Tokyotokeiba outlines five-year plan, higher returns, and land acquisition

Tokyotokeiba's new five-year plan, effective from fiscal year 2026 through 2030, targets an average annual operating profit growth of approximately 5% and an average ROE of 10% or higher. Key initiatives include developing a new training center, advancing the SPAT4 system, launching new information services, and creating an urban entertainment racecourse with a new arena. Total investments are projected at approximately JPY 75 billion, supported by an estimated JPY 90 billion in operating cash flow.

In line with the new plan, Tokyotokeiba is increasing its dividend payout ratio target to 35% (standard), with an estimated annual dividend per share of JPY 137. This marks an adjustment from the previous 30% payout ratio and a JPY 90/share minimum. The company will also conduct a share buyback of up to 680,000 shares, representing 2.55% of outstanding shares, for a maximum of JPY 4.1 billion, with plans to retire these shares by January 30, 2026.

A significant part of the new strategy involves acquiring approximately 810,000 square meters of land in Ichihara City, Chiba Prefecture, for a new training center and relocation of stables. The acquisition cost, which will not be disclosed, is less than 30% of the company’s consolidated net assets and will be funded by internal funds and borrowings.