Worth reading
76Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
2100
¥100 million (target total assets for the fiscal year ending December 2031)Wording
Avoiding a definitive answer
How definitive the wording is.Items stated in the management plan
FormulatedNet Sales+121.3%
基準 46,544Target103,000million
Operating profit+159.4%
基準 10,024Target26,000million
Net income for the current fiscal year+147.8%
基準 6,135Target15,200million
ROE+6.0pt
基準 2,025Target2,031%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
Operating profit marginTarget through 2025: at least 20%; actual for the fiscal year ended December 2025: 21.5% → Not disclosed
Only the target level is shown because the current level for comparison was not provided.What happened to the previous planOriginal plan for 2023–2025 (revenue of 30,000 / 33,000 / 40,000; operating profit of 5,500 / 5,700 / 6,400; ordinary profit of 4,800 / 5,000 / 5,700; net income of 3,400 / 3,500 / 4,000) → Actual results (revenue of 31,499 / 44,707 / 46,544; operating profit of 5,552 / 7,700 / 10,024; ordinary profit of 4,941 / 6,848 / 8,956; net income of 3,293 / 4,713 / 6,135)+16.4%Calculated from the two disclosed figures
Total investment planGrowth investment of approximately ¥421.0 billion (total capital allocation of approximately ¥471.0 billion)
Investment amount by sectorField Growth investment (property acquisitions, development investment, etc.) / Amount Approximately ¥421.0 billion, Field Future investment capacity (cash and cash equivalents held for M&A, capital alliances and strategic investments, etc.) / Amount Approximately ¥20.0 billion
Statements about the use of capital
Payout ratio / DOE policyFor 2026–2031, the Company is targeting a payout ratio of 40% and has set a DOE floor of 6%. It is targeting ROE of at least 20%.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Self-assessment of PBR and share priceThe Company's assessment of its PBR and share price as being at low levels was not disclosed. The simulation assumes a PBR of 1.4x, the average for the Tokyo Stock Exchange real estate sector.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Strategic expansion of business areas
02Strengthening the financial base, funding capacity and capital efficiency
03Organizational development to improve productivity
04Accelerating the acquisition of sites for commercial and residential development
05Actively pursuing residential hotel development
06Accelerating growth and diversification through M&A and capital alliances
07Product planning that supports a sustainable society
08Regional revitalization and local economic development
09Initiatives in social infrastructure, including healthcare and welfare
10Providing M&A support advisory services
11Illustrative M&A targets
12Considering investment funds
13Strengthening funding capacity by improving financial soundness
14Thoroughly screening projects based on market conditions
15Adoption of a “6% DOE floor”
16Accelerating growth through M&A and capital alliances
Plan assumptionsReal estate development takes 2.5–3.0 years from acquisition to sale., Development properties held for sale require approximately 2 years from acquisition to completion, while properties held for sale require a lead time of approximately 6 months to 1 year before revenue can be recognized., Revenue CAGR of 14.2% and ordinary profit CAGR of 16.2%, based on actual results for the fiscal year ended December 2025., The simple interest-rate-up scenario assumes that the policy rate rises 0.75% from its level at the end of 2025., Pipeline values are assumed selling prices as of the acquisition date and may differ from actual selling prices depending on market conditions, sales strategies, product planning and other factors.
Segment targetSegment DX New-Build Real Estate Business / Target fiscal year Fiscal year ending December 2031 / Net Sales ¥77.80 billion / Gross profit ¥26.40 billion / Gross Margin 33.9%, Segment DX Real Estate Value-Enhancement Business / Target fiscal year Fiscal year ending December 2031 / Net Sales ¥4.00 billion / Gross profit ¥1.00 billion / Gross Margin 25.0%, Segment DX Redevelopment Real Estate Business / Target fiscal year Fiscal year ending December 2031 / Net Sales ¥18.50 billion / Gross profit ¥3.00 billion / Gross Margin 16.2%, Segment Real Estate Leasing Business / Target fiscal year Fiscal year ending December 2031 / Net Sales ¥2.70 billion / Gross profit ¥1.60 billion / Gross Margin 59.3%
Size of the Target MarketThe asset value of income-producing real estate was ¥352.1 trillion in 2025. Source: NLI Research Institute and Value Research Institute, “Real Estate Investment Report, 26 December 2025.” The government’s 2030 target of 60 million inbound visitors is also presented. Source: JNTO Statistics on Inbound Visitors to Japan and the government target under the Basic Plan for the Promotion of a Tourism-Oriented Nation.
Risks identified by the company
Increase in interest expenses due to inflation and rising interest rates
Higher investor required yields and more stringent views on acquisition prices resulting from rising interest rates
Actual selling prices for the pipeline may differ from assumed selling prices depending on market conditions, sales strategies, product planning and other factors
The actual impact of rising interest rates may vary depending on borrowing terms, the timing of interest-rate revisions and other factors
The amounts allocated under capital allocation may vary depending on market conditions, project progress, financial conditions and other factors
The hotel artist's impressions presented may be changed in the future
Reason for revision or withdrawal
As real estate development requires a certain period from the investment of funds to monetization, the Company revised its previous three-year medium-term management plan into a six-year long-term management plan in order to clearly present the path from growth investment to monetization.
| Item | Details |
|---|---|
| Plan name | LA Next Stage 2031 (Third Long-Term Management Plan) |
| Plan period | Fiscal years ending December 2026 through December 2031 (2026–2031) |
| Progress against the plan | Formulated |
| Sales Target | Actual for the fiscal year ended December 2025: 46,544 → Plan for the fiscal year ending December 2031: 103,000（121.3%） |
| Operating profit target | Actual for the fiscal year ended December 2025: 10,024 → Plan for the fiscal year ending December 2031: 26,000（159.4%） |
| Operating profit margin target | Target through 2025: at least 20%; actual for the fiscal year ended December 2025: 21.5% → Not disclosed |
| Net income target | Actual for the fiscal year ended December 2025: 6,135 → Plan for the fiscal year ending December 2031: 15,200（147.7%） |
| ROE target | Target through 2025: at least 20%; actual for the fiscal year ended December 2025: 25.7% → Target for 2026–2031: at least 20% |
| Payout ratio / DOE policy | For 2026–2031, the Company is targeting a payout ratio of 40% and has set a DOE floor of 6%. It is targeting ROE of at least 20%. |
| Self-assessment of PBR and share price | The Company's assessment of its PBR and share price as being at low levels was not disclosed. The simulation assumes a PBR of 1.4x, the average for the Tokyo Stock Exchange real estate sector. |
| Total investment plan | Growth investment of approximately ¥421.0 billion (total capital allocation of approximately ¥471.0 billion) |
| Investment amount by sector | Field Growth investment (property acquisitions, development investment, etc.) / Amount Approximately ¥421.0 billion, Field Future investment capacity (cash and cash equivalents held for M&A, capital alliances and strategic investments, etc.) / Amount Approximately ¥20.0 billion |
| Segment target | Segment DX New-Build Real Estate Business / Target fiscal year Fiscal year ending December 2031 / Net Sales ¥77.80 billion / Gross profit ¥26.40 billion / Gross Margin 33.9%, Segment DX Real Estate Value-Enhancement Business / Target fiscal year Fiscal year ending December 2031 / Net Sales ¥4.00 billion / Gross profit ¥1.00 billion / Gross Margin 25.0%, Segment DX Redevelopment Real Estate Business / Target fiscal year Fiscal year ending December 2031 / Net Sales ¥18.50 billion / Gross profit ¥3.00 billion / Gross Margin 16.2%, Segment Real Estate Leasing Business / Target fiscal year Fiscal year ending December 2031 / Net Sales ¥2.70 billion / Gross profit ¥1.60 billion / Gross Margin 59.3% |
| Plan assumptions | Real estate development takes 2.5–3.0 years from acquisition to sale., Development properties held for sale require approximately 2 years from acquisition to completion, while properties held for sale require a lead time of approximately 6 months to 1 year before revenue can be recognized., Revenue CAGR of 14.2% and ordinary profit CAGR of 16.2%, based on actual results for the fiscal year ended December 2025., The simple interest-rate-up scenario assumes that the policy rate rises 0.75% from its level at the end of 2025., Pipeline values are assumed selling prices as of the acquisition date and may differ from actual selling prices depending on market conditions, sales strategies, product planning and other factors. |
| Key initiatives | Strategic expansion of business areas, Strengthening the financial base, funding capacity and capital efficiency, Organizational development to improve productivity, Accelerating the acquisition of sites for commercial and residential development, Actively pursuing residential hotel development, Accelerating growth and diversification through M&A and capital alliances, Product planning that supports a sustainable society, Regional revitalization and local economic development, Initiatives in social infrastructure, including healthcare and welfare, Providing M&A support advisory services, Illustrative M&A targets, Considering investment funds, Strengthening funding capacity by improving financial soundness, Thoroughly screening projects based on market conditions, Adoption of a “6% DOE floor”, Accelerating growth through M&A and capital alliances |
| Results under the previous plan | Original plan for 2023–2025 (revenue of 30,000 / 33,000 / 40,000; operating profit of 5,500 / 5,700 / 6,400; ordinary profit of 4,800 / 5,000 / 5,700; net income of 3,400 / 3,500 / 4,000) → Actual results (revenue of 31,499 / 44,707 / 46,544; operating profit of 5,552 / 7,700 / 10,024; ordinary profit of 4,941 / 6,848 / 8,956; net income of 3,293 / 4,713 / 6,135) |
| Reason for revision or withdrawal | As real estate development requires a certain period from the investment of funds to monetization, the Company revised its previous three-year medium-term management plan into a six-year long-term management plan in order to clearly present the path from growth investment to monetization. |
| Size of the Target Market | The asset value of income-producing real estate was ¥352.1 trillion in 2025. Source: NLI Research Institute and Value Research Institute, “Real Estate Investment Report, 26 December 2025.” The government’s 2030 target of 60 million inbound visitors is also presented. Source: JNTO Statistics on Inbound Visitors to Japan and the government target under the Basic Plan for the Promotion of a Tourism-Oriented Nation. |
| Risks identified | Increase in interest expenses due to inflation and rising interest rates, Higher investor required yields and more stringent views on acquisition prices resulting from rising interest rates, Actual selling prices for the pipeline may differ from assumed selling prices depending on market conditions, sales strategies, product planning and other factors, The actual impact of rising interest rates may vary depending on borrowing terms, the timing of interest-rate revisions and other factors, The amounts allocated under capital allocation may vary depending on market conditions, project progress, financial conditions and other factors, The hotel artist's impressions presented may be changed in the future |
Items this document does not state (6)
ROIC targetTreasury share acquisition policyCost of capitalNon-financial targetsDate of board resolutionPublication date
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.As real estate development requires a certain period from the investment of funds to monetization, the Company revised its previous three-year medium-term management plan into a six-year long-term management plan in order to clearly present the path from growth investment to monetization.
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