Outline of Results of Operations
In fiscal 2018, ended March 31, 2019, the Japanese economy continued to grow moderately on the back of improvements in employment and personal income conditions as well as corporate earnings. On the other hand, the economic outlook was unpredictable amid concerns over financial capital market fluctuations and increasingly uncertain economic trends and political situations in other countries of the world.
In Japan's real estate industry, demand for office space was solid as corporations moved or expanded their operations against the backdrop of the improving domestic economy. Consequently, vacancy rates remained low and rental rates continued to rise in the office building leasing market. In the real estate investment market, property acquisitions remained active amid favorable loan procurement conditions. The Japanese real estate investment trust (J-REIT) market was also bullish.
In that operating environment, the Heiwa Real Estate Group set a time frame for establishing a business growth platform aimed at continuously increasing corporate value in the Phase II of its medium- to long-term management plan, "Over the NEXT DECADE," spanning from fiscal 2017 to fiscal 2019. Accordingly, the Group executed projects under the plan and made steady progress in its redevelopment of the Nihonbashi Kabutocho and Kayabacho Revitalization Project in Tokyo.
As a result of those efforts and other factors, consolidated financial results improved or remained on par with the previous fiscal year. Operating revenue totaled ¥39,480 million, up ¥6,782 million (20.7%) year on year. Operating income was ¥9,335 million, declining slightly by ¥97 million (1.0%), while ordinary income amounted to ¥8,430 million, an increase of ¥34 million (0.4%). Net income attributable to owners of parent reached a record high of ¥6,174 million, up ¥886 million (16.8%) year on year.
(Millions of yen)
|Segment||Consolidated Fiscal Year Ended March 31, 2018||Consolidated Fiscal Year Ended March 31, 2019||Difference|
|Operating revenue||Operating income||Operating revenue||Operating income||Operating revenue||Operating income|
|Real Estate Solutions Business||11,710||3,022||17,493||3,398||5,782||376|