Acquisition, Value Enhancement and Sale of Existing Real Estate

「Real estate projects currently under negotiation are listed in the following pipeline.」

「In the Real Estate Business, we focused primarily on property management, the resale of accommodation facilities, and the development and sale of detached accommodation facilities during the consolidated fiscal year. As a result, revenue was ¥378,773 thousand, up 55.4% year on year, and segment profit (operating profit) was ¥38,462 thousand, down 6.3% year on year.」

「In the Real Estate Business, we focused primarily on property management, the resale of accommodation facilities, the development and sale of detached accommodation facilities, and real estate sales during the current interim consolidated accounting period. As a result, revenue was ¥148,689 thousand, up 41.7% year on year, and segment profit (operating profit) was ¥13,271 thousand, up 397.7% year on year.」

「In the Real Estate Business, we will focus on the resale of accommodation facilities expected to generate returns over the short to medium term, project management for resort facility development, and the development and sale of detached accommodation facilities.」

「In the Real Estate Business, we focused primarily on property management and identifying development projects for hotel real estate and inbound-oriented accommodation facilities during the current interim consolidated accounting period, but no properties held for sale were sold. In the previous interim consolidated accounting period, selling, general and administrative expenses had fallen sharply due to the reversal of an allowance for doubtful accounts for long-term receivables, whereas that exceptional factor fell away in the current interim period. As a result, revenue was ¥104,966 thousand, down 76.2% year on year, and segment profit (operating profit) was ¥2,666 thousand, down 98.8% year on year.」

「In the Real Estate Business, we focused primarily on property management and sales of properties held for sale during the consolidated fiscal year. Three sales of properties held for sale were completed, and the sale proceeds made a significant contribution to earnings. As a result, revenue was ¥742,501 thousand, up 173.5% year on year, and segment profit (operating profit) was ¥299,439 thousand, up 774.4% year on year.」

「In the Real Estate Business, we focused primarily on property management during the cumulative second quarter. In addition, one sale of a property held for sale was completed, and the sale proceeds made a significant contribution to earnings. As a result, revenue was ¥440,822 thousand, up 256.3% year on year, and segment profit (operating profit) was ¥219,188 thousand, up 2,682.1% year on year.」

「In the Real Estate Business, we focused primarily on property management during the cumulative first quarter. No properties held for sale were sold, and revenue was broadly unchanged from the same period of the previous year. However, the reversal of the allowance for doubtful accounts previously recognized for long-term receivables resulted in revenue of ¥58,264 thousand, down 2.6% year on year, and segment profit (operating profit) of ¥73,849 thousand, compared with a segment operating loss of ¥3,071 thousand in the same period of the previous year.」

「In the Real Estate Business, we focused primarily on property management during the cumulative third quarter, but revenue from properties held for sale declined substantially from the same period of the previous year. As a result, revenue was ¥222,775 thousand, down 89.2% year on year, and segment profit (operating profit) was ¥19,392 thousand, down 96.4% year on year.」

「In the Real Estate Business, we focused primarily on property management during the cumulative second quarter, but revenue from properties held for sale declined sharply. As a result, revenue was ¥123,722 thousand, down 93.7% year on year, and segment profit (operating profit) was ¥7,878 thousand, down 98.6% year on year.」

「In the Principal Investment Business, we sold 4 properties held for sale during the cumulative third quarter. As a result, revenue was ¥1,895,068 thousand, up 207.0% year on year, and segment profit (operating profit) was ¥528,154 thousand, compared with a segment operating loss of ¥265,353 thousand in the same period of the previous year.」

「During the cumulative second quarter, we sold 2 properties held for sale and recognized an inventory write-down of ¥45,374 thousand for properties held for sale in Asahikawa and Mobara for which sale and purchase agreements had already been signed.」

「Although only 1 property held for sale was sold during the cumulative first quarter, settlement for Wakayama Marina City, a property held for sale for which the sale and purchase agreement had been signed in the previous fiscal year but settlement and delivery had been delayed, was successfully completed on 15 June, and revenue was recognized.」

「In the Principal Investment Business, we sold 6 properties held for sale during the cumulative third quarter. As a result, revenue was ¥617,196 thousand (revenue in the same quarter of the previous year: ¥— thousand), and segment loss (operating loss) was ¥265,353 thousand (operating loss in the same period of the previous year: ¥208,258 thousand).」

「In the Principal Investment Business, we sold 5 properties held for sale during the cumulative second quarter.」

「In the Principal Investment Business, we sold 1 property held for sale during the cumulative first quarter.」

「In the Principal Investment Business, we continuously pursued sales of properties held for sale, but completed only 2 sales.」

「In the Principal Investment Business, during the cumulative third quarter, we entered into a sale and purchase agreement for a property held for sale in Shinjuku Ward, Tokyo, but recognized no revenue because no property held for sale was delivered during the cumulative period.」

「On the acquisition side, in the traditional-house business, which acquires and develops accommodation facilities using traditional Japanese houses, we acquired 4 projects in the Tokyo and Kanagawa areas. We also acquired 5 development properties for food-related facilities, or the Yokocho business, one of the tourism-related services focused on food. One of these opened in Asahikawa, Hokkaido, on 10 August 2019.」

「On the acquisition side, in the traditional-house business, which acquires and develops accommodation facilities using traditional Japanese houses, we entered into sale and purchase agreements for 4 projects in the Tokyo and Kanagawa areas. We also entered into sale and purchase agreements for 5 projects intended as development properties for food-related facilities, or the Yokocho business, one of the tourism-related services focused on food. The inbound-related business is progressing smoothly.」

「In the Principal Investment Business, during the current consolidated fiscal year, we sold a property held for sale in Hasuda, Saitama Prefecture. On the acquisition side, we acquired development land and a whole building in Tokyo. In the newly launched inbound-related business, we entered into sale and purchase agreements for an accommodation facility and land for accommodation facility development in Kyoto.」

「In the Principal Investment Business, although no property held for sale was sold during the current third-quarter consolidated accounting period, we acquired the income-producing building in Setagaya Ward, Tokyo.」

「In the Principal Investment Business, our active sales efforts for properties held for sale resulted in the sale of a property held for sale in Hasuda, Saitama Prefecture. On the acquisition side, we entered into a sale and purchase agreement for an income-producing building in Setagaya Ward, Tokyo.」

「On the acquisition side, we acquired a well-located residential subdivision in Shinjuku Ward, Tokyo, with convenient access.」

「In the Principal Investment Business, we sold 2 properties for business development and 1 income-producing property acquired in February 2018 after resolving rights and related matters.」

「Regarding sales of properties held for sale, we sold 2 properties as land for business development after resolving the rights structure and related matters concerning a low-occupancy building near Yamashita Park, a tourist attraction in Yokohama. On the acquisition side, we entered into a sale and purchase agreement for a well-located income-producing property adjacent to a railway station in Itabashi Ward, Tokyo, with settlement scheduled for February 2018.」

「In the Principal Investment Business, we acquired in April 2016 a low-occupancy building near Yamashita Park, a tourist attraction in Yokohama, resolved its rights structure and related matters, and sold it in September 2017 as land for business development.」

「In the Principal Investment Business, we actively pursued sales of properties held for sale, but were unable to recognize revenue because the intended purchaser's desired purchase timing and financing arrangements were delayed.」

「We operate a real estate revitalization business covering a broad range of used properties nationwide, including commercial buildings, office buildings and residences. Our core business is to acquire properties that retain latent value but are underutilized due to vacancy or low operating rates; develop and formulate optimal plans suited to the characteristics and needs of each area; revitalize the properties as attractive financial products; and sell them to investors, operating companies and real estate funds.」

「During the cumulative third quarter, we sold in April 2016 a property acquired in April 2015 in the center of Yokohama Chinatown after resolving its complex rights structure. We also recognized distribution income following the completion of land development projects in Tokyo and the Chugoku region pursued through joint ventures.」

「During the cumulative second quarter, we sold in April 2016 a property acquired in April 2015 in the center of Yokohama Chinatown after resolving its complex rights structure. We also recognized distributions following the completion of a land development project in the Chugoku region pursued through a joint venture. On the acquisition side, we acquired 3 facilities within Wakayama Marina City in Wakayama City, Wakayama Prefecture.」

「During the cumulative first quarter, we sold a property acquired in April 2015 in the center of Yokohama Chinatown after resolving its complex rights structure. We also recognized distributable profits following the completion of a land development project in the Chugoku region conducted through a joint venture and other arrangements. On the acquisition side, we acquired a building near Yamashita Park in Naka Ward, Yokohama, for development as a hotel site, as well as a property in Zaimokuza, Kamakura, adjacent to Yuigahama, one of Japan's leading bathing beaches and an area known for marine sports.」

「Our core business is to acquire real estate that retains latent value but has become distressed, or is underutilized due to vacancy or low operating rates; develop and formulate optimal plans suited to the characteristics and needs of each area; revitalize the properties as attractive financial products; and sell them to investors, operating companies and real estate funds.」