Segment Information (IFRS)

Text Size
  • A
  • A

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 2Q
Revenue 43,006 49,818 57,754 61,543

34,452

Revitalization Business 25,986 25,809 40,268 34,793 17,075
Development Business 6,605 13,138 5,197 13,261 10,226
Rental Business 4,262 5,324 6,237 5,979 2,956
Fund and Consulting Business 2,444 2,329 2,802 3,038 1,318
Property Management Business 3,574 4,005 4,637 5,232 2,900
Hotel Business 0 0 0 557 591
Other * 694 341 0 0 0
Internal Transactions (559) (1,131) (1,388) (1,319) (618)
2015/112016/112017/112018/112019/11 2Q
Operating profit 6,891 9,279 9,833 10,875 7,964
Revitalization Business 4,174 4,001 7,845 6,770 5,027
Development Business 534 3,674 (408) 1,487 1,541
Rental Business 1,797 2,389 2,581 2,453 1,182
Fund and Consulting Business 1,464 951 1,273 1,616 690
Property Management Business 146 141 278 453 289
Hotel Business 0 0 0

36

131
Other * 178 (17) (74)

0

0

Corporate expenses (1,404) (1,860) (1,661) (1,942) (897)


Performance by business segment

Revitalization Business

 During the six months ended May 31, 2019, the segment sold 28 properties it had renovated, including Seiseki C-kan Building (Tama-shi,Tokyo), Ryogoku Tosei Building Ⅰ,Ⅱ (Sumida-ku, Tokyo), T’s garden Ojima (Koto-ku, Tokyo). In addition, the segment sold five units in the Restyling Business from Hilltop Yokohama Negishi (Yokohama-shi, Kanagawa) etc.
 During the six months ended May 31, 2019, it also acquired a total of 18 income-generating office buildings and apartments and two land lots for renovation and sales purposes.
 As a result, revenue in this segment was ¥17,075 million (down 2.9% year on year) and the segment profit was ¥5,027 million (up 18.9%).

Development Business

 During the six months ended May 31, 2019, the segment focused on the sale of condominium and detached houses for which there was firm demand. The segment sold 138 units at THE Palms Chofu Manorgarden (Chofu-shi, Tokyo) etc. and sold 37 detached houses at such properties as THE Palms Court Funabashi Hoten (Funabashi-shi, Chiba), THE Palms Court Kamakura shiromeguri (Kamakura-shi, Kanagawa). In addition, the segment sold one commercial facility, one newly-built apartment and six land lots.
 During the six months ended May 31, 2019, it also acquired three lots for hotel projects, one land lot for logistics facility project, one land lot for commercial facility project and land lots for 56 detached houses.
 As a result, revenue in this segment was ¥10,226million (up 18.7% year on year) and the segment profit was ¥1,541 million (up 9.5%).

Rental Business

 During the six months ended May 31, 2019, while the segment sold 21 buildings of its inventory assets held for leasing purposes, it newly acquired 10 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 ¥2,934 million (up 4.9% year on year) and the segment profit was ¥1,182 million (down 1.5%).

Fund and Consulting Business

 During the six months ended May 31, 2019, while ¥28,842 million was added to the balance of assets under management (Note), due to new asset management contracts, ¥41,582 million was subtracted from the balance of Assets under management ¥663,359 million for the end of the previous fiscal year, mainly due to property dispositions by funds. The balance of assets under management as of May 31, 2019, was ¥650,619 million.
 As a result, revenue in this segment was ¥1,309 million (down 1.2% year on year) and the segment profit was ¥690 million (down 2.5%).

Note: The balance of assets under management includes the balance of assets that were subject to consulting contracts, etc.

Property Management Business

 During the six months ended May 31, 2019, the segment made efforts to win new contracts and maintain existing contracts. Consequently, the total number of properties under management was 632 as of May 31, 2019, a decrease of 35 from May 31, 2018, with the total comprising 399 office buildings, hotels, schools and other such properties, and 233 condominiums and apartments.
 As a result, although the total number of properties under management decreased, revenue in this segment was ¥2,317 million (up 19.5% year on year) and segment profit was ¥289 million (up 41.4%).

Hotel Business

 During the six months ended May 31, 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 TOSEI HOTEL COCONE Ueno which newly opened in December 2018 contributed to revenue.
 As a result, revenue in this segment was ¥589 million (up 125.1% year on year) and segment profit was ¥131 million (up 32.0%).