Investors Guide
2024 Q1
Table of Contents
Corporate Profile | P.2-4 |
Medium- and Long-term Management Plan (2020-2029) | P.5-8 |
2 | Corporate Profile | ||||||
Corporate History of Growth and Achievements | |||||||
Since the | Profit and dividend | 12-fold increase | External rating up | ||||
increase for | by 3 notches | ||||||
listing in 2008 | 15 consecutive years | in ordinary profit |
Consolidated | Initial forecast | Results (difference over initial forecast) | Plan/targets | 180.0 | |||||||||||||||||
Ordinary Profit (Unit: JPY bn) | 150.0 | ||||||||||||||||||||
144.0 | |||||||||||||||||||||
2019 | |||||||||||||||||||||
2008 | Made Nippon View Hotel | 137.4 | |||||||||||||||||||
CO., LTD., a subsidiary | |||||||||||||||||||||
Listed shares on the First | |||||||||||||||||||||
123.2 | |||||||||||||||||||||
Section of the Tokyo Stock | |||||||||||||||||||||
Exchange | 109.5 | ||||||||||||||||||||
2015 | |||||||||||||||||||||
2007 | 2010 | Merged with Simplex | 95.6 | ||||||||||||||||||
Investment Advisors Inc. | |||||||||||||||||||||
Changed corporate | Merged with Senshu | (a real estate company) | 846 | ||||||||||||||||||
name to Hulic Co., Ltd. | Shoji Co., Ltd. and | ||||||||||||||||||||
Fuyo General | 2012 | 72.5 | |||||||||||||||||||
Development and | |||||||||||||||||||||
1957 | Finance Co., Ltd. | Merged with Shoei | 51.4 | 61.8 | |||||||||||||||||
Established Nihonbashi | (real estate leasing | Co., Ltd. (a real | |||||||||||||||||||
Kogyo Co., Ltd. | companies) | estate company) | |||||||||||||||||||
Started property | 42.5 | ||||||||||||||||||||
management for the former | 34.3 | ||||||||||||||||||||
Fuji Bank (now Mizuho | |||||||||||||||||||||
25.9 | |||||||||||||||||||||
Bank) branch buildings and | 20.0 | ||||||||||||||||||||
insurance agency business | 16.8 | ||||||||||||||||||||
10.9 | 10.9 | 12.3 | |||||||||||||||||||
1957 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2029 |
External | BBB- | A- | A | A+ | AA- | ||||||||||||||||
Rating | |||||||||||||||||||||
(JCR) |
Long-term Management Plan (2009-18)Long-term Management Plan (2014-23) | Current Medium- and Long-term Management Plan (2020-29) |
Achieved all targets | Achieved all targets |
four years ahead of schedule | four years ahead of schedule |
3 | Corporate Profile |
Business Overview | |
Consolidated Business Overview
FY2023 | ||||
Business Segment | Operating | Major businesses | ||
Profit | ||||
(Million yen) | ||||
1 | Real Estate | 154,432 | ||
Leasing, etc. | 59,192 | Leasing, development and asset management, etc. | ||
Sales | 95,239 | |||
2 | Insurance Agency | 1,087 | Insurance agency | |
3 | Hotels / Ryokans | 1,026 | Hotels / Ryokans operation | |
4 | Others | 511 | General construction, design, construction management, etc. | |
Adjustment | -10,878 | |||
Operating Profit | 146,178 |
Selection and Concentration Strategy
for Real Estate Business
Core Fields | Non-core Fields | |||||
Offices in Tokyo | Offices in | |||||
prime locations | regional areas | |||||
Medium-sized | Large "S-class" | |||||
offices | offices | |||||
Reconstruction / | Large-scale | |||||
Medium-scale | development | |||||
development | ||||||
Nursing homes | Condominium | |||||
Hotels / Ryokans | sales | |||||
Business data, features
A small group of elite professionals
(As of the end of 2023)
Non-consolidated basis: 222 employees Consolidated basis: 1,357 employees
Ordinary profit per employee: JPY 600 mil
(on a non-consolidated basis)
Operating Hotels / Ryokans
(As of the end of 2023)
- 4 THE GATE HOTEL (608 rooms)
- 11 FUFU [luxury Japanese-inn] (268 rooms)
- 7 View Hotels and others (1,874 rooms)
Real Estate Leasing Portfolio
(Excl. Real estate for sale. As of Mar. 2024)
- # of Properties: 251
- Net Leasable Area: approx. 1,312,000㎡
- Office Vacancy Ratio: 0.4% (for all Hulic)
- Average rent: 27,859 Yen (for Tokyo Top 5 wards)
- AUM of Hulic J-REIT: approx. JPY 400 bn Hulic also has Private REIT and Funds
Sources of Rent Revenue (Mar. 2024 monthly)
Logistics & Data | Office | |
Center, etc. 8% | 43% | |
Retail | Office | |
commercial | ||
38% | ||
25% | ||
Nursing | Office | |
home | ||
Hotel, | (Mizuho) | |
4% | Ryokan | 5% |
20% | ||
Long-term | Mizuho FG 5% | |
master leasing | Corporate | |
(Mizuho Bank's |
Residence 0% | branch buildings) |
4 | Corporate Profile |
Shareholder Return | |
Dividend increase for 15 consecutive years since the listing
Dividend and Payout ratio History | Medium-term Plan | |||
(2023-2025) | ||||
(Dividend: Yen) | Payout ratio guidance | (Payout ratio) | ||
40% or higher | ||||
45.0% | ||||
Annual Dividend per Share | 40.3% 40.2% (40.3%) | |||||||||||||||||
60.00 | Payout Ratio | |||||||||||||||||
38.5% | 40.0% | |||||||||||||||||
37.8% | ||||||||||||||||||
33.9% | 35.4% | 50.00 | (52.00) | |||||||||||||||
50.00 | 32.6% | 35.0% | ||||||||||||||||
32.0% | ||||||||||||||||||
27.8% | 29.3% | 42.00 | 30.0% | |||||||||||||||
40.00 | 39.00 | |||||||||||||||||
24.0% | 36.00 | 25.0% | ||||||||||||||||
21.8% | ||||||||||||||||||
31.50 | ||||||||||||||||||
30.00 | 20.0% | |||||||||||||||||
25.50 | ||||||||||||||||||
20.00 | Former Hulic* | 21.00 | 15.0% | |||||||||||||||
15.50 17.00 | ||||||||||||||||||
Merged with Shoei Co., | ||||||||||||||||||
Ltd. in 2012 | 10.50 | 10.0% | ||||||||||||||||
10.00 | 6.50 | |||||||||||||||||
4.50 | 5.0% | |||||||||||||||||
3.67 | ||||||||||||||||||
2.67 | 3.00 | |||||||||||||||||
2.00 | ||||||||||||||||||
0.00 | 0.0% | |||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2029 |
*In consideration of the 2012 merger with Shoei Co., Ltd. (share exchange ratio: former Shoei : former Hulic = 1:3), the dividends per share in 2008-2011 were calculated by dividing dividends of the former Hulic by three.
5
Initial
plan
Result
Medium- and Long-Term Management Plan (2020-2029)
Position of the Plans
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Previous Long-term Plan "Hulic 10 years" | ||||
Phase I | Phase II | Phase III | Ordinary profit: | |
JPY 85.0 bn | ||||
2014-2016 | 2017-2019 | 2020-2023 | ||
Phase I | Phase II | Phase III | Achieved | |
2014-2015 | 2016-2017 | 2018-2019 | 4 years ahead | |
Ordinary profit: | ||||
JPY 180.0 bn |
New Medium- Long-term Plan (2020-2029)
Phase I | New Medium-term Plan | |
Phase II | ||
2020-2022 | ||
2023-2025 | ||
Prioritize | Keep the flexible | |
reconstruction for | earnings structure | |
earthquake resilience | to grow profit | |
Ratio of income gains and capital gains are changeable
according to development schedule and financial market environment.
In progress
Phase III
2026-2029
Leasable floor area
expands &
High-spec buildings
Leasing / Management Profit
ratio will reach 55-65%
Phase I | ・ Start building strong leasing portfolio, resume development and reconstruction projects | |||||
Phase II | ・ Monetization of development and value-added businesses and strengthen the REIT and fund business | |||||
In progress | ||||||
Phase III | ・ Build up a solid and expanded portfolio for leasing business | |
6 Target Profile / Basic Policy / Basic Strategy (2020-2029)Medium-and Long-TermManagement Plan (2020-2029)
Target Profile
2029
Basic Policy
- To increase corporate value through flexible and speedy management decision according to macro environment change
- Ensuring excellent balances of "PL Growth" "Profitability" "B/S Soundness" and "Productivity (efficiency)"
Basic
Strategy
1. Leasing Portfolio corresponding to future
demographic shift
Business
2. Redevelopment or refurbishment of aged buildings
3. Investing to new business domains
Management infrastructure
4. Selective business focus for | 5. Management commitment to | |||
stronger management foundation | environmental sustainability | |||
7 | Medium- and Long-Term Management Plan (2020-2029) |
KPI / Quantitative Targets | |
2023 | 2024 | 2025 | 2029 | ||||||||||
Result | Forecast | (the final year of Phase II) | |||||||||||
Growth | Ordinary profit | 137.4 bn | 144.0 bn | 150.0 bn | 180.0 bn | ||||||||
Debt / EBITDA | 7.6 times | - | 12 times or less | 12 times or less | |||||||||
Soundness | |||||||||||||
Net D/E ratio | 1.3 times | - | 3 times or less | 3 times or less | |||||||||
Efficiency | ROE | 13.0% | - | 10% or more | 10% or more | ||||||||
Shareholder | Dividend payout ratio | 40.2% | 40.3% | 40% or more | - | ||||||||
return | |||||||||||||
Note: Financial metrics are calculated with 50% of hybrid finance as nominal equity | |||||||||||||
For reference | |||||||||||||
Profit Plan | 2025 | Investment limit | 2023-25 | ||||||||||
(the final year of Phase II) | (3 years total) | ||||||||||||
Operating Revenue | - | Net investment | 900.0 bn | ||||||||||
Operating Profit | 165.0 bn | Leasing, management, etc. | 550.0 bn | ||||||||||
Ordinary Profit | 150.0 bn | Development / | 200.0 bn | ||||||||||
Reconstruction / VA | |||||||||||||
Profit attributable | 98.5 bn | New Business Area* | 150.0 bn | ||||||||||
to Owners of Parent | *Including growth investment | ||||||||||||
8 Management Plan Phase II (2023-2025): Basic Strategy & Focus AreasMedium- and Long-TermManagement Plan (2020-2029)
Basic
Strategy
Aim to create a high-quality leasing portfolio that addresses the changing
circumstances, and continue to enhance sustainable management,
while maintaining a strong credit rating
Basic Strategy of
Long-Term Management Plan
(2020-2029)
1
Further evolve the business model and
1
Focus Areas of
New Medium-Term Management Plan
(Phase II : 2023-2025)
Build a high-qualityleasing portfolioand
Focus Areas
restructure the leasing portfolio
2
Strengthen development and value-
added businesses
3
Create unique new business domains
and improve Group strengths
- Strengthen the management
foundation and implement stringent risk
management
-
Implement management that
emphasizes sustainable co-creation
and co-existence with society
maintain/strengthen a flexible earnings structure
2 Enhance the pipeline of development,
reconstruction and value-added properties.
Diversify exits to ensure profitability
3 | Diversify revenue sources | |
by enhancing new business domains | ||
- Ensure financial soundness and thorough risk management to maintain a strong credit rating
- Raise the level of sustainable management, including the promotion of environmental initiatives and human capital development
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Disclaimer
Hulic Co. Ltd. published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 02:18:08 UTC.