CRE, Inc. (E31441) Stock Price

CRE is a corporate group whose primary business includes leasing, management, development, brokerage, investment advisory, and investment management of logistics facilities. Founded in 2009, the company has expanded its operational base through multiple mergers and acquisitions. It has particularly focused on logistics facility development while leveraging its expertise in leasing and management.

CRE's business is divided into four segments: real estate management, logistics investment, asset management, and overseas operations. The real estate management segment handles master leases, property management, construction, and leasing, primarily operating and managing logistics facilities.

The logistics investment segment conducts end-to-end operations from market research and land acquisition through construction, tenant recruitment, and asset sales, advancing the development of advanced logistics facilities. This approach delivers high-performance facilities designed from the user's perspective.

The asset management segment, through its subsidiary Strategic Partners Inc., provides investors with investment opportunities in income-generating real estate and management services. Additionally, CRE Logistics Advisors Inc. manages CRE Logistics Fund Investment Corporation.

The overseas operations segment develops logistics facilities in Southeast Asia, conducting market research, land acquisition, construction, tenant recruitment, and management of developed and acquired properties in partnership with joint venture partners. Through these efforts, the company aims to build international logistics infrastructure.

CRE aims to become a leading company in logistics infrastructure and is advancing its growth strategy. In its Second Medium-Term Management Plan (fiscal year ending July 2022 through fiscal year ending July 2026), formulated in August 2021, the company prioritizes steady growth in the logistics real estate sector. Specifically, it positions flow business as a growth driver while targeting expansion of stock business.

CRE seeks to increase real estate management income by expanding managed area. The company will promote asset utilization proposals to property owners, acquire new properties, and undertake property management contracts to expand managed area and increase profits. Additionally, CRE aims to grow entrusted asset balance by organizing development-type funds and advancing co-development with other developers.

As new areas of focus, the company targets monetization of overseas and new business operations. In particular, it plans to expand real estate investment in the ASEAN region, including warehouse development in Vietnam, to achieve profitability in overseas business. The company will also expand new business through capital and operational partnerships, leveraging synergies with existing operations to drive revenue growth.

The company also emphasizes contribution to a sustainable society. Through decarbonization of development projects, acquisition of green building certifications, and utilization of green finance, CRE advances initiatives toward achieving the Sustainable Development Goals (SDGs). This enables environmentally conscious business operations.

The company places importance on establishing systems to sustain growth. It aims to maintain appropriate financial controls and keep the net D/E ratio at 2.5x or below. Additionally, CRE focuses on developing talent to support growth, advancing training programs and environmental improvements to cultivate personnel with specialized knowledge and expertise.

CRE is proactive in shareholder returns. The company sets a total payout ratio combining dividends and share buybacks at a minimum of 30% per period, with a target of 50%. In addition to maintaining stable dividends, CRE implements flexible shareholder returns to enhance shareholder value.