Performance Review

Outline of Results of Operations

Outline of Results of Operations for the Fiscal Year under Review

(FY 2022)

In fiscal 2022, ended March 31, 2023, the Japanese economy showed signs of a moderate recovery following various measures implemented by the government for co-existing with COVID-19. Nevertheless, volatility and risks in financial capital markets, economic downturns in other countries, and rising prices of commodities caused by the prolonged conflict in Ukraine will need to be closely monitored going forward.

Against this backdrop, conditions were mixed in Japan’s real estate industry. In the office building leasing market, vacancy rates increased as occupants tended to reduce their office spaces amid changing workplace practices, particularly the shift to telecommuting. In the real estate investment market, however, strong interest in Japanese real estate among investors remained stable despite expectations for financing conditions to be impacted by interest rates hikes going forward.

In this operating environment, the Company’s consolidated revenue and income declined, for the most part, compared with the previous fiscal year. Operating revenue totaled ¥44,522 million, down ¥13,295 million (23.0%). Operating income was ¥10,784 million, a decrease of ¥1,830 million (14.5%), and ordinary income came to ¥9,647 million, down ¥1,925 million (16.6%). On the other hand, net income attributable to owners of parent increased by ¥432 million (5.0%) to ¥9,137 million.

(Millions of yen)