Helping realize a sustainable society as a company that contributes to revitalizing areas
The Mission of the Heiwa Real Estate Group
Heiwa Real Estate Co., Ltd., was originally established as the owner of stock exchange buildings in cities across Japan, including Tokyo, Osaka, and Nagoya. By operating and maintaining the facilities that house the country’s financial infrastructure, the Group has built up relations of trust with its building tenants, business partners, and the local communities it serves. Through its efforts to revitalize urban areas, the Group has been providing solutions for environmental issues and challenges faced by communities, while closely engaging with its diverse stakeholders to raise their level of satisfaction. In these ways, the Group is playing a part in making society more sustainable.
Offering solutions to communities as a company that contributes to revitalizing areas
To realize a sustainable society and further growth, Heiwa Real Estate will make efforts to resolve social issues and contribute to the SDGs through our corporate activities. In terms of materiality, we recognize climate change countermeasures, industrial and regional development, response to social needs, natural disaster risk mitigation measures, and strengthening corporate governance as particularly important and will promote various initiatives to address each issue.
Meanwhile, the Heiwa Real Estate Group is expected to help enhance Tokyo’s competitiveness among major cities of the world. The Tokyo Metropolitan Government has created a vision to make Tokyo a “global financial city,” and the Group is playing a part by improving infrastructure in the city’s financial center through its redevelopment of the Nihonbashi Kabutocho and Kayabacho district.
On that basis, we opened KABUTO ONE, the first phase of the Nihonbashi Kabutocho and Kayabacho Revitalization Project, in August 2021. In connection with the government’s vision to make Tokyo a global financial city, KABUTO ONE has been designated as a nationally strategic urban development project, and its facilities as a financial center have been highly evaluated. It is also designed for disaster preparedness with emergency shelters for stranded commuters, and will utilize renewable energy to reduce environmental burden.
In April 2022, we completed construction of KITOKI, the first office building with retail stores for which Heiwa Real Estate adopted a hybrid structure comprising wood and SRC. In creating a district in harmony with nature, we incorporated a biophilic design that satisfies the instinctive human desire to be close to nature, featuring exteriors reflecting vibrant greenery and interior designs conveying a sense of trees, water and wind on each floor.
We are developing the Kabutocho 12 Project aimed at the FY2025 opening of Caption by Hyatt Kabutocho Tokyo, the first Hyatt select service lifestyle hotel brand in Japan. As it aims to advance technologies and spread awareness related to wooden buildings, this project was selected for the Leading Projects Program for Sustainable Buildings for 2022 (led by wooden structure) promoted by the Ministry of Land, Infrastructure, Transport and Tourism, as a leading project promoting the use of wood in mid- and high-rise hotels. After KITOKI, this is the second Heiwa Real Estate project selected for this program. These projects are part of our efforts to realize sustainable district revitalization, which is one goal of the Nihonbashi Kabutocho and Kayabacho Revitalization Project.
Considering the risk of major earthquakes and other natural disasters, reducing the overconcentration of people in Tokyo is a major issue in terms of the resilience of Japanese society as a whole. We will also incorporate lessons learned from the Nihonbashi Kabutocho and Kayabacho Revitalization Project to promote Redevelopment Business in Sapporo. I believe that the city of Sapporo, which hosted the full marathon event originally planned for Tokyo in last year’s Olympics, is itself quite significant for its diverse array of functions. We own assets in the heart area of Sapporo, and will focus on the Sapporo Redevelopment Project from the larger perspective of addressing social issues.
In all of the Group’s projects—not only new ones—our aim is to improve environmental performance and disaster-response capabilities. By implementing sustainable building management, we will keep working to reduce CO2 emissions over the long term.
Aiming to continuously raise corporate value under our new Medium-term Management Plan, “Challenge & Progress”
Established in April 2020, our new Medium-term Management Plan, “Challenge & Progress,” spans from fiscal 2020 to 2023. Under this plan, we intend to continue revitalizing the Nihonbashi Kabutocho and Kayabacho districts, proceed with redevelopment projects in Sapporo, shift to a business model designed to create added value through external and internal growth, and implement sustainability initiatives as a means to help communities solve related challenges. In all of these activities, Heiwa Real Estate will work to make substantial progress going forward as a company that contributes to revitalizing areas.
While pursuing those activities, we will strive to achieve out profit targets by fiscal 2023, specifically earnings per share of ¥200 and consolidated operating income of ¥12.0 billion. We have also designated key performance indicators for facilitating our corporate capital policies, which place importance on the cost of capital and capital efficiency, from fiscal 2020 to fiscal 2023. Specifically, we are aiming for return on equity of 6%, and a consolidated total shareholder return ratio of 70% along with a consolidated dividend payout ratio of 50% by 2023. Moreover, we will take steps to raise awareness of compliance among officers and employees in an effort to ensure greater compliance. At the same time, we will work to further strengthen corporate governance, practice sustainability management, and promote occupational health for employees.
A Message to Stakeholders
Through these endeavors, Heiwa Real Estate will work to help communities overcome challenges as a company that contributes to revitalizing areas. Management is committed to meeting the expectations of all stakeholders and ensuring that the Group attains sustainable growth going forward. On behalf of management, I look forward to the ongoing support of the Group’s stakeholders.
Kiyoyuki Tsuchimoto
Representative Executive Officer, President and CEO