurately capturing demand as highly planned products that leverage our strengths.」

「In developing and selling fractional real estate investment products, progress in sales partnerships with financial institutions enabled us to conduct higher-quality sales activities than before.」

「In the real estate business, we will diversify our product lineup while strengthening our product-planning capabilities so that we can expand our target customers from individuals to larger customers, including business corporations and institutional investors.」

「In the Sixth Medium-Term Management Plan announced on 4 June 2019, we intend to further develop this into a premium business and create a sophisticated business model that provides various premium values to various customers. In addition to further increasing the value delivered across the value chain originating from income-producing properties, we will expand our portfolio flexibly across business fields and geographic areas in order to strengthen our affluent-customer business, including by developing investment products beyond real estate and providing asset-related services.」