Breaking Down Raysum Co., Ltd. Financial Health: Key Insights for Investors

Founded on May 1, 1992 in Tokyo and rebranded in 2008, Raysum Co., Ltd. (formerly Recrm Research) has evolved from a public real estate investor trading under 8890 to a privately held specialist after a dramatic ownership shift - Oasis Management acquired a 64.21% stake in 2022, transferred roughly 63.88% to Hulic in November 2024, and following a delisting from the Tokyo Stock Exchange on March 4, 2025 became a wholly owned subsidiary of Hulic on March 6, 2025; today Raysum focuses on Value Creation Services across retail, office, residential, medical, hotel and educational properties, generates revenue via rental income, asset sales, management and advisory fees, and loan servicing, and leverages Hulic's resources to pursue property revitalization, corporate governance standards and expanded investment and management opportunities into late 2025 and beyond.

Raysum Co., Ltd. (8890.T): Intro

• Founded: May 1, 1992 (Tokyo, Japan)
• Name change: 2008 - Recrm Research Co., Ltd. → Raysum Co., Ltd.
• Tender offer: 2022 - Oasis Management Company Ltd. acquired 64.21% stake via public tender offer
• Delisting: March 4, 2025 - delisted from Tokyo Stock Exchange Standard Market
• Acquisition: March 6, 2025 - became a wholly owned subsidiary of Hulic Co., Ltd.

• Property investment: acquisition of commercial/residential assets and redevelopment for capital appreciation and rental income.
• Asset management: third‑party and affiliate property management fees, leasing commissions and operational margins.
• Property development and redevelopment: profits from project development, sales of developed units, and long‑term rental operations.
• Real estate financing and advisory: income from structured financing, loan facilitation and consulting for institutional investors.

• Revenue drivers: rental income (stable recurring cash flow), asset disposition gains (transactional, lumpy), management fees (recurring) and development profits (project‑timed).
• Balance sheet leverage: typical RE investment model uses debt financing to boost returns (LTV and interest cost management critical to ROE).
• Ownership impact: post‑2022 majority stake (64.21%) and 2025 full ownership by Hulic shift decision‑making to parent, enabling access to Hulic's capital, pipeline and sourcing network.

• Integration with Hulic's portfolio: potential scale benefits in sourcing, financing and project execution.
• Shift from public reporting to parent‑directed strategy: less frequent public disclosures; focus on long‑term asset plays within Hulic group.
• Access to capital and development pipeline: parent support can accelerate redevelopment and large transaction participation.

Raysum Co., Ltd. (8890.T): History

• Prior to March 2025: Publicly traded on the Tokyo Stock Exchange (8890.T).
• 2022: Oasis Management Company Ltd. acquired a 64.21% stake via a public tender offer.
• November 2024: Oasis transferred a 63.88% stake to Hulic Co., Ltd.
• March 4, 2025: Raysum shares were delisted from the Tokyo Stock Exchange.
• Late 2025: Hulic Co., Ltd. holds full ownership; Raysum operates as a private subsidiary integrated into Hulic's real estate portfolio.
• Strategic aim: leverage Hulic's capital, property management expertise, and development capabilities to enhance Raysum's real estate investment and management operations.

• Core mission and direction: align Raysum's asset base and operations with Hulic's long-term real estate strategy to improve asset utilization, increase recurring rental income, and pursue selective development projects - see Mission Statement, Vision, & Core Values (2026) of Raysum Co., Ltd..

• How Raysum works and makes money:
  • Rental income from owned commercial/residential properties and leased space.
  • Property sales and repositioning gains from development or redevelopment projects.
  • Asset management and property management fees for third-party or JV assets.
  • Value creation through active portfolio management under Hulic (cost synergies, refinancing, redevelopment).

Raysum Co., Ltd. (8890.T): Ownership Structure

• Mission: Deliver high-value-added real estate solutions by transforming underutilized assets and improving client returns.
• Core values: Client focus, continuous improvement, transparency, accountability and ethical governance.
• Strategic priority: Expand Value Creation Services (asset acquisition, renovation, leasing and asset management) to boost recurring revenues and asset values.

• Corporate governance: Board composed of independent and executive directors, audit & supervisory committee oversight, and public disclosure practices aligned with Tokyo Stock Exchange corporate governance code.
• Stakeholder communication: Regular financial results briefings, asset-level performance reporting and sustainability disclosures in annual reports and IR presentations.

• Acquisition and redevelopment: Purchase of undervalued or underutilized properties, apply renovation/repurposing to increase rental income and asset value.
• Property management and leasing: Fee income from managing commercial and residential assets, plus lease commissions and tenant services.
• Asset management and disposition: Realize capital gains through staged redevelopment and selective sales of enhanced assets.
• Recurring service revenue: Long-term management contracts and performance-fee arrangements tied to NOI improvements and asset appreciation.

• Portfolio focus: Predominantly urban mid-market commercial and residential assets, with selective logistics and mixed-use conversions.
• Occupancy & leasing: Portfolio average occupancy ~92% as of FY2023 year-end, with weighted-average lease term of 3.2 years for commercial assets.
• Return targets: Aiming for IRR of 8-12% on redevelopment projects and mid-single-digit cap-rate compression through active asset management.

Raysum Co., Ltd. (8890.T): Mission and Values

• Core activities: acquisition, development, leasing, building management, and property disposition across retail buildings, offices, condominiums, medical facilities, hotels and educational institutions.
• Services offered: long-term rental leasing, tenant sourcing, facilities management, building maintenance, and renovation/project management to improve asset competitiveness.
• Value Creation Services: unit reconfiguration, interior upgrades, amenity enhancements, energy-efficiency retrofits, and repositioning strategies to lift rents and occupancy.
• Capital strategy: blends corporate cash, bank loans, and co-investment from institutional and private investors to finance acquisitions and redevelopment projects.
• Governance: a formal board structure with audit and risk committees, formal investment approval processes, and regular asset performance monitoring to ensure operational efficiency.

• Rental income: steady cash flow from leased commercial and residential units forms the core recurring revenue stream.
• Property management fees: ongoing management contracts and facilities services generate fee income tied to assets under management.
• Development and repositioning gains: buying underperforming assets, investing in upgrades, then increasing rents or selling at higher valuations.
• Transaction income: brokerage/arrangement fees and gains realized on asset dispositions.
• Financial returns from partnerships: equity stakes in joint ventures and investments where Raysum contributes asset management expertise.

• Debt financing: syndicated and bilateral bank loans structured at corporate and project levels, often with interest-rate hedging where appropriate.
• Equity and co-investment: strategic partnerships with institutional investors, REITs, and private investors to share project risk and expand deal capacity.
• Cash flow recycling: operating cash and sale proceeds are redeployed into higher-yielding redevelopment or acquisition opportunities to compound returns.

• Due diligence and underwriting to identify physical, lease, and market upside.
• Targeted CapEx for conversions (e.g., subdividing large floorplates for small-office tenants, creating medical suites) to broaden tenant pool.
• Active leasing campaign and tenant fit-outs to shorten vacancy and command higher effective rents.
• Operational efficiency programs (utilities, maintenance outsourcing) to improve NOI margins.

• Banks and financiers: term loans, construction financing, and working capital facilities.
• Institutional investors and family offices: co-investment and joint-venture arrangements for larger acquisitions.
• Local tenants and brokers: long-standing relationships to secure tenancy and market intelligence.

• Diversification across property types and geographies to mitigate single-market downturns.
• Lease portfolio management to balance short- and long-term rental agreements and stagger expiries.
• Regular asset revaluation and stress-testing of cash flows under different market scenarios.

Raysum Co., Ltd. (8890.T): How It Works

• Core activities: acquisition and development of retail, office, and residential properties; property and facilities management; real estate advisory; NPL servicing and asset recovery.
• Revenue drivers: recurring rental and management income, one-time gains from asset disposals, advisory fees, and servicing fees tied to recovered asset values.

• Rental income and management fees: Raysum leases owned properties (direct leases and master leases) and charges property management and facilities management fees to third-party owners and tenants. Recurring rental and management revenue typically form the largest share of operating cash flow.
• Property sales and capital gains: The company executes strategic dispositions after enhancing asset value through redevelopment, tenant optimization, and lease-up, realizing capital gains when market conditions are favorable.
• Advisory and consulting fees: Advisory services for acquisitions, dispositions, valuation, lease restructuring, and asset optimization produce fee income linked to transaction values and scope of engagement.
• NPL servicing and recovery fees: Acting as a servicing agent, Raysum manages distressed loans and underlying collateral, earning fees based on recoveries, workout success, and ongoing management of recovered assets.
• Partnerships and JV income: Raysum forms joint ventures and strategic partnerships (equity stakes, co-development, and management contracts) that deliver carried interest, profit-sharing, and fee income while reducing capital intensity.

• Active asset management - rent reversion, tenant mix optimization, energy and OPEX reductions to lift NOI (net operating income).
• Value-add redevelopment - repositioning underperforming properties to capture higher rents or to convert use (e.g., office-to-residential conversions) and trigger sale gains.
• Scale in servicing - aggregating NPL portfolios to achieve economies of scale in workout operations and increase recovery rates.
• Fee income diversification - expanding third-party property and asset-management mandates to capture stable recurring fees without heavy capital deployment.
• Strategic partnerships - sharing risk and capital with institutional investors, REITs, and developers to access larger deals and fee/profit participation.

Raysum Co., Ltd. (8890.T): How It Makes Money

• Ownership: 100% subsidiary of Hulic Co., Ltd. (as of late 2025).
• Core revenue drivers: rental income, property management fees, asset sales (development gains), and tenant service packages.
• Strategic focus: acquisition and revitalization of underused commercial and residential properties within Japan with selective international exploration.

• Portfolio expansion target: pursuing ~20% portfolio growth (GAV basis) over a multi‑year horizon while optimizing occupancy and rental yields.
• Occupancy & yield management: focus on achieving above-market occupancy and improving NOI (net operating income) margins via cost controls and service upcharges.
• Asset recycling: acquire underpriced or underused properties, invest in repositioning, then realize gains through sale or recapitalization.
• Leverage and capital structure: utilize Hulic's financing capability to secure low-cost capital and scale acquisitions while monitoring LTV to sustain credit metrics.

• Corporate positioning: positioned to combine Hulic's balance-sheet strength with Raysum's specialization in revitalization to capture demand for upgraded urban space.
• Governance and ESG: committed to high corporate-governance standards and ethical business practices as part of Hulic's group policies; ESG initiatives inform redevelopment choices to meet investor and tenant expectations.
• Growth opportunities: expanding domestic portfolio across offices, logistics and mixed-use redevelopment with selective cross-border opportunities enabled by Hulic's international reach.