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 2017

In fiscal year 2017, Hulic achieved its highest profits since listed, with operating revenue of 289.6 billion yen, operating income of 64.2 billion yen, and ordinary income (recurring income) of 61.8 billion yen. In addition, we achieved the goals of the Medium-term Management Plan (2016-2018) one year ahead of schedule. The primary factors contributing to these achievements are the growth of earnings of our core leasing business, an increase in rent revenue from newly acquired large-scale commercial properties in the Shinsaibashi area (Osaka) and the Minatomirai area (Yokohama), as well as an increase in revenue from property sales with the establishment of Hulic Private Reit Management Co., Ltd. In fiscal 2017, we opened the HULIC & New, a series of the first Hulic brand of commercial complexes in Shibuya and Shinbashi, and established Hulic Property Solution Co., Ltd., with the aim of strengthening the value-added real estate business that pursues creating added value for properties. In addition, we continue to focus on the 3 future growth businesses (3K businesses), i.e., Koreisha (seniors), Kanko (tourism), and Kankyo (environment). In the Koreisha (seniors) business, Hulic's private nursing homes with assisted living care, such as “Hulic Chofu” and “Hulic Fukasawa” were completed successively. In the public-private partnership (PPP) business, we reached agreements to carry out three development projects to construct hotels and Japanese-style luxury hotels, etc. using real estate owned by local governments, namely, “Redevelopment of the site of the former Rissei Elementary School” in Kyoto City, “Project to preserve, manage, and utilize the site of the former Takabatake-cho Court” in Nara Prefecture, and “Ryogoku river center development project” in Sumida-ku, Tokyo. In the environment-related business, we proactively adopted environmental technologies in our reconstruction and development projects, etc. 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.

New Medium-term Management Plan and CSR Strategy

In fiscal year 2018, Hulic launched a new 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. In addition, we actively carry out energy-saving renovations, etc. of our existing buildings. We have also created a long-term environmental vision, under which “low-carbon society” and “recycling society” are designated as our ideal forms of society by 2050, and have clarified our stance on environmental initiatives. 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. In fiscal year 2017, we formulated the “Hulic Health Management Declaration” based on the idea that promoting health management, whereby the Company makes strategic efforts to maintain and promote the health of its employees, is essential for the Company to achieve the corporate philosophy of having a “Total commitment to our customers and the community. Creating productive environments. Creating amenity. Creating peace of mind.”
Based on this declaration, in addition to continuing with ongoing initiatives such as increasing the usage rate of paid leave and the percentage of employees who received medical checkups, Hulic has set a new target, taking a step beyond just encouraging employees to participate in training programs and receive medical checkups, to achieve 100% participation by employees in reexaminations if required as a result of medical checkups, and raise employee awareness toward achieving this target.
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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