TOKYO -- Japanese companies are increasingly looking to sell properties not connected to their main business operations, prompted by a call this spring from the Tokyo Stock Exchange to improve investment performance.
The low price-to-book ratios of Japanese companies has long been a problem. A P/B ratio of less than 1.0 means that the market value of the company is less than its book value. One way to boost the ratio is to shed rental property not essential to operations, reducing the book value.
