3 possible steps to create value

Business: Mitsui Fudosan is a Japan-based company engaged in the real estate business. It has five business segments. First, there’s the leasing unit, which is engaged in the leasing of office buildings and commercial facilities. Second, the allotment sale segment is involved in the sale of condos and houses for individual customers, as well as rental housing and office buildings for investors. There is the management segment, which includes property, brokerage and asset management. Mitsui Home is involved in new construction, reform and renewal businesses. Finally, the segment labeled “others” participates in the operation of hotels, golf courses and resort facilities, as well as the loan guarantee business.

Stock Market Value: 3.869 trillion yen (4,144.00 yen per share). The stock also trades in the U.S. as an American depositary receipt under the ticker MTSFY.

Percentage Ownership:  2.5%

Average Cost: n/a

Activist Commentary: Elliott is a very successful and astute activist investor. The firm’s team includes analysts from leading tech private equity firms, engineers, operating partners – former technology CEOs and COOs. When evaluating an investment, Elliott also hires specialty and general management consultants, expert cost analysts and industry specialists. The firm often watches companies for many years before investing and has an extensive stable of impressive board candidates. Elliott has historically focused on strategic activism in the technology sector and has been very successful with that strategy. However, over the past several years its activism group has grown and evolved, and the firm has been doing more longer-term activism and creating value from a board level at a much larger breadth of companies.