JR East to split real estate business for growth acceleration

East Japan Railway Company announced its decision to enter into a simplified absorption-type company split agreement with JR East Real Estate Co., Ltd., effective April 1, 2026. The move aims to accelerate the growth of the JR East Group by strengthening real estate liquidation for growth investment, particularly in real estate sales. The split will transfer the business of developing and selling company-owned land for real estate liquidation and fund reinvestment.

The transaction is structured as a simplified absorption-type company split, with JR East Real Estate as the successor company. No shares, money, or other assets will be allotted as consideration since the split is between the parent company and its wholly-owned subsidiary. JR East Real Estate will succeed assets, liabilities, and contractual rights related to the split.

For the fiscal year ended March 31, 2025, the business to be split generated operating revenues of JPY 4,519 million. As of September 30, 2025, the book value of assets to be transferred includes JPY 3 million in current assets and JPY 7,177 million in fixed assets, totaling JPY 7,181 million. East Japan Railway Company does not anticipate a material impact on its consolidated financial results from this split.