■Medium- to long-term growth strategy
1. KPIs have been revamped to achieve the long-term VISION “Ichigo 2030,” and progress is going well
Ichigo ＜2337＞ is promoting a long-term VISION “Ichigo 2030” for the 2030/2 fiscal year, and progress is progressing smoothly. The external environment and progress status have also changed, and KPIs were newly established and strengthened from the 2025/2 fiscal year. Regarding “capital productivity and cash generation output,” a new “cash ROE” was newly established. It was newly established as an indicator while aiming for thorough cash flow management. It was 17.2% in the 2024/2 fiscal year, and we are close to the target of 18%. Regarding “stable income,” a new “stock income fixed cost coverage ratio” was newly established. It was 214% in the 2024/2 fiscal year, and since 200% of the target has already been achieved, we aim to maintain and improve it in the future. In terms of the “shareholder return policy,” the target value of “DOE (dividend on equity)” was raised from 3% or more to 4% or more. It is 3.8% for the 2024/2 fiscal year. Regarding “solving environmental issues for a sustainable society,” 3 items were added as KPIs: “Strawberry Climate Positive,” “RE100,” and “CDP Leadership Level.” Although it is a field that has been pursued while advocating sustainable management until now, it is a form of KPI once again. At our company, there are many KPIs that have already achieved their goals and entered the maintenance phase, and KPIs that are weak against the targets, and we evaluate that our long-term VISION “Ichigo 2030” is moving strongly towards realization.
2. Take the lead by providing investment opportunities through security tokens
The company issued the “Ichigo Residence Token” as the company's No. 3 in 2023/11 and sold out immediately. Security tokens are highly secure investment products that are regulated under the Financial Instruments and Exchange Act in the same way as general marketable securities such as stocks, etc., and since rights are managed by blockchain, it is extremely difficult to falsify data. Since investments can be made from small amounts, individual investors can also obtain investment opportunities. Starting with the first issue in 2022/11, the company issued the second issue in 2023/8, and has accumulated achievements. Project No. 3 was the first stock to be handled by the new trading system “START,” which plans to distribute security tokens at Osaka Digital Exchange Co., Ltd. The real estate to be invested is a residence in the 23 wards of Tokyo owned by Ichigo Owners, and there are 6 properties (7 buildings, 8.9 billion yen) of Shibakoen, Higashi Shinjuku, Metropolitan University, Monzen-Nakacho, Takaido, and Shin-Koiwa. The company sees the security token market as a market with future growth potential. As a market second only to J-REITs (20 trillion yen), private funds, etc. (30 trillion yen), etc. (30 trillion yen), it is expected to reach a market size (management balance) of 2.6 trillion yen in 2032. The company achieved sales of 16.8 billion yen with “Ichigo Residence Token” and “Ichigo Owners Building Share” in the 2024/2 fiscal year, and has grown to account for 34% of the sales structure ratio of Ichigo Owners. The idea is to accumulate assets under management of 30 billion yen for the 2025/2 fiscal year, and expand our presence as a top runner from the market creation period.
3. Various achievements in the field of sustainability
Various achievements have been made in the sustainability field. As described above, progress is progressing smoothly with regard to “Ichigo's Climate Positive,” “RE100,” and “CDP Leadership Level,” which were newly incorporated into the KPI for the long-term “Ichigo 2030.” In addition to this, it also won 1st place in the “Decarbonization Management Ranking GX500” (2023 edition) by Nikkei Inc. in the “Information Disclosure” and “Emission Management and Reduction Results” categories (2 out of 5 divisions). In addition to promoting the clean energy business, it can be said that the reduction in the real estate business and its approach methods were highly praised from outside. In our main real estate business, we succeeded in obtaining ZEB (net zero energy building) certification for second-hand buildings. “ZEB Oriented” certification has been obtained at the “Ichigo Kakyoin Building (Sendai City),” and obtaining certification in existing large-scale buildings with a high level of difficulty in ZEB conversion can be expected to develop as a new method for future heart building.
(Written by FISCO Visiting Analyst Hideo Kakuta)