Worth reading
40Recurring
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
1000000000000
Japanese yen (total project cost in Mumbai, India, over approximately the next 10 years, including investments to date)Wording
Conditional
How definitive the wording is.Items stated in the management plan
Annual updateROE targetUnderlying ROE is currently 10.6%; the company aims to maintain and improve itROE is the percentage of profit generated from money provided by shareholders.
What happened to the previous planPlanned net income for the fiscal year ending March 2026 (figure is Not disclosed) → Actual results for the fiscal year ending March 2026 (figure is Not disclosed)0.0%Calculated from the two disclosed figures
Total investment planTotal project cost of ¥1 trillion in Mumbai, India, over approximately the next 10 years, including investments to date
Statements about the use of capital
Payout ratio / DOE policyContinue progressive dividends of at least ¥8 per year until a payout ratio of 35% is reachedThe payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyMentioned a one-off grant of points to employees to return the benefits of share repurchases to them. The repurchase amount, timing, and conditions are Not disclosed
Key initiatives
01Whether office building rents can be revised to keep pace with rising interest rates
02Long-standing partner relationships with general and specialized contractors
03No change to the policy of developing 600,000 tsubo in central Tokyo
04Three years' inventory of completed properties
05Strengthen the subdivided-lot housing business
06BKC's first property
07BKC's second property
08BKC's third and fourth properties
09Wally
10Continue progressive dividends of at least ¥8 per year until a payout ratio of 35% is reached
11Due to higher-than-expected profit, increase the dividend for the fiscal year ending March 2026 by ¥9, from ¥35 to ¥44
12Pursue higher corporate value as a unified organization through proactive returns to employees
13Preparations are progressing for the transition to a company with an Audit & Supervisory Committee in 2027
14Sale of cross-held shares is in sight, with the proceeds to be used for a sustainable growth strategy
15Underlying ROE is above 10%; the company aims to maintain and improve it through further profit growth
Plan assumptionsThe Tokyo office market will continue to see a substantial decline in vacancy rates and rising rents, Although construction costs are rising, rent levels will also continue to increase, Annual new condominium supply in the Tokyo metropolitan area has declined from 100,000 units at its peak to approximately 22,000 units in the most recent year, The deterioration of conditions in the Middle East is expected to cause concerns over material shortages, construction delays, and soaring prices
Non-financial targetsIndicator name Number of lots supplied under the subdivided-lot and custom-built housing business, including City Garden / Target value At least 300 lots per year / Timing Ongoing, Indicator name Transition to a Company with an Audit and Supervisory Committee / Target value Transition / Timing June 2027
Size of the Target MarketFigures Average rents in Tokyo's five central wards have declined from ¥44,000 per tsubo in 1991 to approximately ¥22,000 currently. Annual new condominium supply in the Tokyo metropolitan area has declined from 100,000 units at its peak to approximately 22,000 units in the most recent year. Average rents for newly contracted Tokyo office space rose approximately 10% year on year, while rent revisions averaged in the 7% range and exceeded 20% at most / Source Not disclosed
Risks identified by the company
Higher interest rates
Soaring construction costs
Longer construction periods
International conflict risks
Material shortages, construction delays, and soaring prices due to the deterioration of conditions in the Middle East
Difficulty acquiring condominium development sites and rising land prices
Changes in external conditions, including road widening
| Item | Details |
|---|---|
| Plan name | Tenth Medium-Term Management Plan |
| Progress against the plan | Annual update |
| ROE target | Underlying ROE is currently 10.6%; the company aims to maintain and improve it |
| Payout ratio / DOE policy | Continue progressive dividends of at least ¥8 per year until a payout ratio of 35% is reached |
| Treasury share acquisition policy | Mentioned a one-off grant of points to employees to return the benefits of share repurchases to them. The repurchase amount, timing, and conditions are Not disclosed |
| Total investment plan | Total project cost of ¥1 trillion in Mumbai, India, over approximately the next 10 years, including investments to date |
| Non-financial targets | Indicator name Number of lots supplied under the subdivided-lot and custom-built housing business, including City Garden / Target value At least 300 lots per year / Timing Ongoing, Indicator name Transition to a Company with an Audit and Supervisory Committee / Target value Transition / Timing June 2027 |
| Plan assumptions | The Tokyo office market will continue to see a substantial decline in vacancy rates and rising rents, Although construction costs are rising, rent levels will also continue to increase, Annual new condominium supply in the Tokyo metropolitan area has declined from 100,000 units at its peak to approximately 22,000 units in the most recent year, The deterioration of conditions in the Middle East is expected to cause concerns over material shortages, construction delays, and soaring prices |
| Key initiatives | Whether office building rents can be revised to keep pace with rising interest rates, Long-standing partner relationships with general and specialized contractors, No change to the policy of developing 600,000 tsubo in central Tokyo, Three years' inventory of completed properties, Strengthen the subdivided-lot housing business, BKC's first property, BKC's second property, BKC's third and fourth properties, Wally, Continue progressive dividends of at least ¥8 per year until a payout ratio of 35% is reached, Due to higher-than-expected profit, increase the dividend for the fiscal year ending March 2026 by ¥9, from ¥35 to ¥44, Pursue higher corporate value as a unified organization through proactive returns to employees, Preparations are progressing for the transition to a company with an Audit & Supervisory Committee in 2027, Sale of cross-held shares is in sight, with the proceeds to be used for a sustainable growth strategy, Underlying ROE is above 10%; the company aims to maintain and improve it through further profit growth |
| Results under the previous plan | Planned net income for the fiscal year ending March 2026 (figure is Not disclosed) → Actual results for the fiscal year ending March 2026 (figure is Not disclosed) |
| Size of the Target Market | Figures Average rents in Tokyo's five central wards have declined from ¥44,000 per tsubo in 1991 to approximately ¥22,000 currently. Annual new condominium supply in the Tokyo metropolitan area has declined from 100,000 units at its peak to approximately 22,000 units in the most recent year. Average rents for newly contracted Tokyo office space rose approximately 10% year on year, while rent revisions averaged in the 7% range and exceeded 20% at most / Source Not disclosed |
| Risks identified | Higher interest rates, Soaring construction costs, Longer construction periods, International conflict risks, Material shortages, construction delays, and soaring prices due to the deterioration of conditions in the Middle East, Difficulty acquiring condominium development sites and rising land prices, Changes in external conditions, including road widening |
| Publication date | 13 May 2026 |
Items this document does not state (12)
Plan periodSales TargetOperating profit targetOperating profit margin targetNet income targetROIC targetCost of capitalSelf-assessment of PBR and share priceInvestment amount by sectorSegment targetReason for revision or withdrawalDate 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 address the challenges involved in achieving the goals of the Tenth Medium-Term Management Plan amid growing uncertainty in the business environment due to rising interest rates, soaring construction costs, longer construction periods, and international conflict risks.
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.