Real Estate｜Solving Social Issues through Business

GP: Growing Performance
Stable growth in core areas

*Affiliations and titles as of August 2024

Main Services

Real estate finance lease
Real estate operating lease
Real estate non-recourse loan
Real estate equity investment
Private REIT investment

Strong Point

Possesses trusted relationships and information pipelines developed through the accumulation of genuine and timely responses to sophisticated project consulting from the customer's viewpoint
Advanced operational skills and expertise in real estate leasing and finance built up by engaging in highly difficult projects head on over many years
Active in a vast array of business domains with highly specialized individuals at the industry's top level, obtained by expanding new areas and developing new schemes, with aspirations to attain differentiation and pioneer a blue ocean

Plans under Fuyo Shared Value 2026 and Vision for 2030

Vision for 2030

3 Good helth and well-being 11 Sustainable cities and communities 13 Climate action

Realize stronger profitability and stable profit growth by differentiating and raising the sophistication of the real estate lease and finance business
Achieve growth in the customer base by providing strategic solutions to social issues such as decarbonization and Corporate Real Estate (CRE) needs^*

*

Corporate Real Estate (CRE) needs: needs and issues related to corporate value-enhancing strategies that effectively use the customer's real estate, such as finding effective uses for idle land and turning assets into off-balance sheet items through sales and leasebacks.

Plans under Fuyo Shared Value 2026

1.

Promote priorities such as developing new products and services by conducting extensive collaboration with customer divisions and other dedicated divisions, with the goals of expanding business domains and developing new schemes.
2.

Expand collaboration with partner companies through sales activities based on solution proposals, with a particular emphasis on promoting community contribution through partnerships with regional financial institutions and regional infrastructure companies.
3.

Contribute to realizing a prosperous society by implementing CSV through such means as environmentally friendly real estate aimed at realizing a decarbonized society.

FY2023 in Review

In fiscal 2023, despite a somewhat sluggish office market, we worked on large-scale projects including logistics facilities, theme parks, hotels and others. Also, significant capital gains were recorded that contributed to growth and improvement in both ordinary profit and ROA. In addition, we made every effort to realize a prosperous society by implementing CSV through 21 projects to contribute to realizing a decarbonized society (acquisition of environmental certifications and ZEH) and 15 projects to contribute to the enrichment, convenience and security of daily life in society (real estate leases for medical, nursing care and educational facilities).

Financial targets

Graph of operating profit (billion yen) and ROA (return on operating assets) (%). Operating assets balance 2023/3: 10,305, 2024/3: 10,939. 2023/3: Operating profit 22.2 billion yen, ROA (return on operating assets) 2.3% 2024/3: Operating profit 31.2 billion yen, ROA (return on operating assets) 2.9% 2027/3 (planned): Operating profit 23 billion yen, ROA (return on operating assets) 2.3%

Issues Ahead and Response Measures

Issues Ahead	Response Measures
Respond in light of trends in the highly uncertain real estate market	Continuously monitor market conditions and implement timely and appropriate responses
Respond following revisions to lease accounting standards	Accurately grasp customer issues and needs associated with revisions to the standards and propose and provide services and solutions that meet those needs
Fulfill responsibilities to property owners	Prevent unforeseen situations by raising the sophistication of property management, through such means as commissioning independent professional surveys of factors such as building deterioration and the status of legal compliance and interviewing property management companies and tenants about the state of management

TOPICS

1. In Suma Aqualife Park and Seaside Park Redevelopment Project, Obtained Six Environmental Certifications, Including One Obtained for the First Time in Japan

The Kobe Suma Parks + Resorts joint venture project, which includes the Company, obtained a total of six environmental certifications, including the first domestic acquisition of the "CASBEE for Urban Development 2023 Edition S Rank." Further, taking a lesson from the Great Hanshin Earthquake, sustainable initiatives are being implemented at the facilities and parks themselves with the themes of "water," "heat" and "disaster prevention," including energy independence in the event of a large-scale disaster and the development of eco-friendly facilities in normal times. We will contribute to achieving the SDGs and the branding of the region through the redevelopment of the facility into a new attraction that integrates the local community with a tourist resort, including by reducing environmental impact and ensuring BCP capabilities.