Strengthening Visitor Attraction Through Advertising, Events and Renovations at Commercial Facilities

「Sales exceeded the same period of the previous year, partly due to the opening of new tenants and promotional events.」

「Total capital investment during the fiscal year was ¥383 million. By segment, ¥382 million was invested in the commercial facilities business and ¥1 million in the healthcare business. In the commercial facilities business, investments were made mainly in the commercial facility Suntomoon Kakita-gawa.」

「As a result, net sales in the commercial facilities business increased to ¥1,119 million, up 1.1% year on year. However, in terms of earnings, the increase in depreciation expenses weighed on results, and operating profit was ¥445 million, down 2.8%.」

「In the commercial facilities business, the Company worked to enhance the attractiveness of “SUNTO MOON Kakitagawa,” one of Shizuoka Prefecture’s leading commercial facilities, by holding events such as the joint prize campaigns “Thanks! Summer Days” and “Premium Sale.” The facility’s transaction volume also increased against a backdrop of economic recovery and higher selling prices.」

「In accordance with the medium- to long-term capital investment plan, actively make the necessary investments to renew facilities. (Approximately ¥2.5 billion in total over 10 years)」

「In the commercial facilities business, at “SUNTO MOON Kakitagawa,” one of Shizuoka Prefecture’s leading commercial facilities, revenue exceeded the same period of the previous year despite the impact of closing some sections during construction in early spring. This was supported by the opening of the large-scale GU tenant before Golden Week and stronger seasonal promotional events, including those for Golden Week, summer vacation, Christmas and the year-end/New Year period.」

「In the commercial facilities business, at “SUNTO MOON Kakitagawa,” one of Shizuoka Prefecture’s leading commercial facilities, revenue exceeded the same period of the previous year despite the impact of closing some sections during construction, supported by the opening of the large-scale GU tenant before Golden Week and stronger summer vacation promotional events.」

「In the commercial facilities business, at Suntomoon Kakita-gawa, one of Shizuoka Prefecture’s leading commercial facilities, some retail units were closed during unit-construction work. However, from Golden Week onward, the effect of new store openings and stronger sales-promotion events kept net sales at roughly the same level as in the same period of the previous year. In addition, improved market conditions and lower depreciation expenses improved the profit margin, resulting in operating profit exceeding that of the same period of the previous year. As a result, net sales in the commercial facilities business were ¥540 million, down 0.1% year on year, while operating profit was ¥217 million, up 10.9%.」

「The Company carried out construction to reorganize the floor space at the SUNTO MOON Kakitagawa commercial facility, and on 28 April 2023 opened a GU store, a large-scale fashion tenant.」

「In the commercial facilities business, at Suntomoon Kakita-gawa, one of Shizuoka Prefecture’s leading commercial facilities, seasonal events marking the facility’s 25th anniversary were strengthened against the backdrop of the government’s relaxation of restrictions on activities, and the Christmas and year-end shopping season progressed steadily. Meanwhile, one-off costs were incurred from renovation work begun in part of the main building to attract a large-scale tenant.」

「In the commercial facilities business, at Suntomoon Kakita-gawa, one of Shizuoka Prefecture’s leading commercial facilities, the seventh wave of COVID-19 affected the peak summer season. However, signs of recovery supported by the government’s relaxation of restrictions on activities, a focus on the Golden Week shopping season marking the facility’s 25th anniversary and summer-vacation events, and the effect of the national-first juvenile fish aquarium that opened in July resulted in net sales exceeding those of the same period of the previous year.」

「At Suntomoon Kakita-gawa, one of Shizuoka Prefecture’s leading commercial facilities, the easing of the COVID-19 situation and the government’s relaxation of restrictions on activities provided a backdrop for active advertising and promotional activities, including events during the Golden Week shopping season marking the facility’s 25th anniversary in April. Efforts to improve customer traffic resulted in net sales exceeding those of the same period of the previous year.」

「In the commercial facilities business, Suntomoon Kakita-gawa, one of Shizuoka Prefecture’s leading commercial facilities, was heavily affected by the fifth wave of COVID-19 and the sixth wave from early 2022 through the end of the fiscal year. The negative reaction following the previous fiscal year’s blockbuster film Demon Slayer: Kimetsu no Yaiba, together with prolonged shortened operating hours, forced particularly difficult operations in restaurants, amusement and other business categories.」

「In the commercial facilities business, Suntomoon Kakita-gawa, one of Shizuoka Prefecture’s leading commercial facilities, began to show signs of recovery after the state of emergency was lifted in the autumn. However, there was no content to replace the blockbuster film Demon Slayer: Kimetsu no Yaiba of the previous year, and shortened operating hours continued. As a result, restaurants, amusement and other business categories continued to operate under difficult conditions, and rental income remained sluggish.」

「In the commercial facilities business, Suntomoon Kakita-gawa strengthened COVID-19 prevention measures and actively held events such as Golden Week sales. Although some business categories improved year on year, restaurants, entertainment and other categories continued to struggle because of the lingering impact of COVID-19.」

「In addition to the opening effect of the new Suntomoon Oasis building, which opened at the end of the previous fiscal year, and the effect of the film Demon Slayer: Kimetsu no Yaiba, some tenants, including those selling daily necessities, benefited from the COVID-19 pandemic. As a result, net sales exceeded those of the previous fiscal year.」

「Against this backdrop, in the commercial facilities business, the Group’s core business, Suntomoon Kakita-gawa, one of Shizuoka Prefecture’s leading large-scale commercial facilities, had continued to face challenging conditions, with sales below those of the same period of the previous year due to the impact of the COVID-19 pandemic. However, in the third quarter, the spillover effect of the blockbuster film Demon Slayer: Kimetsu no Yaiba, released in October, and the opening of the new Suntomoon Oasis building helped put operations on a recovery trend, except for some tenants such as restaurants and travel-related businesses. Facility sales volume for the entire complex exceeded that of the same month of the previous year in each month from October through December.」

「In the commercial facilities business, at Suntomoon Kakita-gawa, one of Shizuoka Prefecture’s leading commercial facilities, Halloween and Christmas seasonal events were strengthened. However, net sales fell below those of the same period of the previous year due to the negative reaction after the consumption tax increase and the impact of opening-sale campaigns at a large shopping center that opened nearby.」

「In the commercial facilities business, at Suntomoon Kakita-gawa, one of Shizuoka Prefecture’s leading commercial facilities, efforts to improve customer traffic through summer-vacation-related events and other initiatives, as well as front-loaded demand before the consumption tax increase at consumer electronics retailers and other stores, resulted in facility sales volume exceeding that of the same period of the previous year, and net sales also exceeded those of the same period of the previous year. In terms of earnings, profit increased year on year because the one-off expenses related to Phase 4 development recorded in the same period of the previous year were no longer incurred.」

「Initiatives included strengthening programs for the Golden Week shopping season commemorating the first year of the Reiwa era, and operations at the commercial facilities generally progressed steadily.」

「In the commercial facilities business, amusement and other operations at Suntomoon Kakita-gawa, one of Shizuoka Prefecture’s leading commercial facilities, progressed steadily, and net sales exceeded those of the previous fiscal year. In terms of earnings, although depreciation expenses related to Phase 4 development and demolition costs were recorded, operating profit increased year on year as a result of efforts to reduce expenses. As a result, net sales in the commercial facilities business were ¥2,327 million, up 0.5% year on year, and operating profit was ¥861 million, up 5.5%.」

「In the commercial facilities business, at Suntomoon Kakita-gawa, one of Shizuoka Prefecture’s leading commercial facilities, efforts to strengthen Halloween and Christmas seasonal events and improve customer traffic resulted in net sales exceeding those of the same period of the previous year. In terms of earnings, although rental profitability improved, depreciation expense of ¥53 million related to Phase 4 development was recorded, along with demolition costs of ¥57 million in the consolidated accounting period of the third quarter, resulting in lower profit than in the same period of the previous year. As a result, net sales in the commercial facilities business were ¥1,757 million, up 1.0% year on year, and operating profit was ¥637 million, down 9.7%.」

「Operations at the commercial facilities progressed steadily, as summer sales and summer-vacation-related initiatives were strengthened.」

「In the commercial facilities business, at Suntomoon Kakita-gawa, one of Shizuoka Prefecture’s leading commercial facilities, events during the Golden Week shopping season and various advertising and promotional activities were strengthened. Although the consumer electronics and other departments performed well, partly due to the extremely hot weather, net sales were below the same period of the previous year because of preparations to relocate some sales areas in connection with the start of Phase 4 development.」

「The commercial facilities business remained solid at Suntomoon Kakita-gawa, one of Shizuoka Prefecture’s leading commercial facilities, partly due to the active rollout of 20th-anniversary initiatives and various events. However, the absence of extraordinary income recorded in the previous fiscal year weighed on results, and net sales were below the previous fiscal year.」

「In the commercial facilities business, operations remained steady at Suntomoon Kakita-gawa, one of Shizuoka Prefecture's leading commercial facilities, and progressed at a pace above plan, helped by the active implementation of 20th-anniversary initiatives and seasonal events such as Halloween and Christmas. However, revenue fell below the level of the same period of the previous year because the temporary income recorded in the previous fiscal year did not recur. In addition, temporary expenditures for partial renovation work related to the 20th-anniversary initiatives caused operating profit to fall below the level of the same period of the previous year.」

「In the commercial facilities business, operations at Suntomoon Kakita-gawa, one of Shizuoka Prefecture's leading commercial facilities, have been progressing at a pace above plan due to the 20th-anniversary initiatives and summer vacation events. However, revenue fell below the level of the same period of the previous year because the temporary income recorded in the previous fiscal year did not recur. In addition, temporary expenditures for partial renovation work related to the 20th-anniversary initiatives caused operating profit to fall below the level of the same period of the previous year.」

「In the commercial facilities business, visitor numbers and gross merchandise volume at Suntomoon Kakita-gawa, one of Shizuoka Prefecture's leading commercial facilities, exceeded the levels of the same period of the previous year due to the effects of 20th-anniversary initiatives. However, revenue fell below the level of the same period of the previous year because the temporary income recorded in the previous fiscal year did not recur.」

「At Suntomoon Kakita-gawa, the company focused on advertising and promotional activities through various media, including television and radio, and children's events, in addition to a cinema showing a series of hit films, working to attract visitors. It also made necessary capital investments as appropriate, including renovations to Fresh Food Hall, one of the core tenants, to maintain and improve competitiveness. As a result, revenue exceeded the previous fiscal year's level. Revenue in the commercial facilities business increased 0.5% from the previous fiscal year to ¥2,336 million, while operating profit increased 7.4% to ¥948 million.」

「In the commercial facilities business, the company worked to attract visitors to Suntomoon Kakita-gawa, one of Shizuoka Prefecture's leading commercial facilities, through advertising and promotional activities via various media, including television and radio, and events during the Christmas shopping season, in addition to a cinema showing a series of hit films. It also made necessary capital investments as appropriate, including renovations to Fresh Food Hall, one of the core tenants, to maintain and improve competitiveness. As a result, revenue exceeded the level of the same period of the previous year. Revenue in the commercial facilities business increased 0.9% year on year to ¥1,772 million, while operating profit increased 9.4% to ¥753 million, helped by an improved gross margin resulting from lower depreciation expense.」

「In the commercial facilities business, Suntomoon Kakita-gawa, one of Shizuoka Prefecture's leading commercial facilities, remained steady and revenue exceeded the level of the same period of the previous year. This was helped by a cinema showing a series of hit films, as well as efforts to attract visitors through the Golden Week shopping season and summer events.」

「In the commercial facilities business, sales at Suntomoon Kakita-gawa, one of Shizuoka Prefecture's leading commercial facilities, exceeded the level of the same period of the previous year, supported by steady food and cinema complex operations, as well as events and advertising and promotional activities during the Golden Week shopping season. As a result, revenue in the commercial facilities business increased 2.2% year on year to ¥610 million, while operating profit increased 18.4% to ¥276 million, helped by an improved gross margin resulting from lower depreciation expense.」

「In the commercial facilities business, the company further focused on advertising and promotional activities through various media, including television and radio, while strengthening family-oriented events targeting local families with children. It also replaced tenants and carried out partial renovations, working to maintain visitor traffic. Overall, the business remained steady.」