Message from the Management

The origin of Hulic's CSR Management is "Total commitment to our customers and the community. Creating productive environments. Creating amenity. Creating peace of mind."

For more than half a century, Hulic has been operating a real estate leasing business focusing on a portfolio of office buildings in central Tokyo. Our strength of owning a solid business foundation, based on the prime locations of properties, has allowed us to maintain continued growth of profits and dividends without being affected by market conditions even in the face of adversity, including difficulties associated with the Lehman Brothers’ bankruptcy and the Great East Japan Earthquake. Hulic’s sustainable growth is supported by CSR management, which incorporates Environment, Social, and Governance (ESG) factors into decision making. In our corporate philosophy, we uphold the following values: “Total commitment to our customers and the community. Creating productive environments. Creating amenity. Creating peace of mind.” As part of our management strategy, we consider that taking initiatives to address social issues will create business opportunities. We will strive to remain a mission-driven company with a strong social responsibility by implementing CSR management.

Our Performance in 2018

In the fiscal year ended December 2018, Hulic achieved record highs in every stage of income on a consolidated basis with operating income of 75.5 billion yen, ordinary income of 72.5 billion yen, and profit attributable to owners of parent of 49.5 billion yen.
We got off to a good start in the first year of the medium-term management plan (2018–2020), which was launched in 2018. This was primarily a result of steady progress on sales of real estate for sale against a backdrop of increased real estate investment demand in Tokyo etc. and an increase in rent revenue through reconstruction, development, and acquisition. In the reconstruction and development business in 2018, we completed construction of a total of 11 properties, including HULIC SQUARE TOKYO (a hotel and commercial facility) in the Yurakucho and Ginza area, one of our focus areas, and Hulic Itabashi and Hulic Fuchu Building, which had previously been undergoing reconstruction. We also continued to work on the three future growth businesses (3K businesses), i.e., koreisha (seniors), kanko (tourism), and kankyo (environment). In the tourism business, we opened THE GATE HOTEL TOKYO by HULIC , our flagship location in our GATE HOTEL brand, as well as FUFU Kawaguchiko, a luxury hot spring inn. In the seniors business, we completed construction of senior residences, including Charm Premier Den-en-Chofu and Grand Inamuragasaki Kamakura Aoitei. Additionally, in the environment business, we began designing Japan’s first 12-story fire-resistant wooden building in the Ginza area using timber that requires less energy for manufacturing and processing. We are actively working to further reduce CO2 emissions during building construction. In the public-private partnership (PPP) business, we were selected as a proposed contractor for Osaka City Waterworks Bureau’s developer recruitment proposal for the sale of the former Ogimachi government building site and the lot to the south of the building. We aim to make this a business that contributes to greater appeal of the Ogimachi area through development of a complex that serves as a base for international medicine, cultural creation, and promotion of exchange. Hulic is committed to achieving the sustainable growth of corporate value by promoting new businesses, while focusing on the existing real estate leasing business as its core business.

Medium-term Management Plan and CSR Strategy

In fiscal year 2018, Hulic launched current medium-term management plan (2018-2020), which represents the final phase of the current long-term management plan, aiming to reach the plan's goal of achieving ordinary income of 85.0 billion yen (in 2023) three years ahead of schedule. While maintaining Hulic's distinctive business model, the Group will endeavor to sustain its steady growth through evolution by responding to changing times and changes in the environment. In addition to making efforts to expand and improve the quality of the portfolio of assets under management in the leasing business, the Group aims to evolve its business model into one designed to expand stable earnings by strengthening the development business and the value-added real estate business, and through the asset management business, etc. We will also continue to promote ESG-conscious business operations and create value as a company that is a member of a sustainable society.

Material CSR Issues and Our Progress

Following the adoption of the Sustainable Development Goals (SDGs) by the UN General Assembly in 2015, Hulic has considered what it can do as a real estate company toward realizing a sustainable society. We have identified our material CSR issues and are carrying out various initiatives to address those issues. We consider that reducing CO2 emissions, waste, and water consumption at many buildings owned by Hulic, mainly in central Tokyo, will reduce environmental impacts, and have set their reduction targets from the standpoint of promoting environmentally conscious management. In particular, we have established the long-term target of reducing CO2 emissions by 45%, relative to the 2013 level, by 2030. With the aim of achieving the target, we have introduced natural lighting systems, natural ventilation systems, and high-efficiency lighting and air-conditioning systems in new buildings. Moreover, in accordance with our long-term environmental vision, under which “low-carbon society” and “recycling society” are designated as our ideal forms of society by 2050, we will work to continually achieve various targets, such as the number of capital investments for renewable energy and the number of greening projects for new buildings. We have also been promoting health management initiatives in accordance with the “Hulic Health Management Declaration” in the aim of creating comfortable workplaces. As a result of those initiatives, we were recognized under the 2019 Certified Health & Productivity Management Outstanding Organizations Recognition Program in the small and medium-sized enterprises category. Moreover, we have poured efforts into training environmental personnel, and we received the Outstanding Performance Award at the 2018 Environmental Human Resources Development Corporate Awards organized by the Ministry of the Environment and others. With the focus on strengthening corporate governance, we have worked continuously to enhance the functions of “risk management,” “compliance,” and “internal controls.” Hulic will continue to take various initiatives to meet the needs of society and realize a sustainable society.

To Our Stakeholders

In the future, our employees and officers will remain united in our efforts to continue contributing to society as a progressive business enterprise that cultivates good relations with all stakeholder groups. In these activities, we look forward to enjoying the continued support of our shareholders and other stakeholders.

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