Latest news with #SumitomoRealty
Japan Times
13-06-2025
- Business
- Japan Times
Sumitomo Realty seeks office sale after Elliott takes stake
Sumitomo Realty & Development, the Japanese developer facing pressure from Elliott Investment Management to boost its value, is seeking to sell a group of office properties in Tokyo for at least ¥100 billion ($700 million), according to people with knowledge of the matter. The developer has earmarked 19 midsize office buildings for the divestment. It has asked real estate investment firms and agencies to estimate the value of the offices, which it is considering selling separately, the people said, asking not to be identified because the matter is private. It is also weighing the sale of eight rental apartment buildings in the city, they said. Shares of Sumitomo Realty jumped as much as 6% and closed 2.4% higher at ¥5,838 in Tokyo on Thursday. Sumitomo Realty said in a statement that it is not true that it is considering selling the 19 office buildings. The company also said it plans to reduce nonprime assets to improve asset efficiency in line with its midterm business plan. After taking a stake in Sumitomo Realty, Elliott said this week that the Tokyo-based company should do more to improve shareholder returns and corporate governance. The sale plans mark a shift from its business model of developing properties in-house, holding them for the long term, and earning steady income from tenants, toward a strategy targeting capital gains. In a rare public letter, Elliott said it would vote against Sumitomo Realty's senior management at an annual shareholder meeting on June 27 if no meaningful progress is made on improving its value. Elliott said the company is one of the most undervalued real estate developers in Japan, assessing that its stock is worth at least ¥8,000, based on the valuation of its real estate holdings and peer companies. It called on the developer to unwind its cross-shareholdings, increase its shareholder payout ratio to 50% or more and target a return on equity of at least 10%. Elliott has built up more than a 3% holding in the company, according to the letter.
Japan Times
12-06-2025
- Business
- Japan Times
Sumitomo Realty seeks $700 million office sale amid Elliott push
Sumitomo Realty, the Japanese developer facing pressure from Elliott Investment Management to boost its value, is seeking to sell a group of office properties in Tokyo for at least ¥100 billion ($700 million), according to people with knowledge of the matter. The developer has earmarked 19 midsized office buildings for the divestment. It has asked real estate investment firms and agencies to estimate the value of the offices, which it is considering selling separately, the people said, asking not to be identified because the matter is private. It is also weighing the sale of eight rental apartment buildings in the city, they said. Representatives for Sumitomo Realty weren't immediately available for comment. After taking a stake in Sumitomo Realty, Elliott said this week that the Tokyo-based company should do more to improve shareholder returns and corporate governance. The sale plans mark a shift from its business model of developing properties in-house, holding them for the long term, and earning steady income from tenants, toward a strategy targeting capital gains. In a rare public letter, Elliott said it would vote against Sumitomo Realty's senior management at an annual shareholder meeting on June 27 if no meaningful progress is made on improving its value. It called on the developer to unwind its cross-shareholdings, increase its shareholder payout ratio to 50% or more and target a return on equity of at least 10%. Elliott has built up more than a 3% holding in the company, according to the letter.
Bloomberg
12-06-2025
- Business
- Bloomberg
Sumitomo Realty Seeks $700 Million Office Sale Amid Elliott Push
Sumitomo Realty & Development Co., the Japanese developer facing pressure from Elliott Investment Management to boost its value, is seeking to sell a group of office properties in Tokyo for at least ¥100 billion ($700 million), according to people with knowledge of the matter. The developer has earmarked 19 midsized office buildings for the divestment, according to documents seen by Bloomberg. It has asked real estate investment firms and agencies to estimate the value of the offices, which it is considering selling separately, the people said, asking not to be identified because the matter is private. It is also weighing the sale of eight rental apartment buildings in the city, they said.
Japan Times
09-06-2025
- Business
- Japan Times
Elliott calls for Sumitomo Realty improvements in rare letter
Elliott Investment Management is calling for Sumitomo Realty & Development to improve shareholder returns and corporate governance, saying the Japanese real estate developer's stock is worth 40% more than its current value. The New York-based investment firm released a public letter Monday, saying it would vote against Tokyo-based Sumitomo Realty's senior management at the upcoming annual shareholders meeting if there's no meaningful progress made on improving its value. The letter is a rare public move by Elliott, which has kept quiet on most of its Japan investments. In the past year, news reports have unveiled the firm's activist engagement with companies like Tokyo Gas, Mitsui Fudosan and SoftBank Group. Elliott's stake in Sumitomo Realty was first reported in March. Shares of Sumitomo Realty fell 0.6% to ¥5,468 on Monday morning in Tokyo. The stock has gained about 11% this year. A Sumitomo Realty representative wasn't immediately able to comment. Elliott said Sumitomo Realty is one of the most undervalued real estate developers in Japan, assessing that its stock is worth at least ¥8,000, based on the valuation of its real estate holdings and peer companies. It called on the company to unwind its cross-shareholdings in companies such as Taisei and Obayashi, increase its shareholder payout ratio to 50% or more and set a return-on-equity target of at least 10%. Elliott owned a 2.99% stake in Sumitomo Realty at the end of March, according to public filings from the company. In the letter, the investment fund said it has built up a more than 3% holding. In Japan, shareholders who have held 3% of a company for more than six months can call a special meeting. Most of Elliott's Japan investments have focused on boosting returns through share buybacks, selling off older real estate holdings and unwinding equity stakes in other companies. Sumitomo Realty's annual shareholder meeting is scheduled for June 27.
Bloomberg
09-06-2025
- Business
- Bloomberg
Elliott Calls for Sumitomo Realty Improvements in Rare Letter
Elliott Investment Management is calling for Sumitomo Realty & Development Co. to improve shareholder returns and corporate governance, saying the Japanese real estate developer's stock is worth 40% more than its current value. The New York-based investment firm released a public letter Monday, saying it would vote against Tokyo-based Sumitomo Realty's senior management at the upcoming annual shareholders meeting if there's no meaningful progress made on improving its value.
