Chuo-Nittochi Co., Ltd. (E03886) Stock Price

**Diversified Real Estate Services Business**

Chuo Nippon Tochi Kensetsu is a comprehensive real estate company covering a wide range of services from property development and management to sales and asset management. Working with six subsidiaries, the company provides diverse services including office building and commercial facility development and leasing, residential business, real estate brokerage, and asset management. The company is characterized by leveraging real estate expertise accumulated since its founding to deliver comprehensive solutions tailored to customer needs.

**Stable Revenue from Diverse Customer Base**

The company's revenue is composed of multiple sources: stable rental income from office buildings and commercial facilities, development profits from residential sales, brokerage commissions, and asset management fees. Its customer base spans corporate real estate needs, individual home purchases, and institutional investor asset management, creating a balanced business structure that does not depend on any single market.

**Four Core Businesses Delivering Comprehensive Strength**

Operations are divided into four segments: urban development, residential, real estate solutions, and asset management. In urban development, subsidiary Nitochi Building Service handles building management while Nitochi Construction manages renovation projects, providing end-to-end services from development to operations. In asset management, Nitochi Asset Management handles real estate fund formation and operation, while expanding asset management products for institutional investors.

Following its management integration with Chuo Real Estate in April of this year, Chuo Nihon Tochi Kenbutsu has announced a new growth strategy. Through the establishment of a joint holding company, "Chuo Nihon Tochi Kenbutsu Group," the company has stated its aim to become "a comprehensive real estate group that challenges changing market trends and co-creates value that exceeds expectations," under the slogan "Co-creating the Future." In April 2021, the company plans to reorganize its subsidiaries under the holding company into business-specific entities focused on "urban development, sales, and leasing," "brokerage, appraisal, and CRE strategic support," and "building management," thereby strengthening its management foundation and enhancing specialized capabilities.

As a priority investment area, the company has identified responding to evolving market needs as its top priority. With the acceleration of workplace reform driven by the COVID-19 pandemic, office formats are diversifying to include shared offices and small offices. The company is focusing on real estate development adapted to these new work styles. Additionally, the company has positioned the planning and development of housing suitable for remote work and work-from-home arrangements as a key growth area, pursuing a differentiation strategy that sets it apart from conventional real estate operations.

In developing new markets, the company plans to pursue an aggressive investment strategy based on a stable management foundation, leveraging the unified sales and financial platform made possible by the integration. Anticipating structural changes in office demand due to Japan's declining birthrate, aging population, and population decline, the company is implementing a strategy to convert market changes into business opportunities through enhanced development capabilities and service quality driven by innovative thinking.

Regarding technological innovation, the company has identified real estate technology adaptation as an urgent priority. Beyond advancing real estate services through the application of IoT and AI, the company demonstrates a commitment to actively addressing global social imperatives such as ESG and SDGs. The company aims to build a new business model that simultaneously creates social and economic value while achieving sustainable development goals and maintaining profitability.