Medium- to Long-term Management Plan

Vision for the medium- to long-term management plan
"Over the NEXT DECADE"
(FY 2014 - 2023)

Vision

Aiming to be a company that contributes to revitalizing areas

-Target consolidated operating income: Over ¥10 billion-

We are advancing to our next phase: "Aiming to be a company that contributes to revitalizing areas." Our objective is to increase our presence in society and build the foundation for further growth and increased corporate value. We also plan to employ the expertise we acquire through the redevelopment of Nihonbashi Kabutocho and Kayabacho in revitalizing other urban districts.

Vision for the medium- to long-term management plan
"Over the NEXT DECADE" Phase Ⅱ
(FY 2017 - 2019)

Phase Ⅱ Positioning

In the three years of Phase Ⅱ, aiming to continuously increase corporate value by building a base for business growth, mainly by steadily implementing the Nihonbashi Kabutocho and Kayabacho Revitalization Project.

Key Strategies

  • Key Strategies 1The Nihonbashi Kabutocho and Kayabacho Revitalization Project
    Start and steadily implement the first stage of the project, the Nihonbashi Kabutocho 7 Development Plan (tentative name) and the Nihonbashi Kayabacho 1-6 Development Plan (tentative name).
  • Key Strategies 2Strengthening of the Building Leasing Business
    Enhance the revenue base to form a base for the redevelopment project by renewing and increasing assets for the Leasing Business and by implementing measures to improve profitability.
  • Key Strategies 3Expansion and diversification of the Real Estate Solutions Business
    Support Heiwa Real Estate REIT Inc. as its sponsor to increase its assets and improve their quality, and steadily expand revenue from the fee businesses. Aim to diversify revenue-generating opportunities in the Real Estate Solutions Business, including selling properties after maximizing their value by developing income-generating properties, leasing-up, conducting renewal construction, etc.
  • Key Strategies 4Strengthening the Structure for Implementing Strategies and Providing Shareholders with Stable Returns
    Formulate an organizational framework suitable for executing the key strategies, as well as strive to enhance financial strength, while keeping management efficiency in mind. Aim to raise ROE and maintain the D/E ratio at an appropriate level. Also, provide shareholders with stable returns, mainly through dividends.

Targets (Consolidated)

Targets for FY 2020 March
Operating income ¥9.0 billion*
(Breakdown)
Leasing Business: ¥7.4 billion
Real Estate Solutions Business: ¥3.0 billion
Ordinary income ¥8.0 billion
Net debt-to-equity (D/E) ratio 1.5 times or lower

* Operating income includes corporate expenses that belong to the administration division and are not allocated to any of the reportable segments.

Investment Plan

Business Investment amount
The Nihonbashi Kabutocho and Kayabacho Revitalization Project Approx. ¥15.0 billion
Leasing Business Approx. ¥24.0 billion
(Approx. ¥7.0 billion recovered by renewing the portfolio)
Real Estate Solutions Business Approx. ¥42.0 billion
(Approx. ¥54.0 billion recovered)

Related Documents

Contact

Investor Relations Section, Corporate Planning and General Affairs Department, Heiwa Real Estate Co., Ltd.

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