Worth reading
45Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
0.5
Increase in DOE (dividend on equity) in percentage pointsWording
Avoiding a definitive answer
How definitive the wording is.Items stated in the management plan
Statements about the use of capital
Payout ratio / DOE policyThe company plans to raise its previous DOE guideline of 2.0% first to 2.5% (approximately ¥46 per year), followed by 3.0% (¥55 per year), 3.5% (¥64 per year), and, over the long term, more than 4% (¥74 or more per year). The changes are planned from the fiscal year ending November 2027 onward, but all remain under consideration.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Cost of capitalCost of capital based on CAPM and other methods: approximately 7–9%. WACC: approximately 2.3%.The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share priceAt the end of May 2026, the company’s PBR was 0.64x, significantly below the 1.0x level exceeded by many major listed companies. The PBR range for several major companies was 1.08–1.50x. The company recognizes that its share price is subject to a discount due to low stock liquidity.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Optimizing the pace of asset sales
02Increasing rental NOI
03Optimizing leverage
04Reviewing scale and geographic coverage
05Expanding into new areas where the company can apply its investment decision-making capabilities
Plan assumptionsNOI yield on owned properties of 7.1%, a fixed-rent ratio of approximately 70%, and borrowing costs of 1.80%. The approximate dividend amounts are based on shareholders’ equity of approximately ¥26.0 billion and the number of shares outstanding at the end of the fiscal year ended November 2025. The company will invest only where returns exceed its cost of capital.
Risks identified by the company
Changes in the external and internal environment
The possibility that actual results may differ from forward-looking statements
Errors in the information provided
Data tampering by third parties
Disruptions arising from downloading data or similar activities
Changes to the content resulting from new information or events
Reason for revision or withdrawal
Because the criteria are difficult to understand, the company is considering reviewing irregular shareholder returns and replacing them with a simple, more predictable framework. It will review its shareholder benefits program, which contributes to the concentration of large holdings and lower trading activity, to stimulate trading demand and improve liquidity. As the company’s PBR is below that of major listed companies and its consolidated ROE is below its recognized cost of capital, it will proceed with the sale or replacement of assets that make only a small contribution to earnings, followed by reinvestment.
| Item | Details |
|---|---|
| Plan name | Shareholder Return Policy and Business Direction with a Focus on Share Price and Cost of Equity |
| Plan period | From the fiscal year ending November 2027 onward (timing of the dividend policy change) / Specific plans for business structure transformation are scheduled to be disclosed during the current fiscal year |
| Payout ratio / DOE policy | The company plans to raise its previous DOE guideline of 2.0% first to 2.5% (approximately ¥46 per year), followed by 3.0% (¥55 per year), 3.5% (¥64 per year), and, over the long term, more than 4% (¥74 or more per year). The changes are planned from the fiscal year ending November 2027 onward, but all remain under consideration. |
| Cost of capital | Cost of capital based on CAPM and other methods: approximately 7–9%. WACC: approximately 2.3%. |
| Self-assessment of PBR and share price | At the end of May 2026, the company’s PBR was 0.64x, significantly below the 1.0x level exceeded by many major listed companies. The PBR range for several major companies was 1.08–1.50x. The company recognizes that its share price is subject to a discount due to low stock liquidity. |
| Plan assumptions | NOI yield on owned properties of 7.1%, a fixed-rent ratio of approximately 70%, and borrowing costs of 1.80%. The approximate dividend amounts are based on shareholders’ equity of approximately ¥26.0 billion and the number of shares outstanding at the end of the fiscal year ended November 2025. The company will invest only where returns exceed its cost of capital. |
| Key initiatives | Optimizing the pace of asset sales, Increasing rental NOI, Optimizing leverage, Reviewing scale and geographic coverage, Expanding into new areas where the company can apply its investment decision-making capabilities |
| Reason for revision or withdrawal | Because the criteria are difficult to understand, the company is considering reviewing irregular shareholder returns and replacing them with a simple, more predictable framework. It will review its shareholder benefits program, which contributes to the concentration of large holdings and lower trading activity, to stimulate trading demand and improve liquidity. As the company’s PBR is below that of major listed companies and its consolidated ROE is below its recognized cost of capital, it will proceed with the sale or replacement of assets that make only a small contribution to earnings, followed by reinvestment. |
| Risks identified | Changes in the external and internal environment, The possibility that actual results may differ from forward-looking statements, Errors in the information provided, Data tampering by third parties, Disruptions arising from downloading data or similar activities, Changes to the content resulting from new information or events |
| Publication date | 10 July 2026 |
Items this document does not state (15)
Progress against the planSales TargetOperating profit targetOperating profit margin targetNet income targetROE targetROIC targetTreasury share acquisition policyTotal investment planInvestment amount by sectorSegment targetNon-financial targetsResults under the previous planSize of the Target MarketDate of board resolution
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.To revise the dividend criteria into a simple, more predictable framework and link dividends to the growth of shareholders’ equity. The shareholder benefits program is being reviewed because the concentration of large holdings has reduced trading activity, with the aim of increasing trading demand and liquidity. In terms of the business, the company’s PBR is below that of major listed companies and its consolidated ROE is below its recognized cost of capital. It therefore plans to sell or replace assets that make only a small contribution to earnings and reinvest in areas offering greater potential returns.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.