Improving Occupancy Rates at Owned Properties and Securing Stable Earnings

「Although there were no acquisitions of retail real estate or new development sites, the Company sold two buildings. Operating buildings among owned properties totaled 16, buildings covered by real estate asset management totaled 6, and the number of operating stores was 167.」

「As a result of these activities, the number of managed real estate tenants increased by a net 2 from the end of the previous consolidated fiscal year to 172. The number of operating buildings among owned properties was 17, while the number of operating buildings covered by real estate asset management was 7. Going forward, the Company will pursue further expansion of its retail real estate business through a broad range of activities, including land acquisition, development planning, sales planning and management.」

「As a result, the number of managed real estate tenants increased by a net 11 from the end of the previous consolidated fiscal year to 152. The number of operating buildings among owned properties was 16, while the number of operating buildings covered by real estate asset management was 7.」

「As a result, the number of managed real estate tenants increased by a net 25 from the end of the previous consolidated fiscal year to 141. In the retail real estate business, the number of operating buildings among owned properties was 15, while the number of operating buildings covered by real estate asset management was 7.」

「As a result, the number of managed real estate tenants increased by 131. The number of operating buildings among properties owned in the retail real estate business reached 15, while the number of operating buildings covered by real estate asset management reached 7. … In December 2023, the Company newly acquired a 10-story commercial building in Sakae 3-chome, Nagoya’s central commercial district, and began upgrading it to capitalize on the area’s sophisticated, vibrant characteristics. The building has a multi-tenant configuration, with three floors for restaurants and seven floors for beauty and health-related businesses.」

「The number of tenants in managed real estate properties reached 118. The fund advised by the Company held contracted assets of ¥10.8 billion, including the development fund for the property in front of Hon-Atsugi Station, which is constructing a 12-story building through construction management. … These efforts contributed to the sale of one physical real estate property in Musashino, Tokyo, during the six months ended the second quarter.」

「During the first quarter, the Company sold one fully occupied property in Musashino, Tokyo, for more than ¥700 million after completing compliance-related construction, and recorded a gain on sale. Inventory stood at five properties.」

「For the development fund for the property in front of Hon-Atsugi Station, construction of the planned 12-story retail building began as scheduled in October 2022 under construction management. In retail real estate management, contracted stock continued to increase steadily, bringing the number of managed tenants to 116.」

「During the nine months ended the third quarter, the Company acquired four retail real estate properties and sold two, while steadily increasing its contracted stock in real estate management and asset management.」

「The Company acquired two real estate properties during the second quarter. … The properties sold were TRUNK Azabu-Juban in Minato-ku, Tokyo, and TRN Tsuruyacho in Kanagawa-ku, Yokohama. Both were fully occupied, and the buyer was a private real estate fund formed in September of this year. … During the second quarter, the sale of these two properties held for sale generated approximately ¥1.7 billion in proceeds and contributed to profit. Contracted management and asset management stock also continued to build steadily.」

「As a result of these efforts, the Company fully leased its self-developed seven-story building, TRUNK Azabu-Juban, which began operations in June 2022, to a diverse range of tenants, including a bar, hair and beauty businesses, resale retail, and a café.」

「In November 2021, the Company recorded revenue of ¥3.158 billion from the sale of three properties held for sale in Nagoya, Osaka and Kawagoe. It is also developing retail buildings to revitalize the areas around Azabu-Juban Shopping Street in central Tokyo and the area in front of Hon-Atsugi Station, which ranks highly in surveys of the most desirable places to live in the Tokyo metropolitan area.」

「As part of these efforts, the Company newly acquired a well-located commercial building in Ikebukuro, Toshima-ku, in December. Despite the impact of COVID-19, it achieved a zero-vacancy record at its commercial building in Shinbashi, and leveraged the Group’s development and leasing expertise to actively purchase high-quality properties and enhance the value of its commercial buildings.」

「To develop real estate fund services, one of its growth strategies, the Company has been actively purchasing properties, focusing on those where tenants can be found through its store outsourcing business and other services, and those expected to be upgraded through leasing. During the reporting period, it purchased two properties in Shinbashi and Kichijoji, areas with high latent value.」

「The Company also purchased a property near Hon-Atsugi Station for development, in Hon-Atsugi, which ranks highly in surveys of the most desirable places to live, and is planning to acquire several additional properties as it develops its real estate fund services, one of its growth strategies.」

「Operating profit declined year on year due to the sale of properties held at the end of the previous fiscal year. During the nine months ended the third quarter of the current consolidated fiscal year, the Company purchased three commercial buildings and completed the third building in the TRUNK series, bringing the cumulative total to three buildings,」

「Operating profit declined year on year due to the impact of selling properties held at the end of the previous fiscal year. However, the Company is working to expand revenue through the purchase of two commercial buildings during the current fiscal year and the completion of the third building in the TRUNK series.」

「The Company was partly affected by rent reductions associated with temporary closures and other factors, as well as the termination of lease agreements, due to COVID-19. Under these conditions, it accurately identified building owners’ needs and proposed operating measures to enhance asset value, actively expanded building management services, and increased subleasing for tenant owners across various business formats. It also purchased two commercial buildings during the quarter as properties held for investment, seeking to expand revenue.」

「In the Store Management Business, we accurately identified the needs of building owners developing properties and actively developed operating proposals and various services to improve asset values. During the current fiscal year, we constructed and commenced operations at 1 commercial building as part of our property development activities. We also worked to expand revenue opportunities through property subleasing and business consulting for owners of tenants in sectors such as beauty and healthcare, in addition to the restaurant industry. Revenue in the Store Management Business was ¥550 million, up 19.6% year on year, and operating profit was ¥269 million, up 6.8%.」

「As part of property development during the quarter, we constructed and commenced operations at 1 commercial building.」

「In the Store Management Business, we actively developed various services and operating proposals to accurately identify the needs of building owners developing properties and improve asset values. In the current quarter, we constructed and commenced operations at 1 commercial building as part of our property development activities. We also worked to expand revenue opportunities through property subleasing and business consulting for owners of tenants in sectors such as beauty and healthcare, in addition to the restaurant industry. Revenue in the Store Management Business was ¥177 million, up 15.2% year on year, and operating profit was ¥89 million, up 3.7%.」

「In addition to building management-related services, we worked to expand revenue opportunities through property subleasing and business consulting for owners of tenants in sectors such as beauty and healthcare, in addition to the restaurant industry. As a result, revenue in the Store Management Business was ¥607 million, down 1.4% year on year, and operating profit was ¥333 million, down 6.4%.」

「In addition to building management-related services, we worked to expand revenue opportunities through property subleasing and business consulting for owners of tenants in sectors such as beauty and healthcare, in addition to the restaurant industry. As a result, revenue in the Store Management Business was ¥459 million, down 0.8% year on year, and operating profit was ¥252 million, down 6.3%.」

「In the Store Management Business, we actively developed various services to accurately identify building owners' needs and improve asset values. We also focused on increasing revenue opportunities by promoting adoption of our services through building management contracts and related services. As a result, revenue in the Store Management Business was ¥303 million, down 0.7% year on year, and operating profit was ¥166 million, down 7.4%.」

「In the Store Management Business, we focused on expanding revenue opportunities by accurately identifying building owners' needs, actively developing various services to improve asset values, and promoting adoption of our services through building management contracts and related services. The number of managed properties increased to 28 buildings from 19 in the same period of the previous year. However, revenue and operating profit were below the same quarter of the previous year due to the impact of vacancies at some properties. As a result, revenue in the Store Management Business was ¥154 million, down 2.3% year on year, and operating profit was ¥86 million, down 10.4%.」

「In the Store Management Business, revenue declined due to the sale of owned real estate at the end of the previous fiscal year and the beginning of the current fiscal year. Nevertheless, we focused on increasing the number of building management contracts, expanding related revenue opportunities and growing profits by proposing various services to building owners to improve the asset value of their properties in response to their needs.」

「In the Store Management Business, revenue declined due to the sale of owned real estate at the end of the previous fiscal year and the beginning of the current fiscal year. Nevertheless, we worked to increase the number of building management contracts, expand related revenue opportunities and grow profits by responding closely to building owners' needs. As a result, revenue in the Store Management Business was ¥306 million, down 14.0% year on year, and operating profit was ¥179 million, down 12.1%.」

「In the Store Management Business, profit declined following the sale of owned real estate at the end of the previous fiscal year and the beginning of the current fiscal year. However, the number of buildings under outsourced management grew steadily through active proposals for various services to building owners, and we worked to expand profits by accurately capturing related revenue opportunities. As a result, revenue in the Store Management Business was ¥157 million, down 10.7% year on year, and operating profit was ¥96 million, down 5.1%.」

「In the Store Management Business, we sought to secure stable revenue opportunities by increasing outsourced building management contracts through wider adoption of our services among building owners, while developing related revenue opportunities and expanding profits. As a result, revenue in the Store Management Business was ¥727 million, up 13.2% year on year, and operating profit was ¥409 million, up 16.6%.」

「In the Store Management Business, we sought to increase outsourced building management contracts by promoting support for improved earnings at building owners, while identifying related revenue opportunities and expanding profits as our services gained wider adoption.」

「In the Store Management Business, we sought to secure stable revenue opportunities by increasing the number of outsourced building management contracts and identifying related revenue opportunities, while supporting improved earnings for building owners.」

「In the Store Management Business, we worked to increase the number of outsourced building management contracts by focusing on brokerage services for commercial properties and supporting revenue opportunities for building owners.」

「As in the previous fiscal year, we focused on leasing activities for properties owned by the company to improve occupancy rates. In addition, we sought to secure stable revenue by acquiring a new property near Omiya Station in Saitama City, Saitama Prefecture, and pursued new customers by developing outsourced building management services for building owners.」