Announcement of Formulation of New Medium-Term Management Plan “Bazukuri Transformation 5 (BX5)” and Upward Revision of Numerical Targets in Long-Term Vision “WAY 2040”

Key Points of the New Medium-Term Plan and Growth Strategy

Formulated the new medium-term management plan BX5 covering FY2027–FY2031. BX5 advances five strategies (BX-1 to BX-5) and aims for nationwide rollout centered on redevelopment projects such as Sapporo, Nihonbashi Kabutocho / Kayabacho areas. For the first time, consideration is being given to expansion into overseas real estate, targeting improved capital efficiency and ROE exceeding 10%. Financial targets are set at consolidated business profit of at least 29 hundred million yen, EPS of at least 220 yen, and ROE of 10% or more. Capital policy assumes a payout ratio of around 50% with progressive dividends and flexible share buybacks.

Key Points of Financial and Capital Policy and Outlook

Capital allocation presents plans for FY2027–FY2031. Assumed investments include approximately 190 hundred million yen for redevelopment, approximately 50 hundred million yen for property acquisition, approximately 30 hundred million yen for overseas real estate investment and similar initiatives, approximately 15 hundred million yen for CAPEX, and approximately 35 hundred million yen for shareholder returns. The balance of cross-shareholdings is planned to be reduced to around 5% by FY2031. Numerical targets assume ROE of 10% or more and progressive dividends with a payout ratio of around 50%.