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 
Revenue 43,006 49,818 57,754 61,543

60,727

Revitalization Business 25,986 25,809 40,268 34,793 31,012
Development Business 6,605 13,138 5,197 13,261 14,346
Rental Business 4,262 5,324 6,237 5,979 5,993
Fund and Consulting Business 2,444 2,329 2,802 3,038 3,773
Property Management Business 3,574 4,005 4,637 5,232 5,888
Hotel Business 0 0 0 557 1,089
Other * 694 341 0 0 0
Internal Transactions (559) (1,131) (1,388) (1,319) (1,375)
2015/112016/112017/112018/112019/11 
Operating profit 6,891 9,279 9,833 10,875

12,690

Revitalization Business 4,174 4,001 7,845 6,770 7,754
Development Business 534 3,674 (408) 1,487 1,528
Rental Business 1,797 2,389 2,581 2,453 2,367
Fund and Consulting Business 1,464 951 1,273 1,616 2,365
Property Management Business 146 141 278 453 504
Hotel Business 0 0 0

36

99

Other * 178 (17) (74)

0

0

Corporate expenses (1,404) (1,860) (1,661) (1,942) (1,928)


Performance by business segment

Revitalization Business

  During the fiscal year under review, the segment sold 53 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), Century Urawa Apartment (Saitama-shi, Saitama) and Grosvenor Square Building (Yokohama-shi, Kanagawa). In addition, the segment sold 11 units in the Restyling Business, including Hilltop Yokohama Negishi. During the fiscal year under review, it also acquired a total of 39 income-generating office buildings and apartments and four land lots for renovation and sales purposes.
  As a result, revenue in this segment was ¥31,012 million (down 10.9% year on year) and the segment profit was ¥7,754 million (up 14.5%).

Development Business

  During the fiscal year under review, the segment focused on the sale of condominium and detached houses for which there was firm demand. The segment sold 163 units at THE Palms Chofu Manorgarden (Chofu-shi, Tokyo), and sold 94 detached houses at such properties as THE Palms Court Funabashi Hoten (Funabashi-shi, Chiba), THE Palms Court Mitsuike-Koen Ⅱ (Yokohama-shi, Kanagawa), THE Palms Court Kamakura shiromeguri (Kamakura-shi, Kanagawa), etc. In addition, the segment sold one commercial facility, one newly-built apartment and 12 land lots. .
  During the fiscal year under review, it acquired three land lots for hotel projects, two land lots for logistics facility projects, two land lots for commercial facility projects, three land lots for apartment projects, one land lot for income-generating office building and land lots for 141 detached houses.
  As a result, revenue in this segment was 14,346million (up 8.2% year on year) and the segment profit was¥1,528 million (up 2.8%).

Rental Business

 During the fiscal year under review, while the segment sold 39 buildings of its inventory assets held for leasing purposes, it newly acquired 28 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 ¥5,944 million (up 0.2% year on year) and the segment profit was ¥2,367 million (down 3.5%).

Fund and Consulting Business

 During the fiscal year under review, while ¥215,844 million was subtracted from the balance of Assets under management mainly due to property dispositions by funds, ¥398,963 million was added to the balance of assets under management (Note) ¥663,359 million for the end of the previous fiscal year, due to new lage asset management contracts. The balance of assets under management as of November 30, 2019, was ¥846,478 million. The acquisition of such large project contracts increased asset management fees and contributed to revenue.
   As a result, revenue in this segment was ¥3,752 million (up 25.8% year on year) and the segment profit was ¥2,365 million (up 46.3%).
Note: The balance of assets under management includes the balance of assets that were subject to consulting contracts, etc.

Property Management Business

During the fiscal year under review, the segment worked to win new contracts and maintain existing contracts. Consequently, the total number of properties under management was 659 as of November 30, 2019, an increase of 37 from November 30, 2018 with that total comprising 415 office buildings, hotel, schools and other such properties, and 244 condominiums and apartments.
As a result, revenue in this segment was ¥4,586 million (up 14.2% year on year) and segment profit was ¥504 million (up 11.1%).

Hotel Business

 During the fiscal year under review, 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 ¥1,086 million (up 95.5% year on year) and segment profit was ¥99 million (up 175.2%).