Expansion into the Real Estate Fund Business and Strengthening of Specialist Talent

「For earnings in the next fiscal year, we are working to enhance the value of our owned real estate. In December 2023, we acquired a 10-story commercial building in Sakae 3-chome, a central commercial area of Nagoya, and in February 2024 acquired for rental operations a 12-story commercial building near Hon-Atsugi Station in Atsugi, Kanagawa, which had been completed through the development fund.」

「In December 2023, the company newly acquired a 10-story commercial building in Sakae 3-chome, a central commercial area of Nagoya. It began value-enhancement initiatives to capitalize on the area's sophisticated and vibrant location characteristics, using a multi-tenant configuration with 3 floors for restaurants and 7 floors for beauty and health-related businesses.」

「For the development fund for the property near Hon-Atsugi Station, construction of a 12-story retail building is progressing under construction management, and leasing activities are also under way for completion in February 2024. The contracted assets of the real estate funds for which we provide investment advice stand at ¥10.8 billion.」

「We also establish and provide investment advice to real estate funds investing in retail real estate. In fiscal 2022, we established a fund incorporating 2 properties, TRUNK Azabujuban in Minato-ku, Tokyo, and TRN Tsuruya-cho in Kanagawa-ku, Yokohama. The contracted assets of the real estate funds for which we provide investment advice reached ¥10.8 billion.」

「The company acquired 4 retail real estate properties and sold 2, steadily increasing its contracted stock in property management and asset management. Both properties sold were real estate held for sale, and the buyer was a private real estate fund established in September 2022. The contracted assets of funds advised by TRNインベストメント・マネジメント株式会社 reached ¥10.8 billion.」

「The company acquired 2 real estate properties during the second quarter. The properties sold were "TRUNK Azabujuban" in Minato-ku, Tokyo, and "TRN Tsuruya-cho" in Kanagawa-ku, Yokohama. Both were fully occupied, and the buyer was a private real estate fund established in September of the current year.」

「The number of tenants covered by property management increased by 40%, and the company significantly increased the AUM (contracted fund assets) of funds for which it provides investment advice by establishing a private real estate fund in November 2021.」

「In November, the store management business used its strength in the comprehensive development of commercial buildings near stations to establish the private fund for retail real estate, "TRNFUND１," with approximately ¥7.5 billion in assets, funded by several domestic investors. As a result, both revenue and operating profit in this business increased substantially. The establishment of the fund also significantly increased our investment capacity, and we expect to accelerate the growth of the overall real estate business, including the aforementioned store outsourcing business, by pursuing the development of retail real estate more actively.」

「During the reporting period, we purchased 2 properties in Shinbashi and Kichijoji, areas with high latent value. We also strengthened specialist personnel to reinforce the real estate fund business. Through these active investments and stronger cooperation with the store outsourcing business in anticipation of the end of COVID-19, the business is steadily expanding its operations.」

「We 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 plan to acquire several more properties as we work to expand the real estate fund services business, one of our growth strategies. We are also strengthening specialist personnel within the business to reinforce the real estate fund operation.」

「The store management business has also been affected by declarations of a state of emergency and other factors, but we have minimized these effects by actively offering operational proposals and other measures to maintain and enhance asset values. Meanwhile, in the real estate fund services business, one of our growth strategies, we have continued to invest actively, including through the purchase of several commercial buildings, while preparing for further growth by strengthening our specialist personnel and obtaining a Type II Financial Instruments Business license.」

「We are also strengthening our specialist personnel in preparation for expanding the real estate fund business, one of our growth strategies.」