US LNG exports surge but will buyers in China turn up?
LONDON - Elliott Investment Management, which manages approximately $72.7 billion in assets, reported Monday that the low approval rate for senior management at Sumitomo Realty & Development Co.’s annual meeting reflects investor dissatisfaction with the company’s direction.
Elliott, which advises funds holding more than a 3% stake in Sumitomo Realty, making it one of the company’s largest shareholders, stated that despite having a high-quality portfolio, Sumitomo Realty remains "Japan’s most undervalued real estate developer." According to InvestingPro data, the company maintains strong fundamentals with a perfect Piotroski Score of 9 and a healthy current ratio of 1.41, suggesting robust financial stability.
The investment firm indicated that urgent action is needed to address what it described as poor shareholder returns, excessive cross-shareholdings, lack of focus on capital efficiency, and subpar corporate governance at the Japanese property developer. While the company trades at a relatively modest P/E ratio of 13.7, InvestingPro analysis reveals 8 additional key insights about the company’s valuation and growth potential.
Elliott expressed its intention to continue engagement with Sumitomo Realty’s management to support measures that would resolve what it termed as the company’s "self-imposed challenges."
The statement comes following Sumitomo Realty’s 2025 Annual General Meeting of Shareholders. Elliott has been in dialogue with the company’s management and appears to be pushing for corporate governance reforms.
Elliott Investment Management was founded in 1977 and its investors include pension plans, sovereign wealth funds, endowments, foundations, and high net worth individuals, according to the press release statement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.