News Releases
Financial Report for the Fiscal Year Ended March 2022
- Corporate Information
Mori Trust Group recently announced its consolidated business performance for the year ended March 31, 2022 (FY 2022). The Group consists of 33 consolidated companies, including Mori Trust Co., Ltd., Mori Trust Building Management Co., Ltd., and Mori Trust Hotels & Resorts Co., Ltd., and three equity-method affiliates.
[Mori Trust Group Consolidated Financial Report] (April 1, 2021 – March 31, 2022)
- In the fiscal year ended March 2022, operating revenue was 258.8 billion yen (up 2.9% compared to the previous term), and operating income was 62.8 billion yen (up 7.9% compared to the previous term). Despite a decline in rental income due to the sale of an office building in San Jose in the United States and the closing of operations of the Akasaka Mitsuke MT Building, both operating revenue and operating income increased due to a recovery in demand for domestic travel, and a higher occupancy rate in the hotel-related business compared to the fiscal year ended March 2021, as well as the full-year operation of three hotels that opened in 2020 and favorable trends in the real estate sales business, mainly condominium sales.
- Income increased, with ordinary income at 69.3 billion yen (up 15.8% compared to the previous term), and net income attributable to owners of the parent at 40.3 billion yen (up 13.6% compared to the previous term).
- For the fiscal year ending March 2023, we expect operating revenue of 261.0 billion yen (up 0.8% compared to the previous term), operating income of 60.0 billion yen (down 4.5% compared to the previous term), and net income attributable to owners of the parent of 41.0 billion yen (up 1.7% compared to the previous term).
Highlights of FY 2022 Business Performance
- In leasing-related business, we recorded operating revenue of 81.6 billion yen, down 1.6% compared to the previous term due to the sale of office buildings in San Jose in the United States and a decline in rental income due to the closing of operations of the Akasaka Mitsuke MT Building, despite an improvement in the full-year occupancy rate of Kamiyacho Trust Tower, which was completed in March 2020.
- n hotel-related business, operating revenue increased 31.1% compared to the previous term to 29.4 billion yen, reflecting a recovery in occupancy rates at existing hotels despite the impact of the spread of COVID-19 infections, as well as full-year contributions from the three hotels that opened in 2020: Hilton Okinawa Sesoko Resort, JW Marriott Hotel Nara, and The Tokyo EDITION, Toranomon.
- eal estate sales business recorded operating revenue of 126.3 billion yen, up 1.1% compared to the previous term, due to the strong sales of office buildings and condominiums. Additionally, other business recorded operating revenue of 21.5 billion yen, up 1.9% compared to the previous term.
As a result of the above, operating revenue finished at 258.8 billion yen, operating income at 62.8 billion yen, and net income attributable to owners of the parent at 40.3 billion yen. In addition, we achieved the numerical targets established for the final fiscal year of “Advance 2027,” our medium to long-term vision, of operating revenue of 230.0 billion yen and operating income of 55.0 billion yen. This is the third consecutive year of achieving the numerical targets continuing from the fiscal year ended March 2020 and the fiscal year ended March 2021.
Business Performance Projections for FY 2023
- In leasing-related business, operating revenue is expected to decrease to 80.0 billion yen mainly due to a decrease in revenue by the replacement of the portfolio through U.S. real estate transactions, and a decrease in the occupancy rate of some existing office buildings.
- Hotel-related business is expected to achieve a further improvement in the occupancy rate of existing hotels due to a further recovery in tourism demand, mainly from domestic tourists, including the easing of restrictions on the spread of COVID-19 infections. As a result, operating revenue is expected to increase for two consecutive years to 36.0 billion yen.
- Real estate sales business is expected to generate 130.0 billion yen in operating revenue mainly due to the continued strong performance of our residential property sales business, and we expect revenue from office building sales. In addition, other business is expected to generate 15.0 billion yen in operating revenue.
As a result of the above, for the fiscal year ending March 2023, we expect operating revenue of 261.0 billion yen, operating income of 60.0 billion yen, and net income attributable to owners of the parent of 41.0 billion yen.
The above forecasts have been calculated to the extent possible at this point in time given the difficulty in predicting the state of containment of COVID-19 infections and the associated resumption of economic activities. Please note that actual results may vary depending on the timing of containment of COVID-19 infections.
Projections contained in this document have been made on the basis of information available when it was released. Due to various unforeseeable factors, actual performance may differ from such projections.
Financial Conditions of Mori Trust Group
Trends of Capital Stock and Capital Adequacy Ratio
The capital stock and capital adequacy ratio for the fiscal year ended March 2022 were 484.8 billion yen and 41.6% respectively.
FY 2022 Key Business Topics
REAL ESTATE
Tokyo World Gate Akasaska, a project in central Tokyo, is progressing steadily with development for its opening in 2024. In addition, in January 2022, we opened TOKYO WORLD GATE CoCo Lounge in Tokyo World Gate in Kamiyacho, and are working to realize a variety of working styles for workers. Last year, we launched our new office vision, DESTINATION OFFICE. Our goal is to support the realization of offices that attract workers and help improve the quality of engagement and communication. In addition, we are investing up to 200.0 billion yen overseas, which is a key strategy set forth in our medium to long-term vision, Advance 2027, and have newly acquired a property in Northern Virginia in the United States.
TOKYO WORLD GATE AKASAKA ／ AKASAKA TRUST TOWER
Based on the district concept “Next Destination – Meet up again in the city -,” we are promoting development with the aim of creating a city that will become a destination for diverse people to meet again and interact with each other in the future beyond the new normal.
| Site area | approx. 15,750m2 |
| Total floor area | approx. 220,000m2 (Including existing buildings) |
| Number of floors | 43 floors above ground 3 floors below ground |
| Location | 2-chome, Akasaka, Minato-ku, Tokyo |
| Primary use | Offices, hotel, serviced apartments, shop & restaurant, facilities to support tourism, facilities to promote history and culture, clinics |
TOKYO WORLD GATE CoCo Lounge opened in Kamiyacho Trust Tower of Tokyo World Gate
TOKYO WORLD GATE CoCo Lounge opened on January 17, 2022, as a creative lounge equipped with a lounge open to the community, as well as a waterfront terrace and other facilities where people can work while feeling nature. The Lounge aims to become a base for realizing new innovations by bringing together diverse people and enhancing creativity.
Office vision “DESTINATION OFFICE”
Aiming to contribute to improving the quality of engagement and communication, last year we formulated our new office vision, DESTINATION OFFICE, in order to increase the freedom of office planning and support the creation of offices that attract workers.
Acquisition of real estate in Northern Virginia, U.S.A.
Through our U.S. subsidiary, MORI America LLC, we acquired two office buildings located in Northern Virginia in the United States in March 2022.
The property is located in an area where further development is expected in the future, including the construction of a new railway station, with a concentration of tech companies and national defense-related companies. As both of the two buildings are fully occupied, they will be managed as stable real estate assets.
| Property Name | 2235 Monroe Street | 2235 Monroe Street |
|---|---|---|
| Location | 2235 Monroe Street, Herndon, VA | 2245 Monroe Street, Herndon, VA |
| Site area | approx. 28.49 acres | |
| Rentable Area | 161,359 sq. ft | 162,357 sq. ft |
| Total: 323,716 sq. ft | ||
| Number of floors | 6 floors above ground | 6 floors above ground |
| Primary use | Offices, Parking garage (1,119 spaces) | |
HOTELS & RESORTS
Apart from having 27 hotel facilities across Japan as of March 2022, the Mori Trust Group’s hotels & resorts business, which is our core business, is also promoting new hotel plans for two hotels in central Tokyo and 13 hotels in regional areas.
Under the “Luxury Destination Network” concept*, we provide comfortable stays to tourists from Japan and overseas utilizing the attractive tourism resources of various areas of Japan, such as promoting initiatives aimed at increasing inbound demand and increasing consumption per traveler.
* “Luxury Destination Network” concept: The Mori Trust Group’s business vision of creating a “Luxury Destination Network” in Japan through the development of luxury hotels in attractive cities and resorts throughout Japan to contribute to making Japan a leading tourism country.
(Reference) The Beach Resort Sesoko, a Hilton Club completed
In May 2021, we completed the construction of a medium to long-term timeshare resort facility that we have been developing on Sesoko Island, Okinawa. The Facility is operated by Hilton Grand Vacations and opened in October 2021 as The Beach Resort Sesoko, a Hilton Club.
(Reference) Hotels scheduled to be developed
The Tokyo EDITION, Ginza
Affinity with surrounding global high-brand customer segments is high. We aim to contribute to the sustainable development of the Ginza area by attracting international travelers, including trendsetters and the wealthy.
Nara Yoshikien Project (tentative name)
This project is being promoted in Nara Prefecture’s public-private partnership project, “Yoshikien’s Surrounding Area Preservation, Management, and Utilization Project.” In addition to conserving historic buildings and preserving the environment, we aim to further enhance the attractiveness of the area by creating relaxing spaces.
NEW FIELD
Aiming to create new value by thinking outside the framework of existing businesses, we are working on businesses in new areas.
In particular, our Group is promoting the workcation business by combining knowhow in the real estate business and hotels & resorts business to propose a variety of work styles and to stimulate tourism demand. In addition, we focused on the importance of wellness and launched a full-fledged wellness business in 2020. We will continue to promote the proposal of accommodation plans where people can experience wellness and the provision of safe and secure spaces, thereby contributing to the realization of a wellness society. Last year, we acquired the business of PRIME CHEF, a business trip chef matching platform service, marking our first entry into the matching platform business. By working on new businesses and services that are not bound by location, we will provide comprehensive support for the realization of a fulfilling lifestyle for each individual.
Workation+ Cottage KARUIZAWA
In response to the growing need for medium to long-term workcation in secure spaces, such as project promotion and training in unusual places, we opened a one-building rental workcation facility in September 2021 that combines residential space with a private workplace. The first floor is equipped with in-house branded workplaces with facilities necessary for business and a comfortable environment that stimulates creativity, and the second floor is equipped with four living spaces to support the implementation of the medium to long-term workcation.
| Location | 4339-54 Nagakura, Karuizawa, Kitasaku District, Nagano | ||
|---|---|---|---|
| Site area | 1,097,25㎡ | Total floor area | 200.27㎡ |
| Number of floors | 2 floors above ground | Building capacity | 10 people |
Sales of “Pure wellness room”
Recognizing the growing public interest in safe and secure air environments, since October 2020 we have been selling the “Pure wellness room”, which purifies the indoor environment and maintains clear conditions through seven comprehensive processes. We are also introducing the system to our group hotels, and in the fiscal year ended March 2022, the system was newly installed in 80 rooms at six facilities, bringing the total number of rooms installed to date to 127 rooms at 11 facilities.
Business acquisition of PRIME CHEF, a business trip chef matching platform servicenihon
In August 2021, we acquired the business of PRIME CHEF, a business trip chef matching platform, from OPT Incubate Inc. This business, which boasts top-class recognition in the traveling cooking business connects traveling chefs who work for individuals or stores with households to provide a special dining experience for the coming era. By entering the matching platform business through this business, we will explore new ways of doing business and services that are not bound by location.
SUSTAINABILITY
Last year, our Group formulated the Mori Trust Group Sustainability Vision to further accelerate our efforts to realize a sustainable society. Under the slogan “From Urban Planning to Future Planning,” seven key themes for the promotion of sustainability have been established, and an action plan has been set forth to realize the coexistence of economy, environment, and society.
Concluded a business alliance agreement with Looop Inc. nihon
In order to expand our renewable energy business by acquiring solar power plants, we concluded a business alliance agreement in January 2022 with Looop Inc., which handles everything from development to operation and sales of renewable energy in an integrated manner. In cooperation with Looop Inc., we will promote the acquisition of solar power plants and improve power generation through the repair and replacement of solar panels and other equipment, thereby contributing to “Use and diffusion of renewable energy and expansion of stable supply,” which is one of the missions of the Mori Trust Group Sustainability Vision.
Mori Trust Group: Total Floor Area Leased or Managed
Number of rental / managed facilities (as of March 31, 2022)
- Buildings, housing, and commercial facilities: 65 buildings
- Hotel & Resort facilities: 30 facilities (Number of rooms: Approx. 4,500)
Mori Trust Group: Summary of Consolidated Companies
Mori Trust Group: Summary of Equity – Method
