Heiwa Real Estate Co., Ltd. · TSE:8803
Heiwa Real Estate — Q2 FY2012 Earnings Presentation
24 slides from Heiwa Real Estate's earnings presentation, Nov 16, 2011
Slide 1: Financial Results for Second Quarter of Fiscal Year ending March 31, 2012 & Medium-term Management Plan
Financial Results for Second Quarter of Fiscal Year ending March 31, 2012 & Medium-term Management Plan HEIWA REAL ESTATE CO., LTD. 2011.11.16 Security Code: 8803
Slide 2: Contents
CONTENTS Page Page Overview of First Half of Fiscal Year ending Housing Development Business 3 14 March 31, 2012 – Achievement of Profit Plan – Joint Condominium Sale Business Information by Segment – Leasing Business 4 Kabutocho Area Redevelopment Project – Objectives 15 Information by Segment – Re
Slide 3: Overview of First Half of Fiscal Year ending March 2012 – Achievement of Profit Plan
Overview of First Half of Fiscal Year ending March 2012 – Achievement of Profit Plan Smaller-than-expected effects of the Great East Japan Earthquake Building the foundations for the launch of the Medium-term Management Plan Consolidated Financial Results for First Half of Fiscal Year ending March
Slide 4: Information by Segment – Leasing Business
Information by Segment – Leasing Business Revenue increase of 0.5 billion yen due to the launch of the operation of a new building, new tenants moving in, etc. Revenue decline of 0.5 billion yen due to the tenants moving out and rent reductions Agreement on the terms and conditions for the leasin
Slide 5: Information by Segment – Real Estate Development Business
Information by Segment – Real Estate Development Business Real estate development: A decline in fee revenue following a high level of fee income recorded in the fiscal year ended March 31, 2011 A decline in income due to start-up costs and increased depreciation resulting from the launch of the op
Slide 6: Information by Segment – Housing Development Business
Information by Segment – Housing Development Business Earlier-than-expected condominium unit sales for GRANSYMPHONIA (Toda Koen) Sold 89% of the units projected to be sold for the fiscal year ending March 31, 2012 1H of FY ended 1H of FY ending Year-on-Year Year-on-Year March 31, 2011 March 31, 20
Slide 7: Balance Sheet Status
Balance Sheet Status Note: • The amount of assets not directly associated with the businesses presented, such as assets belonging to the administrative division, is excluded from the amounts below. Status of assets • Inventories include “Operating investment.” • The amounts below are the consolidate
Slide 8: Leasing Business – Distribution of Main Asset Holdings
Leasing Business – Distribution of Main Asset Holdings Sapporo Dogin Bldg. Hotel Brighton City The Osaka Securities Osaka Kitahama Exchange Bldg. [Hokkaido] Dogin Bldg. [Kinki] Shin-Odori Building The Osaka Securities Exchange Bldg. Sapporo Ekimae Godo Bldg. Osaka Heiwa Bldg. Park East Sapporo Ichib
Slide 9: Leasing Business – Ichibancho Heiwa Building Project
Leasing Business –Ichibancho Heiwa Building Project Mitsukoshi Dai-Ichi Life Tower West 3 Exit West 2 Exit AER FORUS Ichibancho PARCO APPLE Denryoku Store COACH Bldg. Heiwa Bldg. S-PAL II ZARA SAKURANO DIOR Daiei Sendai GUCCI First Tower Station FUJISAKI LUIS GAP VUITTON The 77Bank S-PAL E Beams Ich
Slide 10: Leasing Business – Heiwa Real Estate Kitahama Building Project
Leasing Business – Heiwa Real Estate Kitahama Building Project Kitahama Heiwa Real Estate Kitahama Bldg. Location: 2-1-5 Kitahama Chuou-ku, Osaka-city The Osaka Securities Exchange Bldg. Site area: 287.72 m2 Total floor area: 2,313.23 m2 Osaka Heiwa Bldg. Scale: 10 stories above
Slide 11: Leasing Business – Changes in Building Vacancy Rates
Leasing Business – Changes in Building Vacancy Rates Changes in vacancy rates (%) HEIWA REAL ESTATE Tokyo metropolitan area HEIWA REAL ESTATE all properties Tokyo office market central five wards (Source: CBRE - Japan) 7.6 8.0 7.3 7.0 6.0 6.0 6.0 5.0 4.4 3.9 3.8 4.0 3.3 2.9 2.9 2.6 2.0 1.8 1.8 1.8
Slide 12: Real Estate Development Business – Value Chain
Real Estate Development Business – Value Chain Value chain HEIWA SERVICE CO., LTD. HEIWA REAL ESTATE CO., LTD. Property acquisition Development PM Sale PM Wholly-owned Supply Dispatching properties directors & employees HEIWA REAL ESTATE ASSET MANAGEMENT Diverse exits CO., LTD. Investment Fee income
Slide 13: Real Estate Development Business – Development Projects
Real Estate Development Business – Development Projects [Shinjuku Front Tower ] [Shinjuku Eastside Square] Location: 2 Kitashinjuku, Shinjuku-ku, Tokyo Location: 6 Shinjuku, Shinjuku-ku, Tokyo Site area: 9,628.17 m2 (Approx. 2,912 tsubo) Site area: 25,809.68 m2 (Approx. 7,807 tsubo） Total floor area
Slide 14: Housing Development Business – Joint Condominium Sale Business
Housing Development Business – Joint Condominium Sale Business Name: GRANSYMPHONIA Location: Toda-city, Saitama (8 minutes walk from Toda Koen Station on the Saikyo Line) Heiwa Real Estate’s share: 25% Total number of units: 923 (Zone I: 675, Zone II: 248) ◆ Completion: Zone I: August 2011 Z
Slide 15: Kabutocho Area Redevelopment Project – Objectives
Kabutocho Area Redevelopment Project – Objectives Kabutocho, well-known as a financial district, is an area with high potential Easy access to five subway lines Convenient access Proximity to Tokyo Station Good airport access Easy access to the Tozai, The areas on both sides of Tokyo Hibiya, Asakusa
Slide 16: Kabutocho Area Redevelopment Project – Collaboration with Mitsubishi Estate
Kabutocho Area Redevelopment Project – Collaboration with Mitsubishi Estate Heiwa Real Estate’s needs Mitsubishi Estate Strengthen development Favorable views on joint development in the Kabutocho area capabilities Superior track record in redevelopment, mainly in the Marunouchi area Has acted
Slide 17: Forecasted Consolidated Financial Results for Fiscal Year ending March 31, 2012
Forecasted Consolidated Financial Results for Fiscal Year ending March 31, 2012 – First Year of the Medium-term Management Plan Fiscal Year ended Fiscal Year ending Year-on-Year Year-on-Year (%) March 31, 2011 March 31, 2012 (Forecast) Operating revenue (millions of yen) 30,135 29,000 (1,135) (3.8)
Slide 18: Forecast by Segment
Forecast by Segment Leasing Business Fiscal Year ended Fiscal Year ending Year-on-Year March 31, 2011 March 31, 2012 (Forecast) Year-on-Year (%) ◆ Revenue increase due to the launch of the operation of a new building, new tenants moving in, Operating revenue (millions of yen) 18,244 18,300 +56 +0.3
Slide 19: Business Environment, Priority Measures and Dividend
Business Environment, Priority Measures and Dividend The effects of the worsening European debt problem, the yen’s appreciation and the Thai flooding on corporate Business environment earnings and consequently on real estate investment and the leasing business Leasing Business Real Estate Developmen
Slide 20: Environmental Assessment
Environmental Assessment Use of the SMBC Environmental Assessment Loan Acquired DBJ Green Building certification CentRise SAKAE The Tokyo Stock Exchange Bldg. The Osaka Securities Exchange Bldg. SMBC SMBC Environmental Assessment Loan Environmental Assessment Loan Assessment rating: Platinum (to
Slide 21: Medium-term Management Plan 2013 Foundations for the Future – Corporate Value Improvement Strategy
Medium-term Management Plan 2013 Foundations for the Future (the fiscal years 2011 through 2013) Corporate Value Improvement Strategy (1st Stage) – Strategic Actions for Performance & Quality Improvement – 21 HEIWA REAL ESTATE CO., LTD.
Slide 22: Medium-term Management Plan 2013 – Planning Philosophy
Medium-term Management Plan 2013 Foundations for the Future – Planning Philosophy Vision Based on our track record and the trust we have built up over many years through the management of buildings that house stock exchanges nationwide, we plan to play a key role in revitalizing urban areas, primari
Slide 23: Medium-term Management Plan 2013 – Strategy
Medium-term Management Plan 2013 Foundations for the Future – Strategy Basic Strategies (1) Increase the profitability of (2) Stabilize the financial base (3) Implement initiatives to business assets generate growth Business Strategies (1) Increase the profitability of business (4) Develop the REIT
Slide 24: Medium-term Management Plan 2013 – Numerical Targets
Medium-term Management Plan 2013 Foundations for the Future – Numerical Targets ◆ Growth in profits and financial control FY ending March 31, FY ending March 31, FY ending March 31, 2012 2013 2014 (Estimated) (Plan) (Plan) Operating income (million of yen) 6,500 6,500 7,000 Ordinary income (million