Segment Information (IFRS)

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Segment Information

The reference figures provided in this document have been prepared under IFRS.

  • *The revenue and profit of the Rental business has been paratially transferred in consideration of the establishment of a new hotel business in FY2019. For comparison, segment information for FY 2018 is presented based on the revised classification in this material.

Segment Information of Revenue

(¥ Million)

Segment Information of Revenue

(¥ Million)

2015/112016/112017/112018/112019/11 1Q
Revenue 43,006 49,818 57,754 61,543

17,059

Revitalization Business 25,986 25,809 40,268 34,793 6,623
Development Business 6,605 13,138 5,197 13,261 7,045
Rental Business 4,262 5,324 6,237 5,979 1,481
Fund and Consulting Business 2,444 2,329 2,802 3,038 607
Property Management Business 3,574 4,005 4,637 5,232 1,341
Hotel Business 0 0 0 557 253
Other * 694 341 0 0 0
Internal Transactions (559) (1,131) (1,388) (1,319) (293)
2015/112016/112017/112018/112019/11
Operating profit 6,891 9,279 9,833 10,875 3,125
Revitalization Business 4,174 4,001 7,845 6,770 1,424
Development Business 534 3,674 (408) 1,487 1,045
Rental Business 1,797 2,389 2,581 2,453 606
Fund and Consulting Business 1,464 951 1,273 1,616 297
Property Management Business 146 141 278 453 120
Hotel Business 0 0 0

36

48

Other * 178 (17) (74)

0

0

Corporate expenses (1,404) (1,860) (1,661) (1,942) (417)


Performance by business segment

Revitalization Business

 During the three months ended February 28, 2019, the segment sold 15 properties it had renovated, including Ryogoku Tosei Building Ⅰ,Ⅱ (Sumida-ku, Tokyo), T’s garden Mukogaokayuen (Kawasaki-shi, Kanagawa), T’s Link Harajuku (Sibuya-ku, Tokyo). In addition, the segment sold four units in the Restyling Business from Hilltop Yokohama Negishi (Yokohama-shi, Kanagawa).
 During the three months ended February 28, 2019, it also acquired a total of 11 income-generating office buildings and apartments and one land lot for renovation and sales purposes.
 As a result, revenue in this segment was ¥6,623 million (down 54.1% year on year) and the segment profit was ¥1,424 million (down 62.5%).

Development Business

 During the three months ended February 28, 2019, the segment focused on the sale of condominium and detached houses. The segment sold 121 units at THE Palms Chofu Manorgarden (Chofu-shi, Tokyo) and sold 17 detached houses at such properties as THE Palms Court Funabashi Hoten (Funabashi-shi, Chiba), THE Palms Court Higashi Nakano (Nakano-ku, Tokyo). In addition, the segment sold one commercial facility and three land lots.
 During the three months ended February 28, 2019, it also acquired two lots for hotel projects, one land lot for logistics facility project, one land lot for commercial facility project and land lots for 41 detached houses.
 As a result, revenue in this segment was ¥7,045million (up 819.5% year on year) and the segment profit was ¥1,045 million (in comparison with segment loss of ¥145 million in the same period of the previous fiscal year).

Rental Business

  During the three months ended February 28, 2019, while the segment sold 11 buildings of its inventory assets held for leasing purposes, it newly acquired six properties including income-generating office buildings and apartments. In addition, the segment made efforts to lease vacancies out following acquisitions and also focused on leasing activities for its existing non-current assets and inventory assets.
 As a result, revenue in this segment was ¥1,470 million (up 8.8% year on year) and the segment profit was ¥606 million (up 2.1%).

Fund and Consulting Business

   During the three months ended February 28, 2019, while ¥11,808 million was added to the balance of assets under management (Note), due to new asset management contracts, ¥14,433 million was subtracted from to the balance of Assets under management ¥663,359 million for the end of the previous fiscal year, due mainly to property dispositions by funds. The balance of assets under management as of February 28, 2019, was ¥660,733 million.
 As a result, revenue in this segment was ¥603 million (down 10.5% year on year) and the segment profit was ¥297 million (down 21.3%).
Note: The balance of assets under management includes the balance of assets that were subject to consulting contracts, etc.

Property Management Business

   During the three months ended February 28, 2019, the segment made efforts to win new contracts and maintain existing contracts. Consequently, the total number of properties under management was 626 as of February 28, 2019, a decrease of 34 from February 28, 2018, with the total comprising 392 office buildings, hotels, schools and other such properties, and 234 condominiums and apartments.
 As a result, although the total number of properties under management decreased, revenue in this segment was ¥1,063 million (up 9.1% year on year) and segment profit was ¥120 million (up 10.8%).

Hotel Business

   During the three months ended February 28, 2019, the Group worked towards increasing the average daily rate and occupancy rate for TOSEI HOTEL COCONE Kanda, opened in December 2017, as well as newly opening TOSEI HOTEL COCONE Ueno in December 2018 contributed to revenue.
 As a result, revenue in this segment was ¥252 million (up 113.3% year on year) and segment profit was ¥48 million (up 14.6%).