Sumitomo Realty & Development

Our achievement of sustained growth has been the result of our well-balanced operations. We have a balanced portfolio in four operational fields−leasing, sales, construction and brokerage−that have different risk profiles and capital requirements. The leasing and sales businesses involve projection-based production that requires large upfront investment for land. Risk and returns are high, and the operational cycle is long at roughly 3 to 10 years, but human resource levels are relatively low. The construction and brokerage businesses are order-based businesses that do not require upfront investment and have a short operational cycle of less than one year, but require substantial human resources. Our steady growth to date is the result of complementary core businesses with different individual characteristics, which has led to balanced growth. We will work to achieve sustained growth going forward by strengthening our existing businesses, and also establishing new core businesses.