By Koichi Kuranuki

Yomiuri Shimbun Senior Writer

Japan Post Holdings Co. announced Friday its policy to strengthen its real estate business in a new medium-term management plan. The company will develop asset-turnover businesses through such initiatives as the sale of condominiums and the establishment of a real estate investment advisory firm.

Through these business enhancements, the Japan Post group aims to become a general developer that is one of the top 10 companies in the industry.

Regarding management targets in the medium-term plan, the group aims for a return on equity $(ROE)$ of 5% to more than 7% and net income of 500 billion yen to more than 700 billion yen in fiscal 2028. Given Japan's return to having positive interest rates, the banking business expects net income to exceed 1 trillion yen and ROE to reach around 10% for the fiscal year, driven by increased investment income.

The strategy of establishing the real estate business as a new pillar of revenue is linked to the reorganization of the post office. To facilitate participation in urban redevelopment projects, the group will increase the number of reorganization initiatives, such as relocating the mail collection and delivery functions of the Nihombashi Post Office to Kuramae JP Terrace.

At a press conference, President and CEO Kazuyuki Negishi said about achieving management goals, "While improving efficiency (of operations) is a prerequisite, we believe the revision of postal rates is necessary." He also noted that the scope of the management goals would vary depending on whether such a revision occurs. Regarding the timing of a rate increase, he said, "There are government regulations to consider, but we are looking to implement it as early as within the next fiscal year."

"We want to deepen our three core functions, which are comprehensive logistics, comprehensive finance and lifestyle support," Negishi said. "We will expand our product lineup, integrate customer information across channels and provide personalized services."

Meanwhile, he expressed concern regarding providing universal service in the postal and domestic logistics business, saying, "It is becoming increasingly difficult to sustain universal service." He also emphasized the importance of balancing keeping universal service sustainable with growth in new business areas.

Specifically, he said, "We aim to conduct structural reform of the postal business and enhance corporate value by positioning the financial and real estate businesses as new growth engines."

To expand profits in the financial business, the company plans to expand its product lineup to be aimed at a wide range of ages, from young people to the elderly. Regarding these financial services, he said, "We want to deepen (customer) interaction with employees who possess specialized knowledge not only at traditional physical post office branches but also through apps and remote channels."

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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May 19, 2026 01:18 ET (05:18 GMT)

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