Drafting the medium to long-term business plan
New value, real value
By integrating all that is precious to people and society,
we build cities – the dynamic stages that connect today to the possibilities of tomorrow – and
embrace every moment of life’s endeavors.
We create new value, social value and, above all, real value.
Based on our vision, we continued to develop the medium to long-term business plan to demonstrate our commitment to investors. During the three years of the first stage of the medium to long-term business plan, we will lay the foundation for future growth, such as accelerating initiatives in the mixed-use redevelopment of residences, as well as other complexes, expanding the business to develop real estate for sales, and laying the foundations of our business abroad.
We focus on what we must do strategically in responding to the rapidly changing social environment based on a medium to long-term perspective. This plan aims to achieve sustainable growth by continuing to create new value by taking advantage of the company’s strengths.
Company philosophy and business strategy
In corporate management, it is extremely important that you have a clear corporate philosophy, business and organizational strategies, and the governance structure necessary to achieve that philosophy. Without it, we cannot expect sustainable corporate growth. By providing development and related services that enhance the uniqueness of each property, we use land and assets to create new value, and link this value to the future. Because we believe this is our responsibility to society. To create new value we created the following four topics: enriching lifestyles and business patterns. Multifunctional urban development towards exceptional comfort, comfort and safety; Urban development and community building towards the future of the global environment and local communities; The global expansion of quality products and services.
Profit plan and business portfolio
According to our profit plan, we have set an ideal trading profit as our goal in the first, second and third stage. Taking into account the current and future real estate market and business environment. The company’s business portfolio aims to achieve balanced growth in terms of its composition for real estate sales, where development profits can be achieved in the relatively short term, leasing business, which produces stable cash flows, and business and management services such as investment management, including housing sales, real estate brokerage and management Property and facilities. Under this profit plan, as per the business growth of the entire group, we have adopted a policy of targeting high levels of return on equity and return on assets by controlling the size of total assets while accelerating asset turnover. In pursuit of this goal, we will ensure that real estate sales, services and management each have a good portion of our business in the first fiscal year.
We would like to mention that real estate that makes development profits is the main pillars of our business. In addition to speeding up its development process, we plan to conduct total asset management, including existing rental properties, taking into account the expected completion of new rental properties on a large scale in the near future, in order to manage the balance sheet on an appropriate scale and at the same time, achieve development profits.
A strategic initiative for our business abroad
We are moving forward with establishing the foundations laid out in the medium to long-term business plan for our overseas business. Under this plan, we will strategically increase the amount of investment in order to increase our external profits in the near future. Real estate development is a strong local business, closely linked to the lifestyles and work patterns that flow from the country’s laws, culture, business habits and history. Accordingly, it is important to foster joint business with reliable local partners, as well as provide financing for companies.
Achieve return on equity
Under the medium and long-term business plan, management’s focus is on capital policies, especially those that enhance capital efficiency and shareholder returns. Taking into account the level of cost of shares expected by investors
Enhance our efforts in social responsibility
For CSR initiatives, we need to raise awareness about sustainable growth in the value of our company. We will explain internally and externally with specific terms risks and opportunities that must be considered from both environmental and social situations when considering sustainable improvement in the value of the company and the strength of profits, as well as defining strategies to be followed to seize opportunities and reduce risks.
Achieve development profits and enhance the value of the company
The achievement of development profits depends on the market value of the assets that create value through the development of lands and regions. However, looking at the capital markets, most real estate developers have a lower appraisal of their net asset value. Of course, while evaluation is also affected by market conditions and operating environment. In order to increase the value of the company in a sustainable manner, it is necessary for the value we produce to obtain appropriate valuations from the capital markets. Therefore, we seek to achieve a higher valuation of the owners of investments by appropriately realizing the value under the medium and long-term business plan.
The essence of the plan is to create new value with an eye around the highly changing social environment and create a framework for achieving new value creation, including profit plans and capital policies. By achieving a medium to long-term business plan, we hope that the corporate value of the company will be recognized by all investment owners in the medium to long term and that we will continue to be a company supported by our investment owners. We ask you for your continued understanding and support to move forward.
