All right. Thank you for your precious time despite your busy schedule. First, I will explain the second quarter on the financial results, as well as the full year financial forecast for FY 2024. Then I will explain updates on the numerical plan for the three-year immediate term management plan, our approach to the business environment, and the topics for the current fiscal year. Please turn to page four. These are the key points for the second quarter results FY 2024. Operating revenue was JPY 525.2 billion, operating profit was JPY 65.3 billion, and profit attributable to owners of parent was JPY 49.4 billion. Compared to the previous fiscal year, thanks to a recovery in the number of users in the railway business and hotel and resort business, as well as an increase in condominium sales, the operating revenue increased by JPY 41.7 billion, and operating profit increased by JPY 19.8 billion.
Profit attributable to owners of parent was up JPY 14.4 billion. Compared with the forecast announced in May, operating profit was up by 25%, profit attributable to owners of parent was up by around 40%. Please turn to page five. The key points of the financial results by segment are as follows. I will explain them in comparison with the previous fiscal year. Real estate business up JPY 10.1 billion in profits. As of the second quarter, the number of condominiums delivered increased, and the real estate sales business saw a large increase in profits. In addition, the Real Estate Leasing Business also performed well due to an increase in percentage rate rents for commercial facilities and hotels. Life service Business up JPY 4.7 billion in profits. In the retail business, Tokyu Store chain performed well, increasing profits by JPY 1.5 billion.
In the ICT media business, profits grew by JPY 3.2 billion due to improvements in the electricity procurement environment at electricity retailer Tokyu Power Supply. Transportation business up JPY 2.9 billion in profits. In addition to an increase in passenger numbers at Tokyu Railways, there was also the effect of fare revisions for Tokyu Bus. In the hotel and resort business, ADR, price per room, increased significantly due to the inbound tourists, resulting in an increase of JPY 1.8 billion in profits. In addition, the real estate business also contributed to the percentage rate rents. Please turn to page eight. I would like to explain our performance forecast for the full year of FY 2024. First, the assumptions as of November. We believe that the overall business environment continues to be favorable, with a continued recovery in the travel demand and an increase in inbound demand.
In terms of labor costs, in addition to implementing wage increases that exceeded the budgeted number, we are now working to expand our recruiting in response to the recovery and demand. In light of the good performance in the first half of the year, we expect a further wage increase and in anticipation of future growth scenarios, we expect an increase of JPY 2 billion from the forecast in May. On the other hand, we are in a situation where we need to be careful about rising construction costs and rising interest rates, and I will explain our approach later. The main KPIs are also listed in the middle section, and we have updated them for each business. I will explain our full year performance forecast for FY 2024. In the second quarter, all segments showed increased profits compared to our forecast in May.
Given the favorable performance, we revised upward our full year forecast. Operating revenue is expected to be JPY 1 trillion 65 billion, and operating profit is expected to be JPY 101 billion, up JPY 10 billion in revenue and JPY 13 billion in profit compared to the forecast announced in May. Profit attributable to owners of parent being JPY 74 billion, up JPY 14 billion. Page 10, please. This shows the performance indicators for the full fiscal year. We expect EPS, earnings per share, to be JPY 129.30, ROE to be 9.3%, and ROA, or business profit ROA, to be 3.8%, which are improvements from the forecast made in May. Please turn to page 13. Here, I would like to explain our shareholder returns and capital policies.
In conjunction with the announcement of our second quarter financial results, we have decided to acquire treasury stock for a total amount of JPY 40 billion, up to a maximum of 24 million shares. This will improve capital efficiency, including ROE, and by reducing the number of shares, we will further increase EPS and improve share value per share. In addition, we will use a portion of the proceeds from this share acquisition to fund sales of our shares by financial institutions and others. We will reduce our cross-shareholdings while appropriately addressing concerns about the worsening supply and the demand of shares. The annual dividend for FY 2024 will be JPY 23 per share, up JPY 1 from the previous forecast announced in May, based on the upward revision of the earnings forecast.
This is an increase of JPY 2 from the time of the announcement of the medium-term management plan, and it will be the highest level ever, along with FY 2019, which included a commemorative dividend of JPY 2. As a result, we expect the total return ratio to be about 70%. I will update the management indices and the numerical targets in the three-year and medium-term management plan. Please go to page 15. Due to the upward revision of FY 2024 and earnings forecast, we expect to have achieved in a target profit level of the three-year medium-term management plan ahead of the original schedule. We will upgrade the management indices and numerical targets from the levels announced in March 2024.
The operating profit shown in the middle section is expected to be JPY 95 billion in FY 2025 and JPY 105 billion in FY 2026, up JPY 10 billion from the medium-term management plan each year. In addition, profit attributable to owners of parent, as shown one line below, is also expected to increase by JPY 7 billion each year. As a result, we expect improvements in the management indices such as EPS, ROE, and ROA. As for the details on the staged profits and each segment, please refer to the information on page 16 and 17. Please turn to page 18. From here, I will explain our approach to the business environment. Page 19. I will explain the impact of inflation and rising interest rates and our responses.
We believe that the share prices of railways and real estate stocks are currently being weighed down by rising costs due to inflation and concerns about rising interest rates. We feel that the railway business, our main business, is generally viewed as a sector that is vulnerable to rising interest rates and inflation because fares are subject to approvals and real estate rents increase lag behind the economy. On the other hand, our company's portfolio is made of business groups with different economic sensitivity. This provides a certain amount of stabilizing effect, and we believe that we can expect increased profits even in times of inflation and rising interest rates. Furthermore, we are now taking appropriate measures to mitigate the impact of rising interest rates through financial strategies such as long-term fixed interest rates on borrowings on corporate bonds. The left shows the summary of economic sensitivity of our businesses.
As mentioned earlier, railroad and bus fares are subject to approvals and take time to revise the fares. In addition, office rents also now take a certain amount of time to revise, so they lag behind the economy. On the other hand, demand volume such as railroad and bus passenger numbers are in line with the economy. In the real estate rental industry, the percentage-based rents of commercial facilities and hotels are also linked to the economy. The retail and hotel businesses themselves are highly in line with the economy and are currently performing well. In addition, we are also now operating some businesses, such as advertising, that lead the economy, although their proportion is not large.
As such, our company now operates a variety of businesses with different economic sensitivities, and we have a unique business portfolio that can increase earnings on a consolidated basis, even in times of inflation and rising interest rates. We believe that we have a certain degree of resistance to inflation and rising interest rates. In addition, the right side shows our financial strategy response. Since our company has a high proportion of businesses that require a long period of time to recover investments, we are now extending the maturity of our procurement and promoting borrowing at fixed interest rates. The average maturity is about seven years, and 70% of the total is fixed interest, making it an appropriate debt portfolio that will not have an immediate significant impact on interest payments even in the event of rising interest rates. Please turn to page 20.
Next, I would like to explain the impact of rising construction costs on real estate development. Construction costs have risen significantly due to labor shortages and rising material costs, and we expect this upward trend to continue in the future. As a result, we expect the project balance of development projects to deteriorate, and generally, it will be difficult to decide to proceed with development, except in areas where rent level is high. Even in this environment, we would like to continue to promote major projects by taking advantage of our business areas and the strength of our business structure. The reason for this is that we own many highly competitive properties, mainly in the Shibuya area, and vacancy rates are low, and rents are at high levels.
Even in the harsh environment of rising construction costs, we're in a position where it is relatively easy for us to proceed with large-scale development. We believe that some redevelopment plans currently being considered in various regions will be postponed or canceled going forward. Several redevelopment projects have been postponed in Tokyo. We believe that this situation will be an opportunity for our company. If competing redevelopment projects are delayed or canceled, new supply will not progress, vacancy rates will fall more than expected, and rent levels are expected to rise. Our existing properties will become more competitive. An increase in cash flow due to rising rents, we can expect low and stable cap rates due to growth expectations, and a scenario in which property values will rise is also possible.
We believe that properties that proceed with the projects and open even with rising construction costs will give us competitive advantage. Our company is a developer rooted in the community and focusing its investments on the Shibuya and the Tokyu Line areas, which gives us an advantage in advancing redevelopment activities. One of our major features is that we are able to increase the value of not only new properties but also existing properties in the area by concentrating investments in the Shibuya and the Tokyu Line areas and providing attractive facilities and services that are popular with workers and visitors, thereby increasing the value of the entire area. Shibuya Hikarie has created a concentration effect and the synergy effects, such as rising rents following the opening of the subsequent redevelopment projects such as Shibuya Stream and the Shibuya Scramble Square.
Another major feature of our company is that we are not limited to real estate business, but we are also developing a wide variety of businesses that provide added value to the area. With the increase in Shibuya's working population, visiting population, and the related population, the profits of existing businesses such as railways and buses, commercial, retail, entertainment, and hotels will also increase, making it possible to obtain excess returns in addition to real estate rental income. This is the strength of our business model. Please turn to page 21. I will explain the topics for this fiscal year. Page 22. About the transportation business. Demand recovery is clear, especially for railways and buses. The graphs on the left and the middle show the trend in the fares and transportation revenues.
The recovery in the number of users, there is also the effect of fare revisions, and revenues are expected to be at the same level as before COVID-19 or slightly higher, which is driving our performance. As shown in the bottom left, the number of passengers at airports involved in our company is also exceeding pre-COVID-19 levels, mainly for international flights. The right side shows the topics for the real estate business. On July 8th, the office building SHIBUYA AXSH opened, and the office tenants started the business with full occupancy. The bottom right shows the trends in rents and vacancy rates for our office buildings. We have highly competitive properties, mainly in the Shibuya area, and rent levels are on the rise. Page 23, please. About the Life Service Business .
Tokyu Store chain is performing well due to an increase in customer numbers and an increase in average purchase price per person. In addition, rather than providing all services ourselves, we are promoting the creation of sales floors that utilize franchises. Among daily necessities, for pharmaceuticals and other items that we cannot provide at competitive prices and with a wide range of products ourselves, we have introduced Matsumoto Kiyoshi franchise stores and are working to create optimal sales floors from the customer's perspectives. The graph on the bottom left shows the transaction volume of shopping centers in the Shibuya area. We are now steadily growing by capturing demand from visitors, including inbound tourists. The right side shows our hotel and the resort business. We have steadily captured inbound demand, and the rise in ADR and room rate is driving our performance.
In particular, the ratio of foreign guests in Shibuya and the Shinjuku areas exceeds 80%, and our strength is in having many hotels in areas that are popular with foreign tourists. By the way, we operate a total of 1,851 rooms and 18 restaurants in Shibuya and Shinjuku. Page 24, please. I will explain our ESG initiatives. In addition to Tokyu Railways, which already now operates on 100% renewable energy, in our real estate business, we are working to switch the electricity used in our leasing properties to 100% renewable energy by FY 2025. We also aim to obtain environmental certification for our major properties by FY 2026, and we will work to make our properties even more popular than ever before. Please move on to page 25. Finally, I would like to explain our regional conglomerate business model. Page 26.
On this page, we will explain the regional conglomerate using the opening of Shibuya Scramble Square as an example. With the opening of Shibuya Scramble Square, the number of office workers and visitors are actually increasing, and the number of inbound tourists visiting the rooftop observation deck, Shibuya Sky, is also increasing significantly in the Shibuya area's related population. As the number of workers and visitors increases, we can expect an increase in the use of our facilities in the surrounding area, such as shopping and dining at Shibuya Hikarie, or going to see musicals. In addition, we have those hotels managed and operated by our company in the Shibuya Stream and the Cerulean Tower, which will increase the number of overnight stays by tourists and visitors to Shibuya's offices. Companies in the surrounding offices will likely make frequent use of the food and beverage facilities and banquet space.
Furthermore, if there are executives or employees of the companies that occupy our offices who live along the Tokyu Line, we believe that they will be able to use our trains, buses, supermarkets, and others. In addition, the opening of the SHIBUYA AXSH Office building in July of this year has increased the number of employees by approximately 2,500 people. Page 27, please. This is modeled on the regional conglomerate ideas that I explained earlier. By using real estate development as a hook, we aim to expand additional returns by attracting the working population, visiting population, passing population, and the lodging population to the area, and thus spreading this to other businesses. In addition, our major strength is that we can continuously make additional investments to improve the appeal of the same area.
For example, a typical development would take the funds recovered from a project in Shibuya and then invest them in another location, such as another project in Hakata. They do not necessarily reinvest into Shibuya. However, we take the funds recovered from Shibuya and the areas along the lines and reinvest them in Shibuya and the areas along the lines. This is called our original cyclical reinvestment model. By constantly making additional investments in the city and the area, the value of the area will increase. As a result, the cash flow and the value of the existing properties owned by us will increase. In addition, we can earn multiple profits from other businesses other than the real estate business. This is our unique regional conglomerate business model.
In this way, our goal is to further increase the value of Shibuya and the towns along the line, making them rich, beautiful, and fun. As a result, we would like to further increase the value of real estate in Shibuya, rents, and cash flows from other existing businesses. Currently, the area with the highest rent in Japan for office rents is the Otemachi and Marunouchi area. We will strive to obtain office rents that surpass those of Marunouchi and Otemachi by providing facilities, services, and the bustle that are not available around Tokyo Station, such as entertainment. Please turn to page 28. This is the material we shared back in May. This shows our properties and services and the customer base that make up the regional conglomerates in the Shibuya area.
In this way, we provide a wide variety of services in Shibuya, and through this, we will achieve growth in the area and increase our corporate value. Now page 29. Finally, let me talk about attracting people to our areas. In the business model of our regional conglomerate, the key is how to attract people to the area. This population includes not only residential population, but also working population and the people who visit the city and stay overnight. The left side shows the current trend. The graph above shows the working population and residential population in the Shibuya area, and the working population has grown significantly due to the promotion of redevelopment and a significant increase in the supply of office space. However, Shibuya has the smallest office supply among the major five central wards of Tokyo, and it continues to be unable to meet the entire demand.
The bottom shows inbound data. According to a survey by the Tokyo Metropolitan Government, Shibuya is the city most visited by the tourists visiting Japan. Not only Shibuya symbols such as the Shibuya Scramble Crossing, Hachiko Square, and the Shibuya 109, also the undergoing development, including development of tourist attractions such as Shibuya Sky, are also helping to boost inbound tourism. In addition, we are now supporting a renovation project for Taro Okamoto's work, Myth of Tomorrow, at the Shibuya Mark City Access Road, and also are working with the Yamatane Museum of Art and the Toguri Museum of Art, two well-known art museums in Shibuya Ward, to help promote the cultural appeals of Shibuya. On the right side, it shows our future efforts to attract more people.
In an environment where the population is declining across Japan, we will continue to work in order to increase the population in Shibuya and along the Tokyu Line. We'll be working on various measures for the residential population, working population, and visiting and staying population, and we'll be actively promoting measures to attract more residents in order to further expand the residential population along the Tokyu Line, which is expected to peak in 2040. In addition, we have also now published the 2024 fact book on our website today. This includes materials on the progress of our business portfolio, Tokyu Group reorganization, and the process of strengthening our group governance. We have been receiving more and more questions about our business portfolio and relationship with equity method affiliates. We hope you will also refer to this document. That's all from me.