Worth reading
73In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
200
¥100 millionWording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedOperating profit0.0%
基準 2,040Target2,040100 million
ROE+5.0pt
基準 2,026Target2,031％
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planConsolidated operating profit of ¥14 billion or more, EPS of ¥135 or more, and ROE of 7% or more (fiscal 2026) → Consolidated operating profit of ¥15.8 billion, EPS of ¥174, and ROE of approximately 9% are projected (fiscal 2026)0.0%Calculated from the two disclosed figures
Total investment planApproximately ¥270 billion (five years, fiscal 2027 through fiscal 2031)
Investment amount by sectorField Redevelopment investment / Amount Approximately ¥190 billion, Field Redevelopment in Nihombashi-Kabutocho and Kayabacho / Amount Approximately ¥35.0 billion, Field Redevelopment in Sapporo / Amount Approximately ¥120 billion, Field Other redevelopment / Amount Approximately ¥35.0 billion, Field Investment in property acquisitions / Amount Approximately ¥50 billion, Field Overseas real estate investments, etc. / Amount Approximately ¥30 billion, Field CAPEX / Amount Approximately ¥15 billion, Field Overseas real estate business investment (stated in BX4) / Amount Approximately ¥25 billion over five years
Statements about the use of capital
Payout ratio / DOE policyConsolidated dividend payout ratio of approximately 50% (fiscal 2027 through fiscal 2031). Progressive dividends will be paid, starting from the annual dividend per share of ¥103 for fiscal 2026. DOE is Not disclosed.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyTo be implemented flexibly, taking into comprehensive consideration the share price, investment plans and financial position, among other factors.
Self-assessment of PBR and share priceThe company states that it will promote management that is conscious of the cost of capital and its share price, but specific self-assessment or figures for PBR or the share price level are Not disclosed.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01BX-1. Developing "places that attract people" through redevelopment projects in major cities across Japan
02BX-2. Developing the Nihombashi-Kabutocho and Kayabacho brand
03BX-3. Expanding the rental income and capital recycling businesses for owned assets
04BX-4. Strengthening the business portfolio by entering the overseas real estate business
05BX-5. Achieving ROE of 10% and continuing high-level shareholder returns
06Advancing sustainability management and human capital management
Plan assumptionsFinancial expenses are projected based on an assumed policy interest rate of 1.75%, An annual growth rate of 3.0% is assumed for rents on existing properties, The proportion of gains on property sales in consolidated business profit is assumed to be approximately 50% to 60%, Continued proactive corporate investment in offices is expected, Growth is expected, particularly in hotel assets in central urban areas, driven by sustained growth in inbound demand
Segment targetSegment name Overall / Sales Target Not disclosed / Profit Target Consolidated business profit of ¥29 billion or more (fiscal 2031), Segment name Building Business / Sales Target Not disclosed / Profit Target ¥28.5 billion (the proportion of gains on property sales is expected to be approximately 50% to 60%), Segment name Asset Management Business / Sales Target Not disclosed / Profit Target ¥3.5 billion, Segment name Corporate and eliminations / Sales Target Not disclosed / Profit Target –¥3.0 billion
Non-financial targetsIndicator GHG Emissions / Target Achieve net zero by fiscal 2050 (Scope 1 + 2 + 3) / Timing FY2050, Indicator Water consumption / Target Reduce consumption from the previous fiscal year for each use / Timing Each fiscal year, Indicator Waste generation volume / Target Reduce consumption from the previous fiscal year for each use / Timing Each fiscal year, Indicator Percentage of new graduate hires who are women / Target 30% or more (five-year average hiring rate) / Timing Five-year average, Indicator Percentage of Female Managers / Target At least 20% / Timing By fiscal 2030, Indicator Percentage of career hires in management positions / Target At least 40% / Timing By fiscal 2030, Indicator Health checkup participation rate / Target 100％ / Timing Each year, Indicator Cancer screening participation rate / Target 100% of people aged 35 or older / Timing Every 2 years, Indicator Stress check participation rate / Target 100％ / Timing Each year, Indicator Paid leave utilization rate / Target At least 70% / Timing Each year, Indicator Rate of parental leave taken by male employees / Target 100％ / Timing By fiscal 2030, Indicator People holding lifesaving training qualifications / Target All officers and employees / Timing Not disclosed, Indicator Ratio of strategic shareholdings to total assets / Target Approximately 5% of consolidated net assets / Timing By fiscal 2031, Indicator Percentage of outside directors on the board / Target More than half / Timing Not disclosed
Size of the Target MarketThe market size, growth rate in monetary and numerical terms, and sources are Not disclosed.
Risks identified by the company
Inflation-driven cost increases
Increase in financial expenses due to higher financing interest rates
Actual performance, etc. may differ materially due to changes in business conditions
Reason for revision or withdrawal
In the office market, a transformation is taking place in which offices are viewed as investments in human capital, and proactive corporate investment is expected to continue. In the hotel market, growth is expected, particularly in hotel assets in central urban areas, driven by sustained growth in inbound demand and other factors. The company will also enter the overseas real estate business for the first time to acquire new growth opportunities and improve capital efficiency, among other objectives.
| Item | Details |
|---|---|
| Plan name | New medium-term management plan "Bazukuri Transformation 5 (BX5): Exceeding the Future We Envision through Bold Transformation"; long-term vision "WAY 2040" |
| Plan period | Fiscal 2027 through fiscal 2031 (BX5); 2040 (WAY 2040) |
| Progress against the plan | Formulated |
| Operating profit target | Consolidated operating profit of approximately ¥25 billion or more (2040) → Consolidated business profit of approximately ¥45 billion or more (2040; defined differently from consolidated operating profit) |
| ROE target | ROE of approximately 9% is projected (fiscal 2026) → ROE of 10% or more (fiscal 2031) |
| Payout ratio / DOE policy | Consolidated dividend payout ratio of approximately 50% (fiscal 2027 through fiscal 2031). Progressive dividends will be paid, starting from the annual dividend per share of ¥103 for fiscal 2026. DOE is Not disclosed. |
| Treasury share acquisition policy | To be implemented flexibly, taking into comprehensive consideration the share price, investment plans and financial position, among other factors. |
| Self-assessment of PBR and share price | The company states that it will promote management that is conscious of the cost of capital and its share price, but specific self-assessment or figures for PBR or the share price level are Not disclosed. |
| Total investment plan | Approximately ¥270 billion (five years, fiscal 2027 through fiscal 2031) |
| Investment amount by sector | Field Redevelopment investment / Amount Approximately ¥190 billion, Field Redevelopment in Nihombashi-Kabutocho and Kayabacho / Amount Approximately ¥35.0 billion, Field Redevelopment in Sapporo / Amount Approximately ¥120 billion, Field Other redevelopment / Amount Approximately ¥35.0 billion, Field Investment in property acquisitions / Amount Approximately ¥50 billion, Field Overseas real estate investments, etc. / Amount Approximately ¥30 billion, Field CAPEX / Amount Approximately ¥15 billion, Field Overseas real estate business investment (stated in BX4) / Amount Approximately ¥25 billion over five years |
| Segment target | Segment name Overall / Sales Target Not disclosed / Profit Target Consolidated business profit of ¥29 billion or more (fiscal 2031), Segment name Building Business / Sales Target Not disclosed / Profit Target ¥28.5 billion (the proportion of gains on property sales is expected to be approximately 50% to 60%), Segment name Asset Management Business / Sales Target Not disclosed / Profit Target ¥3.5 billion, Segment name Corporate and eliminations / Sales Target Not disclosed / Profit Target –¥3.0 billion |
| Non-financial targets | Indicator GHG Emissions / Target Achieve net zero by fiscal 2050 (Scope 1 + 2 + 3) / Timing FY2050, Indicator Water consumption / Target Reduce consumption from the previous fiscal year for each use / Timing Each fiscal year, Indicator Waste generation volume / Target Reduce consumption from the previous fiscal year for each use / Timing Each fiscal year, Indicator Percentage of new graduate hires who are women / Target 30% or more (five-year average hiring rate) / Timing Five-year average, Indicator Percentage of Female Managers / Target At least 20% / Timing By fiscal 2030, Indicator Percentage of career hires in management positions / Target At least 40% / Timing By fiscal 2030, Indicator Health checkup participation rate / Target 100％ / Timing Each year, Indicator Cancer screening participation rate / Target 100% of people aged 35 or older / Timing Every 2 years, Indicator Stress check participation rate / Target 100％ / Timing Each year, Indicator Paid leave utilization rate / Target At least 70% / Timing Each year, Indicator Rate of parental leave taken by male employees / Target 100％ / Timing By fiscal 2030, Indicator People holding lifesaving training qualifications / Target All officers and employees / Timing Not disclosed, Indicator Ratio of strategic shareholdings to total assets / Target Approximately 5% of consolidated net assets / Timing By fiscal 2031, Indicator Percentage of outside directors on the board / Target More than half / Timing Not disclosed |
| Plan assumptions | Financial expenses are projected based on an assumed policy interest rate of 1.75%, An annual growth rate of 3.0% is assumed for rents on existing properties, The proportion of gains on property sales in consolidated business profit is assumed to be approximately 50% to 60%, Continued proactive corporate investment in offices is expected, Growth is expected, particularly in hotel assets in central urban areas, driven by sustained growth in inbound demand |
| Key initiatives | BX-1. Developing "places that attract people" through redevelopment projects in major cities across Japan, BX-2. Developing the Nihombashi-Kabutocho and Kayabacho brand, BX-3. Expanding the rental income and capital recycling businesses for owned assets, BX-4. Strengthening the business portfolio by entering the overseas real estate business, BX-5. Achieving ROE of 10% and continuing high-level shareholder returns, Advancing sustainability management and human capital management |
| Results under the previous plan | Consolidated operating profit of ¥14 billion or more, EPS of ¥135 or more, and ROE of 7% or more (fiscal 2026) → Consolidated operating profit of ¥15.8 billion, EPS of ¥174, and ROE of approximately 9% are projected (fiscal 2026) |
| Reason for revision or withdrawal | In the office market, a transformation is taking place in which offices are viewed as investments in human capital, and proactive corporate investment is expected to continue. In the hotel market, growth is expected, particularly in hotel assets in central urban areas, driven by sustained growth in inbound demand and other factors. The company will also enter the overseas real estate business for the first time to acquire new growth opportunities and improve capital efficiency, among other objectives. |
| Size of the Target Market | The market size, growth rate in monetary and numerical terms, and sources are Not disclosed. |
| Risks identified | Inflation-driven cost increases, Increase in financial expenses due to higher financing interest rates, Actual performance, etc. may differ materially due to changes in business conditions |
| Date of board resolution | 30 October 2026 |
| Publication date | 30 October 2026 |
Items this document does not state (5)
Sales TargetOperating profit margin targetNet income targetROIC targetCost of capital
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 capture growth opportunities such as office demand and inbound demand for hotels, and to achieve an increase in corporate value that exceeds cost increases caused by inflation and higher financing interest rates. In addition, to acquire new growth opportunities and improve capital efficiency, the company will enter the overseas real estate business for the first time and seek to maximize the benefits of its capital and business alliance.
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