Tokyu Fudosan Holdings Corp. · TSE:3289
Tokyu Fudosan — FY2024 Q2 Earnings Presentation
63 slides from Tokyu Fudosan's earnings presentation, Nov 12, 2024
Slide 1: Financial Highlights FY2024 Second Quarter (First Six Months)
Securities Code: 3289 Create Value for the Future Financial Highlights FY2024 Second Quarter (First Six Months) Ended September 30, 2024 November 12, 2024
Slide 2: The forecasts and other forward-looking statements in this report are based on currently available
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 Second Quarter ・・・・・ 14 (First Six Months) Ended September 30, 2024 ・Segment Overview ・・・・・ 29 ・Initiatives for Co-Creation with Partners and ・・・・・ 51 Utilization of Regio
Slide 4: Highlights
｜ Highlights ｜ Topics Contents Operating profit: 50.5 billion yen (YoY (7.5) billion yen) Financial results for the Q2 under Net profit*: 25.1 billion yen (YoY (13.3) billion yen) review Decreased year on year due to lower gain on sales of assets, despite strong condominium, real-estate sales agent,
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)
｜ Progress of Medium-Term Management Plan (Financial Targets) ｜ 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) forecast) forecast) ROE 7.3% 9.6% 9.0% 9.3% 9% Efficie
Slide 7: Progress of Medium-Term Management Plan (Financial Targets) ②
｜ Progress of Medium-Term Management Plan (Financial Targets) ② ｜ 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％ 9.3％ 9％ ¥83.8 billion ¥75.0 billion 7.3％ or mo
Slide 8: Shareholder Return
｜ Shareholder Return ｜ 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 year), with progressive dividend payments to b
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 – November 8, 2024) ｜ 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：1,099.06yen 8.0% 1,000yen FY2022: 7.3% 900yen 7.0% FY2019: 6.7% 800yen Share price on Nov. 8: 973.8yen FY2021: 5.7%
Slide 13: Initiatives to enhance corporate value and market valuation
｜ Initiatives to enhance corporate value and market valuation ｜ 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 policy. PBR↑ ＝ ROE↑ × PER↑ FY2021 FY2022 FY2023 F
Slide 14: Summary of the FY2024 Second Quarter (First Six Months) Ended September 30, 2024
Summary of the FY2024 Second Quarter (First Six Months) Ended September 30, 2024 © TOKYU FUDOSAN HOLDINGS CORPORATION 14
Slide 15: FY2024 Major business environment
｜ FY2024 Major business environment ｜ Being under uncertain conditions, pay close attention to changes in the business environment but assume that there will be no significant environmental changes in the near future. Topics Contents In the Shibuya area, where we have numerous properties, tenant dem
Slide 16: FY2024 Q2 Operating Results, major index
｜ FY2024 Q2 (First Six Months) Operating Results, major index ｜ Profit for the period declined year-on-year in reaction to recording a gain on the sale of assets in the same period last year. However, progress was better than initially planned, and the full-year earnings forecasts were revised upwar
Slide 17: FY2024 Q2 Segment performance
｜ FY2024 Q2 (First Six Months) Segment performance ｜ Although profit increased in Property Management & Operation and Real Estate Agents, there was an increase in revenues but a decrease in profit overall due to factors such as lower gain on sales of assets. FY2023 FY2024 FY2024 (¥ billion) Comparis
Slide 18: FY2024 Q2 Analysis of segment performance
｜ FY2024 Q2 (First Six Months) Analysis of segment performance ｜ Profit decrease of 7.5 billion yen YoY due to lower gain on sales of assets, despite strong performance in condominium, hotel businesses, and real estate agents business. ･ Wellness business +1.9 billion yen ･ Increase in real estate a
Slide 19: FY2024 Q2 Summary of balance sheets
｜ FY2024 Q2 (First Six Months) Summary of balance sheets ｜ Increase in land and buildings for sale due to progress in investment. （¥ billion） Comparison （¥ billion） FY2023 FY2024 FY2023 FY2024 Comparison Mar-31, 2024 Sep-30, 2024 Mar-31, 2024 Sep-30, 2024 Cash and deposits 246.6 146.6 (100.0) Intere
Slide 20: Asset Breakdown by Segment and ROA Trends
｜ FY2024 Q2 (First Six Months) Asset Breakdown 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 Urban Development segment〉 [¥ billion] 3,500 3,063.
Slide 21: 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 22: Summary of Cash flow and Investment plan
｜ Summary of Cash flow and Investment plan ｜ Capital investment will focus on renewable energy facilities, and investment mainly in rental housing and logistics facilities is planned for land and buildings for sale. FY2023 FY2024 (¥ billion) Main factors for changes Q2 Q2 +44.7 billion yen of Interm
Slide 23: FY2024 Earnings Forecasts, major index
｜ FY2024 Earnings Forecasts, major index ｜ Forecast for the full year has been revised upwards due to expectations of strong performance in real estate sales, hotels and the rental business, with ROE planned at 9.3%. FY2024 FY2024 Comparison （¥ billion） FY2023 Comparison note Forecast Initial Foreca
Slide 24: FY2024 Segment performance Forecast
｜ FY2024 Segment performance Forecast ｜ With brisk buyer and seller demand in the real-estate market, assets sold or contracted reached approx. 90% of the asset sales gross profit target for the year ending March 2025. FY2024 （¥ billion） FY2024 Comparison FY2023 Comparison note Initial forecast (Ini
Slide 25: New Forecasts for FY2024
｜ New Forecasts for FY2024 ｜ The forecast has been revised upwards by 5.0 billion yen from the initial forecast due to strong performance in real estate transaction, hotel and rental business, etc. 〈Operating profit trends〉 (¥ billion) Variance from initial forecast: +¥3.1 bn Strong performance in r
Slide 26: FY2024 Analysis of segment performance forecast
｜ FY2024 Analysis of segment performance forecast ｜ 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 (5.1) billion yen ･ Property Management business +
Slide 27: 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. Approximately 90% of the projected gross profit for FY2024 is already sold or under contract. 〈Gross Profit f
Slide 28: 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%. Long-term Issuer Rating by Japan Credit Rating Agency, Ltd. (JCR): A (Positive) Equity Interest-bearing Debt D/E ratio Debt/EBITDA ratio Revi
Slide 29: Segment Overview
Segment Overview © TOKYU FUDOSAN HOLDINGS CORPORATION 29
Slide 30: Urban Development ① FY2024 Q2
｜ Urban Development ① FY2024 Q2 (First Six Months)｜ Q2: Decreases in both revenues and profit FY2024: Despite performance changes due to asset sales fluctuations, rental and condominium sales remain strong. FY2023 FY2024 〈Breakdown of revenues in Urban Development〉 （¥ billion） Comparison note Q2 Q2
Slide 31: 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 September 30, 2024, vacancy rate at 1.8 % (office buildings and commercial Metropolitan 4 districts facilities), and average office rent at over 30,000 yen (month/tsubo), with Shibuya 832 thousand
Slide 32: 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 Tokyo Institute of Technology’s T
Slide 33: 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 34: 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 35: 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 36: Urban Development ⑦ Major project ～ Tokyu Plaza Harajuku “Harakado”～
Reprint of ｜ Urban Development ⑦ Major project ～ Tokyu Plaza Harajuku “Harakado”～ Presentation Materials of FY2024 Q1 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 “COVER
Slide 37: Urban Development ⑧ Condominium index
｜ Urban Development ⑧ Condominium index ｜ The contract obtaining rate at the end of FY2024 Q2 progressed to 91%. 〈Major upcoming projects〉 Accounting year FY2022 FY2023 FY2024 Forecast No. of units sold 1,369 1,280 1,005 (Q2 : 422) Average price per unit (million yen) 70 70 84 (Q2 : 85 million yen/u
Slide 38: Urban Development ⑨ Major Large-Scale Residential Projects
｜ Urban Development ⑨ Major Large-Scale Residential Projects ｜ Kitanakadori North Higashigotanda 2-3 Nishi-Nippori Station Nihonbashi 1-chome East BRANZ TOWER Funabashi Ichiba-cho Project (tentative District B-1 Redevelopment District Block Redevelopment Project Hashimoto name)* Address: Yokohama- A
Slide 39: Strategic Investment ① FY2024 Q2
｜ Strategic Investment ① FY2024 Q2 (First Six Months) ｜ Q2: Decreases in both revenues and profit FY2024: While performance fluctuates due to increases and decreases in the sale of logistics facilities, the renewable energy business is steadily expanding. 〈Breakdown of revenues in （¥ billion） FY2023
Slide 40: 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 September 30, 2024) Portfolio Total properties in operation: 113 Properties in operation: 90* (solar: 8
Slide 41: Strategic Investment ③ Expansion of renewable energy business
｜ Strategic Investment ③ 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 42: Strategic Investment ④ Logistics facilities business
｜ Strategic Investment ④ Logistics facilities business ｜ While increasing asset turnover, the acquisition and leasing of prime location projects are steadily progressing. Projects acquired (As of September 30, 2024) Major projects Properties in operation: 7 Property name Location Total floor area Co
Slide 43: Strategic Investment ⑤ Overseas operations
｜ Strategic Investment ⑤ Overseas operations ｜ Multiple projects underway in the United States and Asia. Status of overseas expansion 27 projects across 8 countries 26 projects across 7 urban regions 〈Balance by Overseas Business Area〉 In-house development performance: Leasable area in operation: ap
Slide 44: Strategic Investment ⑥ Overseas operations (U.S. Business)
｜ Strategic Investment ⑥ Overseas operations (U.S. Business) ｜ A total of 26 projects are underway in the United States. U.S. Portfolio Enlarged シアトル拡大図 view of Seattle Urban regions Seattle (11) (number of projects involved) Rental housing Office and other Projects involved: 26 Portland (3) Total p
Slide 45: Property Management & Operation ① FY2024 Q2
｜ Property Management & Operation ① FY2024 Q2 (First Six Months) ｜ Q2: Increases in revenues and profit Forecast for FY2024: Profit increased due to factors such as capturing inbound demand centered on the Hotel business. （¥ billion） FY2023 FY2024 〈Breakdown of revenues in Comparison note Q2 Q2 Prop
Slide 46: 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 47: 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. Grancreer HARUMI FLAG nol hakone myojindai TOKYU Harvest Club VIALA Hakonekoyu Tokyu Stay Hiroshima (tentative name) Senior housing Resort
Slide 48: Real Estate Agents ① FY2024 Q2
｜ Real Estate Agents ① FY2024 Q2 (First Six Months) ｜ Q2: Increases in revenues and profit Forecast for FY2024: Increased in revenues and profit mainly driven by the brokerage business capitalizing on the strong real estate market. 〈Breakdown in revenues of Real estate sales agent business〉 FY2023 F
Slide 49: Real Estate Agents ② Performance indicators in sales agent
｜ Real Estate Agents ② Performance indicators in sales agent ｜ FY2024 Q2 Retail* Wholesale* Total Highlights Rate of change YoY Number 1** in the amount of real estate brokerage transactions*** No. of transactions 15,606 520 16,126 for FY2023 (units) +8.7% ( 4.2)% +8.2% □Retail Amount of transaction
Slide 50: 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 24/9 25/3 Plan [Units: thousand] 107 117 130 138 141 149 SHINONOME CANAL COURT CODAN (Change from th
Slide 51: 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 51
Slide 52: Co-Creation with Partners initiatives
｜ Co-Creation with Partners initiatives ｜ Co-create with external partners to expand assets involved and further enhance value. Comprehensive business alliance with JR East, Selected as an electricity supplier to public facilities under the established renewable energy fund Kasukabe City Power Purch
Slide 53: 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 54: Sustainability and DX Initiatives
Sustainability and DX Initiatives © TOKYU FUDOSAN HOLDINGS CORPORATION 54
Slide 55: 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 56: 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 57: 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 58: 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 59: 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 60: Sustainable Management ❬External Evaluation❭
Reprint of ｜ Sustainable Management ❬External Evaluation❭ ｜ Presentation Materials of FY2024 Q1 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 third consecutive
Slide 61: DX Initiatives
｜ DX Initiatives ｜ 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 (July 2024) Developed the real estate industry
Slide 62: 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 63: WE ARE GREEN
WE ARE GREEN @ TOKYU FUDOSAN HOLDINGS
Tokyu Fudosan Holdings — FY2024 Q2 Earnings Presentation on 6ix