Message from the President and CEO
- Text Size
Achieved record profit and a growth rate of 19% (profit before tax)
In the real estate investment market focused on the Greater Tokyo area, which is the Company’s main target market, J-REITs, overseas investors, and business enterprises, among others, have been active in the market, helped by the continuously favorable financing environment due to the long-running monetary easing policy. While property prices remain high, investors are still strongly motivated to invest in real estate such as income-generating real estate in the Greater Tokyo Area, including offices and condominiums supported by firm rental needs and logistics facilities for which demand is increasing due to the growth of e-commerce. Given these favorable developments, the real estate investment market remains firm.
In this business environment, the Company has been pursuing its medium-term management plan, Seamless Growth 2020 (December 2017- November 2020). Under this plan, we are working on sustained growth for the Group as our overall policy. In the fiscal year ended November 30, 2019, the second year in the plan, we focused on diversifying the properties we handle, improving profitability, and expanding purchases in the Revitalization Business and the Development Business, our core businesses. In the Fund and Consulting Business, we worked to win investor trust by providing quality services. As a result, assets under management (AUM) reached an all-time high, exceeding ¥840 billion. In new business domains, we promoted business widely, including the promotion of the development business of logistics facilities, the development of our proprietary brand of hotels, and preparation for the start-up of the cloud funding business.
Thanks to gains on sales of properties in the Revitalization Business and the Development Business and commissions and fees in the Fund Business that drove the profits of the overall Group as a result of the efforts above, financial results for the fiscal year ended November 30, 2019 showed revenue of ¥60.7 billion (an decrease of 1.3% compared with the previous year), profit before tax of ¥12.0 billion (an increase of 18.9%) and profit for the period of ¥8.4 billion (an increase of 23.3%). While revenue remained nearly unchanged from the previous year as a result of our reviewing the sales plan during the period in light of the current real estate market conditions, profits made a big leap. As a result, we were able to achieve ¥120 billion, the target consolidated profit before tax for the final year of the ongoing medium-term management plan “Seamless Growth 2020,” a year ahead of schedule.
In FY2020, plan to increase profits for the 10th consecutive year, aiming for further growth.
Finally, the Tokyo Olympic and Paralympic Games will be held this year. Three new hotels, “Tosei Hotel & Seminar Makuhari,” “Tosei Hotel Cocone Asakusa-Kuramae,” and “Tosei Hotel Cocone Ueno-Okachimachi” are to open under our own management. In the current fiscal year, we will continue to actively develop business, by strengthening our readiness for changes in the business environment through our portfolio management and making full use of our diverse products and broad-ranging solution capabilities.
The Group will continue to work together to raise corporate value through aiming for further growth. We look forward to your continued support.
President and CEO