We will enhance corporate value by improving ROE and optimizing cost of equity capital.

• Higher ROE comes along with improved ROA. We will not depend too much on financial leverage.
• We will optimize the cost of shareholders' equity by enhancing the value of areas and creating a portfolio that is stable and has growth potential
• We aim to achieve ROE of 8％ in FY2026 and ROA (ratio of business profit to total assets) of 4% over the medium to long term.

Through various measures, we will strive to expand earnings and aim for a consolidated ROA of 4% over the medium to long term.

• Achieving internal growth and maximizing earnings through value-added investments and business-to-business collaboration.
• Continuously enhancing area value through continued investment in growth and expanding revenues by capturing business opportunities.
• Utilizing capital gains from real estate sales business and increasing in yield through profit contribution.

In the Real Estate business, leasing activities are conducted through an appropriate combination of both "Tokyu Group direct operation model" (left), which is expected to generate upside from business revenues, and the "leasing model for external tenants" (right), which is expected to generate stable revenues. We aim to maximize returns by growing the direct operation businesses, with a focus on the Life Service business.

With Japan's declining population, securing the population in the Tokyu line areas is a key issue. Although the population in the areas is still on a growth trend, we are actively working to “attracting population” into the areas in order to delay the peak of the population as much as possible.

We continuously monitor and revise our business portfolio from the viewpoints of profitability, synergy and other aspects of business.

In response to changes in society, we will realign our business portfolio for optimal performance.

Tokyu Corporation enhances corporate value by holding dialogues to explain the Company's  thinking to all stakeholders, including institutional and individual investors, and actively feeding back stakeholders' opinions to Management.

We strive for enhancement of corporate value, with real estate leasing positioned as our core business, through intensive investment in Shibuya and the Tokyu line areas based on Capital Reinvestment Model approach.

•  Real estate leasing business at a core enables stable profit levels and relatively high PER (price-to-earnings ratio), contributing to the corporate value.
• Our business model allows us to increase the value of our portfolio by ourselves with intensive investment through Capital Reinvestment Model in Shibuya and the Tokyu line areas. With real estate leasing at the core, we attract various populations to the areas, benefit from rising rents, and continuously enhance our corporate value.
• Adequate unrealized gains will ensure the financial base to pursue redevelopment and contrarian investment in Shibuya and the Tokyu line areas, leading to expanding our corporate value.

In addition, we ensure returns through a combination of synergy between businesses based on regional conglomerate management around the properties we own and strategic sales of properties.

We ensure total return in the real estate business by combining lease, sales, and fee business such as management. By securing the financial base with unrealized gains of our portfolio and funds from property sales, we can pursue redevelopment, unaffected by market conditions. We will continuously improve property values through Capital Reinvestment Model, where returns are reinvested back into the areas, and attracting and increasing population involved with Shibuya and the Tokyu line areas.