"If only we hadn't owned buildings"—Our JINUSHI BUSINESS specializes in land, inspired by profound self-reflection and a complete shift in perspective.

Our origins can be traced back to a major "failure" in the development of a commercial facility in Shiga Prefecture, which our founder, Matsuoka, and our current president, Nishira, experienced in the late 1990s while working in the real estate division of a trading company.

At the time, they were engaged in the business of leasing land and developing buildings for lease to tenants. However, they experienced the bankruptcy of a tenant with annual sales exceeding one trillion yen. Although they succeeded in attracting a replacement tenant, they were forced to bear substantial building repair costs and accept lower leasing fees.

"Had we not owned the building and leased only the land, we might have avoided failure." This impactful firsthand experience served as the catalyst for the idea of our unique JINUSHI BUSINESS—a concept centered on "creating real estate financial products that generate long-term, stable returns by investing solely in land without owning buildings."

At the time of our founding in 2000, our JINUSHI BUSINESS was criticized as lacking liquidity and was even said to be "damaging the value of land." Nevertheless, driven by our belief that "what is right will eventually be accepted by society," we challenged the conventional real estate industry norm of treating land and buildings as inseparable in transactions.

Amid these headwinds, we created the Leased Land Market from scratch as a "safe product generating long-term, stable income." By steadily building a track record through asset sales to J-REITs and the formation of the private fund JINUSHI Fund, we launched Japan's only privately placed REIT specializing in leased land in 2017: JINUSHI Private REIT Investment Corporation (JINUSHI REIT). By establishing JINUSHI REIT, which holds leased land for the long term, we completed a high-turnover business model while also being able to provide tenants with the added value of a "stable landowner." This JINUSHI REIT has become a key strength, enabling us to earn strong trust from both institutional investors and tenants.

Then, in 2022, we changed our company name to JINUSHI. The Leased Land Market we pioneered ourselves has now grown to approximately 10 trillion yen (*according to estimates by the Japan Real Estate Institute). We are now moving forward into a new stage of growth.

Its uniqueness and high profitability have also been recognized from a management science perspective.
A truly one-of-a-kind business model.

"If only we hadn't owned buildings" ―born from this deeply felt reflection, the JINUSHI BUSINESS overturned conventional real estate investment norms and introduced the innovative concept of delivering value through a new real estate financial product focused solely on land.

"Purchase land. Lease land. Sell the land being leased, then manage investors' funds." At first glance, these steps may seem straightforward. However, behind them lies a carefully engineered model that fundamentally eliminates real estate investment risks while continuously generating profit. Its uniqueness and high profitability have been validated by receiving the Porter Prize, recognized globally for its authority in the field of management science.

First, we purchase land that is easy to convert and that retains its value over the long term (STEP 1). Next, we secure a stable cash flow by entering into long-term fixed-term land lease agreements (ranging from 20 to 50 years) with high-quality tenants (STEP 2). We then sell this as a long-term, stable financial product to a solid platform such as JINUSHI REIT (STEP 3). Even after the sale, we continue to earn ongoing asset management fees (STEP 4).

Each of these steps embodies the expertise we have cultivated over more than 25 years of focusing exclusively on our JINUSHI BUSINESS.

A key feature is the elimination of inventory risk, with a structure in which a "purchase" directly translates into "profit."

When acquiring land, we first execute a reservation agreement for a fixed-term land lease right with a prospective tenant, specifying details such as the leasing fees and agreement duration before purchasing the land. In other words, a long-term, stable cash flow under the agreement is secured at the time of purchase.

In addition to strong investor demand for our products, we have a clear understanding of the specific acquisition criteria of our primary buyer, JINUSHI REIT. This means that we have minimized the risk of "creating a product but being unable to sell it" from the moment of purchase.

In our JINUSHI BUSINESS, "accelerating purchase" means "accumulating assured profits." While it may appear to be a simple "land-only" business, it is a highly rational and efficient growth model that eliminates inventory risk while continuously circulating capital.

A Leased Land Market worth 10 trillion yen.
And a 46-trillion-yen CRE market is marked as the next target.
With tailwinds from an exceptional first-mover advantage and societal changes.

The achievements outlined in "STORY 02" demonstrate that our business model generates tangible value. However, this is only the beginning. The true potential of our JINUSHI BUSINESS lies ahead.

A turning point came in 2022, when our company name was changed to JINUSHI. We removed the "commercial" frame from our former name and instead embedded our business model itself into the company name. It was a redefinition, providing a statement that "we are not simply developers of commercial facilities, nor are we limited to Japan. We are a company dedicated to the JINUSHI business itself.

Following this corporate name change, our transactions with tenants diversified beyond commercial facilities to include logistics, hospice facilities, hotels, factories, and data centers, among others. The number of tenant partners has doubled since the name change, and our business footprint has been expanded nationwide.

Backed by over 25 years of specialization in our JINUSHI BUSINESS and 10 years of JINUSHI REIT management, and leveraging our exceptional first-mover advantage, we have established ourselves as a leading player in the Leased Land Market worth 10 trillion yen.

Now, social changes such as Tokyo Stock Exchange reforms, demands from activists and private equity funds for improved capital efficiency, and rising construction costs are creating strong tailwinds. In particular, demand is rapidly increasing for JINUSHI LEASEBACK, in which companies sell only their land while retaining ownership of the buildings. This approach, which supports corporate CRE (Corporate Real Estate) strategies, directly aligns with current market needs. Its potential market size is enormous, estimated at approximately 46 trillion yen (based on JINUSHI estimates), even when considering only land held by listed companies.

The concept of our JINUSHI BUSINESS, JINUSHI REIT, which serves as leverage, the redefinition driven by our corporate name change, and societal changes are now perfectly aligned. We are evolving with the vision that we aim to become a major landowner in Japan, as JINUSHI REIT grows.

Achieving record-high profits and consecutive dividend increases.
With a business that combines stability and growth, we aim to increase dividends alongside profit growth.

From here, we share our message with our stakeholders.

Management philosophy
"Through our JINUSHI BUSINESS, we create safe real estate financial products and fulfill our role in protecting people's assets."
Vision
"Aiming to become a major landowner in Japan as JINUSHI REIT grows."

We will continue moving toward these goals. These continuous efforts generate added value for our stakeholders and lead to our unique competitive advantage.

To our tenants, we offer the peace of mind that comes from a "stable landowner" that ensures business continuity.
To our investors, we provide "long-term, stable financial products" that are resilient to natural disasters and market volatility.
To our officers and employees, we offer an environment that encourages taking on challenges, as well as compensation that rewards performance.
To our shareholders, we commit to "progressive dividends," aiming to increase dividends in line with profit growth.

This chain of value creation is the source of our sustainable profit growth, which is not easily replicated by other companies and represents our unwavering strength in balancing social significance with corporate growth.

Together with our shareholders who support our challenges, we are committed to enhancing long-term corporate value. That is our promise to you.

Our outlook for the future is also extremely strong. We are accelerating our annual purchases to over 100 billion yen, while JINUSHI REIT is setting its sights on an AUM scale of 500 billion yen. With a 10-trillion-yen Leased Land Market (according to the Japan Real Estate Institute) and a 46-trillion-yen CRE market, we are poised for further breakthroughs.

By turning societal changes into growth opportunities, our JINUSHI BUSINESS uniquely combines social significance with high profitability. As a leading player in this field, JINUSHI Co., Ltd. will continue to move forward.

We sincerely invite all those who share our vision to join us on this journey into the future.