Diversified Real Estate Activities

The Nikkei Stock Average extended its gains sharply for a third straight session, closing at 65,018.95 yen. Following the decline in long-term interest rates in the U.S. market, buying flowed into semiconductor-related shares in particular, with Advantest climbing 1,810 yen to 32,050 yen. At its monetary policy meeting, the Bank of Japan decided as expected to raise interest rates to 1.25 percent, but its statement did not strongly hint at the timing of any additional rate hike, easing excessive expectations for further tightening. Kasumigaseki Capital raised its earnings forecast for the fiscal year ending August 2026, lifting its operating profit estimate to 27.6 billion yen from 26.5 billion yen, up 45.8 percent from the previous year. The revision reflects better-than-expected progress in expanding project profits and accelerating property sales in its hotel business.

Disclosure filings released after the September 17 market close produced a full slate of positive and negative developments relevant to investment decisions. On the positive side, Apple International raised its ordinary profit forecast for the current fiscal year by 18% and increased its dividend by 5 yen; Choshimaru reversed its current-year ordinary profit outlook to a 21% increase, projecting a record high for the first time in three terms along with a 1 yen dividend hike; Kasumigaseki Capital raised its prior-year ordinary profit forecast by 7%, adding to its record-high projection; and Hobonichi raised its prior-year ordinary profit forecast by 67%. In M&A, Saint Marc Holdings will take over the udon specialty restaurant business Tsurutontan from K Express for 12.8 billion yen, while B-style Holdings will acquire all shares of HR Asocié for 1.21 billion yen, making it a subsidiary. Ferrotec will launch a tender offer for Japan Resistor Manufacturing at 1,901 yen per share, a 49.1% premium to the September 17 closing price, aiming to make it a wholly owned subsidiary, while Nippon Seiki will buy back up to 3.61 million shares, or 6.27% of its outstanding shares, for a maximum of 9.979 billion yen. On the negative side, Chubu Steel Plate reversed its current-year ordinary profit outlook to a 46% decline; PharmaRise Holdings ended the June-August quarter with a 31% drop in ordinary profit; Industrial & Infrastructure Fund Investment Corporation is expected to post a 2% decline in current-year ordinary profit; Advance Residence Investment Corporation a 6% decline; and Ichigo Hotel REIT Investment Corporation an 18% decline.

Hikari Tsushin announced that it will team up with two investment funds to launch a tender offer for Leopalace21, aiming to take the company private with an outlay of about 270 billion yen. The offer price is 1,000 yen per share, and on the Tokyo stock market on the 15th, Leopalace21 shares were indicated at 791 yen, up 14%, or 100 yen, from the previous day at the daily limit high, drawing buying that converged on the tender offer price. Besides Hikari Tsushin, the tender offer will involve Asian investment fund MBK Partners and a fund affiliated with NEC Capital Solutions. Leopalace21 has endorsed the tender offer and recommended that shareholders tender their shares. Junichi Tazawa, an analyst at SMBC Nikko Securities, said in a report that the premium of the offer price over the previous day's closing price is 44.7%, which is comparable to recent tender offer cases involving real estate-related companies, and that, given the company's expression of support, the tender offer is highly likely to succeed.

Hikari Tsushin announced on the 14th that it will launch a tender offer for Leopalace21 together with investment funds affiliated with MBK Partners and NEC Capital Solutions. The offer price is 1,000 yen per share, above the closing price of 691 yen on the 14th, and the offer period will run from September 15 to October 30, with the total purchase amount reaching 267.6 billion yen. Through the series of procedures, the company aims to make Leopalace21 a wholly owned subsidiary. Leopalace21 has expressed its support for the tender offer and decided to recommend that shareholders tender their shares. Hikari Tsushin currently holds 18.11% of Leopalace21 shares through indirect holdings.

Major real estate companies, including comprehensive developers, are stepping up data center development. According to the Ministry of Internal Affairs and Communications, the domestic related market is expected to exceed 5 trillion yen in 2028, and further growth is anticipated on the back of the artificial intelligence boom. Daiwa House Industry plans to build a total of 14 data centers in Inzai City, Chiba Prefecture, breaking ground on the fifth in late September. It has also developed a modular small-scale data center in which some components are manufactured at a factory and assembled on site, and the first such unit was completed in April in Okuma Town, Fukushima Prefecture. Mitsui Fudosan plans cumulative investment of more than 600 billion yen in data center-related projects by fiscal 2035, with development underway in four areas: Sagamihara City, Hino City in Tokyo, the Hokusetsu region of Osaka Prefecture, and the Tama region of Tokyo. In the Hino City project, the building's height was gradually lowered from an initial 80 meters to 63.5 meters in consideration of sunlight. New entrants are also appearing one after another. Mitsubishi Estate set up a data center business office in April and has already invested in multiple projects, and a data center in Ishikari City, Hokkaido, in which Tokyu Land Corporation participated in development for the first time, began operating in August using 100 percent renewable energy.

Major real estate developers, including diversified developers, are stepping up data center development. According to the Ministry of Internal Affairs and Communications, the domestic market for related services is expected to exceed 5 trillion yen by 2028, and further growth is anticipated on the back of the artificial intelligence boom. Daiwa House Industry plans to build a total of 14 data centers in Inzai, Chiba Prefecture, breaking ground on the fifth in late September. In Okuma, Fukushima Prefecture, the first modular small-scale data center was completed in April, and the company has also decided to acquire Sumitomo Densetsu, which specializes in equipment installation. Mitsui Fudosan plans cumulative investment of more than 600 billion yen in data center-related projects through fiscal 2035, with development underway in four areas: Sagamihara, Hino in Tokyo, the Hokusetsu region of Osaka Prefecture, and the Tama area of Tokyo. In the Hino project, which uses the former site of a Hino Motors factory, the building height has been reduced in stages from an initial 80 meters to 63.5 meters in light of consultations with the local municipality, and site preparation work will begin in October. New entrants are also appearing one after another. Mitsubishi Estate set up a data center business office in April and has invested in multiple projects. A data center in Ishikari, Hokkaido, in which Tokyu Land Corporation took part as its first foray into development, began operating in August using 100 percent renewable energy, and the company is also advancing a new plan in Osaka.

Chongqing Yukaifa Co., Ltd. announced on September 11, 2026 that the industrial and commercial registration for its acquisition of a 51% stake in Chongqing Huangge Wandu Real Estate Development Co., Ltd. has been completed. Huangge Wandu has become a controlling subsidiary of the company and will be included in its consolidated financial statements. The transaction was approved at the company's fourth extraordinary shareholders' meeting of 2026 on August 3, 2026. The company acquired the 51% stake in Huangge Wandu from Chongqing Hengcheng Rongzhi Investment Management Co., Ltd. at an appraised value of 210.980574 million yuan. Huangge Wandu has a registered capital of 200 million yuan, is a limited liability company under state control, with Zheng Qiang as its legal representative. Its business scope includes real estate development and operation, residential leasing, and non-residential real estate leasing.

Boutique Corporation Public Company Limited (BC) expects its performance in Q3/2026 to recover clearly both quarter-on-quarter and year-on-year, driven by the return of Chinese and Indian tourists, especially in Phuket. Meanwhile, the "Thai Teaw Thai Plus" measure, with a budget of 3,500 million baht for 1 million rights, will help support higher average room rates, although the upside may be limited as it coincides with the high season when occupancy rates are already high. The company plans to open two new hotels: Mövenpick Resort Kamala Beach Phuket in December 2026 and JonoX Sukhumvit 5 Handwritten Collection in January 2027, which will add a total of 370 rooms, representing over 30% of the existing room base. It expects a clear turnaround in 2027. Regarding the JW Marriott Hotel Bangkok Sukhumvit 24 project, the board has approved changing the transaction structure from an entire business transfer to a merger between BQD and BSA, with the transaction value remaining unchanged at no more than 660.80 million baht.

Nomura Real Estate Holdings announced that its subsidiary Nomura Real Estate, in collaboration with Lotte Holdings, will establish a joint venture company "BEAT PARK OSAKA" to open a live house in March 2028 at a location a three-minute walk from Shin-Osaka Station, and the facility will be named "BEAT PARK OSAKA." By adding a new mid-sized venue to Osaka's entertainment scene, they expect to expand performance opportunities and stimulate surrounding consumption. Leveraging the strengths of both companies, they will enter the live entertainment business. The stock price is holding firm.

Eastern Star Real Estate Public Company Limited (ESTAR) expects its performance in the fourth quarter of 2026 to continue improving, supported by a backlog of approximately 300 million baht and a stock of ready-to-transfer projects worth around 3 billion baht, which will help boost additional sales. The company plans to launch two new projects with a total value of about 3 billion baht, comprising one low-rise project and one condominium project, located in Bangkok and Nonthaburi, with launches expected within the fourth quarter of 2026. Meanwhile, the company has adjusted its strategy to use dynamic pricing and online marketing through Facebook and TikTok to stimulate sales. It also noted that the extension of the transfer and mortgage fee reduction to 0.01% until June 30, 2027, will help stimulate demand, especially for condominiums, where ESTAR has ready-to-transfer stock worth around 2 billion baht.

The Stock Exchange of Thailand's board has resolved to appoint Benchakorn Suwannakiri as Deputy Manager and Head of Corporate Strategy and Finance, effective from October 1, 2026. Meanwhile, Bangkok Bank announced an interim dividend of 2.00 baht per share, with the shareholder record date set for September 10 and payment on September 25, 2026. AOT is running a 'Shop, Fly, Fun, Win' campaign offering cash vouchers and free flight tickets to passengers who meet spending conditions. ESTAR has partnered with Krungsri Ayudhya to enhance its Wealth customer services. BIZ's second-quarter 2026 profit grew 87%, and TFG is expanding Thai Foods Fresh Market to 875 branches, confident of 10-15% revenue growth this year.

Boutique Corporation Public Company Limited (BC) is accelerating its business in the second half of the year with an Asset-Light model, offering hotel and property management services as a Third-Party Operator (TPO) to generate recurring income. In the first half, revenue from hotel and shopping center businesses grew 6.3%, and second-quarter EBITDA improved 20.6%. The company plans to open the 197-room Mövenpick Resort Kamala Beach Phuket by the end of 2026 and the 174-room Sukhumvit 5 project in early 2027. It is also moving forward with the development of JW Marriott Bangkok Sukhumvit 24 and the Kamala 2 project to further expand its Asset-Light portfolio.

Dagang Shares released its 2026 interim report, with total operating revenue of 233 million yuan, up 45.55% year-on-year, and net profit attributable to the parent of 54.5439 million yuan, up 71.74% year-on-year, both achieving growth for two consecutive years. Net cash inflow from operating activities was 57.5526 million yuan, up 18.09% year-on-year. The company's asset-liability ratio was 18.00%, gross margin was 18.80%, ROE was 1.60%, and diluted earnings per share was 0.09 yuan. The number of shareholders was 82,200, and the top ten shareholders held 53.49% of the total share capital.

New Huangpu released its 2026 interim report, showing total operating revenue of 413 million yuan and net profit attributable to the parent company of 212 million yuan, an increase of 110 million yuan compared with the same period last year, achieving growth for two consecutive years and a year-on-year rise of 108.44%. Net cash inflow from operating activities was 859 million yuan, the asset-liability ratio was 77.53%, gross margin was 31.48%, return on equity was 4.46%, and diluted earnings per share was 0.31 yuan, up 108.48% year-on-year. The company had 28,800 shareholders, and the top ten shareholders held 49.79% of the total share capital.

AP Thailand, together with Mitsubishi Estate, announced the successful delivery of the RHYTHM Charoen Nakhon Iconic luxury condominium project worth 5 billion baht, which has been 100% completed and is ready for ownership transfer and occupancy. This project is the 23rd flagship joint venture out of a total of 32 projects that the two companies have jointly invested in over 13 years, with a combined value exceeding 140 billion baht as of July 31, 2026. The project is located opposite Iconsiam, just 100 meters from the BTS Charoen Nakhon station, with only 577 units, and marks the return of the RHYTHM brand after 4 years.

New Huangpu released its 2026 interim report. First-half net profit attributable to the parent was 212 million yuan, up 108.4% year on year. Operating revenue was 267 million yuan, down 31.4% year on year. Net loss attributable to the parent excluding non-recurring items was 7.1 million yuan, down 108.9% year on year. Net operating cash flow was 859 million yuan, down 34.8% year on year. Earnings per share were 0.3146 yuan. In the second quarter, operating revenue was 105 million yuan, down 32.8% year on year. Net profit attributable to the parent was 73.53 million yuan, up 205.8% year on year. Net profit attributable to the parent excluding non-recurring items was 18.07 million yuan, up 151.9% year on year. As of the end of the second quarter, total assets were 22.297 billion yuan, up 11.5% from the end of the previous year. Net assets attributable to the parent were 4.75 billion yuan, up 4.7% from the end of the previous year. The company said the real estate industry is shifting from new construction growth to improving existing stock and optimizing structure. The company adheres to a dual-engine strategy of real estate and finance. Real estate development is mainly concentrated in the Yangtze River Delta region, covering rental housing, commercial housing, and affordable housing. Its financial business is also gradually forming a diversified layout.

Boutique Corporation Public Company Limited (BC) is accelerating growth in the second half of the year by expanding its Asset-Light business through hotel and asset management services as a Third-Party Operator (TPO), while preparing to launch new projects. In the first half, total revenue was 223.7 million baht, down from the previous year due to the recognition of proceeds from the sale of investment in the Summer Point project. Excluding that item, revenue from hotel and shopping center businesses increased by 6.3%. In the second quarter of 2026, total revenue was 81.4 million baht, up 5.3%, and EBITDA improved by 20.6% year-on-year. The company aims to increase the proportion of recurring income through hotel and asset management, as well as develop new projects such as the 197-room Mövenpick Resort Kamala Beach Phuket, expected to open by the end of 2026, and the 174-room Sukhumvit 5 project in Bangkok, expected to open in early 2027. It is also proceeding with the development of the JW Marriott Bangkok Sukhumvit 24 and the Kamala 2 project to strengthen long-term growth.

Dagang Shares released its 2026 interim report. First-half net profit attributable to the parent was 54.54 million yuan, up 71.7% year on year. Operating revenue was 233 million yuan, up 45.6% year on year. Net profit attributable to the parent after deducting non-recurring items was 33.27 million yuan, up 4.3% year on year. Net operating cash flow was 57.55 million yuan, up 18.1% year on year. Earnings per share were 0.094 yuan. In the second quarter, operating revenue was 128 million yuan, up 35.4% year on year, and net profit attributable to the parent was 16.14 million yuan, up 0.1% year on year. As of the end of the second quarter, total assets were 4.288 billion yuan, up 2.8% from the end of the previous year. Net assets attributable to the parent were 3.4 billion yuan, up 1.6% from the end of the previous year. The company's business covers integrated circuits and environmental resource services. Integrated circuit revenue in the first half was 141 million yuan, up 66.85% year on year, with wholly owned subsidiary Shanghai MinAi's operating revenue and net profit up 72.48% and 51.03% respectively. Environmental resource services revenue was 83.34 million yuan, up 26.79% year on year.

AP Thailand, together with Mitsubishi Estate, has announced the delivery of the RHYTHM Charoen Nakhon Iconic luxury condominium project, valued at 5 billion baht, which has been 100% completed and is ready for ownership transfer and occupancy. This is the 23rd flagship joint venture project out of a total of 32 projects, with a combined value exceeding 140 billion baht as of July 31, 2026. The project comprises only 577 units, located opposite Iconsiam and just 100 meters from BTS Charoen Nakhon station, marking the return of the RHYTHM brand after four years.

Yiwu China Commodities City has released its 2026 interim report. Total operating revenue was 10.282 billion yuan, up 33.30% year on year, and net profit attributable to the parent company was 1.979 billion yuan, up 17.05% year on year. Net cash flow from operating activities was negative 129 million yuan. The asset-liability ratio was 48.61%, gross margin was 29.04%, return on equity was 8.95%, and diluted earnings per share was 0.36 yuan. The number of shareholders was 208,800, and the top ten shareholders held 63.72% of total share capital.

Yiwu Commodity City released its 2026 half-year report, with first-half net profit attributable to the parent of 1.979 billion yuan, up 17.05% year on year. Operating revenue was 10.282 billion yuan, up 33.3% year on year. Net profit attributable to the parent excluding non-recurring items was 1.823 billion yuan, up 9.3% year on year. Net operating cash flow was negative 129 million yuan, down 109.3% year on year. Second-quarter operating revenue was 5.69 billion yuan, up 25.0% year on year, and net profit attributable to the parent was 989 million yuan, up 11.4% year on year. As of the end of the second quarter, total assets were 43.179 billion yuan, down 2.8% from the end of the previous year, and net assets attributable to the parent were 22.102 billion yuan, down 3.7% from the end of the previous year.

Yiwu Commodity City announced a plan to distribute a cash dividend of 1 yuan per 10 shares, before tax, to all shareholders, with an estimated total payout of 548 million yuan, accounting for 27.71% of net profit attributable to the parent company. In the first half of 2026, the company achieved revenue of 10.282 billion yuan and net profit attributable to the parent company of 1.979 billion yuan.

Qingfangcheng disclosed its 2026 semi-annual report, with net profit attributable to shareholders of the listed company reaching 380 million yuan in the first half, a year-on-year increase of 127.56%. The company achieved operating revenue of 458 million yuan in the same period, down 11.19% year-on-year. The announcement was released on August 24.

Qingfangcheng released its first-half 2026 report, achieving operating revenue of 458 million yuan, down 11.19% year on year; net profit attributable to shareholders of the listed company was 380 million yuan, up 127.56% year on year. Second-quarter net profit was 30 million yuan, down 91% quarter on quarter from 349 million yuan in the first quarter.