Thank you, everybody. I appreciate you joining today. My name is Scott Callon. I'm Chairman of Ichigo. I'm joined right here by Dan Morisaku, who is senior member of our finance team and the head of our global IR. We're speaking to the FY 2024 Q2, uh, Q3 corporate presentation, which we put up on our website. So let's run forward. So starting with the page seven, which is a Q3 summary, and forgive me, I'm gonna be looking down on occasion because this is where it's in front of me. The business is very good. It's as simple as that. We're on track. The opportunity set has grown very substantially. We went from kind of managing for a lot of growth to managing defensively during COVID.
That is all over at this point. And so we're running forward very hard. All-in OP is up 20% year-on-year. Cash EPS is up 70% year-on-year. Stock earnings, which are kind of the stable, more stable element of earnings stream, of course, are forecast to hit a record high. Hotel earnings are growing very, very rapidly. RevPAR is up 41% versus pre-COVID. Floor earnings are going fine. We've taken some action to grow quickly in the digital security token space. We are arguably the leader in Japan right now for real estate in that, and that's something that's a really exciting opportunity that we're going to continue to push really hard on. Acquisitions at this point, including contracted pre-settlement, is JPY 74 billion.
That's about up about 50% year-on-year. You know, we're acquiring assets because we are very good at taking them and delivering kind of high value out of them to our investor clients. So the fact that we've grown this by 50% year-on-year speaks directly to both kind of our confidence on the ability to deliver that value, and it speaks to what future earnings growth is gonna look like. We announced also today that we did another share purchase of Ichigo Office. The truth of the matter is that our sustainable real estate business is growing really rapidly, and in fact, which is fantastic. We also want to grow our asset management business.
And so, you know, the putting more resources, more talent, into the asset management business and actually owning shares in our public REITs is one way to demonstrate that we really care about getting the right alignment, and delivering value for our REIT shareholders. I'll go to page eight, which has got the kind of further details on. At the summary level, you know, our stock earnings versus fixed expenses are above, up above 200% again. We are structurally profitable, even during kind of things went horribly wrong during COVID, where we took kind of a punch in the face in our hotel business. That didn't change the fact that we were structurally very, very profitable, and we'll stay that way.
You can see that stock earnings are up 33%, year-on-year. That's led by sustainable real estate, which is, and particularly the kind of very strong rebound in hotel earnings. Now, we define stock earnings as anything that's contractual. There is more volatility, unfortunately, in our hotel earnings than we would want for this definition, but it, these are contractually embedded earnings. They just move around a little bit more in hotels than they do in other parts of our business. Asset management is up 14%, year-on-year in clean energy as well. We provide all-in disclosure for increased earnings transparency. There's a lot going on.
This is a pretty long presentation, so I'm not going to go into a lot of details, but it is important for you to have transparency in what we're doing, so we do expect to live up to you. Again, OP is up 20%. Cash EPS is up 17%. These are the key metrics that you should be measuring us, and we should, and we measure ourselves. So every quarter, those are gonna be the headline numbers. If those numbers are down, then we have a problem. Doesn't matter. You know, look, the problem with the accounting profit regime is it doesn't actually capture full delivery value to our shareholders through economic profit on OP and Cash EPS much more directly speak to that.
So those are the numbers you, you should be looking at. We point out that it's not in hotels, but rental income is decreasing across all asset types. Things are going on. Going into the segment earnings details, kind of there's some bullet points at the top. Just to jump into the numbers a little bit, we've got all-in OP up about 5% year-on-year in asset management. There's been a drop-off of floor earnings in the asset management business because we did a large, office sale, last year in Ichigo Office REIT, which generated significant performance fees. Those went away, but because of the very significant growth in our hotel NOI, in Ichigo Hotel REIT, we, we have participation in them.
I would point out that Ichigo believes very, very strongly in serving all shareholders. We are a public company with shareholders in this entity, 2337 Ichigo Inc., but we also serve the shareholders just as intensively and tenaciously as we should in Ichigo REIT, Ichigo Office REIT, in Ichigo Hotel REIT, and Ichigo Marine. So we have participation. We have a pure only performance fee fee structure in these REITs to make sure we have this, we think, the single best alignment among all Japanese REIT asset managers. So the result of that is because Ichigo Hotel REIT is doing really, really well, we are actually earning some good fees on that.
Turning to sustainable real estate, you can see that multi-asset is up 52% year-on-year. Ichigo Owners is down nearly 40%. That is not the way we expect to end the year. So you should know that we expect to do a significant transaction in Ichigo Owners on this quarter, and that will be a significant earnings driver, not only for our owners, but across the firm. Clean energy is down year-on-year, about 5%. That's expected. We have one-off plant maintenance that hits this year. You should know that we launched our second-largest solar plant this month in Ebino, and so next year we'll see growth in the clean energy business. There's a lot to talk about.
I don't know if I should talk faster or talk less. So turning to the next page. As you know, we have a combination of stock and floor earnings. This is something we provide on an ongoing basis to you. It is currently above 200%, It's 225% for this year in terms of the stock earnings to fixed expenses. You know, we came down very substantially during the COVID period, and we're roaring back, and we expect to go well above that, starting from next year. We continue to finance very well. It does look like, and it is the case, that our remaining loan maturity has dropped off.
That's largely a function of the fact that we continue to grow our Owners business, Ichigo Owners business. And that, as you know, it's a phenomenal business. We buy assets, we add value to them, we have a turnaround under less than one year. We do, however, tend to do loans that are five to seven years from that business, because we should. Even if, you know, you can sell your asset in six months, you should still borrow long term, if you can, because it's the right way to manage the business. But it does mean that as we grow our Owners business, the average loan maturity drops. In the multi-asset business, we're borrowing on generally for 10 years. We're on track for record hotel.
Stock earnings were as I pointed out earlier, 31% RevPAR, so that's our revenue per available room versus pre-COVID. It is driven by Ichigo brand hotels. There's a little bit of, actually, the number is wrong on the page. It says Hotel Il Palazzo, it's +55%. That's actually +22%. I think we've already corrected that on the website. But actually, that number is more accurate to what Il Palazzo is going to do. That is the hotel we just reopened. It's actually running at lower vacancy right now. We expect it should be +22% on the page, but in fact, we expect to get it to 50% or more above pre-COVID, well, 30%.
But as you can see, after an extraordinary plunge in our hotel earnings going into COVID, it's roaring back, and it will continue to go upwards. We are selective in acquisitions and sales. There's a lot of data on the page. I think what's probably most important to know that, net acquisitions have been relatively flat year-over-year, but we are buying more assets. It's a little bit of function of some drop-off in competition as U.S. and European real estate players struggle with what's going on in their books, and particularly office portfolios.
But it's driven more by, and I'll talk to this in some detail, in growing strength that we have in residential business with owners, and kind of continued activity on our part to deliver more value, in office and in hotels. It's a way of saying we've become more competitive. Meaning we always were competitive, but we increasingly, it feels like we're competitive and advantaged in a way that's very, very powerful. I'm not going to talk in a lot of details. This is again kind of gives you the tracker over time, what's happening with our buy and sell activity. Again, we buy assets, we add value to them, we sell assets.
So the fact of the matter is that you can see on the right-hand side, acquisitions, at this point, are up 50% over last year. That is a fairly strong predictor of what earnings are going to look like going forward. On occasion, you know, I talk at a very high level about kind of how we add value. It's helpful to kind of give examples. This is an example. We do lots of things in lots of different ways to serve our tenants and to be innovative in doing so. And so one of the things you should know about Japan is it's very expensive to take on new office space. Japan, in general, almost overwhelmingly, in fact, it kind of rounds to about 100, 100%.
You get an office space, it's completely empty, you need to fit it out yourself, and then at the very end, you need to take the fit out and reduce it back to zero, back to your glass. And so it's very, very expensive. And there hasn't been enough work done, I think, across the industry, to serve tenants who don't want to not only put in all that CapEx, but all the time and activity to build out new offices. And so we are. We've done this for a number of years and continue to do more of it. We're designing offices. They are professional, they have great aesthetics, they're ready to move in, they're great. And as you can see on the page, the rental growth you get from that.
These are three different assets. We're showing where we used to rent them at and what before we did a ready-to-move-in office that was pre-fitted and pre-configured, and the uptick is +80%, +50%, +60%. And those are economics that make a ton of sense for tenants who don't want to have to bear the burden of moving in and out, and don't want to have to, you know, spend their time with an IT company trying to figure out how to fit an office. I'll turn a little bit to Ichigo Owners. We should probably talk about this more in Q&A because there's a lot to talk about here. You should know that we—this is a business where we think we create a lot of value.
Not only for and so we're creating effectively a new ecosystem that is, you know, creates value for developers and certainly creates value for the investors of, a nd because this is a super prime brand-new residential real estate business. But it is it's hard to think about what the right analogy is. I mean, it's kind of UNIQLO because we're in Japan. It's like, you know, you have a very deep understanding of what client needs are and what tenant needs are. On the basis of that, you work with developers to build to Ichigo spec. And so this is not a business where we pitch up and look around for a bunch of newly developed residences and buy them.
We actually are much more intimately involved with the developer, and this is what we need. We will move around, you know, blueprints to make sure that we, a t this point, we've done this for a number of years. We have one of the biggest players in this market, if not the biggest. We lease out for, you know, as on the page, over 2,000 rooms per year. We're doing 30-40 buildings a year, one of the biggest, and this is all residential. So we know this business really, really well. And able to work and support developers through this process, where if we can help them, because they're selling to Ichigo, they can get better bank financing. We're able to buy at lower cost.
We were able to buy assets that we know we can lease because we have that. So we are increasingly big data in this space, and it's an extraordinarily powerful business that works for everybody. The other thing I would point out is we, we take less margin than our competitors. And that's a way of saying, you know, this is a business we target to a 10% gross margin, where before our entry, and it can easily be this. There are guys out there who are trying to take 20%. And what that tells you is worse value to the investor.
And so we deliver, we think, the best combination of value to the developer, and so to us, you know, who is our source of supply and value to the investor who, and Japanese investors are, as inflation has picked up, truly on a very fundamental need for high-quality yield, which we deliver through this program. And so this is a business that is growing and will continue to grow. And we said, meeting clients' diverse needs, that's a little bit, I mean, client needs are actually relatively straightforward and probably not that diverse in a sense. You know, what everybody's looking for is great real estate with ongoing powerful economics for them to earn a high return on.
The diversity element of this is we've begun to move into diversity in our channels. Let's talk a little bit about the growth of digital securities, real estate digital securities, where Ichigo is number one in Japan. This is the third time we've done a securitized, what's called a security token in Japanese, taken from English, securitized real estate. All of them have sold out immediately. It is an alternative to buying real estate directly or buying real estate through, for example, REIT structure or private fund structure. The-- we're finding that the client set for it skews towards male and younger, as you can imagine.
So this is securitized real estate available on the blockchain, and offers a very nice return, and is an alternative kind of channel for us, and one we didn't expect to come into existence. So, you know, we're not-- we don't think we're the best in the world at figuring out, you know, what's going to happen in the world, and we don't think that's our job, and we don't think anybody's particularly good at that. But it is our job to understand change as it occurs, and we get there as fast as possible. We think there's something powerful to be done. An example of that is Japan just launched a new digital exchange called START, and we are the very first company to list a token.
You know, there's a very, very large JV market out there. There's a very large private funds market out there. You know, we'll see what kind of the growth looks like in this market, but it could be very, very substantial. And again, you know, we're finding that our investor clients like the kind of immediacy they like. Quite honestly, emotionally, I just told you our third token was seven real estate, seven residences. It's just easier to kind of drive around and see the seven residences and say, "I own this," as opposed to our REIT, which has 110 of them. So the appeal is on the part of our investors, a stronger sense of ownership.
But this is a market that is a diversified different clientele in it and we're delivering them Ichigo's asset management capabilities and a very strong ongoing return. This is what we think we're gonna do. We'll give you more information, I think relatively soon. But we expect to grow this to, you know, we expect to grow this to over a $1 billion business over time in terms of the assets under management, and possibly more than that. We'll see where we can take this with this market, but we think it has a lot of potential. I've talked a little bit about how we care about our REIT shareholders, and it's true. And unfortunately, that may be slightly differentiating in Japan.
We're intensely focused on serving their needs, and we do it in a way that, of course, creates ongoing value for us as an asset manager. By being a very good asset manager, we expect to be able to grow kind of the returns for our shareholders also. Green energy business, it will continue to grow. We think the new opportunities are there, there is some in green biomass. There is activity in non-FIT solar. We really like this business a lot, has very powerful economics to it, even in a non-FIT case. So FIT, feed-in tariffs, you know, we're only going to be doing it at situations where we have an ongoing purchase commitment from a buyer. It gives us kind of powerful ongoing economics, and that's fundamental to it.
I mentioned earlier that, we put up our second-largest solar plant. This, believe it or not, has a 40-year FIT, meaning that, this process started, about a decade ago. And this was just kind of a complicated, complicated path to get it finally up and running while groups were necessary, who worked very, very closely, with communities. We, we do not put up solar power or any power plants at all without, local support. And so this one, had a little bit of a winding path, but we eventually got there. Total CapEx on it is about JPY 4.5 billion. NOI is above five, so, it's about five, so it's about 11% ROI. Again, it's, it's a very nice business. We have continued to buy back our stock.
We averaged JPY 3 billion over the last kind of seven years at this point. We think the shares are undervalued relative to what we see kind of in visibility in terms of what earnings look like, and you should expect us to continue to be active in buying back our stock. We also have a progressive dividend policy. It's a way of saying we expect to, w e won't cut it. We expect go down over time. It has a payout ratio, dividend equity ratio, payout ratio of 3% or more. We also have a J.League shareholder program. As you know, we are the top sponsor of the J.League. That didn't work all that well during the COVID period, where the J.League kind of shut down for a while.
But we do a number of things in order to serve our shareholders, and this is one. I'll turn to activity on the global environment. We are climate positive, and that's both represents growth in our own production of clean energy, which is solar and wind at this point, and also our reduction activity in terms of our own non-renewable energy consumption. We're well on our way to hitting our RE100, meaning all 100% of our energy is electricity is renewable energy source. Target for this year is 85%. We expect to be over 90%. We were recently ranked by the Nikkei at number one in two different categories for GX, and green transformation.
So we are broadly understood to be a company that really cares about the planet, and that understanding is correct. We care about the planet. Climate change is real, and we're taking the actions to defend the planet and all of us on this call against the implications of that. We bought a J.League soccer club very recently. It's based in Miyazaki, where we have a lot of activity. It was not a very large. It's a J3 club at this point. It did not cost us very much, but it's consistent with the activity we've done in terms of supporting sports, sporting branding, sporting local communities. We think this is a really interesting purchase from a branding perspective, from an opportunity to what I said earlier, support communities.
I mean, and so, so, you know, okay, watch what we do in this space. We do think there is a very interesting opportunity, again, not only to kind of socially impact communities, but also in terms of the economics of this business. We have hired a very experienced team of soccer management professionals to help us kind of run forward with this, and we think it's really pretty exciting, interesting. Those are, as it were, my prepared remarks. Thank you, everyone, so much for your patient listening. Okay, I think we're done for the day. Just to go back to where I started. We've got an extraordinary opportunity set.
To the extent that I can reach out to all of you as people who, and I thank you for participating in this call, care about Ichigo. We have more opportunities than talent. So one of the things that just add a final point about the firm is we are aggressively kind of both recruiting and growing talent. So if anybody, if you want to introduce anybody at Ichigo, again, that is also very, very welcome. You know, it's a very exciting time. So thank you very, very much, everybody. We're grateful for your time, and please have a good day and a good evening.