In its medium-term plan announced in May, Japan Post outlined a policy of making real estate a new revenue pillar. Its land holdings have a book value of approximately ¥1.4 trillion, and it aims to complete large-scale high-rise buildings by fiscal 2034, including developments at the former Shirokane dormitory site and the former Nihonbashi Post Office site.
Japan Post's share price, which had languished since the company's 2015 listing, began trending upward in May this year, and the company disclosed in its medium-term management plan that it would position its real estate business as a new revenue pillar.
The group owns land with a book value of ¥1.4 trillion and outlined a policy of repurposing approximately 30% of it for rental properties and other uses. The combined market value of the operating land and buildings is reportedly approximately ¥1.6 trillion.
The development plan includes redevelopment of the former dormitory site in Shirokane, Tokyo, demolition of the former Nihonbashi Post Office and completion of a high-rise office building in fiscal 2034. The planned total floor area is expected to be 274,000 square meters, including the interests of other companies.
Regarding share price performance, reports say that the price rose from an opening price of ¥1,631 at listing to a high of ¥2,603 in September this year.