Investor Relations

Construction

Remodeling−Shinchiku Sokkurisan

Sumitomo Realty launched the Shinchiku Sokkurisan, an innovative, first-of-its-kind full remodeling package in the industry, in 1996. Rolled out nationwide step-by-step, it has become the top brand in the market with a cumulative total of more than 130,000 units contracted. Furthermore, we started skeleton renovation business for condominiums in 2000, ahead of industry peers, and have been No. 1 in revenue from condominium remodeling five years running.

Custom Homes

In 1972 Sumitomo Realty established a subsidiary in the U.S. where platform wood-frame construction is widely used, subsequently introducing technology cultivated in the U.S. to a business in Japan. We launched American Comfort custom home construction business in 1995, followed by the debut of J·URBAN urban-style housing series in 2003, and their urban exteriors were well received. Aiming for further expansion of the business, we added the "wood panel method" to our lineup in 2014 to strengthen the appeal of our products.

Overview of the Fiscal Year

In the housing construction market, although owner-occupied housing starts were higher than the level for the previous fiscal year, the level remained below 300,000 units. On the other hand, remodeling is a promising growth market, and we expect rising demand for remodeling given that the need to accumulate a stock of high-quality residential properties is an issue in Japan.
  During the March 2019 fiscal year, both the Shinchiku Sokkurisan remodeling business and the custom homes business achieved new records in terms of the number of units contracted, exceeding 10,000 units and 3,000 units, respectively.
  Both businesses also set new records in terms of the number of units delivered and revenue from operations. As a result, the segment achieved higher revenue and higher profit owing to an increase in the number of units delivered and improvement in profitability. Operating income increased more than 20%, setting a new record after a five-year hiatus since the March 2014 fiscal year.

Outlook

The segment plans to increase the number of units contracted centering on the Shinchiku Sokkurisan remodeling business. We forecast a 3.7% year-on-year increase in revenue from operations to ¥230.0 billion and a 7.8% year-on-year increase in operating income to ¥22.0 billion. We aim to achieve record highs for both revenue from operations and operating income.

TOPICS

Remodeling−Shinchiku Sokkurisan

Special Award received at the Housing Renovation Competition
−For an aged house remodeled to be as good as or superior to a newly built one−

One of our projects in Shinchiku Sokkurisan remodeling business received a Special Award (Association of Housing Warranty Insurers Chairman´s Award) at the 35th Housing Renovation Competition held by the Center for Housing Renovation and Dispute Settlement Support. This was the 11th award that we have received at this competition since the March 2006 fiscal year.
  With this project, the customer, who had initially intended to build a new house, was able to achieve what he had in mind thanks to our renovation technology. Moreover, since remodeling has increased earthquake resistance and improved thermal insulation while also realizing ease of maintenance for water supply and drainage pipes, the house is expected to endure over the long term so that it can be handed down in good condition to the next generation. This renovation project was highly regarded as a proposal for remodeling an aged house so that it would be as good as or better than a newly built house while extending the life of the house.