Message from the President

Investor RelationsManagement Strategy

Message from the President

Yuji Okuma President & CEO
Yuji Okuma
President and
Representative Director

We go beyond the bounds of physical structures to propose and create new lifestyles.

Looking back on the first half of the sixth term

In the real estate industry, falls in vacancy rates and rises in rent levels continued for office buildings due to corporate actions for increasing floor space, expanding offices and relocating them, supported by improved business results and other factors. In the market for real estate investment, transaction prices stayed in the high range under favorable conditions for raising funds. In the market for houses built for sale, firm demand was observed for inner-city and redeveloped properties with a great deal of importance attached to their location and convenience, however selling prices remained fixed at high levels.


Under those conditions, the Tokyu Fudosan Holdings Group posted consolidated operating revenue of ¥402.569 billion (down 1.3% year on year), consolidated operating profit of ¥32.173 billion (down 8.1% year on year), consolidated ordinary profit of ¥27.758 billion (down 9.6% year on year) and consolidated profit attributable to owners of parent of ¥16.664 billion (down 5.3% year on year). In the current fiscal year, the sale of buildings for investors in the Urban Development segment and deliveries of condominiums in the Residential segment are showing a tendency to concentrate in the second half. Consolidated results have been favorable overall.


Execution of a public offering for medium- and long-term growth

The Tokyu Fudosan Holdings Group has decided on “a corporate group that continues to create value” as a vision for its future and is working to administer its operations based on a hard look at the longer term future.


In the development of the Greater Shibuya Area, the Group has adopted urban development that proposes new lifestyles as its approach for developing a community in an original way. We will start tearing down buildings for the Shibuya Sakuragaoka Block Redevelopment Plan in January 2019. Following their demolition, we are scheduled to complete one after another work for the Shibuya Nampeidai Project (tentative name) in the spring of 2019 and the Shibuya Fukuras (the Shibuya Dogenzaka 1-chome Block Development Project) in the fall of the same year.


The Company recently mapped out its plan to invest approximately ¥350 billion in the Greater Shibuya Area in the period from fiscal 2018 to fiscal 2023, fixing its eyes on enhancing the value of the Area more. To finance this plan and strengthen its financial position for gaining new business opportunities anticipated in the future at the same time, we decided to issue new shares and dispose of treasury shares by way of public offering and private placement in October 2018. We will continue to raise corporate and shareholder value by accelerating our efforts to bolster our leasing business foundations through proactive investment in the Greater Shibuya Area.


Message for shareholders

To achieve the Group vision of “a corporate group that continues to create value,” Tokyu Fudosan Holdings is seeking to go beyond the bounds of physical structures to propose and create new lifestyles by harnessing the Company’s unique capabilities in proposing and creating new work, home and play styles.


Tokyu Fudosan Holdings has recently decided to move its head office to the site of the Shibuya Nampeidai Project (tentative name) currently under construction with August 2019 as the target period for office relocation. At this project site, the Company plans a smart office that makes use of IoT to support working style reforms and diverse lifestyles. The Company is hoping to undertake working style reforms and achieve productivity gains in this office building, accumulate knowhow from such activities, and link the knowhow to proposing new work styles. The Group is also approaching community development in the Greater Shibuya Area as a priority is and will contribute to local development by positioning its head office in a central location in a district near Shibuya Station.


Finally, with respect to shareholder returns, the Company chose to pay interim dividends of ¥7.5 per share for the current fiscal year based on its policy of maintaining stable dividends and setting 25% as a minimum target payout ratio.


We ask our shareholders for their continued support and cooperation.


December 2018
Yuji Okuma, President and Representative Director

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