Business Strategies

Business portofolio

We have three business segments: Leasing Business, Elderly Care Business, and Other Businesses, which include operation of resort facility in Guam, finance business and others.
After the Lehman collapse, we adopted business diversification strategy to improve the financial position, but we have been shifting our business strategies to increase profitability for the Leasing Business in line with the drastic business strategy restructuring since FY21/3. In addition, we have been promoting withdrawal from non-core and unprofitable businesses.
In FY22/3, we will continue the policy set forth in the drastic business strategy restructuring and invest management resources in the Leasing Business, which is our core business, through selection and concentration.

Increase occupancy rates

Increasing occupancy rate is essential for stabilizing the business. We will reform our organizational setup to realize speedy actions by area coupled with prioritized allocation of human resources to Leasing Business. In addition, we aim to increase the number of contracts from corporate and individual customers by continuously implementing leasing sales strategies.

Summary

Implement area intensive strategies

• Divide national market into 7 areas and appoint a managers Area CEO in each area.
• Aim to realize optimal performance by implementing area intensive strategies in each area, which are not the uniform strategies that Leopalace21 used to adopt.
• Manage sales, cost, and profit in each area and improve occupancy rates in order to increase sales and profit.

Recover the number of occupied rooms (Corporate)

• Implement top-level sales
  Aim to be recognized as an expert for company housing strategies.
• Promote individual strategies for each corporate customer
  Formulate and promote individual strategies in order to expand the respective market share
• Strengthen ties with company housing agencies
  Change the strategies to put company housing agencies as a partner to pursue mutual benefits.

Strengthen ties with real-estate agents (Individual)

• Strengthen the sales activities to work real-estate agents with the help of Village House Management Co., Ltd. which is affiliated with Fortress Investment Group.
• FY22/3 Q3 Result
  Number of contracts through real estate agents:21,902(increased by 50.1% yoy)

Web-based contract

Customer interaction via internet, online room viewing and web-based contract conclusion

Customers do not need to visit a leasing office related to contract conclusion as they can complete application documents, submit identity verification document on the web site and can have important explanation by video call. All the processes from room searching till room key handover are possible without visiting the leasing office.

Leo-sign, electronic contract management system

For the corporate customer contracts, we introduced Leo-sign, a non-face-to-face contract conclusion system. By eliminating posting time, we can provide speedy service to realize move-in by minimizing processing time from an inquiry. The customers can register their approvers on the system and by incorporating electronic seals the both parties can complete the contract conclusion in the remote working conditions.

Smart Locks

The Company is going to install the smart locks to approximately 440 thousand apartment units in steps starting from June 2022 with the aim of increasing the tenants' convenience and promoting the strategy of real estate tech. The introduction of smart locks saves the tenants a visit to the leasing sales office for key handover and realize a non-face-to-face protective measure against infectious diseases.

Occupancy plan

• *Numerical targets reflect the latest plan.