(E00362) Stock Price

Shin-Chu Sugar Industries is a company whose primary business is real estate rental operations utilizing company-owned land. The company generates stable rental income by leasing its owned land and buildings to tenant companies. Additionally, the company engages in real estate transaction services, including brokerage of property sales and purchases as part of its business operations.

The company's revenue is primarily centered on rental income from real estate leasing. By maintaining a stable asset base of company-owned land, the company has built a business model that secures continuous rental income. Customers consist mainly of corporate tenants and individuals using rental properties, with long-term lease agreements enhancing revenue stability.

The company's business is organized as a single segment with a relatively simple business structure centered on real estate rental. In addition to its core rental business, the company maintains a diversified business portfolio by operating real estate transaction services, enabling it to adapt to changes in market conditions.

Shin-Naka Sugar Industries aims for sustainable growth centered on real estate rental operations, with a medium to long-term management target of achieving an ROE (return on equity) of 8% or higher. Under its management philosophy of "contributing to local communities and realizing employee happiness," the company has established three strategic pillars: maintaining profitability of existing rental properties and strengthening operations through new rental ventures, reinforcing its management foundation, and advancing initiatives toward a decarbonized society.

The company's priority investment area is the development of owned land. It is actively promoting a development plan for the former Nishihara Town Hall site, working to materialize the project through ongoing discussions with stakeholders. Regarding the former Second Factory site, the company is strengthening information gathering in anticipation of improved development potential resulting from a review of land use plans in the surrounding area. Through these new development projects, the company seeks to secure new revenue sources in addition to its traditional rental operations.

As part of its new market development efforts, the company is considering entry into real estate transaction services in addition to real estate rental operations. It maintains close information exchanges with consulting firms to monitor market trends, while actively participating in various real estate-related training programs to enhance employee skills. By reviewing past rental operation results and exploring new business possibilities, the company is working to expand its business scope.

Regarding management foundation strengthening, the company ensures both safety and profitability of its properties through compliance with periodic inspection requirements under the Building Standards Law and the formulation of long-term maintenance plans. It is optimizing operational costs through efficient maintenance planning, including upgrades to energy-efficient equipment, while securing business continuity through comprehensive store insurance coverage against natural disaster risks.