Management Policy

Mid-Term Business Plan

Target Period

7years from fiscal 2019 to fiscal 2025

“Challenges from here: Into the new stage of growth.”

Basic Policy

We aim to achieve further growth and expansion of our existing four distinct businesses by materializing various measures to strengthen our revenue foundation as set forth in the previous Mid-Term Business Plan. We will also access changes in the investment environment accurately for the near term, and aim for long-lasting and sustainable growth and expansion of our business size through growth strategies of the new stage after the implementation of measures set forth in the previous Business Plan, while we continue to seek the establishment of new businesses in addition to the existing.

Corporate Vision

While maintaining our uniqueness, we aim to provide valuable business space responding to the needs of the times and “expand assets that will be carried over to the next generation.”

Business Plan

  • Net Sales

    Net Sales

  • Operating profit

    Operating profit

    Ordinary profit

    Ordinary profit

  • Ordinary income after tax before depreciation

    Ordinary income after tax before depreciation

Final targets
Total assets

billion yen

billion yen

Net interest-bearing debt

billion yen

billion yen

Net interest-bearing debt/EBITDA



Shareholders' equity

billion yen

billion yen

Capital adequacy ratio



Investment plan

Investment area Investment amount (cumulative)
Real estate investment

Part of the construction costs of the Toranomon Building and OBP Building/Acquisition of profitable properties

billion yen

Repair and renovation investment

Large-scale repair of owned properties

billion yen


billion yen

Priority measures

1. New investment strategies

  • Office buildings
    • Promote the construction of the Toranomon Building and secure full occupancy at an early stage
    • Promote investment in the central Tokyo area by enhancing brand strength in the Tokyo area
    • Specialize in medium-sized buildings
    • Participate in redevelopment projects through partnerships with other companies
  • Datacenter buildings
    • Promote the construction of the OBP Building and attract tenants at an early stage
    • Acquire lands for developments and construct a new urban-type datacenter building to meet strong demand in the Osaka area
    • Consider suburban datacenter business in the Tokyo and Osaka areas, leveraging our high public profile in the datacenter industry
    • Consider investment in datacenter buildings through business alliances
  • Commercial buildings
    • Acquire urban-type commercial buildings located near commercial centers or terminal stations in the Tokyo metropolitan area and regional core cities
  • Logistic warehouses
    • Acquire build-to-suit warehouses (for specific companies) with facilities and functionalities that meet customer needs
    • Acquire large multi-tenant warehouses at convenient locations

2. Reviewing existing facilities

  • Steadily reconstruct or sell properties relatively old or no longer profitable
  • Improve profitability by attracting tenants from new areas of business through effective use of building characteristics

■Withdrawn/sold properties in the past five years

Time of withdrawal sale

April 2018

Asahikawa Shopping Facility

July 2018

Sakasegawa Building

April 2020

Toyahama Warehouse

3. Pursuing profitability of owned assets

  • Pursue high operation rates with prime building facilities
  • Further reinforce tenant relations with a thorough customer-oriented approach
  • Develop new customers by strengthening proposal capabilities

4. Enhancing risk management

  • Diversify the regional portfolio of the owned properties
  • Systematically renew buildings incorporating BCP measures, etc.

5. New development for the future

  • Consider diversifying and expanding business through business alliances, etc.
  • Consider diversifying investment methods
  • Consider real estate investment overseas focused on developed countries such as the United States

6. Maintaining a solid financial foundation

  • Strive for stable financing at low interest rate by paying attention to the balance between direct financing and indirect financing
  • Maintain the soundness of the financial balance while adhering to the capital adequacy ratio of at least 30% and net interest-bearing debt of ten times EBITDA (operating profit before depreciation) or less
  • Pursue a rating upgrade while maintaining a good credit rating
  • Maintain ROA (operating profit/total assets) at 4% level

■Change of financial indicators ■Change of financial indicators

  • EBITDA:Operationg Profit + Depreciation & Amortization
  • D/E Ratio:Interest-Bearing Debt / Equity

7. ESG-conscious business management

  • E (Environmental)
    • Prolong building life through preventive maintenance
    • Promote greening and energy-saving initiatives
    • Consider obtaining various certifications
  • S (Social)
    • Contribute to the local community through BCP, the maintenance of disaster preparedness equipment, etc.
    • Initiate regional revitalization through event sponsorship and donations
    • Improve productivity through workstyle reform
  • G (Governance)
    • Reinforce management integrity and transparency through reviewing the board structure, further diversifying executive members, etc.

Dividends Policy

The dividend payout ratio will be 35 to 40%, up 5 to 10 percentage points from the current figure, under the policy focusing mainly on stable and continuous dividend payments. In addition, returns to shareholders will be studied with a full awareness of capital efficiency, comprehensively taking into account the economic situation and the Company's stock price.

Payout ratio