Message from the President

Review of Interim Results of the 12th Fiscal Year

During the first half of the current fiscal year, the Japanese economy remained on a gradual recovery track, supported by strong inbound demand, increased capital investment backed by favorable corporate earnings, and improved employment conditions. The Group reported an increase in revenue thanks to favorable performance in condominium sales and the real-estate sales agent business amid a steady housing market, as well as a high level of inbound demand in the hotel business. However, the Group saw a decrease in profit due mainly to the absence of gains on asset sales conducted in the previous fiscal year.

Upward Revisions to Our Full-Year Results Forecast

Despite an uncertain business environment marked by domestic and overseas economic fluctuations and geopolitical risks, we have revised upward our full-year forecasts for the fiscal year ending March 31, 2025 that we announced on May 10, 2024. This move takes into account the robustness of domestic and inbound tourist demand, which benefits our hotel and resort business, as well as strong results from real estate transactions, condominium sales, and our real-estate sales agent business, all of which are currently buoyed by vigorous real estate market conditions.

The Group will continue its efforts to create high added value by flexibly responding to changes in economic conditions and leveraging the strength of each segment and characteristically broad business wings.

We are creating greater vibrancy in the Greater Shibuya area. The opening of Tokyu Plaza Harajuku “Harakado” in April 2024 was soon followed by Shibuya Sakura Stage in July.

The Company is shifting the focus of Shibuya’s urban development from the traditional physical infrastructure-centered approach to town management, and working to build a creative culture that will serve as a wellspring for making and keeping Shibuya unique. Going forward, we will continue to enhance the area’s value on a Group-wide basis and broaden business opportunities as we make Shibuya the true and fitting home of the Group.

To Our Shareholders

At present, the Company is targeting a dividend payout ratio of 30% or more and aims to continue providing stable dividends. With this in mind, we increased interim dividends to ¥17 per share, up ¥1 per share from the previous fiscal year. Annual dividends are planned to be ¥34 per share (up ¥2 from the initial forecast and up ¥3 from the previous fiscal year).

The Group is currently in the process of formulating its next Medium-Term Management Plan. The new plan is scheduled to be announced in May 2025.

We plan to move from the restructuring phase of our long-term management policy to the resilience phase in order to build a solid and distinctive business portfolio. To this end, we will establish a competitive advantage in each of our businesses, as we create high added value—that no other company can match in terms of industry, region, and environment—throughout the Group’s value chain. And we will translate their unique qualities into equivalent “premium value.”

We will continue to develop new core businesses that are not impacted by real estate market conditions by developing the seeds of ventures that will lead to solutions to regional and social issues, such as industrial development, urban tourism, regional development, and GX.

Through the advancement of the Group-wide policies of environmental management and DX, as set forth in our long-term management policy, we will continue to transform our distinctly broad business wings into true strengths and aim to be a corporate group which continues to create value.

I would like to thank our shareholders for their unwavering support and cooperation.

December 2024