Shift from a flow-based revenue model to a combined flow-and-stock model
First written in FY2017. 19 of 28 entries say "Advanced", first in FY2019-Q1. Latest entry: 2026-10-02.
7 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「② Revenue and profit in the rental building business both increased as the number of buildings held grew through strong acquisitions and the vacancy rate improved through active leasing activities.」
In addition to flow-based property sales, revenue and profit in the rental building business increased through growth in the number of buildings held and an improved vacancy rate resulting from leasing, advancing the accumulation of stock earnings. - FY2026-H1AdvancedAnnual report
「During the period, revenue and profit both increased, owing to progress in acquisitions and a decline in rental-related expenses compared with the same period of the previous year, among other factors.」
The number of properties held increased as acquisitions progressed, while rental-related expenses declined, resulting in higher revenue and profit in the rental building business. The progress of stock earnings within an earnings structure supported by both flow and stock businesses was demonstrated. - FY2025Higher rental income offset by lower profit due to construction costsAnnual report
「During the period, the vacancy rate improved due to strong leasing activity and revenue increased from the previous fiscal year, but profit declined because construction costs and other expenses were incurred.」
The vacancy rate and rental income improved through acquisitions and leasing activities, while profit in the rental building business declined due to construction costs and other expenses. - FY2025-H1Higher rental income offset by lower profit due to construction costsAnnual report
「During the period, revenue increased year on year as acquisitions progressed and leasing activities reduced the vacancy rate, but profit declined due to construction costs and other expenses.」
Revenue in the rental building business increased as acquisitions progressed and leasing activities reduced the vacancy rate, while profit declined due to construction costs and other expenses. - FY2024AdvancedAnnual report
「Revenue and profit both increased year on year as the number of properties held as inventory increased.」
In addition to flow-based property sales, rental income accumulated through the increase in properties held as inventory, resulting in higher revenue and profit in the rental building business. An earnings structure supported by both flow and stock businesses is reflected in the results. - FY2024-Q2AdvancedAnnual report
「Revenue and profit increased from the same period of the previous year as the number of properties held as inventory increased.」
In addition to flow-based property sales, rental income accumulated through the increase in properties held as inventory, resulting in higher revenue and profit in the rental building business. - FY2024-Q1AdvancedAnnual report
「Revenue and profit increased from the same period of the previous year, as steady acquisitions during the period led to higher rental income accompanying the increase in inventory.」
In addition to flow-based property sales, rental income increased through progress in acquisitions and growth in properties held, demonstrating the expansion of stock-based earnings in the results. - FY2023RestatedAnnual report
「With the aim of building a stable earnings base as a stock business, we are expanding the number of rental building properties in the Replanning business and seeking to increase rental income over the medium to long term while leveraging the operating capabilities accumulated in the real estate services division.」
Although the policy of expanding rental properties to establish an earnings structure supported by both flow and stock businesses remains in place, rental income from short-term holdings and properties held as inventory declined. - FY2023-Q2Stock income declined due to lower rental income from short-term holdingsAnnual report
「② In the rental building business, we are expanding the number of rental properties in the replanning business and seeking to increase rental income over the medium to long term while leveraging the operating capabilities accumulated in the real estate services division, with the aim of building a stable earnings base as a recurring-revenue business. During the period, sales and profit declined from the same period of the previous year due to lower rental income from properties held for the short term.」
Although the policy of expanding rental properties to establish an earnings structure supported by both flow and stock businesses remains in place, revenue and profit from the stock business declined because rental income from short-term holdings decreased. - FY2022-Q2Stock income declined due to the sale of large buildingsAnnual report
「② In the rental building business, with the aim of building a stable earnings base as a stock business, we are seeking to increase rental income over the medium to long term by maintaining the number of properties under commercialization in the Replanning business and leveraging the operating capabilities developed in the real estate services division. However, revenue and profit both declined from the same period of the previous year because highly occupied large buildings were sold during the period, among other factors.」
Although the policy of increasing stock-based rental income over the medium to long term remains unchanged, revenue and profit in the rental building business declined year on year due to the sale of highly occupied large buildings and other factors. - FY2022-Q1Stock business revenue and profit declined due to the sale of large buildings and other factorsAnnual report
「② In the rental building business, we are expanding the number of rental properties in the replanning business and seeking to increase rental income over the medium to long term while leveraging the operating capabilities developed in the real estate services division, with the aim of building a stable earnings base as a recurring-revenue business. During the period, sales and profit both declined from the same period of the previous year due in part to the sale of a large, highly occupied building.」
The policy of expanding rental properties to establish an earnings structure supported by both flow and stock businesses remains in place, but revenue and profit from the stock business declined due to the sale of highly occupied large buildings and other factors. - FY2021AdvancedAnnual report
「In March, the sale of Hiyori Hotel Maihama, which opened in 2017 as the first hotel under the company's own brand, was completed. While working to improve cash flow, the company consequently achieved substantial increases in both revenue and profit compared with the same period of the previous year.」
While aiming to establish an earnings structure supported by both flow and stock businesses, the company improved cash flow through the completion of the sale of hotel assets. - FY2021-Q2Deterioration in hotel-related earnings under the policy of expanding stock incomeAnnual report
「② In the rental building business, we continue to expand the number of rental properties in the replanning business while leveraging the operating capabilities developed in the real estate services division, with the aim of building a stable earnings base as a recurring-revenue business and increasing rental income over the medium to long term. However, sales increased only slightly from the same period of the previous year, while profit declined due to lower rental income from the hotel business and front-loaded rental payments associated with the expansion of the subleasing business.」
The policy of expanding rental properties to establish an earnings structure supported by both flow and stock businesses remains in place, but profit from the stock business declined because of lower hotel-related rental income and the front-loading of sublease rent expenses. - FY2020AdvancedAnnual report
「② In the rental building business, we are strategically increasing rental income while leveraging the real estate operating capabilities developed in the real estate revitalization and real estate services divisions, with the aim of building a stable earnings base as a recurring-revenue business. Sales and profit both increased as the number of buildings held rose with progress in acquisitions for the replanning business and other factors.」
The company explained that, in addition to the flow-based Replanning business, the accumulation of rental income from the increased number of buildings held led to higher revenue and profit. - FY2020-Q3AdvancedAnnual report
「In the rental building business, we are strategically seeking to increase rental income in order to expand our stock business while leveraging the Group's comprehensive real estate operating capabilities, with the aim of building a stable earnings base. Revenue and profit both increased, mainly because the number of buildings held increased as acquisitions progressed in the Replanning business.」
With the aim of establishing an earnings structure supported by both flow and stock businesses, revenue and profit in the rental building business increased through the growth in the number of buildings held. - FY2020-Q2AdvancedAnnual report
「In the rental building business, we are strategically seeking to increase rental income in order to expand our stock business while leveraging the Group's comprehensive real estate operating capabilities, with the aim of building a stable earnings base.」
The policy of expanding the stock business has produced tangible progress, including an increase in the number of buildings held as acquisitions progressed in the Replanning business and higher sublease income following the opening of new hotels. - FY2020-Q1AdvancedAnnual report
「② In the rental building business, we are strategically seeking to increase rental income in order to expand our stock business while leveraging the Group's comprehensive real estate operating capabilities, with the aim of building a stable earnings base. Revenue and profit both increased from the same period of the previous year as acquisitions in the Replanning business progressed and the number of buildings held increased.」
With the aim of establishing an earnings structure supported by both flow and stock businesses, the number of buildings held increased as acquisitions progressed in the Replanning business, resulting in year-on-year increases in revenue and profit in the rental building business. - FY2019AdvancedAnnual report
「In the rental building business, we are strategically seeking to increase rental income by expanding our stock business while leveraging the Group's comprehensive real estate operating capabilities, with the aim of building a stable earnings base. During the fiscal year, acquisitions in the Replanning business progressed and the number of buildings held increased, resulting in higher revenue and profit than in the previous fiscal year.」
Under the policy of expanding the stock business, revenue and profit in the rental building business increased year on year as acquisitions of Replanning properties progressed and the number of buildings held increased. - FY2019-Q2AdvancedAnnual report
「In the rental building business, we are strategically seeking to increase rental income by expanding our stock business while leveraging the Group's comprehensive real estate operating capabilities, with the aim of building a stable earnings base. During the six months ended [the second quarter], acquisitions in the Replanning business progressed and the number of buildings held increased, resulting in higher revenue and profit than in the same period of the previous year.」
Under the policy of expanding the stock business in addition to the flow business, the number of buildings held increased as acquisitions progressed in the Replanning business, resulting in higher revenue and profit in the rental building business. - FY2019-Q1AdvancedAnnual report
「In the rental building business, we are strategically increasing rental income to expand our long-term stock-based business and build a stable earnings base while leveraging our group’s comprehensive real estate operating capabilities. During the cumulative first-quarter consolidated period, both net sales and profit increased year on year as acquisitions for the replanning business progressed and the number of buildings held increased.」
In the long-term build-up rental building business, the number of buildings held increased as property acquisitions progressed in the Replanning business, and both revenue and profit exceeded the year-earlier period. - FY2018RestatedAnnual report
「Through the 3 strategies described above, we will establish an earnings structure that stands on both flow and stock businesses to achieve stable growth over the medium to long term.」
The group has reaffirmed its policy of establishing an earnings structure supported by both flow and stock businesses through its growth strategies centered on central Tokyo offices, hotels, overseas operations, and M&A. - FY2017First statedAnnual report
「To achieve stable growth over the medium to long term, our group is pursuing (1) a transition to an earnings structure that stands on both flow and stock businesses by building a foundation through flow-based businesses and expanding stock-based businesses, (2) deeper specialization in central Tokyo offices and entry into the hotel and overseas businesses, which are future growth markets, and (3) the development and strengthening of true real estate professionals based on a “customer perspective,” because business means benefiting others.」
The group has identified as a key issue the need to shift from an earnings structure dependent on gains from selling replanned properties to a stable earnings model built on rental income, property management contracts, hotels, and rental conference rooms.