Nikkon Holdings to restructure real estate portfolio for value growth

Nikkon Holdings announced today that its special committee has submitted a final report on strategies to enhance corporate value, including a review of its real estate management. The committee, established in June 2025 and comprising independent outside directors, held 15 meetings and engaged external advisors to assess the company's real estate and M&A activities.

For rental properties, the committee recommends considering the sale of all 10 properties to address potential impairment losses and business impact. These 10 properties have an appraised market value of approximately JPY 40 billion. For the top 20 impact-ranked business properties, the committee advises sequential monetization for those where capital efficiency falls below WACC, even after implementing profit improvement measures.

The company plans to utilize proceeds from real estate monetization for shareholder returns or growth investments, including M&A, to improve capital efficiency and corporate value. Nikkon Holdings will incorporate these recommendations into its next medium-term management plan, scheduled for disclosure in March 2026.