Section 2. Expanding Our Business

13. Selling Seven Residential Properties

While Daibiru’s core business is owning and renting out office buildings, the company has also steadily accumulated residential properties as assets to supplement its earnings. However, the aging of these properties has become more pronounced with markedly increasing repair costs and declining competitiveness in recent years, and from the viewpoint of the selection and concentration of its management resources, a review of its asset portfolio, and capital efficiency, the company decided to scale back its residential properties in 2019. Initially, the company prioritized the sale of Select Yoga, the Higashi-Matsubara Women’s Dormitory, Palacio Fujigaoka, Lanterna Noge, and Line House Aoki Park. Eventually, however, the company decided to sell the relatively competitive Lanterna Nishiogi and Eifuku Women’s Dormitory as well. A total of seven properties were sold to an American fund in April 2022.