Tokyu Fudosan Holdings Corp. · TSE:3289
Tokyu Fudosan — Q3 FY2024 Earnings Presentation
62 slides from Tokyu Fudosan's earnings presentation, Feb 7, 2025
Slide 1: Financial Highlights FY2024 Third Quarter (First Nine Months)
Securities Code: 3289 Create Value for the Future Financial Highlights FY2024 Third Quarter (First Nine Months) Ended December 31, 2024 February 7, 2025
Slide 2: Forward-looking statements notice
The forecasts and other forward-looking statements in this report are based on currently available information and certain assumptions determined as rational. Consequently, any statements herein do not constitute assurances regarding actual results by the Group. Actual performance may significantly
Slide 3: Contents
｜ Contents ｜ ・ Progress of Medium-Term Management Plan and ・・・・・ 5 Initiatives to Enhance Corporate Value ・Summary of the FY2024 Third Quarter ・・・・・ 14 (First Nine Months) Ended December 31, 2024 ・Segment Overview ・・・・・ 26 ・Initiatives for Co-Creation with Partners and ・・・・・ 50 Utilization of Region
Slide 4: Highlights
｜ Highlights ｜ Topics Contents Operating profit: 87.8 billion yen (YoY +12.5 billion yen) Net profit*: 47.4 billion yen (YoY +2.0 billion yen) Financial results for the Q3 under Both operating revenue and profits reached record levels for the third quarter, review mainly due to strong condominium an
Slide 5: Progress of Medium-Term Management Plan and Initiatives to Enhance Corporate Value
Progress of Medium-Term Management Plan and Initiatives to Enhance Corporate Value © TOKYU FUDOSAN HOLDINGS CORPORATION 5
Slide 6: Progress of Medium-Term Management Plan (Financial Targets) ①
Reprint of ｜ Progress of Medium-Term Management Plan (Financial Targets) ① ｜ Presentation Materials of FY2024 Q2 Achieved all financial targets for the medium-term management plan ending FY2025 two years ahead of schedule. FY2022 FY2023 FY2024 FY2025 (Initial (Latest (Result) (Result) (Target) forec
Slide 7: Progress of Medium-Term Management Plan (Financial Targets) ②
Reprint of ｜ Progress of Medium-Term Management Plan (Financial Targets) ② ｜ Presentation Materials of FY2024 Q2 2.5x Achieved two years ahead of schedule ¥150.0 billion 2.3x 2.2x 2.2x or less or more 2.1x 2.0x 2.0x or less ¥135.0 billion ¥120.2 billion ¥120.0 billion ¥110.4 billion 10% or more 9.6％
Slide 8: Shareholder Return
Reprint of ｜ Shareholder Return ｜ Presentation Materials of FY2024 Q2 Shareholder return policy: Payout ratio of 30% or more and maintain stable dividends Annual dividend: Revised to 34.0 yen for the year ending March 2025 (+2.0 yen compared to the initial forecast, +3.0 yen compared to the previous
Slide 9: Progress in business portfolio management (FY2021-FY2023)
Reprint of ｜ Progress in business portfolio management (FY2021-FY2023) ｜ Presentation Materials of FY2023 Structural reforms of businesses that require fundamentally restructure was completed, with significant profit improvement in the hotel and leisure businesses. Asset-utilizing business Human cap
Slide 10: Progress in business portfolio management② (from FY2024)
Reprint of ｜ Progress in business portfolio management② (from FY2024) ｜ Presentation Materials of FY2024 Q1 For the businesses identified for “revise and advance”, continue to drive transformation and growth, focusing on improving efficiency. Business Business policies and Initiatives While continui
Slide 11: Regarding the next medium-term management plan
Reprint of ｜ Regarding the next medium-term management plan ｜ Presentation Materials of FY2023 The initial year of the next medium-term management plan has been moved up one year to FY2025, and it is to be scheduled to announce in May 2025. GROUP VISION 2030 Create value for the future 2021-2024 202
Slide 12: Changes in Share Price, etc.
｜ Changes in Share Price, etc. (October 1, 2019 – February 6, 2025) ｜ 1,300yen 10.0% Share price BPS FY2023: 9.6% ROE Forecast ROE FY2024 (ROE Forecast) 9.3% 1,200yen 9.0% 1,100yen BPS： 1,067.31 yen 8.0% 1,000yen FY2022: 7.3% 900yen 7.0% FY2019: 6.7% Share price on Feb. 6 : 1,005.0 yen 800yen FY2021
Slide 13: Initiatives to enhance corporate value and market valuation
Reprint of ｜ Initiatives to enhance corporate value and market valuation ｜ Presentation Materials of FY2024 Q2 Aim to enhance corporate value and market evaluation by continuously achieving ROE that exceeds the cost of shareholder equity and promoting initiatives based on the long-term management po
Slide 14: Summary of the FY2024 Third Quarter (First Nine Months)
Summary of the FY2024 Third Quarter (First Nine Months) Ended December 31, 2024 © TOKYU FUDOSAN HOLDINGS CORPORATION 14
Slide 15: FY2024 Major business environment
｜ FY2024 Major business environment ｜ In an uncertain environment, we will pay even closer attention to changes in the business environment, but we assume that there will be no major changes in the immediate future. Topics Contents In the Shibuya area, where we have numerous properties, tenant deman
Slide 16: FY2024 Q3 Operating Results, major index
｜ FY2024 Q3 (First Nine Months) Operating Results, major index ｜ Both revenues and profit increased year on year. FY2023 FY2024 FY2024 (¥ billion) Comparison FY2023 Progress note Q3 Q3 Forecast** Operating Revenue 717.8 763.2 45.4 1,103.0 1,140.0 67.0% Operating profit 75.4 87.8 12.5 120.2 135.0 65.
Slide 17: FY2024 Q3 Segment performance
｜ FY2024 Q3 (First Nine Months) Segment performance ｜ More than 90% of the gross profit from the sale of assets has already been secured out of the gross profit forecast for FY2024. FY2023 FY2024 FY2024 (¥ billion) Comparison FY2023 Progress Q3 Q3 Forecast Operating revenue 717.8 763.2 45.4 1,103.0
Slide 18: FY2024 Q3 Analysis of segment performance
｜ FY2024 Q3 (First Nine Months) Analysis of segment performance ｜ Profit increase of 12.5 billion yen YoY due to strong condominium, hotel, and real-estate agent performance, despite lower gain on sales of assets. (¥ billion) ･ Wellness business +1.8 billion yen (Hotel +4.3 billion yen, etc.) ･ Prop
Slide 19: FY2024 Analysis of segment performance forecast
Reprint of ｜ FY2024 Analysis of segment performance forecast ｜ Presentation Materials of FY2024 Q2 Plan to increase profit by 14.8 billion yen YoY due to improved margins for condominiums and increased earnings from hotels and Real Estate Agents business, etc. ･Infrastructure & Industry business (5.
Slide 20: FY2024 Q3 Summary of balance sheets
｜ FY2024 Q3 (First Nine Months) Summary of balance sheets ｜ Increase in real estate for sale due to progress in investment. FY2023 FY2024 FY2023 FY2024 (¥ billion) Comparison (¥ billion) Comparison Mar-31, 2024 Dec-31, 2024 Mar-31, 2024 Dec-31, 2024 Cash and deposits 246.6 116.4 (130.2) Interest-bea
Slide 21: FY2024 Q2 Asset Breakdown by Segment and ROA Trends
Reprint of ｜ FY2024 Q2 (First Six Months) Asset Breakdown Presentation Materials of FY2024 Q2 by Segment and ROA Trends｜ Progress in investments has led to an increase in land and buildings for sale in Urban Development business. 〈Asset breakdown by segment〉* Excluding elimination 〈Breakdown of Urba
Slide 22: Market value appraisal for leased properties
Reprint of ｜ Market value appraisal for leased properties ｜ Presentation Materials of FY2023 Unrealized gains on rental and other real estate expanded due to the inclusion of Shibuya Sakura Stage and other factors. FY2022 FY2023 (¥ billion) Comparison Remarks Mar-2023 Mar-2024 Carrying Value 732.6 7
Slide 23: Summary of Cash flow and Investment plan
Reprint of ｜ Summary of Cash flow and Investment plan ｜ Presentation Materials of FY2024 Q2 Capital investment will focus on renewable energy facilities, and investment mainly in rental housing and logistics facilities is planned for real estate for sale. FY2023 FY2024 (¥ billion) Main factors for c
Slide 24: Gross profit on sales of assets and land and buildings for sale by assets
｜ Gross profit on sales of assets and land and buildings for sale by assets ｜ Driven by a strong buying and selling market, efficient asset turnover and profit generation are being promoted. More than 90% of the projected gross profit for FY2024 is already sold or under contract. 〈Land and Buildings
Slide 25: Transitions in Financial Condition
｜ Transitions in Financial Condition ｜ As of the end of September 2024, the long-term ratio of interest-bearing debt was 95.8%, and the fixed ratio was 95.6%. The Japan Credit Rating Agency (JCR) upgraded its long-term issuer rating from A to A+ in recognition of strengthening stable revenue sources
Slide 26: Segment Overview
Segment Overview © TOKYU FUDOSAN HOLDINGS CORPORATION 26
Slide 27: Urban Development ① FY2024 Q3
｜ Urban Development ① FY2024 Q3 (First Nine Months)｜ Despite performance changes due to asset sales fluctuations, rental and condominium sales remain strong. 〈Breakdown of revenues in Offices and Commercial facilities〉 FY2023 FY2024 (¥ billion) Comparison note Q3 Q3 [¥ billion] Operating revenue 206
Slide 28: Urban Development ② Vacancy Rate and Rent trends and Portfolio Characteristics
｜ Urban Development ② Vacancy Rate and Rent trends and Portfolio Characteristics ｜ 〈Office Area〉 As of December 31, 2024, vacancy rate at 1.1% (office buildings and commercial Metropolitan 4 districts facilities), and average office rent steadily rising to 30,940 yen (month/tsubo), with 832 thousand
Slide 29: Urban Development ③ Major projects (Offices/Commercial facilities, etc.)
｜ Urban Development ③ Major projects (Offices/Commercial facilities, etc.) ｜ Other projects Chayamachi B-2/B-3 Blocks Redevelopment Project Osaka Commercial/office/accommod ation etc. Total floor space: 31 Scheduled for completion in FY2028 Project for Using Land at Institute of Science Tokyo, Tamac
Slide 30: Urban Development ④ Major projects (the Greater Shibuya Area)
Reprint of ｜ Urban Development ④ Major projects (the Greater Shibuya Area) ｜ Presentation Materials of FY2024 Q1 Several projects, such as Next Shibuya Sakuragaoka Block and Jinnan 1-chome Block, are underway in the The Greater Greater Shibuya Area. Redevelopment Project Commercial facility Shibuya
Slide 31: Urban Development ⑤ Major project ~Shibuya Sakura Stage~
｜ Urban Development ⑤ Major project ～Shibuya Sakura Stage～ ｜ Reprint of Presentation Materials of FY2024 Q1 As a combined facility for work, living, and play , it opened sequentially from December 2023, and was fully opened in July 2024. Opening Ceremony Customers waiting for the opening 4F food hal
Slide 32: Urban Development ⑥ Decision to sell a partial interest in Shibuya Sakura Stage
Reprint of ｜ Urban Development ⑥ Decision to sell a partial interest in Shibuya Sakura Stage ｜ Presentation Materials of FY2023 As part of the "Co-Creation with Partners" business policy, decided to sell the equivalent of 49% co-ownership interest in the sectional ownership of Shibuya Sakura Stage S
Slide 33: Urban Development ⑦ Major project ~Tokyu Plaza Harajuku Harakado~
｜ Urban Development ⑦ Major project ～ Tokyu Plaza Harajuku “Harakado”～ Opened in April 2024 as a new place to create and experience Harajuku culture that will stimulate the senses of a diverse range of people. Opened “Kosugiyu Harajuku,” offering In November 2024, “Dior Jingumae” a lifestyle centere
Slide 34: Urban Development ⑧ Condominium index
｜ Urban Development ⑧ Condominium index ｜ The contract obtaining rate at the end of FY2024 Q3 progressed to 96%. 〈Major upcoming projects〉 Accounting year FY2022 FY2023 FY2024 Forecast No. of units sold 1,369 1,280 1,005 (Q3 : 540) Average price per unit (million yen) 70 70 84 (Q3 : 80 million yen/u
Slide 35: Urban Development ⑨ Major Large-Scale Residential Projects
｜ Urban Development ⑨ Major Large-Scale Residential Projects ｜ Kitanakadori North BRANZ TOWER Osaki Nishi-Nippori Station Sengakuji Station Block BRANZ TOWER Funabashi City Ichiba-cho Project District B-1 Address: Shinagawa-ku, District Type2 Urban Redevelopment Hashimoto (tentative name)* Address:
Slide 36: Strategic Investment ① FY2024 Q3
｜ Strategic Investment ① FY2024 Q3 (First Nine Months) ｜ While performance changes due to fluctuations of logistics facilities sales, the operation of renewable energy facilities is steadily expanding. 〈Breakdown of revenues in (¥ billion) FY2023 FY2024 Comparison note Infrastructure & industry busi
Slide 37: Strategic Investment ② Renewable energy business
｜ Strategic Investment ② Renewable energy business ｜ The number of operating properties has increased, and it has grown to make a stable contribution to earnings. Domestic projects acquired (As of December 31, 2024) Portfolio Total properties in operation: 122 Solar Power Plant In operation ● 83 (1,
Slide 38: Strategic Investment ③ Purpose of making Renewable Japan a consolidated subsidiary (1)
｜ Strategic Investment ③ Purpose of making Renewal Japan a consolidated subsidiary (1) ｜ Realize value chain development for the Renewable Energy Business by making Renewable Japan a consolidated subsidiary. Value chain for the Renewable Energy Business Solar power Group-owned Domestic renewable pow
Slide 39: Strategic Investment ④ Purpose of making Renewable Japan a consolidated subsidiary (2)
｜ Strategic Investment ④ Purpose of making Renewal Japan a consolidated subsidiary (2) ｜ Further accelerate growth in the Renewable Energy Business through synergies between both companies. Strengthening green electricity supply • Group-owned power plants (domestic)* • Group-owned power plants (dome
Slide 40: Strategic Investment ⑤ Expansion of renewable energy business
｜ Strategic Investment ⑤ Expansion of renewable energy business ｜ Further profit expansion is planned through the solid execution of projects for which decisions have already been made and the acquisition of new non-FIT projects such as wind power generation and PPA projects. Investment in facilitie
Slide 41: Strategic Investment ⑥ Logistics facilities business
｜ Strategic Investment ⑥ Logistics facilities business ｜ While increasing asset turnover, the acquisition and leasing of prime location projects are steadily progressing. Projects acquired (As of December 31, 2024) Major projects Properties in operation: 6 Property name Location Total floor area Com
Slide 42: Strategic Investment ⑦ Overseas operations
｜ Strategic Investment ⑦ Overseas operations ｜ Multiple projects underway in the United States and Asia. Status of overseas expansion 24 projects across 8 countries 31 projects across 9 urban regions 〈Balance by Overseas Business Area〉 In-house development performance: Leasable area in operation: ap
Slide 43: Strategic Investment ⑧ Overseas operations (U.S. Business)
｜ Strategic Investment ⑧ Overseas operations (U.S. Business) ｜ We will work to improve profitability and secure stable profits by investing in preferred equity and continuously owned investments / The occupancy rate for rental housing is maintained at over 90% U.S. Portfolio シアトル拡大図 Enlarged view of
Slide 44: Property Management & Operation ① FY2024 Q3
｜ Property Management & Operation ① FY2024 Q3 (First Nine Months) ｜ Profit increased mainly due to capturing inbound demand centered on the hotel business. (¥ billion) FY2023 FY2024 Comparison note 〈Breakdown of revenues in Q3 Q3 Property management business〉 Operating revenue 261.0 265.9 4.9 [¥ bil
Slide 45: Property Management & Operation ② Stock of properties
｜ Property Management & Operation ② Stock of properties ｜ Rather than relying on profit growth through stock expansion, aim to shift from "quantity" to "quality." Condominium Management Stock Trends Major properties under management Under comprehensive management Under facility management 800,000 30
Slide 46: Property Management & Operation ③ Main projects and Operation status
｜ Property Management & Operation ③ Main projects and Operation status ｜ Due to factors such as capturing inbound demand, Tokyu Stay’s RevPAR has remained high, with its ADR exceeding 20,000 yen. Grancreer HARUMI FLAG nol hakone myojindai TOKYU Harvest Club VIALA Hakonekoyu Tokyu Stay Hiroshima (ten
Slide 47: Real Estate Agents ① FY2024 Q3
｜ Real Estate Agents ① FY2024 Q3 (First Nine Months) ｜ Revenue and profits increased, centering on the real estate brokerage business capturing the robust real estate market Number 1*** in the amount of real estate brokerage transactions** for FY2023 〈Breakdown in revenues of Real estate sales agent
Slide 48: Real Estate Agents ② Performance indicators in sales agent
｜ Real Estate Agents ② Performance indicators in sales agent ｜ FY2024 Q3 Retail* Wholesale* Total Highlights Rate of change YoY No. of transactions 23,172 830 24,002 □Retail (units) +9.5% ( 0.5)% +9.1% ・Number of offices: 219 as of March 31, 2024, 225 as of Amount of transactions December 31, 2024,
Slide 49: Real Estate Agents ③ Changes in properties under management
｜ Real Estate Agents ③ Changes in properties under management ｜ Rental Housing Management Stock Trends Major properties under management 160 140 120 149 138 141 130 100 117 107 80 21/3 22/3 23/3 24/3 24/12 25/3 Plan [Units: thousand] 107 117 130 138 141 149 SHINONOME CANAL COURT CODAN (Started prope
Slide 50: Initiatives for Co-Creation with Partners and Utilization of Regional Resources
Initiatives for Co-Creation with Partners and Utilization of Regional Resources © TOKYU FUDOSAN HOLDINGS CORPORATION 50
Slide 51: Co-Creation with Partners initiatives
｜ Co-Creation with Partners initiatives ｜ Co-create with external partners to expand assets involved and further enhance value. SAKURA DEEPTECH SHIBUYA officially launched (January 2025) SAKURA DEEPTECH SHIBUYA, the largest community base in Shibuya to support the growth of deep tech startups, has o
Slide 52: Initiatives for Utilization of Regional Resources
｜ Initiatives for Utilization of Regional Resources ｜ Promoting creation of added value by utilizing regional resources in renewable energy and resort businesses. Construction of the Ishikari Renewable Energy Data Center No. 1 began (October 2024) Construction of the Ishikari Renewable Energy Data C
Slide 53: Sustainability and DX Initiatives
Sustainability and DX Initiatives © TOKYU FUDOSAN HOLDINGS CORPORATION 53
Slide 54: Materiality and KPI
Reprint of ｜ Materiality and KPI ｜ Presentation Materials of FY2024 Q1 We will aim to achieve non-financial KPI based on materialities. Themes to work on (Materialities) Target indicators FY2023 Result FY2025 Targets (FYI) FY2030 Targets ・Customer satisfaction level* 92.8% 90% or more 90% or more Cr
Slide 55: Sustainability Initiatives
｜ Sustainability Initiatives ｜ We address socioenvironmental issues through our business activities. Tokyu Land Corporation is the first domestic company to achieve “RE100.” (March 2024) At the Company's 204 business locations and owned facilities (including offices, commercial facilities, hotels, e
Slide 56: Science-Based Targets for the Low-Carbon Transition
Reprint of ｜ Science-Based Targets for the Low-Carbon Transition ｜ Presentation Materials of FY2024 Q1 We’re stepping up climate efforts, committing to our 1.5°C-aligned science-based target for 2030. Climate change-related targets 2022 FY2023 FY2025 FY2030 2050 Carbon negative Achievement of Achiev
Slide 57: Human Capital Strategy
Reprint of ｜ Human Capital Strategy ｜ Presentation Materials of FY2024 Q1 We've set human capital KPIs for each strategy. Human capital Measures Human capital KPI FY2023 Results (YoY) Target Outcomes * Results for FY2023 or April 2024 Actual strategies Dissemination 1. Degree of personal investment
Slide 58: Corporate Governance
Reprint of ｜ Corporate Governance ｜ Presentation Materials of FY2024 Q1 Establish a governance system that contributes to ensuring sound and transparent management and strengthening the system for implementing the long-term management policy. 〈Corporate Governance Structure〉 〈System of Remuneration
Slide 59: Sustainable Management External Evaluation
｜ Sustainable Management ❬External Evaluation❭ ｜ Selected as a constituent of the FTSE4Good Index Series for a total of 15 consecutive years Received “AA” in the MSCI ESG Rating and recognized on the highest-rated A-List by CDP for the fourth consecutive year. ●Selected - Not selected Classification
Slide 60: DX Initiatives
Reprint of ｜ DX Initiatives ｜ Presentation Materials of FY2024 Q2 Our digital transformation focuses on business processes and customer experience. Started provision of comprehensive facility management services Development of the communication app “SHIBUYA MABLs” utilizing digital twin technologies
Slide 61: Status of dialogue implementation with investors and analysts
Reprint of ｜ Status of dialogue implementation with investors and analysts ｜ Presentation Materials of FY2023 We continued engaging with investors and analysts to aid our sustainable growth and build our organization’s value over the long term. Main themes of our dialogue with investors and analysts
Slide 62: WE ARE GREEN
WE ARE GREEN @ TOKYU FUDOSAN HOLDINGS
Tokyu Fudosan Holdings — Q3 FY2024 Earnings Presentation on 6ix