Elliott Statement on Sumitomo Realty & Development Co., Ltd.

Rhea-AI Summary

Elliott Investment Management (Elliott), which manages funds holding over 3% ownership in Sumitomo Realty & Development (OTCMKTS: SURYY), has issued a statement regarding the company's 2025 Annual General Meeting results. Elliott, one of Sumitomo Realty's largest shareholders, highlighted concerns about the low approval rate for senior management during the meeting.

Despite acknowledging Sumitomo Realty's high-quality portfolio, Elliott emphasized that the company remains Japan's most undervalued real estate developer. The investment firm pointed to several critical issues requiring urgent attention, including poor shareholder returns, excessive cross-shareholdings, insufficient capital efficiency focus, and subpar corporate governance.

Positive

• None.

Negative

• Low approval rate for senior management at AGM indicates investor dissatisfaction
• Poor shareholder returns reported by Elliott
• Excessive cross-shareholdings identified as concern
• Lack of focus on capital efficiency
• Subpar corporate governance practices
• Company labeled as Japan's most undervalued real estate developer

News Market Reaction

+21.01%

1 alert

+21.01% News Effect

On the day this news was published, SURYY gained 21.01%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

LONDON, June 30, 2025 /PRNewswire/ -- Elliott Investment Management, L.P. and Elliott Advisors (UK) Limited ("Elliott"), which advise funds that together have a more than 3% ownership stake in Sumitomo Realty & Development Co., Ltd. ("Sumitomo Realty" or the "Company"), making Elliott one of the Company's largest shareholders, note the results of Sumitomo Realty's 2025 Annual General Meeting of Shareholders.

In our view, the low approval rate for members of senior management reflects investor dissatisfaction with the Company's current course. Despite Sumitomo Realty's high-quality portfolio, the Company remains Japan's most undervalued real estate developer.

As we have previously stated and tried to impress upon management, urgent action is needed to address the Company's poor shareholder returns, excessive cross-shareholdings, lack of focus on capital efficiency, and subpar corporate governance.

We value our dialogue with Sumitomo Realty's management and look forward to continuing our engagement to support clear, near-term steps that resolve the Company's self-imposed challenges.

About Elliott
Elliott Investment Management L.P. (together with its affiliates, "Elliott") manages approximately $72.7 billion in assets as of December 31, 2024. Founded in 1977, it is one of the oldest funds under continuous management. The Elliott funds' investors include pension plans, sovereign wealth funds, endowments, foundations, funds-of-funds, high net worth individuals and families, and employees of the firm. Elliott Advisors (UK) Limited is an affiliate of Elliott Investment Management L.P.

Media Contacts:

London
Alice Best
Elliott Advisors (UK) Limited
T: +44 203 009 1715
abest@elliottadvisors.co.uk

Tokyo
Brett Wallbutton
Ashton Consulting
T: +81 (0) 3 5425-7220
b.wallbutton@ashton.jp 

FAQ

What percentage stake does Elliott Investment Management hold in Sumitomo Realty (SURYY)?

Elliott Investment Management advises funds that together hold more than 3% ownership stake in Sumitomo Realty, making it one of the company's largest shareholders.

What concerns did Elliott raise about Sumitomo Realty (SURYY) after the 2025 AGM?

Elliott highlighted several concerns including poor shareholder returns, excessive cross-shareholdings, lack of focus on capital efficiency, and subpar corporate governance. They also noted low approval rates for senior management.

How did Sumitomo Realty's (SURYY) shareholders vote at the 2025 Annual General Meeting?

According to Elliott's statement, there was a low approval rate for members of senior management, which reflects investor dissatisfaction with the company's current direction.

What is Elliott's current stance towards Sumitomo Realty's (SURYY) management?

Elliott stated they value their dialogue with Sumitomo Realty's management and look forward to continuing engagement to support clear, near-term steps to resolve the company's challenges.

How does Elliott view Sumitomo Realty's (SURYY) market valuation?

Elliott considers Sumitomo Realty to be Japan's most undervalued real estate developer, despite having a high-quality portfolio.