Expanding Revenue Sources Through Corporate Investment and Real Estate Brokerage

「Until now, we operated an investment business centered on income-producing real estate expected to generate stable rental income. We are now strengthening investment in opportunities with expected profitability, future potential and growth, centered on M&A and equity investments, while securing cash flow through sales of income-producing real estate and equity financing and acquiring treasury shares for use as acquisition funds in M&A.」

「The group will continue to actively sell properties it holds, securing revenue, profit and cash flow, while strengthening initiatives in investment projects and M&A with higher profitability than real estate investment, including money-lending businesses and renewable-energy projects.」

「While working to strengthen stable earnings through the acquisition and sale of rental properties, the company sought out companies and projects with strong growth potential and social value, and worked to secure its future potential and profitability as an investment company through capital and business alliances.」

「In the first quarter, rental income from investment properties acquired in the previous fiscal year and investment income from domestic and overseas companies contributed to revenue of ¥255 million, up 65.3% year on year.」

「During the fiscal year, the company purchased additional income-producing real estate, while selling real estate held for sale for ¥3,125 million. As a result, the balance of rental real estate and other assets declined by ¥1,054 million from the end of the previous fiscal year to ¥7,392 million.」

「As part of its merchant banking business, the Company acquired all issued shares of 娯楽TVメディア・コンテンツ株式会社 effective 1 August 2022, and made it a consolidated subsidiary from the second quarter of the current consolidated fiscal year.」

「Effective 1 August 2022, the Company acquired all issued shares of 娯楽TVメディア・コンテンツ株式会社 from 株式会社娯楽TV, a wholly owned subsidiary of アートポートインベスト株式会社, another affiliated company, and made it a wholly owned subsidiary.」

「In the second quarter, in addition to rental real estate income, which had generated stable earnings for some time without being affected by COVID-19, investment income from domestic and overseas companies and the partial sale of income-producing real estate contributed to substantial increases in revenue and profit. Revenue was ¥1,661 million, up 341.7% year on year, and segment profit was ¥476 million, up 282.0%.」

「Income from domestic and overseas corporate investments made a significant contribution, resulting in substantial increases in revenue and profit, with revenue of ¥1,065 million, up 480.0% year on year, and segment profit of ¥381 million, up 547.2%.」

「As a result, our ownership ratio in the company became 50.0%, and the company became a consolidated subsidiary.」

「As a result, compared with the previous year, rental income of ¥332 million from owned properties and ¥31 million in investment income from domestic and overseas companies made significant contributions to revenue. Revenue was ¥376 million, up 10.8% year on year, and segment profit was ¥124 million, up 5.5%, representing higher revenue and higher profit.」

「During the first quarter, without being affected by COVID-19, investment recoveries of ¥53 million from domestic and overseas companies made a significant contribution to earnings. Revenue was ¥183 million, up 10.4% year on year, while segment profit was ¥58 million, down 5.1%.」

「In addition, with respect to 株式会社アビスジャパン (Toshima-ku, Tokyo), whose shares we acquired during the fiscal year and made an affiliated company, we subscribed for a third-party allotment of shares dated 31 January 2020. As a result, our ownership ratio was 16.7% at the end of the fiscal year, and the company was newly included within the scope of application of the equity method. Equity in net income of affiliates of ¥6 million was recognized during the fiscal year.」

「During the third quarter, although there were no new rental property acquisitions, income from investments in domestic and overseas companies contributed to revenue of ¥736 million, up 24.3% year on year, and segment profit of ¥269 million, up 48.6%.」

「During the second quarter, income from investments in overseas companies was recorded and 1 income-producing property was acquired for ¥357 million. However, there was no major investment recovery, and revenue declined 1.1% year on year to ¥339 million.」

「Going forward, in addition to these activities, we will pursue initiatives to broaden our earnings sources, including fee income from corporate investment activities and real estate brokerage.」

「During the third quarter, the Group acquired 4 income-producing properties for ¥1,004 million, capitalizing on favorable conditions in the real estate market. In addition, investment in the industrial waste treatment business made in August of the current fiscal year contributed to earnings. As a result, revenue was ¥592 million, up 69.4% year on year, and segment profit was ¥181 million, up 844.0%.」

「Going forward, in addition to these activities, we will pursue initiatives to broaden our earnings sources, including fee income from corporate investment activities and real estate brokerage.」

「Going forward, in addition to these activities, we will pursue initiatives to broaden our earnings sources, including fee income from corporate investment activities and real estate brokerage.」