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 In a fast-changing world, now is the time to ensure that our operations are on a secure, risk-resistant footing and that we are ready to grasp all new business opportunities that present themselves.
Overview of the Current Business Environment
Looking back over 2009, it is clear that the global economy faced an unprecedented crisis due to rapid downturns in real economies triggered by financial turmoil in the United States. While international collaboration on the issuing of large-scale fiscal stimulus packages continues to curb the rate of economic decline, there are still many uncertainties and economic prospects that remain unclear. In Japan, largely as a result of the export-dependent industrial structure, the economy slipped into recession and the real estate market temporarily crashed. As 2009 drew to a close, predictions that the economy was bottoming out finally breathed some life back into markets, but it is still too soon to take recovery for granted.
In the midst of this economic turmoil, Japan faced a major turning point as a change of government led to proposals for new political, economic and social policies, and looking ahead we could say that uncertainty is the only certainty we can expect. This is also a crucial period for Mori Trust Group, as the choices and actions we take today and tomorrow will create our foundations for growth and positive market positioning in the coming era of economic recovery.
In 2006, Mori Trust Group built a portfolio that embraces a diverse array of businesses and industries and reorganized itself into the three business divisions of Real Estate, Hotels and Resorts, and Investment, thus marking the start of the third stage of its corporate history. In this regard, by utilizing our wealth of corporate management experience we will make the most of new opportunities in a changing business environment and aim to create a robust, risk-resistant real estate and business portfolio.
The Three Stages of Mori Trust Group Corporate History
Let me recap the three stages of our corporate history.
The first stage was from 1970 to 1993, when Mori Building Development Co., Ltd. (which changed its name to Mori Trust Co., Ltd. in 1999) was a core member of the Mori Building Group dealing with short- and medium-term projects, while long-term developments were handled by Mori Building Co., Ltd. At that time, Mori Building Group was managed by three people: founder Taikichiro Mori was CEO; Minoru Mori, the current president of Mori Building, was in charge of development and marketing; and I was responsible for finance and administration.
The second stage ran from 1993 to 2005, when I became CEO of Mori Building Development and Mori Kanko Trust Co., Ltd., and Mori Trust Group took its current form. During this stage, which followed the bursting of Japan’s bubble economy, we strengthened our financial position by liquidating or turning around nonperforming assets. We also acquired sites in Tokyo’s Marunouchi and Shiodome districts and began major urban development projects, constructing a competitive real estate portfolio even as Japan struggled with recession.
The third stage has seen Mori Trust Group grow into a conglomerate encompassing a diverse range of businesses. Our three divisions continue to restructure and reinforce their asset quality and management capabilities to respond to changing times. Armed with a wealth of expertise and abundant management resources, our three divisions aim to develop their businesses in directions that contribute positively to society across the full range of our activities.
Outlook for 2010
In response to these broad trends, Mori Trust Group businesses plan to focus in 2010 on forward-looking measures to further strengthen our corporate capabilities, particularly enhancing our financial position and building a robust real estate portfolio for the new era.
The Real Estate division saw the debut of our new “Trust City” brand of luxury urban complexes, with the opening of Marunouchi Trust City in 2009, which is to be followed in August 2010 with the grand opening of Sendai Trust City. The division is also moving into the final planning stages for new Tokyo-based redevelopment projects in the Kyobashi district and on the site of the Toranomon Pastoral Hotel which was closed in 2009.
The Hotels and Resorts division will celebrate the opening of the Westin Sendai in August of 2010. Housed in Sendai Trust City, this will be the Tohoku region’s first luxury international hotel, and by offering world-class facilities and service, the hotel aims to help Sendai develop as an international center.
The Investment division, meanwhile, will continue its mergers and acquisitions, venture capital and fund businesses. In a fast-changing global socio-economic environment, the division also plans to examine overseas investments from a mid- to long-term perspective.
The key to success in the current economic environment is providing appropriate and well-timed products via up-to-date business models. With an eye to the changing times, Mori Trust Group will place its three divisions at the core of its operations, but without limiting the scope of its business activities, as it continues to contribute positively to society across a broad range of fields.
Our management philosophy is based on Trust, Continuity, Shared Rewards, and Social Responsibility. The word "Trust" is in our corporate name because it reflects our commitment to contributing to society over the long term, thus proving ourselves worthy of the trust placed in us by society. As we grow hand-in-hand with our customers and partners by creating mutually beneficial business models in a variety of spheres, we also aim to build businesses and systems that benefit our society as a whole.
We firmly believe it is our corporate obligation to manage the Group in a responsible way and thereby create truly outstanding businesses, and for this reason Mori Trust Group will continue striving to earn the trust of our customers and business partners as well as local communities and society as a whole.
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January 2010
Akira Mori,
President and Chief Executive Officer
Mori Trust Co., Ltd. |
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