Investor Relations

Brokerage

BASIC GROWTH STRATEGY

Strengthening our business platform by further expanding our network and pursuing closer ties between existing offices and their local communities

OVERVIEW OF THE FISCAL YEAR

The existing home market experienced an increase in the number of contracts concluded in the Tokyo metropolitan area, and the trend of rising average contract prices, especially for condominiums, continued.
Given this environment, the segment, which is handled by Sumitomo Real Estate Sales Co., Ltd., recorded a 5.9% increase, to 35,987 units, in the number of transactions, led by retail transactions for existing homes. This marked a turnaround to growth from the previous year´s decrease triggered by the increase in the consumption tax rate, and a record number of transactions. Transaction value per contract decreased on a decline in the number of corporate transactions, but strong results at the retail division held the total transaction value to last year´s level, at ¥1,065.7 billion, for a second consecutive year above ¥1 trillion.
As a result, the segment maintained revenue growth for a seventh consecutive year, for record revenue from operations, and an increase in operating income for the first time in two years.
With the addition of two directly operated offices during the year, the network had a total of 257 offices nationwide as of March 31, 2016.

OUTLOOK

Our brokerage operations will continue to open new offices and upgrade existing offices, while at the same time striving to raise marketing efficiency, with the aim of achieving revenue and profit growth on a record number of brokerage transactions.
We are therefore forecasting a 2.4% increase in revenue from operations, to ¥63.0 billion, with a 1.6% increase in operating income, to ¥18.0 billion, for the March 2017 fiscal year.