Evolving as a unique Bazukuri company—pioneering urban development that encompasses not only the construction of buildings but also the creation of communities and opportunities.
On behalf of Heiwa Real Estate Group, I would like to welcome you to our website and thank you for your interest in our business.
Heiwa Real Estate was established in 1947 as the owner of buildings for stock exchanges in Tokyo, Osaka, Nagoya, Fukuoka, and elsewhere. Our head office is located in Tokyo’s Nihonbashi Kabutocho and Kayabacho district, which is widely known as the home of the securities, finance, and investment sector. We are a developer that has contributed to the development of this area while carrying the serious responsibility of providing infrastructural support for Japan’s financial market.
Over the four-year period from FY2020 to FY2023, Heiwa Real Estate Group advanced its medium-term management plan, Challenge & Progress, positioning itself to strive for new heights as the company contributing to district revitalization.
In the Nihonbashi Kabutocho and Kayabacho district, the Group has completed a series of buildings and commercial facilities that have attracted attention in the area, including the KABUTO ONE building in 2021. These urban development projects have transformed the district by creating new attractions and drawing interest from the mass media.
We advanced large-scale redevelopment projects in Sapporo and shifted to a business model focused on creating added value through both external and internal growth. At the same time, our commitment to sustainability initiatives enabled us to actively address social challenges. As a result, we successfully met all key performance indicators, including consolidated operating profit of over ¥12 billion, earnings per share exceeding ¥200, and a return on equity above 6%. These accomplishments mark a significant leap forward for the Group over the past four years.
Conversely, the urban landscape and lifestyles are undergoing significant changes due to various factors, including the diversification and qualitative shifts in workstyles, expanded demand from inbound tourism, population decline, a dwindling birthrate and aging society, and intensified competition between cities and regions. Additionally, heightened expectations for improved capital efficiency, the advancement of sustainability management, progress in digital technology, and the increasing threat of natural disasters are contributing to a wide range of social and global environmental changes.
In response to this dramatically changing operating environment, we established the Group’s purpose and a long-term vision in March 2024 to lay an ideal path forward. Guided by our purpose statement, “Enriching everyone’s future with Bazukuri that draws people in,” we are working to fundamentally benefit communities through the Group’s redevelopment projects. We charted a course for fulfilling this purpose with our long-term vision, Way 2040, which clarifies the Group’s evolution up to 2040 under our slogan, “Pursue perpetual dynamic growth to become the Bazukuri Company.”
In April 2024, we announced Way 2040 Stage 1, our medium-term management plan extending to fiscal 2026, as the first stage of this long-term vision. We have positioned the period of the plan as an accelerator of new growth, and will strive to achieve this by establishing the Nihonbashi Kabutocho and Kayabacho brand, executing a redevelopment project in Sapporo—the largest in the Company’s history—and launch new businesses to realize our long-term vision. Furthermore, we are targeting consolidated operating profit of ¥14 billion and earnings per share of ¥270 by fiscal 2026, the final year of the plan, and an average return on equity of 7% over the three years of the plan.
The Heiwa Real Estate Group will evolve as a unique urban developer and create places that attract people and enrich their futures. Toward that end, the Group will pursue dynamic growth by continuing to redevelop urban spaces. We invite all stakeholders to follow our endeavors going forward.
Bazukuri: includes the construction of buildings and the creation of communities and opportunities.
April 30, 2024
Kiyoyuki Tsuchimoto
Representative Executive Officer, President and CEO
Heiwa Real Estate Co., Ltd.