Medium-term Management Plan “Partners in Growth, Next 2020”
We announced Kenedix Vision 2025 in 2015. This long-term vision defines the Kenedix Model as holding properties by using funds that are established and managed by the Kenedix Group rather than owning real estate directly. Kenedix has many core strengths: independence, flexibility and creativity, innovation, expertise, and transparency. These strengths underpin the Kenedix Model of providing a complete lineup of real estate asset management services. We can create investment opportunities for client investors, acquire and manage properties, and sell properties. We are determined to continue using the Kenedix Model to aim for more growth.
In a step toward Kenedix Vision 2025, we started a three-year medium-term management plan in 2018 called Partners in Growth, Next 2020. Announced in February 2018, this plan is structured to take the Kenedix Model to an even higher level while increasing our corporate value. Building a stronger infrastructure for achieving both sustained growth and social responsibility is one of major initiatives of the new plan. Everyone at Kenedix has a strong commitment to making our group a provider of ideal and better than ever real estate asset management services.
Outline of “Partners in Growth, Next 2020”
Basic policy
- Enlarge business domains with a focus on real estate asset management
- Make speedy, flexible and strategic investments
- Create opportunities in new growth fields linked to emerging social and economic trends
- Build a stronger infrastructure for achieving both sustained growth and social responsibility
Quantitative targets
| Index | Targets (consolidated) |
|---|---|
| ROE | 3-year average of at least 10% |
| Total return ratio | 3-year average of at least 50% |
Major initiatives
Enlarge business domains with a focus on real estate asset management
- Create various investment opportunities in order to increase assets under management and stable earnings
- Expand client investor base in Japan and other countries and build deeper ties with these investors
- Establish a more powerful asset management infrastructure in order to upgrade real estate fund formation and management capabilities
- Strengthen real estate related services in order to add more value to asset management
- Seek opportunities for strategic mergers, acquisitions and alliances that can expand business domains
Make speedy, flexible and strategic investments
- Make co-investments with client investors
- Make speedy and flexible investments that can contribute to the growth of funds managed by the Kenedix Group
- Make strategic investments for the growth of business activities in other countries and in growing market sectors
- Maintain a diversified and disciplined investment portfolio while reinforcing portfolio monitoring system
- Maintain financial soundness and transparency
Create opportunities in new growth fields linked to emerging social and economic trends
- Expand operations in Asia
- Expand the outbound investment business in the United States
- Start and expand a business for the operation of hotels, minpaku, serviced apartments and other types of accommodations
- Launch businesses that combine expertise in real estate, finance and technology
Build a stronger infrastructure for achieving both sustained growth and social responsibility
- Establish an internal infrastructure that can improve the productivity of people and the entire organization
- Maintain and enhance the diversity of the human resources that underpins the Kenedix Model
- Add more ways to perform work in a flexible manner that reflects social trends
- Promote environmental, social and governance (ESG) initiatives