-- Japanese listed companies hold an estimated 20 trillion yen in unrealized gains from real estate assets, fueling activist investor calls for property sales to improve capital efficiency, Nikkei reported Friday.
Estimates from Mizuho Trust & Banking show publicly traded firms hold business real estate with a book value of 119 trillion yen and an estimated market value of 139 trillion yen, according to the report.
Rising land prices and inflation have sharply increased the value of corporate property holdings, including logistics facilities and headquarters. Unrealized gains on disclosed rental properties reached 30 trillion yen in fiscal 2025, up 25% from five years earlier, the report said.
Activist investors are pressing companies to sell low-yield assets and use proceeds for shareholder returns or investments, according to the report.
Nikkon Holdings (TYO:9072) said it may sell properties generating returns below its cost of capital after reviewing 243 sites valued at about 130 billion yen. Toho Holdings (TYO:8129) is also considering asset sales following pressure from investor 3D Investment Partners, the report said.
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