THE SANKEI BUILDING CO.,LTD. (E03860) Stock Price

Sankei Building is a comprehensive real estate company with its primary focus on property rental operations centered in Tokyo and Osaka. In addition to office rental operations in buildings it owns or co-owns, the company also leases buildings from other owners and subleases them. At Tokyo Sankei Building and Breeze Tower, the company operates rental conference rooms and rental halls.

The company's main customers include office building tenants, condominium purchasers, hotel guests, and restaurant customers. Its revenue structure is built on stable rental income from building operations as its core, supplemented by condominium sales revenue from residential operations, accommodation and dining revenue from hotel and resort operations, and construction revenue from architectural and interior design operations. The parent company is Fuji Media Holdings, Inc.

The company's business is divided into eight segments, with building operations and asset development operations forming the core. In residential operations, it develops, sells, and leases condominiums. In hotel and resort operations, it manages hotels nationwide. Additionally, through food and beverage operations, architectural and interior design operations, and building management operations, the company provides a wide range of real estate-related services. Other operations include theater management and senior housing operations.

Sankei Building's management strategy aims to expand its business portfolio and improve profitability across four core business segments—buildings, residential, senior care, and hotel resorts—as a corporate group dedicated to providing joy and satisfaction to urban residents. While the company has not set specific numerical targets, it positions itself as the sole real estate operator within the Fuji Media Holdings Group and pursues stable and sustainable long-term growth. Financially, the company prioritizes safety indicators such as equity ratio and places the highest emphasis on ensuring sound financial health in its business operations.

In key investment areas, the building business focuses on aggressive expansion of the mid-size office building series "S-GATE" and redevelopment of existing properties. Anticipating a large supply of office buildings predicted from 2018 onward, the company is strengthening tenant leasing efforts and relationship building to enhance market competitiveness. Additionally, it is developing real estate products for investors to better address diversifying market needs.

For new market development, the company is actively expanding beyond its traditional focus on Tokyo and Osaka to major cities nationwide. In residential business, it continues stable supply of condominiums centered on its core brand "LEFOND" and develops rental apartments. In senior care, it is strengthening facility development and operations that practice independent-living support care. The company has also begun international operations to enter global markets.

In the hotel resort business, capturing inbound demand expected to grow through government tourism strategy is positioned as a key strategic priority. The company is enhancing hotel development capabilities and pursuing active hotel development to capitalize on increased tourism demand as a revenue opportunity. While monitoring changes in the business environment, the company is clearly committed to building competitive advantages across business segments and improving corporate value.