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Corporate Japan’s $77bn in property gains offer target for activists

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Corporate Japan’s bn in property gains offer target for activists

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Japanese companies outside the real estate sector generated more than $77bn in paper profits last year from their non-core property portfolios, increasing pressure on them as investors demand asset sales to unlock value. 

The paper profits were spread across more than 250 companies in industries ranging from food production and glass manufacturing to advertising and financial services — many of them businesses that built property empires in the 1980s and have never needed to sell them.

The calculation of their 2023 gains by analysts at Goldman Sachs has emerged ahead of the June annual meeting season — the 10-day stint at the end of next month during which more than 2,000 listed companies meet shareholders.

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Legal and banking advisers said the season would probably generate more friction than previous years, in part because of pressure on companies from the Tokyo Stock Exchange to focus on capital efficiency and valuations.

The glut of unrealised property gains last year follows 10 years in which prices of Japanese commercial property and condominiums have risen, and where, unlike London, New York and Hong Kong, remote working has not taken hold and Tokyo office vacancies remain low post-pandemic.

Actual real estate companies, such as Mitsubishi Estate and Tokyo Tatemono, have performed strongly, with shares for the sector up more than 20 per cent since January.

But Goldman’s Japan equity strategist, Bruce Kirk, said companies were under pressure from shareholders to justify their non-core businesses, and the vast property portfolios looked anomalous. 

Bankers who have advised Japanese companies on dealing with activists said that where investors once saw the property portfolios as a peculiarity, their existence now painted a target on companies and made them vulnerable to shareholder campaigns.

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Goldman’s report focused on about 250 companies in the Topix index that were not real estate specialists but had business segments operating their real estate assets. 

Accounting changes made in 2010 obliged companies to disclose the book value of properties held for investment or rental, along with an estimate of market value. The difference between those two figures produces an annual reckoning of unrealised gains or losses on the property, which in many cases is office space.

Between them, those companies declared $77bn of paper gains in 2023 — not far off the $89bn of paper gains declared by the Japanese real estate industry itself.

Recent high-profile activist fund engagements with Japanese companies, including Elliott Management’s tussle with Dai Nippon Printing, have focused on non-core property assets.

“The potential value unlock from undervalued non-core real estate provides investors with yet another pressure point to focus on during their discussions with Japanese corporate management,” said Kirk.

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He added there was likely to be some debate around the definition of core versus non-core, and his screening of companies with large non-core real estate portfolios deliberately omitted Japan’s railway companies, which hold significant properties around their stations.

“The corporate governance momentum is definitely on the side of investors at the moment,” said Kirk. “This could encourage a lot more scrutiny of the reasons why non-real estate companies have such extensive portfolios of real estate assets during this year’s AGM season.”

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Michigan governor threatens to pull troops from D.C. if used for Trump task force

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Michigan governor threatens to pull troops from D.C. if used for Trump task force

Members of the National Guard stand in front of a large image of U.S. President Donald Trump that hangs from the the Robert F. Kennedy Department of Justice Building on May 18, 2026 in Washington, D.C.

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WASHINGTON, D.C. — In a strongly worded letter to the head of Michigan’s National Guard, Gov. Gretchen Whitmer reiterated troops from her state are only to be used for operations surrounding America 250 celebrations in Washington, D.C., and not for President Trump’s long-running — and controversial — joint task force to fight crime. She said that she would pull her troops from the city if that is not the case, in the letter obtained by NPR.

“Please take all necessary measures to ensure the Michigan National Guard is only supporting the narrow and limited America 250 Mission and is in no way supporting the D.C. Safe and Beautiful Mission,” wrote Gov. Whitmer, referencing the official name for the federal task force.

Trump deployed hundreds of troops to Washington, D.C., in August of 2025, in what experts said was a stunning departure from governing norms. He said he did so to address rampant crime, despite declining crime rates at the time. The number of troops in the city has increased over time to more than 4,800 from Washington, D.C. and almost two dozen states, which until recently were exclusively Republican-led.

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Michigan — which has 161 guard members currently in the city — is one of four Democratic-led states that sent members of their National Guard to D.C. in recent weeks, ahead of an influx of tourists for America 250 celebrations. North Carolina and Kentucky each sent one member of their guard, while Minnesota sent more than a hundred last week.

Kentucky confirmed to NPR Monday that it had recalled its one guard member over the weekend, after that member was “diverted to the task force by the federal government without the knowledge or consent of Gov. Beshear of the Kentucky Guard,” Scottie Ellis, a spokesperson for Gov. Beshear, wrote to NPR in an email.

When contacted by NPR, spokespeople for each respective Democratic governor’s office made it clear that their guard members were sent to help specifically with America 250, not for law enforcement purposes as part of the larger ongoing federal joint task force operation. All four states have been clear about their opposition to the Trump administration’s ongoing deployment of National Guard troops to D.C., filing an amicus brief in support of litigation challenging it as recently as May.

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Senate Ethics Committee dismisses complaint against Sen. Ruben Gallego

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Senate Ethics Committee dismisses complaint against Sen. Ruben Gallego

Sen. Ruben Gallego, D-Ariz., walks out of the Senate chamber on Oct. 1, 2025.

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The Senate Ethics Committee has dismissed a complaint brought against Sen. Ruben Gallego involving allegations of campaign finance violations and potential sexual misconduct.

The allegations against the Arizona Democrat were brought to the committee in April by a fellow member of Congress, Rep. Anna Paulina Luna, R-Fla. But in a letter to Gallego dated June 26, the committee said it had uncovered no wrongdoing.

“Based on the investigation of the Committee, the Committee did not find evidence that your actions violated Federal law, Senate rules, or related standards of conduct,” the panel wrote.

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The panel also said it appreciated Gallego’s “full cooperation” throughout the investigation.

Gallego welcomed the findings, saying in a statement that the dismissal “reaffirms what I have said about these accusations from the beginning: they were right-wing conspiracies peddled by far-right activists like Anna Paulina Luna, the White House, and their allies.”

“I look forward to an apology from Rep. Luna for weaponizing the ethics process while refusing to investigate historic corruption that’s making life harder for families,” he continued.

Whispers about potential misconduct by Gallego began to circulate in April following the resignation of Rep. Eric Swalwell, D-Calif. Swalwell stepped down in response to a swell of sexual assault and misconduct allegations. NPR has not independently verified the allegations against Swalwell, but he has adamantly denied them.

Swalwell and Gallego were close friends, and during Swalwell’s short-lived 2020 presidential campaign, it was Gallego who served as campaign chair.

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In the immediate aftermath of Swalwell’s resignation, Gallego denied knowledge of any alleged history of sexual misconduct, though he acknowledged to reporters that their close friendship may have made it difficult for him to accept rumors about Swalwell and his behavior toward women.

“My friendship with him, our family’s friendship together with him, clouded my judgment, and I was wrong — I deeply, deeply regret that,” Gallego said.

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Native Americans celebrate victory at the Battle of Little Bighorn, 150 years later

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Native Americans celebrate victory at the Battle of Little Bighorn, 150 years later

Horse mounted riders circle atop a hill at the Battle of Little Bighorn National Monument, near Last Stand Hill, on June 25.

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CROW AGENCY, Mont. — Under the expansive Montana sky, hundreds of members and descendants of 19 tribal nations gather at one of America’s most famous battlefields. They’re here to watch as Native American riders on horseback charge onto the same land their ancestors did 150 years ago when they defeated the U.S. Army’s 7th Cavalry under the command of Lt. Col. George Armstrong Custer.

The riders race across the dry landscape — kicking up clouds of dust before circling at the top of a hill at Little Bighorn Battlefield National Monument. Some of them are wearing headdresses and regalia, others are wearing tank tops and T-shirts. Many of them are carrying their tribal flags in a show of unity — the same unity that made possible their swift victory on June 25, 1876.

“It was so important then, 150 years ago. … It’s important today still,” said Gaby Strong, who is Sisseton-Wahpeton and Mdewakanton. “Our victories are still possible.”

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Custer’s goal was to force Native Americans onto reservations. After the 1874 discovery of gold in the Black Hills, Indigenous peoples living off reservations were directed to report to their U.S. field offices, called Indian Agencies, or be deemed hostile.

Native American leaders, including Crazy Horse and Sitting Bull, organized villages and tribes together in a resistance effort.

Several battles broke out in what is now Montana and South Dakota as military forces attempted to push remaining groups onto reservations.

“Crazy Horse, he went from band to band, leader to leader, to tell them about this idea of our relatives coming together for a much greater cause than themselves,” said Christopher Eagle Bear. He is Sicunga Lakota from the Rosebud Sioux Tribe.

In 1876, Custer was tracking a nomadic village of various peoples, including the Oceti Sakowin (Sioux), Cheyenne and Arapaho. Custer was tracking that camp with the help of about three dozen Arikara and Crow scouts. Scouting for the U.S. government was a common practice among many tribes.

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Custer divided his forces of around 700 men into three columns, hoping to surround the village.

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