Hulic

Basic Information

Stock Code
3003
Industry
Real Estate
Category Detail
Real Estate & Housing
Prefecture
Tokyo
Establishment Year
March 1957
Listing Year
May 1949
Official Website
https://www.hulic.co.jp/
TSE Information
TSE Information
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Other Companies
INPEX, Nomura Real Estate HD, TKP, Real Gate, JALCO Holdings, ORIX, Heiwa Real Estate, Keihanshin Building, TOC, Airport Facility, Aeon Mall, Kin-ei, Kabukiza

Overview

Hulic is a major real estate company founded in 1957, headquartered in Chuo-ku, Tokyo, with a leading industry track record in property holding and leasing as well as investment and development.

Current Situation

Hulic boasts a solid financial base with total assets of approximately 3 trillion yen and net profit of about 102.3 billion yen for the fiscal year ending December 2024. It owns numerous high-quality office and commercial facilities in prime central Tokyo locations, maintaining an average vacancy rate below 1% for stable revenue. It maintains deep ties with Mizuho Financial Group, building diversified assets and a strong customer base. It has focused on insurance business expansion via company splits, hotel business growth, and recently acquiring and developing small commercial facilities to bolster growth sectors. It has a proven track record in green building certifications with sustainability considerations and promotes eco-friendly operations. Future revenue growth is anticipated from strengthened real estate fund management and entry into regional city developments. While monitoring global financial trends and land price fluctuations, it pursues mid- to long-term growth strategies.

Trivia

Interesting Facts

  • Hulic name derived from initials of 'HUman・LIfe・Create'.
  • Average vacancy rate below 1%, exceptionally low in the industry.
  • One of few companies establishing and specially sponsoring new womens shogi titles.
  • Established high market share in mid-sized central Tokyo office buildings.
  • Transcends traditional real estate via diverse business expansions.
  • Successfully executed efficient organizational restructuring via reverse merger.
  • First platinum green building certification for a mid-sized building.
  • Strong relationship with Mizuho Financial Group.
  • Also operates ryokan business in JV with Kato Pleasure Group.
  • Sets record-high prize money for shogi tournament wins in womens shogi history.
  • Builds broad network through transactions with diverse industries.
  • Achieved top Green Star rating in 2017 GRESB survey.
  • Stable real estate leasing portfolio centered on central locations.
  • Involved in new headquarters opening for Japan Shogi Association.
  • Recently entering commercial facilities and hotels for revenue diversification.

Hidden Connections

  • Deep asset management ties with Mizuho Financial Group since former Fuji Bank era.
  • Furong Group member with close ties to multiple financial and real estate firms.
  • Long-term shogi industry relationship enhances social brand power.
  • Major shareholders primarily insurance companies and financial institutions.
  • Collaborates with Taisei Corporation to streamline own building construction and management.
  • Establishes hotel operations subsidiary for non-real estate revenue.
  • Conducts advance investments for future energy business strengthening.
  • Collaborates across sectors in sustainable development and environmental management.

Future Outlook

Growth Drivers

  • Resilient real estate demand in central Tokyo
  • Revenue base diversification through multifaceted business
  • Growing demand for environmentally considerate real estate
  • Expansion of renewable energy-related business
  • Increased demand for housing and services amid aging society
  • Operational efficiency via IT and digital tech utilization
  • Business portfolio strengthening via M&A
  • Advancement of urban redevelopment plans
  • Heightened interest from overseas investors
  • Expanding demand for community-oriented commercial facilities
  • Enhanced promotional activities incorporating social contributions
  • Stable revenue foundation via fund operations

Strategic Goals

  • Achieve total assets of 5 trillion yen scale
  • Green buildings and energy-efficient existing buildings ratio over 80%
  • Double real estate investment fund AUM
  • Expand self-branded hotels and senior housing business
  • 50% operational efficiency improvement via internal DX
  • Achieve over 30% female managers ratio
  • Expand shogi-related business domestically and internationally
  • Aggressively strengthen real estate investments in regional cities
  • Selected as top ESG investment company
  • Strengthen coexistence with regional communities

Business Segments

Real Estate Leasing Management

Overview
Provides high-quality leasing management services centered on office and commercial real estate.
Competitiveness
Owns numerous premium properties in prime central locations
Customers
  • Corporate Tenants
  • Financial Institutions
  • Small and Medium Enterprises
  • Sole Proprietors
Products
  • Leasing Office Space
  • Commercial Facility Leasing
  • Asset Management Services
  • Vacancy Management

Real Estate Investment Management

Overview
Offers investment and management services for income-producing real estate and related assets.
Competitiveness
Diverse asset composition and strong investor base
Customers
  • Institutional Investors
  • Fund Investors
  • Insurance Companies
  • Pension Funds
Products
  • Private Funds
  • REIT Management
  • Asset Management Consulting

Real Estate Development

Overview
Engages in redevelopment projects in central urban and regional areas, promoting high-value-added real estate development.
Competitiveness
Comprehensive capabilities in planning and construction management
Customers
  • Urban Development Operators
  • Local Governments
  • Commercial Facility Operators
Products
  • Urban Development Projects
  • New Commercial Building Development
  • Redevelopment Consulting

Hotel Operations Support

Overview
Provides management support for luxury hotels through Gate Hotel brand operations.
Competitiveness
Industry expertise for revenue maximization
Customers
  • Accommodation Operators
  • Investors
Products
  • Hotel Operations Know-How Provision
  • Facility Management
  • Marketing Support

Assisted Living for Seniors Operations

Overview
Delivers housing operations and services tailored to aging society needs.
Competitiveness
Comprehensive support system and superior location advantages
Customers
  • Senior Welfare Facility Operators
  • Medical Institutions
Products
  • Housing Management
  • Daily Life Support Services
  • Care Linkage Programs

Real Estate-Related Insurance Agency Business

Overview
Offers planning, sales, and agency services for insurance products.
Competitiveness
Real estate industry-savvy risk management
Customers
  • Rental Property Owners
  • Tenant Companies
Products
  • Fire Insurance
  • Liability Insurance
  • Building Insurance

Facility Management Services

Overview
Provides efficient and safe facility operation management services.
Competitiveness
Accumulated integrated management expertise
Customers
  • Commercial Facility Operators
  • Office Building Management Associations
Products
  • Cleaning Management
  • Security Management
  • Equipment Maintenance

Asset Consulting

Overview
Consulting services for optimizing and managing real estate assets.
Competitiveness
Abundant market data and experience
Customers
  • High-Net-Worth Individuals
  • Corporate Clients
  • Investment Trusts
Products
  • Real Estate Asset Valuation
  • Portfolio Analysis
  • Tax Planning

Architectural Design and Project Management

Overview
Provides total services from architectural design to construction supervision.
Competitiveness
Harmony of meticulous planning and environmental considerations
Customers
  • Developers
  • Corporate Clients
Products
  • Design Supervision
  • Construction Management
  • Environmental Assessment

Environment and Energy Business

Overview
Invests in and supports environmentally considerate energy businesses.
Competitiveness
Efficient environmental initiatives linked to real estate
Customers
  • Renewable Energy Operators
  • Local Governments
Products
  • Solar Power System Installation
  • Energy Management Services

IT and Digital Solutions

Overview
Supports efficiency improvements in real estate management through digital technologies.
Competitiveness
Active adoption of cutting-edge technologies
Customers
  • Real Estate Management Companies
  • Tenants
Products
  • Facility Management Software
  • IoT Implementation Support

Logistics Facility Operations

Overview
Focuses on urban logistics facility operations and leasing.
Competitiveness
Location advantages and efficient design
Customers
  • Logistics Companies
  • E-commerce Operators
Products
  • Warehouse Leasing
  • Logistics Center Management

Competitive Advantage

Strengths

  • Ownership of premium real estate centered in prime Tokyo locations
  • Stable revenue base from low vacancy rates
  • Strong ties with Mizuho Financial Group
  • Risk diversification through diverse business portfolio
  • Excellence in environmental considerations like green building certifications
  • High planning, development, and asset management capabilities
  • Broad service provision via consolidated subsidiaries
  • Ample capital and sound financial position
  • Proven efficient organizational restructuring via reverse merger
  • Robust hotel and ryokan business
  • Advanced real estate investment fund operations
  • Sophisticated facility management expertise
  • Community-oriented commercial facility development
  • Aggressive M&A-driven growth strategy
  • Expansion into real estate-related insurance agency business

Competitive Advantages

  • Competitive edge from mid- to large-scale office buildings in prime central locations
  • Revenue diversification via proprietary real estate investment and private funds
  • Tightened collaboration with Mizuho and Furong Group companies
  • High-quality asset formation through partnerships with Nikken Sekkei and Taisei Corporation
  • Differentiation via diversification into hotels and senior housing
  • Gained trust in sustainability through top-tier environmental certifications
  • Brand enhancement via unique social contributions like shogi tournament sponsorship
  • Stable revenue structure from vacancy rate controls and tenant diversification
  • Strengthened revenue base by pioneering logistics and commercial facilities
  • Facility management efficiency via digital technologies
  • Execution power for large investments backed by solid finances
  • Proactive and effective responses to M&A in the real estate sector
  • Established service network accommodating broad customer segments
  • Competitive strength through flexible strategies responsive to market environments
  • Sustainable management emphasizing environmental and social considerations

Threats

  • Rising global interest rates increasing funding costs
  • Asset value risks from land price fluctuations in central Tokyo
  • Decline in tenant demand due to COVID-19 or other infections
  • Intensified competition from increased central Tokyo office supply by rivals
  • Impacts from real estate regulations and tax reforms
  • Risk of fixed asset damage from natural disasters
  • Rising operational costs from labor shortages
  • Increased compliance costs from stricter environmental regulations
  • Investment impacts from heightened financial market volatility
  • Uncertainty in commercial facility demand from changing consumer behavior
  • Potential lag in adapting to DX-driven technological paradigm shifts
  • Risks from delays in meeting heightened ESG investment standards

Innovations

2024: Acquisition of Shogi Hall and New Site Opening

Overview
Acquired Japan Shogi Association headquarters Shogi Hall and preparing to relocate to new Sendagaya Building.
Impact
Contributes to enhanced regional cultural support and corporate brand elevation

2024: Full Subsidiary of Lesum

Overview
Made Lesum a wholly-owned subsidiary via TOB to advance development and business expansion.
Impact
Bolsters real estate development and revenue growth

2024: Subsidiary of Reso Education

Overview
Made Reso Education a subsidiary via TOB to expand education-related business.
Impact
Diversifies revenue base through new business entry

2023: Investment in Astomax Energy Business

Overview
Capital participation in Astomax to expand renewable energy platform.
Impact
Expands environmentally responsive business and builds long-term growth foundation

2021: Strengthening Commercial Facilities via Ito-Yokado Store Acquisitions

Overview
Actively acquired land and buildings for commercial facilities in Tsurumi, Kawasaki, Yotsuzuka, etc.
Impact
Expands commercial facility portfolio and secures stable revenue

2020: Creation of New Womens Shogi Title Match 'Hulic Cup Shirayori Match'

Overview
Established new womens shogi title match with record-high prize of 15 million yen.
Impact
Contributes to social contribution and brand recognition

2020: Platinum Certification for Hulic Head Office Building

Overview
Achieved first DBJ Green Building 'Platinum' certification for a mid-sized building.
Impact
High evaluation as environmentally considerate real estate

2023: Acquisition of Smile-Up Head Office Building

Overview
Acquired Nogizaka head office building, planned to become Johnny's office building.
Impact
Contributes to revenue stabilization from increased leasing demand

Sustainability

  • DBJ Green Building Platinum and Gold certifications
  • Minato Ward Green Street Development Award for regional environmental preservation
  • Multiple properties highly rated in Habitat Evaluation Certification
  • Earth Environment Grand Prize from Minister of Land, Infrastructure, Transport and Tourism for environmental management
  • CO2 reduction via pioneering low-CO2 promotion initiatives
  • Diversity Management Company 100 selection
  • Nadeshiko Brand selection for womens advancement
  • Active introduction of renewable energy business
  • Promotion of environmentally considerate asset management and development
  • Sustainable activities through collaboration with local communities
  • Utilization of energy-saving architectural technologies
  • Strengthened compliance with sustainable building standards