Deepening and Expansion of the Real Estate Business

「The real estate sales business reported higher revenue and profit due to an increase in condominium sales, among other factors (+173 units year on year)」

「As part of its investment in income-generating real estate, the company acquired EDGE Bimacho Building in Osaka City as a long-term holding, invested in a value-add fund in the United States and entered the overseas real estate market. By accelerating investment through a variety of approaches, it worked to strengthen its asset-turnover business.」

「In assets, construction in progress increased due to progress on the (tentative name) Kita-Osaka Truck Terminal Phase II building project, while inventories increased due to the acquisition of real estate for sale. However, cash and deposits held to fund these payments and other expenses were optimized.」

「To secure development funds while maintaining financial soundness, and to accelerate community co-creation development and diversify real estate revenue through fee-based businesses after property sales, we began managing a private REIT last November, incorporating properties held by the Group.」

「In the real estate sales business, operating revenue was ¥42,914 million, up 31.8% year on year, and operating profit was ¥12,691 million, up 29.0%, mainly due to increased sales of properties to REIT investment corporations and increased condominium sales.」

「With the aim of creating “Namba in Asia,” we will continue working to create “Greater Namba,” including development around the new Naniwa-suji Line Naniwa-Shinmachi Station, scheduled to open in 2031, and around Namba Station.」

「With the aim of creating “Greater Namba” and “Namba in Asia,” we will continue developing the areas around the new Naniwa-suji Line Naniwa-Shinmachi Station, scheduled to open in 2031, and Namba Station. We will also pursue sustainable community development, including the smart city strategy for Senboku New Town, and advance “community co-creation development,” which seeks to revitalize the region by working with local governments and others to address social issues along the railway line.」

「Total assets increased by ¥42,430 million from the end of the previous consolidated fiscal year to ¥967,488 million, mainly due to increases in cash and deposits and property, plant and equipment, including Namba Front Building.」

「Following the completion in April this year of Phase 1 of the Kita-Osaka Distribution Center redevelopment, we will begin work on plans for Phase 2 and beyond. We will also pursue a broad range of real estate businesses, primarily along the railway line, including the acquisition and development of new properties and renovation of existing properties, to further expand the real estate business.」

「Although current assets decreased mainly due to a decrease in securities and other items, total assets increased by ¥1,622 million from the end of the previous consolidated fiscal year to ¥920,007 million, mainly due to an increase in property, plant and equipment following the acquisition of Namba Midosuji Center Building and other factors.」

「To expand its earnings base, the company pursued the acquisition of income-generating properties, primarily in the Namba area, and built employee dormitories for an aviation-related company whose operations are based at Kansai International Airport, in front of Izumiotsu Station on the Nankai Main Line and in Hagurazaki, Izumisano, Osaka Prefecture.」

「In addition to advancing Phase 1 of the redevelopment plan for the Kita-Osaka Distribution Center, scheduled to open in spring 2020, we will flesh out plans for Phase 2 and beyond. We will also pursue a broad range of real estate businesses, primarily along the railway line, including the acquisition and development of new properties, renovation of existing properties, and entry into fee-based businesses, to further expand the real estate business.」

「In addition to advancing Phase 1 of the redevelopment plan for the Kita-Osaka Distribution Center, scheduled to open in spring 2020, we will flesh out plans for Phase 2 and beyond. We will also pursue a broad range of real estate businesses, primarily along the railway line, including the acquisition and development of new properties, renovation of existing properties, and entry into fee-based businesses, to further expand the real estate business.」

「We will pursue various initiatives based on the two business strategies of “creating communities along the railway line that people choose” and “deepening and expanding the real estate business.”」