DAIBIRU CORPORATION (E03861) Stock Price

Daibiru is a comprehensive real estate company with office buildings, hotels, and residential apartments as its core business. The company operates building rental operations both domestically and internationally, while also providing building management and construction services. As a member of the Mitsui O.S.K. Lines Group, it conducts stable real estate operations.

The company's revenue structure is centered on land and building rental operations. Rental income from office building tenants is the primary revenue source, with additional earnings from rental operations overseas in countries such as Vietnam and Australia. The company also secures stable revenue by handling building management services through group subsidiaries.

The business is divided into three main segments. The largest pillar is land and building rental operations, which includes rentals of company-owned buildings as well as international expansion through overseas subsidiaries. The building management segment handles cleaning and facility maintenance for both company-owned and third-party buildings. Other operations include architectural design and construction management services.

Daiwa Building is pursuing an ambitious mid-to-long-term management strategy called "BUILD NEXT." targeting 2035, with numerical targets of 250 billion yen in pre-tax profit and 1 trillion yen in total assets. Marking its 100th anniversary, the company is charting a growth strategy for the next century, planning total investments of 700 billion yen during the strategy period. This strategy aims to achieve further growth through diversification of asset types and business expansion, in addition to stable growth in its traditional office leasing operations.

In domestic operations, the company is significantly expanding its investment portfolio beyond its existing large-scale office assets concentrated in Tokyo and Osaka. It is actively pursuing non-office asset types, including equity investments in 18 residential properties, logistics real estate development in Nagoya and Chiba, and investments in logistics facilities in Osaka. Additionally, the company is simultaneously advancing building replacement and urban development projects, including the Yaesu Daiwa Building redevelopment scheduled for completion in 2025 and a large-scale redevelopment project in Sapporo.

In international expansion, the company is expanding investments in existing markets—Vietnam and Australia—while making full-scale entry into India, an emerging growth market. In Vietnam, it operates three Grade-A office buildings, while in Australia it is building its business foundation through development projects and fund investments. In 2024, the company participated in office development projects near New Delhi and in Chennai, India, establishing a foothold in high-growth markets.

In technological innovation and new business areas, the company is accelerating real estate technology investments through collaboration with Mitsui O.S.K. Lines' corporate venture capital. Through startup investments including equity stakes in U.S. venture capital fund "MetaProp" and flying vehicle developer "AirX," the company is pursuing "new urban development." Simultaneously, through mezzanine investments and value-add fund investments, the company is diversifying its business model and improving ROA.