Measures to Address Vacancies and Reuse Rental Space

「The airport real estate business recorded revenue of ¥8,730 million, up 3.1% year on year, reflecting higher rental income from revised leasing terms for existing properties and tenant attraction. Despite major repair work, segment profit was ¥2,207 million, up 10.0%, partly because depreciation and amortization expenses declined following the impairment loss recognized in the previous fiscal year on leased facilities in the Haneda Airport 1-chome district.」

「Under these conditions, the Group's consolidated revenue was ¥14,093 million, up 7.4% year on year, reflecting the revision of leasing terms for existing properties, the relocation associated with the operation of a fresh produce center in the cargo district, increased rental income from the addition of properties in the non-asset business, and higher water supply and drainage usage and revised water supply and drainage rates in public tendering conducted in the previous fiscal year, among other factors.」

「The Company has also formulated a new long-term repair plan starting in fiscal 2020 and will promote equipment upgrades and repairs at existing facilities to improve quality and customer satisfaction, while continuing to work to raise occupancy rates.」

「Revenue was ¥14,003 million, up 3.4% year on year, and operating profit was ¥2,654 million, up 10.9%, reflecting the start of leasing of the extension to the hangar and the aircraft equipment warehouse at Kobe Airport, completed in December, among other factors.」

「The real estate leasing business recorded revenue of ¥9,398 million, up 4.1% year on year, and operating profit of ¥1,853 million, up 16.7%, reflecting progress in tenant occupancy at Haneda Airport, rent increases at some existing facilities, full-year operation of the Kyoto hotel, which began leasing at the end of June last year, and the addition of lease income from training aircraft for the Civil Aviation College, among other factors.」

「In the real estate leasing business, net sales were ¥4,633 million, up 5.9% year on year, and operating income was ¥906 million, up 24.9%. This reflected progress in tenant occupancy at Haneda Airport, the Kyoto hotel operating for the full year after beginning operations in late June of the previous year, and the addition of lease income from training aircraft provided to the Civil Aviation College.」

「The Company will also continue working to improve occupancy at existing facilities, seeking to provide safe and secure facilities and services through active equipment upgrades and repairs, while pursuing further improvements in occupancy rates.」

「The Group's consolidated revenue was ¥18,137 million, up 6.7% year on year, reflecting improved occupancy at the Group's facilities at Tokyo International Airport, full-year operation of aviation-related facilities at regional airports, and the start of leasing at a hotel in Kyoto acquired at the end of June.」

「The real estate leasing business recorded revenue of ¥4,374 million, up 6.6% year on year, reflecting improved occupancy at Tokyo International Airport, the start of operations at new properties at regional airports and outside airports, and the inclusion of overseas subsidiaries in the scope of consolidation, among other factors.」

「While working to renovate existing facilities, the Company is also pursuing the re-use of space by establishing crew training facilities, an in-flight catering plant and other facilities.」

「The real estate leasing business recorded revenue of ¥12,645 million, up 5.1% year on year, and operating profit of ¥2,188 million, up 6.0%, reflecting improved tenant occupancy at Tokyo International Airport, the Haneda Asahicho Hotel operating for the full year, and rising sales at the Singapore subsidiary, among other factors.」

「In the real estate leasing business, net sales were ¥8,431 million, up 5.3% year on year, and operating income was ¥1,493 million, up 13.3%, due to improved tenant occupancy at Tokyo International Airport, the Haneda Asahicho hotel operating for the full year, and growing sales at the Singapore subsidiary.」

「The Group's consolidated results, including those of the Company and its consolidated subsidiaries, included net sales of ¥5,503 million for the cumulative first quarter of the current fiscal year, up 5.5% year on year, due mainly to progress in tenant occupancy within Haneda Airport.」

「Although facilities have continued to be returned by airlines, the Group is promoting the reuse of leased space at Haneda Airport and explains that the effects are emerging.」

「Although some facilities have been returned as a result of recent airline rationalization, the Group is actively seeking to utilize its facilities to promote the reuse of leased space at Tokyo International Airport. It is identifying new demand for flight-operations support facilities, aviation-related facilities and other facilities arising from the expansion of airport capacity, and results are emerging.」

「To promote the reuse of leased space at Tokyo International Airport, the Group is identifying new demand for flight-operations support facilities, aviation-related facilities and other facilities arising from the expansion of airport capacity, and is actively seeking to utilize its facilities.」

「The results of the measures to address vacancies that we have pursued since the year before last are gradually emerging. We will continue taking further measures to address vacancies and work to contribute to a recovery in performance.」