presentation material for the first half of fy2020 (ending ... · presentation material for the...

Presentation Material for the First Half of FY2020

(Ending December 31, 2020)

August 11, 2020

Disclaimer

2Copyright © Tokyo Tatemono Co., Ltd. All Rights Reserved.

This material has been translated from a portion of the Japanese original for

reference purposes only. In the event any discrepancy arises between this translated

document and the Japanese original, the original shall prevail. The Company

assumes no responsibility for this translation, nor for direct, indirect, or any other form

of damages that may arise from using this translation. This English version includes

some explanatory notes.

The utmost care is applied to the information presented in this material; nevertheless,

the accuracy and reliability of this information is not guaranteed. Please be aware

that content may be changed without advance notice.

This material contains the current plans and forecasts concerning the business

performance of the Tokyo Tatemono Group. These forecasts are based on the

Company’s assumptions and judgments on the basis of information currently

available to the Company and include various risks and uncertain factors. Actual

results may differ from these forecasts due to changes in the environment and other

various factors.

Contents

■ Summary p.4

■ Business Results for the First Half of FY2020

and Full-Year Earnings Forecast for FY2020p.5

■ Main Impacts of the COVID-19 Pandemic p.6

■ Assessment of the Market Environment and

Future Policiesp.7

■ ESG Report: Recent Initiatives p.8

■ Shareholder Returns p.9

■ Financials p.10

Consolidated Statement of Income

for the First Half of FY2020p.11

Consolidated Balance Sheet


Balance of Real Estate for Sale p.14

Consolidated Statement of Cash Flows


Investment Plans p.16

■Revision of Full-Year Earnings Forecast for

FY2020p.17

Copyright © Tokyo Tatemono Co., Ltd. All Rights Reserved.

■ Business Results by Segment p.19

(1) Commercial Properties Business p.20

(2) Residence Business p.28

(3) Real Estate Service Business p.36

(4) Other p.38

■ Appendix p.43

Long-Term Vision and Medium-Term Business

Planp.44

Main Indicators p.50

Fair Value of Rental Properties p.51

Quarterly Segment Data p.52

List of Facilities p.54

Market Data p.56

3

Summary

Business Results for the First Half of FY2020

• Decrease in revenue and income due to factors such as decrease in sales and gross profits of for-sale condominiums,

decrease in property sales to investors in the commercial properties business and the real estate service business, in

addition to decline in parking and resort facility occupancy due to the impact of the COVID-19 outbreak.

Full-Year Earnings Forecast for FY2020

• As the leasing business of hotels and commercial facilities, the parking lot business, and the leisure business have

been particularly impacted by the COVID-19 outbreak, a portion of the full-year earnings forecast for FY2020, initially

announced at the beginning of the fiscal year (February 5, 2020), has been revised.

• When revising the forecast, the impacts of the partial rent reductions and exemptions at hotels and commercial

facilities as well as a decline in parking and resort facility occupancy were taken into consideration in addition to the

expectation that property sales to investors will include real estate for other uses as an alternative to hotels and

commercial facilities. Furthermore, the earnings forecast is premised on the notion that the business environment

surrounding the Tokyo Tatemono Group will gradually recover and assumes that the business environment will

essentially return to normal toward the end of the fiscal year.

• Despite an increase in property sales to investors, operating income, business income, and ordinary income will

decrease from the previous fiscal year in FY2020 as a result of factors such as decrease in sales of for-sale

condominiums, decline in parking and resort facility occupancy due to the impact of the COVID-19 outbreak, as well as

higher corporate costs associated with head office relocation. However, as for revenue from operations and profit

attributable to owners of the parent, an increase in revenue and income is anticipated and the amounts will remain

unchanged from the forecast announced at the beginning of the fiscal year.

Topics

• The rights conversion plan was approved for Yaesu 1-Chome East B Area Urban Redevelopment Project. (June)

• Completed T-LOGI Kuki, Tokyo Tatemono’s first logistics facility. (June)

• Completed Hareza Tower, an office building, and opened the entirety of Hareza Ikebukuro. (July)

• Issued the first sustainability bond in Japan’s real estate sector (July)

• Released the Integrated Report 2020 (August)

Copyright © Tokyo Tatemono Co., Ltd. All Rights Reserved.4


• Decrease in revenue and income due to factors such as decrease in sales and gross profits of for-sale condominiums,decrease in property sales to investors in the commercial properties business and the real estate service business, inaddition to decline in parking and resort facility occupancy due to the impact of the COVID-19 outbreak.

• As the leasing business of hotels and commercial facilities, the parking lot business, and the leisure business have beenparticularly impacted by the COVID-19 outbreak, a portion of the full-year earnings forecast for FY2020, initiallyannounced at the beginning of the fiscal year (February 5, 2020), has been revised.

• When revising the forecast, the impacts of the partial rent reductions and exemptions at hotels and commercial facilitiesas well as decline in parking and resort facility occupancy were taken into consideration in addition to the expectation thatproperty sales to investors will include real estate for other uses as an alternative to hotels and commercial facilities.Furthermore, the earnings forecast is premised on the notion that the business environment surrounding the TokyoTatemono Group will gradually recover and assumes that the business environment will essentially return to normaltoward the end of the fiscal year.

*1: Business income = Operating income + Equity in income (loss) of affiliated companies

*2: Debt equity ratio = Interest-bearing debt / Equity capital

*3: Interest-bearing debt / EBITDA multiple = Interest-bearing debt / (Operating income + Interest & dividend income + Equity in income (loss) of affiliated companies

+ Depreciation expense + Goodwill amortization expense)

Business Results for the First Half of FY2020 and

Full-Year Earnings Forecast for FY2020

Announced February 5, 2020

Announced August 4, 2020

Unit: Billion yen2019/6

Actual

2020/6

Actual

Increase/

Decrease

2020/12

Forecasts

Revised

2020/12

Forecasts

Achievement

rate

Revenue from operations 186.2 152.4 (33.8) 350.0 350.0 44%

Operating income 32.3 18.5 (13.7) 53.0 48.0 39%

Business income*1 32.1 18.9 (13.2) 52.0 47.5 40%

Profit attributable to owners of the

parent20.0 10.8 (9.2) 31.0 31.0 35%

Unit: Billion yen 2019/12-end 2020/6-endIncrease/

Decrease

2020/12

Forecasts

2020/12

Forecasts

Total assets 1,564.0 1,623.7 59.7 - -

Interest-bearing debt 924.8 1,004.1 79.2 990.0 990.0

Debt equity ratio (times)*2 2.5 2.8 0.3 - -

Interest-bearing debt / EBITDA

multiple (times)*3 12.6 - - - -

P/L

B/S

Main Impacts of the COVID-19 Pandemic

• The leasing business of hotels and commercial facilities, the parking lot business, and the leisure business have

been particularly impacted by the COVID-19 outbreak.

• In terms of property sales to investors, the current policy is to forgo the sale of hotels and commercial facilities and

to sell assets that have not experienced significant change in business environment.

Segment Primary Impacts on Tokyo Tatemono’s Businesses

Commercial

Properties

Leasing hotels and

retail facilities

• Received requests from tenant-operators to reduce or waive rent due to a decline in

sales at hotels and commercial facilities.

• In response to government demands, large commercial facilities were closed from

middle April to middle May.

ResidenceFor-sale

condominiums

• Suspension of new business activities at show houses and sales centers.

(Refrained from business activities with new clients in the Tokyo metropolitan area from

early April to late May.)

Real Estate

ServiceParking lots

• As a result of the demands to refrain from going out, parking lot occupancy dropped

significantly, especially for park and ride lots in front of major regional train stations and

parking lots attached to large commercial facilities.

Other Resorts

• All facilities at the spa facility (Ofuro no Osama) were closed from early April to late May.

• Resort hotel facilities (Regina Resorts) were closed in stages after the state of

emergency was declared and reopened in June.

• Golf courses in the Kanto region were temporarily closed after the state of emergency

was declared. Golf courses reopened in May with a partial limitation on services.

Property Sales to Investors

• Property sales to investors in the commercial properties segment and the real estate

service segment have been forgone.

• As the business environments of properties such as for-rent condominiums and office

buildings have not experienced significant changes, the policy is to sell of these

properties in FY2020 in place of hotels and commercial facilities.


Assessment of the Market Environment and

Future Policies

• While the impact on offices and residences is limited, new product planning will be promoted in view of diversifying

work styles over the long term.

• As for the real estate transaction market, demand is expected to remain firm, especially for logistics facilities and

for-rent condominiums which are expected to generate stable cashflow, and Tokyo Tatemono will make proactive

investments to secure new projects

Assessment of the Future Market Environment and Tokyo Tatemono’s Initiatives

Offices

• The COVID-19 outbreak has had a limited impact on the current office

market. Tokyo Tatemono has not experienced any major cancellations,

and there has been no impact on rents.

• While vacancy rates and average rents are expected to weaken

temporarily going forward, the major trend of preferring good locations and

high specifications remains unchanged.

• On the other hand, with the spread of telework, the office has changed into

a place for “value creation” rather than a place to execute “tasks.” There

will be a need for product design for highly productive offices.

Residences

• Demand for for-sale condominiums is strong among real consumers.

Needs for highly convenient locations remain unchanged.

• No major changes have occurred in the business environment of for-rent

condominiums, and stable cashflow can be expected going forward.

• At the same time, we recognize that the spread of telework will raise

demand for both a comfortable working environment and a relaxing living

environment. We will promote new product development such as securing

co-working spaces in common areas and workspaces in residences.

Real estate

transaction

market

• There have been no major changes to the real estate transaction market with the exception of hotels and retail facilities.

• In particular, demand for investment in conveniently located offices and logistics facilities, for-rent condominiums is

expected to remain strong as they are expected to generate stable revenue.

(This fiscal year, we have already secured new projects for two offices and two logistics facilities, six for-rent

condominiums)

Various initiatives have

been implemented,

such as introducing

various layouts based

on the Activity Based

Working (ABW)

concept at the new

headquarters office.Inside the new

headquarters office

Specific initiatives

In response to the

rapid increase in

needs for telework, we

have installed co-

working spaces in the

common areas and

private communication

spaces at Brillia City

Nishi-WasedaVisualization of

co-working space

Specific initiatives


ESG Report: Recent Initiatives

• The entire group is further strengthening its sustainability measures with an eye to the ever-expanding ESG investment in

recent years, and by imagining a society “With COVID-19” or “After COVID-19”.

• Endorsed the TCFD proposal as an initiative to address climate change and reduce environmental impact. (June 2020)

• Issued Japan’s first sustainability bond in the real estate sector with the purpose of solving social problems and making

environmental considerations.

31st Unsecured Corporate Bond

32nd Unsecured Corporate Bond

Issuance period 5 years 10 years

Amount issued 20 billion yen 20 billion yen

Interest rate 0.220% 0.500%

Decision date of terms July 10, 2020

Issue date July 16, 2020

Redemption date July 16, 2025 July 16, 2030

Credit ratingIssuer rating: A- / Outlook: Positive(Japan Credit Rating Agency, Ltd.)

Sustainability Finance Framework evaluation

SU1(F) (Japan Credit Rating Agency, Ltd.)*

Funding(Framework)

Community development that contributes to solving social issues in the Yaesu-Nihonbashi-Kyobashi area

(1) Urban Redevelopment Project for Yaesu 1-Chome East Area in front of Tokyo Station (Yaesu Project)

(2) Urban Redevelopment Project for Yaesu 1-Chome North Area (Gofukubashi Project)

(3) Tokyo Square Garden(4) Tokyo Tatemono Nihonbashi Building(5) City Lab Tokyo(6) TOKYO FOOD LAB(7) xBridge-Tokyo/xBridge Tokyo Next(8) Kitchen Studio SUIBA(9) TOKYO IDEA EXCHANGE

<Overview of Sustainability Bond>

* See the Integrated Report 2020 and the Sustainability Report 2020 for details.

Yaesu Project Gofukubashi Project

City Lab Tokyo

An open innovation hub

centered on sustainability

8* The highest possible rating for sustainability finance framework evaluation by the credit rating agency


Released the Integrated Report 2020 and the Sustainability

Report 2020The Integrated Report 2020 and the

Sustainability Report 2020, which were

released this fiscal year, can be

downloaded from the website.

Integrated Report 2020

https://tatemono.com/ir/library/pdf/integrate

d_2020_all.pdf* The English version is currently being prepared.

Sustainability Report 2020

https://tatemono.com/csr/english/reports/pd

f/2020csrall_e.pdf

https://tatemono.com/ir/library/pdf/integrated_2020_all.pdf

https://tatemono.com/csr/english/reports/pdf/2020csrall_e.pdf

FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

(Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Forecast)

Profit attributable to owners

of the parent¥10.2 billion ¥10.1 billion ¥82.9 billion ¥16.3 billion ¥19.7 billion ¥22.5 billion ¥27.2 billion ¥29.7 billion ¥31.0 billion

Profit per share ¥23.79 ¥23.55 ¥193.12 ¥75.91 ¥91.00 ¥104.17 ¥125.79 ¥141.59 ¥148.31

Consolidated payout ratio 21.0% 21.2% 3.1% 26.3% 28.6% 28.8% 27.8% 29.0% 30.3%

Consolidated total return ratio 21.0% 21.2% 3.1% 26.3% 28.6% 28.8% 27.8% 62.5% -

Stock price at end of period*1 ¥878 ¥2,336 ¥1,762 ¥1,323 ¥1,563 ¥1,522 ¥1,140 ¥1,709 -

Dividend yield*3 1.1% 0.4% 0.7% 1.5% 1.7% 2.0% 3.1% 2.4% -

Shareholder Returns• Profit attributable to owners of the parent is expected to be the same as announced at the beginning of the fiscal

year, and there is no revision to the dividend forecast for FY2020.

• For FY2020, we estimate an increase of ¥4.0 per share from the previous period of ¥41.0 per share to ¥45.0 per

share (payout ratio of 30.3%)

Shareholder returns policyDuring the period of the medium-term business plan (FY2020–FY2024), establish a baseline consolidated payout ratio of 30% or more and aim to

increase shareholder returns continuously through sustainable growth.

Consider whether to repurchase company shares based on the business environment and financial situation, among other factors.

9

*1: A 1-for-2 reverse stock split was implemented on July 1, 2015. The figures for 2012 to 2015 are calculated by factoring in the reverse stock split.

*2: The interim and year-end per-share dividend for FY2016 both include a ¥2 commemorative dividend to celebrate the 120th anniversary of the company’s founding.

*3: Dividend yield is calculated based on the closing price at the end of that period.

< Per-Share Dividend Trends >(¥)

Plan is for a seventh consecutive year of

dividend increase with income growth

■Interim dividend ■Year-end dividend

6.0 8.0 12.0 14.0 16.0

19.0 22.0

10.0 10.0

6.0

12.0

14.0

16.0

19.0

22.0

23.0

*1 10.0 *1 10.0 *1 12.0

*1 20.0

*2 26.0

30.0

35.0

41.0

45.0

0.0

10.0

20.0

30.0

40.0

50.0


Financials



• Decrease in revenue and income due to factors such as decrease in sales and gross profits of for-sale condominiums,

decrease in property sales to investors in the commercial properties business and the real estate service business, in

addition to decline in parking and resort facility occupancy due to the impact of the COVID-19 outbreak.

11


Unit: Billion yen2019/6 Actual

2020/6 Actual

Increase/Decrease

Main factors for increase/decreaseRevised 2020/12

Forecasts

Achievementrate

Revenue from operations 186.2 152.4 (33.8) 350.0 44%

Commercial properties 66.6 58.5 (8.1) 147.0 40%

Residence 82.2 61.4 (20.7) 123.0 50%

Real estate service 25.0 21.7 (3.3) 56.0 39%

Other 12.3 10.7 (1.5) ・Revenue from operations; Business income 24.0 45%

Operating income 32.3 18.5 (13.7) Decrease in revenue and income due to factors such as decrease

in sales and gross profits of for-sale condominiums, decrease in

property sales to investors in the commercial properties business

and the real estate service business, in addition to decline in

parking and resort facility occupancy due to the impact of the

COVID-19 outbreak.

48.0 39%

Equity in income (loss) of affiliated companies

(0.2) 0.3 0.5 (0.5) -

Business income*1 32.1 18.9 (13.2) 47.5 40%

Commercial properties 19.7 16.8 (2.8) 38.5 44%

Residence 12.2 6.3 (5.8) 13.5 47%

Real estate service 3.9 0.4 (3.4) 5.5 8%

Other (0) 0.2 0.2 0.0 -

Elimination/Corporate (3.7) (5.0) (1.3) (10.0) 50%

Non-operating income 1.9 2.5 0.5 Equity in income (loss) of affiliated companies and increase in

dividends, etc.

Decrease in financing costs associated with issuance of hybrid

bonds conducted in the previous fiscal year, etc.

5.0 51%

Non-operating expenses 5.3 4.0 (1.2) 8.5 48%

Interest expense 3.3 3.3 0

Recurring income 28.9 17.0 (11.9) 44.5 38%

Extraordinary income 1.5 2.2 0.7 Increase in gain on sales of investment securities 5.0 46%

Extraordinary loss 0.5 2.7 2.2Posting of loss on valuation of investment securities and loss due

to the COVID-19 outbreak3.0 93%

Income before tax 29.9 16.5 (13.4) 46.5 36%

Profit attributable to owners of the parent

20.0 10.8 (9.2) 31.0 35%

Consolidated Statement of Income for the

First Half of FY2020

Consolidated Balance Sheet for the


• Increase in total assets by ¥59.7 billion as a result of increases due in part to the acquisition of land for development

of for-sale condominiums and land for logistics facilities and the completion of Hareza Tower as well as decreases

due to decrease in investment securities in line with the drop of fair value of the listing shares.

12

*1: Debt equity ratio = Interest-bearing debt / Equity capital

*2: Interest-bearing debt / EBITDA multiple = Interest-bearing debt / (Operating income + Interest & dividend income + Equity in income (loss) of affiliatedcompanies + Depreciation expense + Goodwill amortization expense)

Unit: Billion yen 2019/12-end 2020/6-endIncrease/Decrease

Main factors for increase/decrease

Total assets 1,564.0 1,623.7 59.7

・Real estate for sale

Increase due in part to acquisition of land for development of for-sale

condominiums and land for development of logistics facilities, etc.

Current assets 424.6 472.9 48.3

Cash and deposits 39.5 73.5 34.0

Real estate for sale 337.3 358.9 21.6

Other current assets 47.7 40.3 (7.4)

Fixed assets 1,139.4 1,150.8 11.4 ・Property and equipmentIncrease due in part to construction costs associated with the completion of Hareza Tower and Kita Aoyama 3-chome Project, and the acquisition of buildings for redevelopment

・Investments and other assetsDecrease due in part to a decrease in fair value of investment securities offsetting progress in investment in overseas businesses

Property and equipment 789.6 816.0 26.4

Intangible assets 113.0 111.5 (1.4)

Investments and other assets 236.7 223.2 (13.5)

Total liabilities 1,179.8 1,253.2 73.4

・Interest-bearing debt

Long-term debt + ¥104.4 billion; bonds payable, etc. -¥25.2 billionInterest-bearing debt 924.8 1,004.1 79.2

Other liabilities 254.9 249.0 (5.8)

Total net assets 384.2 370.5 (13.6)

・Shareholders’ equity

Profit attributable to owners of the parent +¥10.8 billion;

Dividends paid -¥4.6 billion

・Accumulated other comprehensive income

Decrease in valuation difference on available for-sale securities

Shareholder’s equity 278.1 284.0 5.9

Accumulated other comprehensive

income96.8 77.0 (19.7)

Non-controlling interests 9.2 9.3 0.1

Capital adequacy ratio 24.0% 22.2% (1.7P)

Debt equity ratio*1 2.5 2.8 0.3 Net debt equity ratio: 2.6


multiple*2 12.6 - -


13

Consolidated Balance Sheet for the


*1 Debt equity ratio = Interest-bearing debt / Equity capital

*2 Net debt equity ratio = (Interest-bearing debt - Cash and deposits) /

Equity capital

*3 Calculated by taking into account the total equity credit of ¥54.0 billion

concerning ¥108.0 billion of the total amount procured from the hybrid

loan and hybrid bonds

Breakdown of Property and

Equipment and Intangible Assets

Breakdown of Real Estate for Sale

Breakdown of

Interest-Bearing Debt

Status of Debt Equity Ratio

Loans payable¥716.4 billion 71%

Bonds payable¥210.0 billion 21%

Commercial paper

¥75.0 billion 8%

Other ¥2.7 billion 0%

Including ¥28.0

billion procured from

a hybrid loan in 2017

Including ¥80.0 billion

procured from hybrid

bonds in 2019

End of June 2020

Taking into account

hybrid loans/bonds*3

Debt equity ratio*1 2.8 times 2.3 times

Net debt equity ratio*2 2.6 times 2.1 times

Commercial properties

¥856.5 billion 92%

Residence¥27.1 billion 3%

Real estate service ¥17.4 billion 2%


Total assets: ¥1,623.7 billion

Current assets 472.9 Liabilities 1,253.2

Cash and deposits 73.5 Interest-bearing debt 1,004.1

Real estate for sale 358.9 Loans payable 716.4

Real estate for sale 175.2 Bonds payable 210.0

Real estate for sale in progress 86.2 Commercial paper 75.0

Real estate for development 97.5 Other 2.7

Other current assets 40.3 Other liabilities 249.0

Fixed assets 1,150.8

Property and equipment 816.0

Intangible assets 111.5

Investments and other assets 223.2 Net assets 370.5

Shareholders’ equity 284.0

Accumulated other comprehensive income 77.0

Non-controlling interests 9.3

<By Segment><By Status of Development>



¥124.1 billion 35%

Residence¥168.7 billion 47%

Real estate service¥50.0 billion 14%


Real estate for development

(land)

￥97.5 billion 27%

Real estate for salein progress(underway)

¥86.2 billion 24%

Real estate for sale(completed)

¥175.2 billion 49%

In order to prepare for the

impact of COVID-19, the

company has increased

funding through

borrowings to secure new

investment opportunities

and maintain a strong cash

reserve.

92.9125.3 130.6 132.0 131.8

24.6

55.4

85.2107.9

124.1

1.7

1.7

20.4

29.1

36.8

27.7

35.7

43.5

51.7

50.0

3.7

3.6

16.4

16.1

89.1101.2

112.8

153.7 147.1

221.9

283.4

337.3

358.9

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2012/12 2013/12 2014/12 2015/12 2016/12 2017/12 2018/12 2019/12 2020/6

Balance of Real Estate for Sale

• In the first half, progress in the acquisition of land for development of logistics facilities in the commercial properties business

and progress in the acquisition of land for development of for-rent condominiums in the residence business led to an increase

in the balance of real estate for sale to ¥358.9 billion.

• Stock of properties for sale to investors expanded to approximately ¥345.0 billion based on total investment amount, and land

bank for for-sale condominiums, too, steadily accumulated, securing approximately 8,300 units.


<Balance of Real Estate for Sale>(Billion yen)

400

350

300

250

200

150

100

50

0

*1 Calculated by aggregating total investment amount, in which construction costs, etc. that arise after the acquisition are added

to the book value of each property at the time of acquisition.

*2 Calculated by subtracting gain on sale of properties sold in FY2020 from the estimated gain on sale as of the end of 2019 and

then adding the estimated gain on sale of properties that have been decided to be newly acquired in FY2020.

As of the end of 2019:

Transfer from fixed assets to real estate for sale of

¥10.0 billion for commercial properties,

¥13.0 billion for other business.


Transfer from fixed assets to real estate for sale of

commercial properties and for-rent condominiums

totaling approximately ¥35 billion

◆ Balance of real estate for sale

(As of the end of June 2020):

¥227.1 billion (up ¥21.8 billion from the end of 2019)

◆ Total investment amount*1 (based on decisions made):

Approx. ¥345 billion

(up ¥40 billion from the end of 2019)

⇒Estimated gain on sale*2: Approx. ¥65 billion

[Projects to be acquired in 2020]

2 logistics facilities, 2 medium-size offices, 1 urban

commercial facility, 6 for-rent condominiums and

7 under asset solution business

[Projects already sold in 2020]

2 offices (Minami Semba Building and other) and

13 under asset solution business

Property sales to investors(commercial properties, for-rent condominiums, real estate service, other)

◆ Balance of real estate for sale:

¥131.8 billion (down ¥0.2 billion from the end of 2019)

◆ Land bank

(including 1,150 units scheduled to be posted in 2020):

Approx. 8,300 units

(400 units acquired in the first half of FY2020)

For-sale condominiums, etc.

→p.37

→p.32

→p.26

Other

Real estate service

For-rent condominiums

For-sale condominiums, etc.


Consolidated Statement of Cash Flows for the


• Although expenditures related to acquisition of fixed assets such as payment of construction costs of Hareza Tower

arose, cash and cash equivalents at end of year increased due to progress in fund procurement including long-term debt.

15

Unit: Billion yen 2019/12-end 2020/6-end Main breakdown2020/12

(Forecasts)

Cash flows from operating activities 24.0 (2.7)

Income before tax deductions +¥16.5 billion; Depreciation +¥9.1

billion; Deposits and security deposits +¥3.2 billion; Inventory

assets -¥12.6 billion; Income taxes paid -¥8.3 billion; Deposits

received -¥6.6 billion

10.0

Cash flows from investing activities (64.0) (35.5)

Purchase of fixed assets -¥26.9 billion; Investment in affiliated

companies -¥4.8 billion

Investments received in real estate specific joint ventures -¥4.6

billion

(85.0)

Cash flows from financing activities 48.0 72.3Long-term debt +¥104.3 billion; Bonds payable -¥15.0;

Commercial paper -¥10.0; Dividends paid -¥4.5 billion60.0

Cash and cash equivalents at end of

period39.4 73.5 -


Investment Plans

• Plan is to invest gross investment of ¥1,400.0 billion and net investment of ¥500.0 billion cumulatively over five years

in the five key strategies set under the new medium-term business plan.

• For FY2020, a total of ¥240.0 billion is scheduled to be invested. Of this amount, new investment is expected to be

just under ¥100.0 billion, and nearly 50% of investments have been confirmed as of the end of June.


<Investment Plan of New Medium-Term Business Plan (2020–2024)> <Investment Plan for FY2020>

* Inclusive of such amounts as

expenditures for Hareza Tower,

Kita Aoyama 3-chome Project,

parking lot facility development,

CAPEX, etc., and reserves for

acquisition of buildings for large-

scale redevelopment and income-

producing real estate.

Unit: Billion yen

Gross investment 1,400.0

Investment in large-scale

redevelopment230.0

Investment in for-sale condominium

projects430.0

Investment in properties for sale to

investors550.0

Investment in the overseas business 70.0

Other 120.0

Return 900.0

Net investment 500.0

Unit: Billion yen

240.0

15.0

70.0

85.0

15.0

55.0


Actual

Announced

August 4, 2020

Revised 2020/12

Forecasts

(A)

Increase/

Decrease

Announced February

5, 2020

2020/12

Forecasts

(B)

Comparison of

revised forecast

with initial FY2020

forecast

(A-B)

Summary of revisions from initial FY2020 forecast

Revenue from operations 323.0 350.0 26.9 350.0 -

・Revenue from operationsDespite a decrease in sales of for-sale condominiums,a decline in parking and resort facility occupancy, anda decrease in leasing revenue from hotels andcommercial facilities, revenue is expected to be in linewith initial forecasts due to an increase in property salesto investors.

Commercial properties 120.9 147.0 26.0 148.0 (1.0)

Residence 131.2 123.0 (8.2) 115.0 8.0

Real estate services 44.1 56.0 11.8 60.0 (4.0)

Other 26.6 24.0 (2.6) 27.0 (3.0)

Operating income 52.4 48.0 (4.4) 53.0 (5.0)

Equity in income (loss) of affiliated companies

(0.7) (0.5) 0.2 (1.0) 0.5Improvement in equity in income (loss) of affiliated companies in the overseas business (+¥0.5 billion)

Business income*1 51.6 47.5 (4.1) 52.0 (4.5)

・Business incomeAlthough gain on sales will increase at for-rentcondominiums, business income is expected to be down-¥4.5 billion compared with initial forecasts due in part toforgoing sales of hotel and commercial facilities, a partialreduction or exemption of leasing revenue, and a declinein occupancy in the parking and leisure businesses.

Commercial properties 37.5 38.5 0.9 43.4 (4.9)

Residence 15.8 13.5 (2.3) 9.0 4.5

Real estate services 5.8 5.5 (0.3) 9.0 (3.5)

Other 0.5 0.0 (0.5) 0.6 (0.6)

Elimination/Corporate (8.2) (10.0) (1.7) (10.0) -

Non-operating income 3.5 5.0 1.4 3.5 1.5

Non-operating expenses 11.3 8.5 (2.8) 10.5 (2.0)Improvement in equity in income (loss) of affiliated companies in the overseas business, decrease in interest expenses

Recurring income 44.6 44.5 (0.1) 46.0 (1.5)

Extraordinary income 2.9 5.0 2.0 2.0 3.0

Extraordinary loss 2.2 3.0 0.7 - 3.0

Income before tax 45.3 46.5 1.1 48.0 (1.5)

Profit attributable to owners of the parent

29.7 31.0 1.2 31.0 -

Cash flows from operating activities 24.0 10.0 10.0 * No revision to cash flow forecast

Cash flows from investing activities (64.0) (85.0) (85.0)

Cash flows from financing activities 48.0 60.0 60.0

Revision of Full-Year Earnings Forecast for FY2020• Upon considering the impact of the COVID-19 outbreak, a portion of the full-year earnings forecast for FY 2020, announced at the

beginning of the fiscal year (February 5, 2020), has been revised.• The revision is based on the premise that the business environment surrounding the Tokyo Tatemono Group will gradually recover,

essentially returning to normal by the end of the fiscal year, takes into account the impacts of the partial rent reductions and exemption athotels and commercial facilities as well as decline in parking and resort facility occupancy, and expects that property sales to investors willinclude real estate for other uses as an alternative to hotels and commercial facilities.

• Despite an increase in property sales to investors, operating income, business income, and ordinary income will decrease from the previous fiscal year in FY2020 as a result of factors such as decrease in sales of for-sale condominiums, decline in parking and resort facility occupancy due to the impact of the COVID-19 outbreak, as well as higher corporate costs associated with head office relocation. However, as for revenue from operations and profit attributable to owners of the parent, an increase in revenue and income is anticipated and the amounts will remain unchanged from the forecast announced at the beginning of the fiscal year.

17


MEMO


Business Results by Segment

(1) Commercial Properties Business:

FY2020 2Q Results & Full-Year Forecasts• Decrease in revenue and income primarily due in part to decline in property sales to investors despite leasing of buildings remaining

at a similar level compared with the same period of the previous year.

• Full-year increase in revenue and income are expected due in part to increases in property sales to investors despite a decline in

building leasing revenue due to the impacts of the COVID-19 outbreak.

20

New and full-year operations

・2020 new operations: Sendai Kakyoin Terrace (completed January 2020), Hareza Tower (completed May 2020), Nonoaoyama Shop & Restaurant

(completed May 2020), T-LOGI Kuki (completed June 2020)

・2020 full-year operations: DNP Gotanda Building (acquired in September 2019); Tokyo Tatemono Kyobashi Building (acquired in June 2019); Urban hotel

(Omiya) (completed in September 2019); Urban hotel (Midosuji) (completed in February 2019); Urban hotel (Kyoto) (completed in

December 2019); FUNDES Ginza (completed in November 2019): FUNDES Gotanda (completed in September 2019)

* New operations: Impact of increase in revenue attributable to the buildings that were completed or acquired in the fiscal year under review; Full-year operations: Impact of increase in revenue attributable to the buildings that were completed or acquired in the previous fiscal period contributing to full-year operations:Sale, reconstruction, etc.: Impact of decrease in revenue attributable to decrease in buildings in operation due to sale, reconstruction, etc.; Existing buildings: Total amount of the effects of rent revisions, end of rent-free periods, occupancy rate changes, etc. at buildings other than those of new operations, full-year operations, and sale, reconstruction, etc.



Actual

2020/6

Actual

Increase/

DecreaseMain factors for increase/decrease

Revised

2020/12

Forecasts

Achievement

rate


Leasing of buildings 36.0 36.9 0.9 New operations +¥0.1 billion; Full-year operations +¥1.6 billion; Sale, reconstruction, etc. -¥0.5 billion; Existing buildings: -¥0.3 billion 73.5 50%

Sales of real estate 12.3 4.2 (8.1) Property sales to investors -¥8.1 billion 37.0 12%

Building management

service, etc.17.9 16.9 (1.0) 36.0 47%

Dividends 0.2 0.2 0.0 0.5 59%

Operating income 19.4 16.6 (2.8)Gross profit from property sales to investors -¥1.8 billion (FY2019 1H: ¥2.7 billion; FY2020 1H: ¥0.8 billion)Yaesu Redevelopment Project reserve floor area acquisition tax -¥1.0 billion

38.0 44%

Business income 19.7 16.8 (2.8) 38.5 44%Announced

August 4, 2020Announced

February 5, 2020


Actual

Revised

2020/12

Forecasts

(A)

Increase/

Decrease

2020/12

Initial full-year

forecasts

(B)

A-B Summary of revisions from initial FY2020 forecast

Revenue from operations 120.9 147.0 26.0 148.0 (1.0)

Leasing of buildings 73.9 73.5 (0.4) 76.0 (2.5) Rent reduction and exemption for hotels and commercial facilities

Sales of real estate 12.3 37.0 24.6 31.5 5.5 Forgoing sale of hotels and commercial facilities, replacing sold assets

Building management

service, etc.34.0 36.0 1.9 40.0 (4.0) Decline in outsourced construction

Dividends 0.5 0.5 (0.0) 0.5 -

Operating income 37.0 38.0 0.9 43.0 (5.0)Gross profit from property sales to investors -¥2.0 billion (Initial forecast: ¥8.0 billion; Revised forecast: ¥6.0 billion); Leasing of buildings -¥2.5 billion; Building management service, etc. -¥0.5 billion

Business income 37.5 38.5 0.9 43.4 (4.9)


Under 10 years old48.5%

10–20 years old13.3%

20–30 years old11.6%

30 years and older26.5%

30,293 29,870 29,882

30,361 30,405 30,470 30,583 30,846

30,288

97.8% 97.8%98.4% 98.6% 98.8% 98.9% 98.9% 99.0%

98.0%

80%

90%

100%

26,000

28,000

30,000

32,000

2018/6 2018/9 2018/12 2019/3 2019/6 2019/9 2019/12 2020/3 2020/6

• The office market remained strong with average rent at ¥30,288 per tsubo and occupancy rate close to full at 98.0% at the end

of June. When excluding the impact of Hareza Tower completed in May 2020, the average rent was ¥31,102 per tsubo and

occupancy rate was 99.1%, indicating a favorable trend.


When excluding Hareza Tower

(completed at the end of May,

tenants started to move in in June)

Average rent: ¥31,102 per tsubo

Occupancy rate: 99.1%


Office Building Portfolio

At end of June 2020Number of

buildingsLeasable area

Owned office buildings*1 *2 45 520,929 m²

Subleased buildings ー 97,737 m²

Commercial facilities, buildings

for redevelopment, etc.ー 207,234 m²

Total leasable area of

commercial properties businessー 825,899 m²

*1: The definition for the subject of calculation of the number of owned office buildings, average rent and occupancy rate has been changed, effective from FY2019 1Q.

For details of the standards change, please refer to the note on page 52.

*2: “DNP Gotanda Building,” which was delivered at the end of September 2019, is not included in “Owned office buildings” nor in areas subject to calculation of average rent, occupancy

rate, and breakdown of leasable area.

*3: The weighted average based on leasable area.

1,000 tsubo and over19.2%

500–1,000 tsubo38.3%

300–500 tsubo24.5%

Less than 300 tsubo18.1%

3 central wards of Tokyo40.6%

Shibuya & Shinjuku wards

16.9%

23 wards (excluding 5 central wards)

of Tokyo22.6%

Tokyo metropolitan area (excluding 23 wards)

2.5%

Other17.3%

<Breakdown of Leasable Area

by Standard Floor Space>


by Building Age>


by Area of Location>

<Average Rent (Left axis) / Occupancy Rate (Right axis)>

Average building age*3

18 years

(Yen/tsubo)

• Hareza Tower (office building), the complex development on the former Toshima Ward Office site developed in cooperation with the

government, was completed in May 2020.

• The leasing of the office building has progressed smoothly, with 100% of the building under contract at the time of completion.

Tenants are expected to occupy all floors by the end of 2020.

Hareza Tower (Area name: Hareza Ikebukuro)

1

2

3

4 5

6

7

8

中池袋公園


CASBEE for Buildings

Rank S

DBJ Green Building

Certification2019 Plan: 5 Stars

BELS5 Stars

ZEB ReadyCertified*

* First project to obtain

certification as a high-

rise mixed-use building

(1) Commercial Properties Business: Development Projects to Be Completed in FY2020

<Property Overview>

<Tokyo Tatemono’s Initiatives>

Tokyo Tatemono has advanced the development jointly with

Toshima Ward as a developer of “Brillia Tower Ikebukuro,” Japan’s

first redevelopment project integrating a main ward government

building and high-rise apartment, and the “HAREZA Tower”

complex development on the former site of Toshima Ward Office

and a public hall.

After the completion of “HAREZA Tower,” Tokyo Tatemono will

move forward with management of the area including Naka-

Ikebukuro Park which falls within the area.

[Total floor space] New hall building : about 10,700 m²

Office building : about 68,600 m²

[Total area] New hall building : 2,983.59 m²

Office building : 3,619.67 m²

[Construction start] December 2016

[Completion date] New hall building : April 2019

Office building : May 2020

Naka-Ikebukuro Park

1 Cinema complex

2 Cinema plaza

3Tokyo Tatemono Brillia HALL

* owned by Toshima Ward

4 Harevutai (live theater)

5 Park plaza

6 Haresuta (satellite studio)

7Multi-purpose hall


8Small hall


Within the buildings are a cinemacomplex and other theaters as well asa full range of commercial facilities

Brillia Tower Ikebukuro (completed in 2015)

Japan’s first large-scale complex tower residence (49

floors, 432 units) integrated with a ward government

building.

1st-10th floors: Toshima Ward Office, commercial

facilities, etc.

11th-49th floors:Residence

Naka-Ikebukuro Park

Hareza Ikebukuro

Office building

(Hareza Tower)

Hall building (Tokyo

Tatemono Brillia HALL)

Toshima Civic Center

New Toshima Ward Buildings

2

18

8

171

20

3

2

4

1

5

7

6

9

10

11

13

1415

16

19

20

8

18

17

21

12

• Tokyo Tatemono owns many office buildings and is promoting large-scale redevelopment, including for Tokyo

Tatemono Headquarters Building and Shin-Gofukubashi Building, in the area around Tokyo Station, a key area.

23

(1) Commercial Properties Business: Map of Office Buildings Owned Around Tokyo Station

BuildingFY of

construction completion

1 The Otemachi Tower 2014

2Otemachi Financial City Grand Cube

2016

3JA Building / Keidanren-Kaikan

2009

4Otemachi Financial City North Tower

2012

5Tokyo Tatemono Muromachi Building

1966

6Tokyo Tatemono Dai3Muromachi Building

1971

7 Nihonbashi TI Building 2012

8Tokyo Tatemono Nihonbashi Building

2015

9 Nihonbashi First Building 1994

10 Shin-Gofukubashi Building 1977

11Tokyo Tatemono Yaesu Building

2011

12Tokyo Tatemono Yaesu

Sakuradori Building1974

13 NTA Nihonbashi Building 1991

14Tokyo Tatemono Headquarters Building

1929

15 Yaesu MEG Building 1986

16 Kyobashi YS Building 1990

17 Empire Building 2017

18 Kyobashi Edogrand 2016

19 Fukuoka Building 1990

20 Tokyo Square Garden 2013

21Tokyo Tatemono Kyobashi Building

1981

■ Construction completed in or before 2000.

■ Construction completed between 2009 and 2017.

Category 1 Urban Redevelopment

Project for Yaesu 1-Chome East

Area in Front of Tokyo Station

Category 1 Urban Redevelopment

Project for Yaesu 1-Chome North Area

: Redevelopment with

Tokyo Tatemono’s

involvement

: Redevelopment with

Tokyo Tatemono’s

participation

: Buildings owned by

Tokyo Tatemono


24


Major Development Projects

• Promoting “Urban Redevelopment Project for Yaesu 1-Chome East Area in Front of Tokyo Station,” which includes Tokyo

Tatemono Headquarters Building, and “Urban Redevelopment Project for Yaesu 1-Chome North Area,” which includes Shin-

Gofukubashi Building, in the area around Tokyo Station, a hub for transportation and business.

Urban Redevelopment Project for Yaesu 1-Chome

East Area in Front of Tokyo Station (Yaesu Project)

⚫ Large redevelopment project in front of Tokyo Station, including Tokyo Tatemono Headquarters Building.

⚫ Construct a large bus terminal that connects Tokyo with international airports and regional cities.

⚫ Introduce functions that will enhance Tokyo’s global competitive edge, including conference halls and medical facilities.

⇒ Rights conversion plan approved for B Area in June 2020[Total floor space] District A: about 12,000 m²

District B:about 225,000 m²

[Main uses] District A:offices, shops, etc.

District B:offices, medical facilities, bus terminal, conference halls, etc.

[No. of floors] District A:11 floors above ground, 3 below

District B:50 floors above ground, 4 below

[Construction start] Fiscal year 2021 (planned)

[Completion date] Fiscal year 2025 (planned)

Urban Redevelopment Project for Yaesu 1-Chome

North Area (Gofukubashi Project)

⚫ Establish a continuous waterfront promenade and pedestrian network in the area along Nihonbashi River.

⚫ Form a financial hub serving to strengthen global competitive edge.

⚫ Strengthen disaster preparedness and reduce environmental burden.

⇒ Urban development plan decided and designated as National Strategic Special Zone in October 2019

[Total floor space] South Block: about 180,500 m²

North Block: about 1,000 m²

[Main uses] Offices, shops, lodging facility, parking lot, etc.

[No. of floors] South Block: 45 floors above ground, 5 below

North Block: 2 floors above ground, 1 below

[Construction start] Fiscal year 2025 (planned)

[Completion date] South Block: Fiscal year 2030 (planned)

North Block: Fiscal year 2035 (planned)


25


Major Development Projects

• In addition to Yaesu Project and Gofukubashi Project, promoting several projects in the Chuo, Minato and Shibuya wards.

• Redevelopment projects for approximately 320,000 m2 of estimated leasable area are slated for completion one after another

around the period between 2025 and 2030.

Leasable

area

Approx.

320,000 m2

in total

* Estimated leasable area includes leasable area of non-office space, such as conference and commercial facilities

Estimated investment amount:

About ¥230.0 billion

Estimated investment amount:

About ¥330.0 billion

Preparation consortium

establishedRedevelopment 1 Minato Ward

Approx.

200,000 m2

in total


establishedRedevelopment 2 Chuo Ward


establishedRedevelopment 3 Shibuya Ward


establishedRedevelopment 5 Minato Ward

Under discussion Redevelopment 4 Minato Ward

Current status Name of project Area 2020 ・・・・・ 2024 2025 ・・・・・ 2030

Estimated

leasable area*

(owned by Tokyo

Tatemono)

Rights conversion plan

(B Area)Yaesu Project Chuo Ward

Approx.

120,000 m2

in total


established

Urban development plan

decided

Gofukubashi

ProjectChuo Ward

■ Project period

(construction start to completion)Ongoing Redevelopment Projects


24.6

55.4

85.2

107.9

124.1

0

200

400

600

800

1000

1200

1400

2016/12 2017/12 2018/12 2019/12 2020/6

• In FY2020 H1, new projects were secured, mainly for logistics facilities.

• The balance of real estate for sale increased by ¥16.2 billion from the end of FY2019 to ¥124.1 billion and the value

of stock in terms of total investment amount increased by approximately ¥30.0 billion to approximately ¥220.0 billion.

FUNDES Gotanda FUNDES Ginza

26

* In FY2020, besides the properties listed, acquisition of one property has been decided.


Initiatives for Property Sales to Investors

(Billion yen)

<Commercial Properties Business: Balance of Real Estate for Sale> <Urban Compact Commercial Facilities>

Total investment amount* (based on decisions made)*1:

approx. ¥220.0 billion

Assume average NOI yield at stable occupancy of around 5%

*1 Calculated by aggregating the total investment amount, in which construction costs, etc. that arise

after the acquisition are added to the book value of each property at the time of acquisition.

Area Property nameConstruction

completedStatus

Suidobashi FUNDES Suidobashi July 2015 Sold

Jimbocho FUNDES Jimbocho Nov. 2016 Sold

Ueno FUNDES Ueno July 2017 Sold

Tenjin, Fukuoka TENJIN249 July 2018 In operation

Gotanda FUNDES Gotanda July 2019 In operation

Ginza FUNDES Ginza Nov. 2019 In operation

Tenjin, FukuokaTenjin Nishidori Project

(provisional name)Spring 2022 Under developmentReal estate

for sale

(completed)

As of the end of 2018: Transfer from fixed assets of slightly less than

¥20.0 billion

As of the end of 2019: Transfer from fixed assets of slightly less than

¥10.0 billion

140

120

100

80

60

40

20

0


Area Hotel nameNo. of

guestrooms

Construction

completedStatus

Roppongi Candeo Hotels Tokyo Roppongi 149 Sept. 2017 In operation

Ginza The Square Hotel Ginza 182 Aug. 2018 In operation

Asakusa Hotel Gracery Asakusa 125 Sept. 2018 In operation

Midosuji (1) the b Osaka Midosuji 306 Feb. 2019 In operation

Omiya Candeo Hotels Omiya 321 Aug. 2019 In operation

Sanjo, Kyoto (1) Arietta Hotel Kyoto 122 Dec. 2019 In operation

Shijo, Kyoto TBD 106 Spring 2021 Under development

Sanjo, Kyoto (2) TBD TBD TBD Under development

Akihabara TBD TBD TBD Under development

Midosuji (2) TBD TBD TBD Under development

<Urban Hotels><Logistics Facilities>

T-LOGI Kuki (Completed end of June 2020)

27

Lounge in the facility Photographs in the warehouse

<Medium-Size Office Building>

Property nameConstruction

completedStatus

Sendai Kakyoin Terrace Jan. 2020 In operation

TBD (Area: in front of Sapporo Station) Fall 2023 Under development

Kodemmacho Project (provisional name) Spring 2022 Under development

Sendai Kakyoin Terrace

* In FY2020, besides the properties listed, acquisition of one property has been decided.

* Projects acquired in 2020 are highlighted in red.


Initiatives for Property Sales to Investors

Property name Opening Status

T-LOGI Kuki Jul. 2020 In operation

Ayase Logistics Facility Project (provisional name) Summer 2022 Under development

Musashi Hikita Logistics Facility Project (provisional name) TBD To be acquired

Yokohama Aoba Logistics Facility Project (provisional name) Spring 2022 Under development

Narashino Logistics Facility Project (provisional name) Spring 2022 Under development

Chiba Kita Logistics Facility Project (provisional name) TBD Under development

Ichinomiya Logistics Facility Project (provisional name) TBD To be acquired


• In FY2020 2Q, there was a decrease in revenue and income due in part to the recording of a highly profitable tower condominium

in the same period of the previous year, and the number of condominium sales posted decreased from 937 units to 872 units.

• Full-year decrease in revenue and income are expected due in part to decrease in sales and gross profits of for-sale

condominiums despite a significant increase in the sale of for-rent condominiums.


(2) Residence Business:

FY2020 2Q Results & Full-Year Forecasts



Actual

2020/6

Forecasts

Increase/


Revised

2020/12

Forecasts

Achievement

rate


Sales of condominiums 67.4 46.6 (20.7)Number of condo sales posted: 872 units; Condo unit price: ¥53.44

million; Gross margin: 22.9%62.5 75%

Sales of residential houses - - - - -

Sales of residential land, etc. 2.3 2.0 (0.3) Decreases in sold share outs in for-sale condo project 35.0 6%

House leasing 1.9 2.6 0.6 New operations in for-rent condominiums and full-year operations

of properties completed in the previous fiscal year5.5 48%

Fee from sales agency services 0.5 0.6 0.1 1.0 68%

Building management service, etc. 9.9 9.4 (0.5) Decrease in large-scale repair work 19.0 50%

Operating income 12.2 6.3 (5.8) 13.5 47%

Business income 12.2 6.3 (5.8) 13.5 47%




Actual

Revised

2020/12

Forecasts

(A)

Increase/

Decrease

2020/12

Initial full-year

forecasts

(B)


Revenue from operations 131.2 123.0 (8.2) 115.0 8.0

Sales of condominiums 98.3 62.5 (35.8) 67.0 (4.5)

Revised number of condo sales posted from 1,250 units to 1,150

units (Condo unit price: ¥54.30 million; Gross margin:

approximately 22.0%)

Sales of residential houses 0.0 - (0) - -

Sales of residential land, etc. 8.1 35.0 26.8 22.0 13.0Increase in sale of for-rent condominiums +¥13.0 billion (Initial

forecast: ¥15.0 billion; Revised forecast: ¥28.0 billion

House leasing 4.3 5.5 1.1 5.5 -

Fee from sales agency services 1.1 1.0 (0.1) 0.5 0.5

Building management service, etc. 19.2 19.0 (0.2) 20.0 (1.0)

Operating income 15.8 13.5 (2.3) 9.0 4.5Gross profit from sales of for-rent condominiums +¥4.5 billion

(Initial forecast: ¥3.0 billion; Revised forecast: ¥7.5 billion)

Business income 15.8 13.5 (2.3) 9.0 4.5

700

971 988

1,315

1,150

20.9%

33.3%29.8%

24.6%

22.0%

0%

5%

10%

15%

20%

25%

30%

35%

0

500

1,000

1,500

2016/12 2017/12 2018/12 2019/12 2020/12

872

22.9%

• In FY2020 2Q, gross margin maintained a favorable level at 22.9%.

• Anticipating a delay in sales activities caused by the suspension of new business activities at show houses and sales centers due to

the impacts of the COVID-19 outbreak, the number of condo sales to be posted in the current fiscal year was revised to 1,150 units,

down from the initial forecast of 1,250 units.

• The inventory of completed condominiums was 305 units, primarily in the Tokyo suburban and Tokyo metropolitan areas, as of the

end of FY2020 2Q, and the achievement rate at the end of FY2020 2Q against the revised FY2020 plan for the number of

condominium sales posted stood at 90%.


(Full-year

forecast)

(2Q actual)

* The achievement rate was also revised in line with the revision of the number of

condominium sales to be posted in FY2020

23 wards of Tokyo

61.9%Tokyo excluding 23 wards

14.3%

Other Tokyo

metropolitan area

20.5%

Kansai and others

3.4%

23 wards of Tokyo

46.3%

Tokyo excluding

23 wards

0.8%

Other Tokyo

metropolitan area

26.1%

Kansai and others

26.9%

FY2017 FY2018 FY2019 FY2020

At beginning 80% 77% 83% 76%*

At end of 1Q 88% 91% 89% 86%*

At end of 2Q 93% 94% 94% 90%*

At end of 3Q 99% 97% 98%

Number of condo sales posted 971 units 988 units 1,315 units1,150 units*

(Plan)

<Achievement Rate Against Number of Condominium Sales Posted><Breakdown of Number of Condominium Sales Posted by Area>

<Inventory of Completed Condominiums><Number of Condominium Sales Posted and Gross Margin>

(Units) (Units)■Tokyo

■Tokyo metropolitan area

■Kansai and others

Of which,

contracted:

31 units

FY2019 2Q

937 units posted

FY2020 2Q

872 units posted

138105 87 94

174

130

83

216

321305

0

100

200

300

400

2018/3 2018/6 2018/9 2018/12 2019/3 2019/6 2019/9 2019/12 2020/3 2020/6

(2) Residence Business: For-Sale Condominiums – Main Operating Indicators

Incorporated into land bank

Approx. 8,300 units

Yet to be incorporated into

land bankApprox. 2,500 units

• Plan to post sales of properties conveniently located in front of stations in 2020 as well.

• Acquired land for approximately 400 units in FY2020 1H, securing a land bank for approximately 8,300 units

(including the number of units scheduled to be posted in 2020).


(2) Residence Business: For-Sale Condominiums – Main Property Sales Posting Schedule (1)

<Properties Scheduled to be Posted in 2020>

Brillia TsurumakiBrillia Urawa NakachoBrillia Tower Takasaki

ALPHA RESIDENCIA

<Land Bank><Projects Promoted Under

the Company’s Business>

Approx. 8,300 unitsApprox. 10,800 units

Including 1,150 units

scheduled to be posted in 2020

*1 Of the total number of units including units for sale, the number of units excludingland right holders’ residential units

*2 Including also the number of units scheduled for sale over several years

*3 Completion date was postponed in line with the postponement of the Olympic Games

Main properties slated for completionNo. of units

for sale*1

No. of condo sales

to be posted by

Tokyo Tatemono

To b

e c

om

ple

ted

in 2

020

Brillia Tower Takasaki ALPHA RESIDENCIA 222 100

Brillia City Senri Tsukumodai 158 79

Brillia Ojima 127 127

Brillia Higashinakano Parkside Hills 98 59

Brillia Urawa Nakacho 72 72

Brillia Tsurumaki 72 72

To b

e c

om

ple

ted

in2021

BrilliaTower Nishijin 307 246

SHINTO CITY 1,411 353 *2

Brillia Tower Ariake MID CROSS 300 300 *2

Brillia Ueno Garden 99 79

To b

e c

om

ple

ted

in 2

022 o

r la

ter

Brillia Kyoto Matsugasaki 109 109

Brillia City Nishi-Waseda 454 454

Brillia Tower Seiseki Sakuragaoka Blooming

Residence (provisional name)520 312

SHIROKANE The SKY 770 270

Minato Ward Kaigan 1-chome Reconstruction

Project

(Itohpia Hamarikyu Reconstruction Project)

144 144

HARUMI FLAG (Harumi 5-chome West District

Category 1 Urban Redevelopment Project)4,145 489 *3

Dojima Tower Project (provisional name) TBD TBD

Shakujii Park Danchi Reconstruction Project TBD TBD

Nishishinjuku 3-chome West District

Urban Redevelopment ProjectTBD TBD

23 wards of Tokyo 49.5%

Tokyo excluding 23 wards

4.9%

Other Tokyo metropolitan area

24.7%

Kansai and others20.9%

2021 2022 2023 20242020

• Going forward, the plan is to continue posting sales of properties that draw great attention every fiscal year, such aslarge-scale redevelopment projects in central Tokyo and large-scale tower condominiums in central areas ofregional cities.

• Already secured approximately 6,600 units’ worth of projects, or approximately 80% of estimated cumulative netsales, scheduled to be posted by FY2024, the final fiscal year of the new medium-term business plan.


(2) Residence Business: For-Sale Condominiums – Main Property Sales Posting Schedule (2)

*1 Completion date was changed in line with the postponement of the Olympic Games.The number of units scheduled to be posted in fiscal 2024 has not been determined.

Land bank scheduled to be posted in the medium-term business plan period: Approx. 6,600 units already secured

(Approx. 80% of estimated cumulative net sales in the period of the medium-term business plan)

SHIROKANE The SKY(Total units: 1,247; Units to be posted: 270)

Minato Ward Kaigan 1-chome

Reconstruction Project (Total units: 420; Units to be posted: Approx. 140)

HARUMI FLAG*1

(Total units: 4,145; Units to be posted: 489)SHINTO CITY(Total units: Approx. 1,400; Units to be posted:

Approx. 350)

Brillia Tower Seiseki Sakuragaoka

Blooming Residence(Total units: 520; Units to be posted: 312)

Brillia Tower Takasaki

ALPHA RESIDENCIA(Total units: 222; Units to be

posted: 100)

Brillia Tower Ariake MID CROSS(Total units: 300; Units to be posted: 300)

BrilliaTower Nishijin(Total units: 307; Units to be

posted: 246)

Dojima Project (provisional name)(Total units: TBD; Units to be posted: TBD)

1.7 1.7

20.4

29.1

36.8

-50

50

150

250

350

2016/12 2017/12 2018/12 2019/12 2020/6

• In FY2020 1H, 6 for-rent condominium projects (including student housing) were newly acquired.

• The balance of real estate for sale increased by ¥7.7 billion from the end of FY2019 to ¥36.8 billion and the value of

stock in terms of total investment amount increased by approximately ¥12.0 billion to approximately ¥62.0 billion.

32

Real estate

for sale

(completed)

35

25

15

5

-5

(Billion yen)


Transfer from fixed assets of

slightly more than

¥15.0 billion

(Excluding properties held

for a long period of time)

Total investment amount*1 (based on decisions made): approx. ¥62.0 billion

Assume average NOI yield at stable occupancy of around 5%

<For-Rent Condominiums: Balance of Real Estate for Sale> <List of For-Rent Condominiums (Sale to Investors)>

Property nameTotal no.of units

Construction (to be) completed

Status

Brillia ist Kitazawa KEYAKI 44 Aug. 2008 Sold

Brillia ist Nishiazabu Kasumicho 21 July 2008 In operation

Brillia ist Nakano Central Park Residence 17 May 2012 In operation

Brillia ist Nakano Shinbashi 42 Apr. 2016 Sold

Brillia ist Ueno Okachimachi 33 Nov. 2017 In operation

Brillia ist Kiyosumi Shirakawa 47 Jan. 2018 In operation

Brillia ist Yotsuya Honshiocho 85 June 2018 In operation

CREAR PALETTE Kajigaya*2 127 Feb. 2019 Sold

Brillia ist Bunkyo Myogadani 43 Mar. 2019 In operation

Brillia ist Sendagaya 149 May 2019 In operation

Brillia ist Komagome 75 Feb. 2020 In operation

Arcade Ebara Nakanobu 29 Jan. 2020 In operation

Brillia ist Ryogoku 85 Mar. 2020 In operation

Brillia ist Shinjuku Akebonobashi 49 Apr. 2020 In operation

Minn Ueno*3 - July 2020 In operation

Taihei 4-chome Project (provisional name) 45 Sept. 2020 Under development

Motoasakusa 1-chome Project (provisional name)

49 Nov. 2020 Under development

Akabane Iwabuchi Project (provisional name) 49 Feb. 2021 Under development

Asakusabashi 1-chome Project (provisional name)

49 Oct. 2021 Under development

Omori Sanno Project (provisional name) 59 Dec. 2021 Under development

Toyomachi Project (provisional name) 49 Feb. 2022 Under development

Kitaueno Project (provisional name) 36 Feb. 2022 Under development

Machiya Station Front Project(provisional name)

59 Aug. 2022 Under development

Shibuya Honmachi Project (provisional name)

47 Aug. 2022 Under development

Kuramae 4-chome Project (1) 58 Aug. 2023 Under development

Kuramae 4-chome Project (2) 46 Nov. 2023 Under development

Ikejiri Ohashi Project (provisional name) 200 Nov. 2024 Under development

* In FY2020, besides the properties listed, acquisition of 2 properties has been decided.


<List of For-Rent Condominiums (for Long-Term Holding)>

Property nameTotal no.

of units

Construction

(to be) completedStatus

Brillia ist Shinonome Canal Court 423 Mar. 2005 In operation

Brillia ist Tower Kachidoki 536 Jan. 2011 In operation

Nonoaoyama building 229 May 2020 In operation

HARUMI FLAG

(Post Olympic Village Site Development)

Approx.

1,500TBD Under development

*1: Calculated by aggregating the total investment amount, in which construction costs, etc. that ariseafter the acquisition are added to the book value of each property at the time of acquisition.

*2: “CREAR PALETTE Kajigaya” is developed as student housing in light of the location characteristicsand entirely leased to a student housing operator after construction completion.

*3: “Minn Ueno” was developed as an apartment hotel (lodging facility) in light of the locationcharacteristics.

(2) Residence Business: For-Rent Condominiums


(2) Residence Business: For-Rent Condominiums


(Left) Entrance hall

(Right) Exterior

(Left) Common-use lounge

(Right) Exterior

[Location] 1-6-7 Ryogoku, Sumida-ku, Tokyo

[Access] 6-minute walk from Ryogoku Station on the JR Sobu Line

11-minute walk from Ryogoku Station on the Toei Oedo Line

10-minute walk from Morishita Station on the Toei

Shinjuku Line and Toei Oedo Line

[Scale] 13 floors above ground

[Floor plan] 1K, 1DK, 2DK

[Total units] 85 units + 1

shop section

Brillia ist Ryogoku (Construction completion in 2020)

Brillia ist Sendagaya (Construction completion in 2019)

[Location] 31-4, Daikyocho, Shinjuku-ku, Tokyo

[Access] 2-minute walk from Kokuritsu-kyogijo Station on the Toei Oedo Line

5-minute walk from Sendagaya Station on the JR Sobu Line


[Floor plan] Studio to 2LDK

[Total units] 149 units + 1 shop section

(Left) Rooftop Terrace, (Right) Exterior

(Left) Common-use lounge

(Right) Exterior

[Location] 1-3-4 Nishigahara, Kita-ku, Tokyo

[Access] 5-minute walk from Komagome Station on the JR

Yamanote Line

5-minute walk from Komagome Station on the Tokyo Metro

Namboku Line


[Floor plan] 1K to 2DK

[Total units] 75 units

Brillia ist Komagome (Construction completion in 2020)

[Location] 6-9, Katamachi, Shinjuku-ku, Tokyo

[Access] 3- minute walk from Akebonobashi Station on the Toei

Shinjuku Line

9-minute walk from Yotsuya-sanchome Station on the

Marunouchi Line


[Floor plan] 1R, 1K, 1LDK, 2LDK

[Total units] 49 units

Brillia ist Shinjuku Akebonobashi(Construction completion in 2020)

(2) Residence Business: For-Rent Condominium

Project Completed in FY2020 2Q• Nonoaoyama Building, a project making private-sector use of an old, municipally operated former residential site, was

completed in May 2020.

• There are high-quality rental residences suitable for various lifestyles, high-grade serviced housing for the elderly, and a state-authorized day care center.

Nonoaoyama Building

(Kita Aoyama 3-chome Area Urban Development Project Utilizing Private Business Operator)

<Property Overview>

Biotope

Exterior view of commercial zone

34

Use ：1F–2F: Shop, state-authorized day

care center, and community center

2F–4F: Serviced housing for the

elderly (49 units)

(Special Facility for Long-Term Care

Service)

5F–25F: Rental residence (229 units)

Total area ：7,895.01 ｍ2

Total floor area ：Approximately 34,800 ｍ2

Scale ：1 floor below ground, 25 floors above

ground

Construction

started

：March 2018

Completion date ：May 2020

5F–25F

KURASU

AOYAMARental residence

2F-4F

Tsukui NonoaoyamaServiced housing for the elderly

(Special Facility for Long-Term

Care Service)

1F-2F

NonoaoyamaShop & Restaurant

Shop, community center

Nonoaoyama Building

Kita Aoyama 3-chome Area

Urban Development

Project zone

Gaienmae

Station on the

Ginza Line

Omotesando Station on the

Ginza Line, Hanzomon Line,,

and Chiyoda Line


Omotesando

Intersection

Aoyama 3-chome

Intersection

MEMO


• FY2020 2Q: Decrease in revenue and income due in part to decline in occupancy in parking lot operations and

decrease in property sales to investors via asset solutions under which the value of real estate is increased upon

acquisition.

• Full-year increase in revenue and decrease in income is anticipated despite an increase in property sales to

investors, due to the impacts of decline in parking lot occupancy.


(3) Real Estate Service Business:FY2020 2Q Results & Full-Year Forecasts



Actual

2020/6

Actual

Increase/


Revised

2020/12

Forecasts

Achievement

rate


Brokerage 1.8 1.3 (0.5) Decrease in brokerage properties and volume 3.5 39%

Asset solution 10.3 9.2 (1.0)Property sales to investors -¥1.2 billion

(FY2019 2Q: ¥8.7 billion; FY2020 2Q: ¥7.5 billion)28.5 33%

Management service, etc. 2.1 2.1 0.0 4.0 55%

Parking lots business 10.6 8.8 (1.8) Decline in occupancy due to the impacts of the COVID-19 outbreak 20.0 44%

Operating income 3.9 0.4 (3.4)

Impacts of the COVID-19 outbreak on the parking lots business -¥1.9 billion

Gross profit from property sales to investors -¥1.1 billion (Cumulative total of

FY2019 2Q: ¥2.6 billion; Cumulative total of FY2020 2Q: ¥1.5 billion)

5.5 8%

Business income 3.9 0.4 (3.4) 5.5 8%




Actual

Revised

2020/12

Forecasts

(A)

Increase/

Decrease

2020/12

Initial full-year

forecasts

(B)


Revenue from operations 44.1 56.0 11.8 60.0 (4.0)

Brokerage 3.8 3.5 (0.3) 4.5 (1.0) Decrease in brokerage properties and volume

Asset solution 14.3 28.5 14.1 28.5 -

Management service, etc. 4.2 4.0 (0.2) 4.0 -

Parking lots business 21.7 20.0 (1.7) 23.0 (3.0) Decline in occupancy due to the impacts of the COVID-19 outbreak

Operating income 5.8 5.5 (0.3) 9.0 (3.5)Impacts of the COVID-19 outbreak on the parking lots business -¥3.0

billion, brokerage and others -¥0.5 billion

Business income 5.8 5.5 (0.3) 9.0 (3.5)

27.735.6

43.351.5 49.8

0

100

200

300

400

500

600

2016/12 2017/12 2018/12 2019/12 2020/6

• Asset Solution: Despite the continued harsh acquisition environment, securing stock mainly in central Tokyo.

• Parking lots business: The number of parking spaces increased by 4,493 from the end of March 2020 to

74,176 due in part to the integrated outsourcing of multiple sites by Yokoyama City.


(3) Real Estate Service Business:

Main Operating Indicators

<Asset Solution Business: Balance of Assets Owned> <Parking Lots Business: Number of Parking Spaces>

(Billion yen) (Parking spaces)

<Asset Solution Business: Breakdown of Balance of Assets Owned>

Breakdown by Area of Location Breakdown by Asset Type

60

50

40

30

20

10

0

66,131 67,202

68,101 68,578

66,938 66,736 67,353

69,401 69,683

74,176

55,000

60,000

65,000

70,000

75,000

2018/3 2018/6 2018/9 2018/12 2019/3 2019/6 2019/9 2019/12 2020/3 2020/6

Central Tokyo (23 wards of Tokyo)

54.9%

Greater Tokyo (Tokyo and 3 Neighboringprefectures)

24.2%

Major regional cities 20.4%

Other 0.5%

Office buildings32.5%

Condominiums for sale & rent

29.3%

Commercial facilities & hotels

30.8%

Other7.5%

(4) Other: FY2020 2Q Results & Full-Year Forecasts

• FY2020 2Q: Decrease in revenue and increase in income on a business-income basis due to factors such as

increase in AM fees in the fund business and rising occupancy in the senior & child care business despite decline in

occupancy in the leisure business, etc.

• Full-year decrease in revenue and income is expected due in part to decline in occupancy in the leisure business.




Actual

2020/6

Actual

Increase/


Revised

2020/12

Forecasts

Achievement

rate


Leisure business 6.9 4.1 (2.8)Decrease in the number of visitors and decline in occupancy due to the

impacts of the COVID-19 outbreak11.5 36%

Senior & child care business 4.1 4.5 0.3 Higher occupancy at senior facilities 9.0 50%

Fund business 1.1 2.0 0.8 Increase in AM fees 3.5 59%

Other 0.1 0.1 (0.0) 0.0 -

Operating income 0.4 0.1 (0.3)

Due to the impacts of the COVID-19 outbreak the leisure business was

-¥0.8 billion;

Fund business +¥0.3 billion; Senior & child care business +¥0.2 billion

1.0 10%

Business income (0.0) 0.2 0.2 0.0 -




Actual

Revised

2020/12

Forecasts

(A)

Increase/

Decrease

2020/12

Initial full-year

forecasts

(B)


Revenue from operations 26.6 24.0 (2.6) 27.0 (3.0)

Leisure business 14.7 11.5 (3.2) 15.0 (3.5)Decrease in the number of visitors and decline in occupancy due to the

impacts of the COVID-19 outbreak

Senior & child care business 8.4 9.0 0.5 9.0 -

Fund business 3.0 3.5 0.4 3.0 0.5 Increase in AM fees

Other 0.2 0.0 (0.2) 0.0 -

Operating income 1.7 1.0 (0.7) 2.0 (1.0)Due to the impacts of the COVID-19 outbreak the leisure business was

-¥1.3 billion

Business income 0.5 0.0 (0.5) 0.6 (0.6)Leisure business -¥1.3 billion; Improvement in equity in income (loss) of

affiliated companies in the overseas business +¥0.5 billion

(4) Other: Initiatives for Fund Business

• Under the new medium-term business plan, further expansion of profit opportunities for the Group will be pursued through sales

of developed/owned properties to REITs and such sponsored by the Company.

• As a measure to strengthen the fund business, shares of Tokyo Realty Investment Management, Inc. (TRIM), the asset

management company of Japan Prime Realty Investment Corporation (JPR) were additionally acquired in April 2020.


A J-REIT with a combined portfolio of office and urban retail

properties, etc.

* As of December 31, 2019

A diversified private REIT investing in various

asset types

Investment Ratio by Use/Area

Investment Ratio by Use

Portfolio Overview Portfolio Overview

Additional acquisition of TRIM’s shares

Acquisition date: April 28, 2020

Shareholding ratio to the total number of

shares issued and outstanding

Tokyo Tatemono Private REIT, Inc.

: ¥439.5 billion

: ¥522.6 billion

Total acquisition price

Appraisal value

Shareholder Before Current

Tokyo Tatemono Co., Ltd. 52% 75%

Yasuda Real Estate Co., Ltd. 18% 10%

Taisei Corporation 10% 10%

Meiji Yasuda Life Insurance

Company10% ５%

Sompo Japan Insurance Inc. 10% ０%

* As of April 2020



Number of

propertiesLeasable area

Occupancy

rateNOI yield

Average

building age

63 Approx. 480,000 m² 99.6% 4.7% 23.0 years

Number of

propertiesTotal floor area*1 Occupancy

rate*2

Average

building age

27 Approx. 268,000 m² 98.2% 14.7 years

: ¥60.5 billion

: ¥63.9 billion

Total acquisition price

Appraisal value* As of April 30, 2020

*1 Sum total of total floor area of each entire building, and thus includes areas

that are not owned.

*2 Occupancy rate is as of March 31, 2020. Other figures are as of April 30, 2020.

53%

10%

37%

Office building Commercial facility Residence

47.7%

19.1%

9.4%

23.8%

Office (Tokyo CBDs)

Office (Greater Tokyo)

Office (Other cities)

Retail

• Engaging in investment in businesses in China and Asia where high returns can be expected by obtaining business opportunities in

growth markets as one of the measures in the property sales business. Although some construction/sales schedules were delayed

due to the impact of the COVID-19 outbreak, there have been strong sales since sales activities resumed in China.

• Balance of investment was approximately ¥55.0 billion at the end of June 2020.


(4) Other: Initiatives for Overseas Business

■Project city ■Local subsidiary

Xuzhou

Basic Strategy

・Conduct business centering on partnerships with local partners who are familiar with the local market and have superior development and sourcing capabilities.

・ Dispatch resident officers from the Company to the area in order to manage risks based on the Company’s view and enhance relationship with the partners.

・ Invest mainly in for-sale condominium projects with quick turnover primarily in China and countries in Asia in which the Company has invested before.


Name of project Location Main uses Total areaScale (Total number of units/total floor

space)

FY of construction completion

Status(End of June)

Chin

a

Shenyang Tomorrow Square Project Shenyang CityResidence,

commercial, officeApprox. 199,000 m² Approx. 5,900 units 2013 onward Sold out

Qingdao Project Qingdao CityResidence, commercial

Approx. 86,000 m² Approx. 1,800 units 2015 onward Sold out

Xuzhou Qiaohu Project Xuzhou City Residence Approx. 122,000 m² Approx. 2,000 units 2020 onward On sale

Yangzhou-South Project Yangzhou CityResidence, commercial

Approx. 94,000 m² Approx. 1,200 units 2019 onward On sale

Yangzhou-East Project Yangzhou CityResidence, commercial

Approx. 64,000 m² Approx. 1,200 units 2022 onward Before sale

Yinchuan Jinfeng Project Yinchuan CityResidence, commercial

Approx. 98,000 m² Approx. 1,500 units 2022 onward On sale

Jiaxing Tongxiang Project Jiaxing City Residence Approx. 42,000 m² Approx. 500 units 2020 onward On sale

Xuzhou Chengbei Project Xuzhou City Residence Approx. 68,000 m² Approx. 1,500 units 2022 onward On sale

Yangzhou Chengxi Project Yangzhou CityResidence,

commercialApprox. 97,000 m² Approx. 1,500 units 2022 onward Before sale

Asia

79 Robinson Road Singapore Office Approx. 4,400 m² Approx. 57,400 m² 2020 Completed

Former Site of Yangon Military Museum Redevelopment Project

Yangon, Myanmar

Office, commercial, hotel

Approx. 16,000 m² Approx. 92,000 m² 2021Under

development

Sukhumvit 26 ProjectBangkok,Thailand

Residence Approx. 3,200 m² Approx. 150 units 2021 On sale

Sathorn 12 ProjectBangkok, Thailand

Residence Approx. 2,900 m² Approx. 250 units 2022 On sale

Sukhumvit 38 ProjectBangkok,Thailand

Residence Approx. 5,700 m² Approx. 300 units 2024 Before sale

Dharmawangsa ProjectJakarta,

IndonesiaOffice, residence Approx. 16,000 m²

Office:Approx. 47,000 m²

Residence: Approx. 90 units

2021 On sale

Loggia ProjectJakarta,

IndonesiaResidence Approx. 11,900 m² Approx. 500 units 2024 On sale

(4) Other: Initiatives for Overseas Business


A residential development project in Yangzhou, a Tier 3 city where the needs of

actual demand are strong, marking the Company’s third project in the city

A rare, high-grade office was developed in Singapore’s

central business district, Tanjong Pagar. There are plans

to connect the property directly to a subway station in the

future, and we have received applications for more than

approximately 70% of units.

Former Site of Yangon Military Museum

Redevelopment Project(Construction started in 2018 and slated for completion in 2021)

A large-scale complex development project

involving development/operation of an office

building, commercial facilities, and a hotel on

the former site of the military museum

(approximately 16,000 m²)

For-sale condominiums development projects

in Bangkok, Thailand (3 projects)

Development of three high-grade for-sale

condominiums in the Sukhumvit Area (near

BTS Phrom Phong) and the Sathorn Area

located in the central district of Bangkok

Yinchuan Jinfeng Project in China

A complex development project for residential and commercial properties in

Yinchuan, a Tier 3 city where the needs of actual demand are persistent,

marking the Company’s first project in the city.

Total project cost: Approx. ¥34.0 billion

Tokyo Tatemono’s stake: Approx. 30%











Xuzhou Qiaohu Project in China

A complex development project for residential and commercial properties in

Xuzhou, a Tier 3 city where infrastructure development and foreign capital

advancement are rapidly progressing (the Company is participating in the

residential portion only)

Yangzhou-South Project in China

* CPF Building Redevelopment79 Robinson Road (Construction started in 2017 and completed in 2020)

MEMO


Appendix


Long-Term Vision and Medium-Term Business Plan


• In February 2020, announced a long-term vision for 2030, “Becoming a Next-Generation Developer,” and the

Medium-Term Business Plan for FY2020-FY2024

• Aim to achieve goals of Medium-Term Business Plan and realize the long-term vision through initiatives that

contribute to the evolution of ESG management and the promotion of our five key strategies.

* For details, please refer to “Long-Term Vision, Medium-Term Business Plan” announced on February 12, 2020.

“Becoming a Next-Generation Developer”

Target for 2030:

Consolidated business

income* of ¥120.0 billionContributing to the SDGs

<Basic Profit Growth Policy>

Steadily expand stable leasing profit, making it

the core of our profit composition

Target a well-balanced profit structure, mindful

of capital efficiency

Achieve the dual goals of “solving social issues” and

“company growth” at higher levels

Previous Medium-term

Business Plan

Long-Term Vision to 2030

Consolidated

business income*

¥120.0 billion

51.6

2019 2024 Around

2030

2020-2024 Medium-term

Business Plan

Consolidated

business income*

¥75.0 billion

(1) Promotion of Large-Scale

Redevelopment

(4) Strengthening of Brokerage, Fund, and Parking LotBusinesses

(5) Growth in Overseas Business

(3) Expansion of Property Sales to

Investors

(2) Further Strengthening of

Condominium Business

<Key Strategies in the Medium-Term Business Plan>

<Positioning of the Medium-Term Business Plan>

* Business income = Operating income + Equity in income (loss) of affiliated companies

<Long-Term Vision for 2030>

Quantitative Plan in Medium-Term Business Plan

37.5 38.5

49.0

15.8 13.5

18.05.8 5.5

9.0

0.50

8.0

-8.2 -10.0 -9.0

▲ 100

0

100

200

300

400

500

600

700

800

2019 Actual 2020 Forecast 2024 Projection

Commercial properties Residence Real estate service Other Corp/Elim

¥47.5 billion


<Profit/Financial Plan – Figures for FY2024>

• In the Medium-Term Business Plan, we have set a profit target of ¥75 billion in business income for FY2024. In addition,

we have set targets for ROE, the debt-equity ratio, and the interest-bearing debt to EBITDA multiple in order to optimize

the business portfolio in consideration of capital efficiency and fiscal discipline.

• Looking towards 2024, we plan to increase profit on property sales centering on property sales to investors.

Profit

Target

Consolidated business income:

¥75.0 billion

Capital

EfficiencyROE: 8-10%

Financial

Indicators

Debt-equity ratio: Appr. 2.4X


multiple: Appr. 12X

Reference

Figures

Consolidated operating income:

¥70.0 billion

Net income attributable to owners of

parent: ¥45.0 billion

EPS: ¥215

¥75.0 billion

<Consolidated Business Income Trend by Segment>

¥51.6 billion

80

70

60

50

40

30

20

10

0

-10


Long-Term Vision, Medium-Term Business Plan Material

(announced in February 2020) (Excerpt)

■Our business portfolio can be classified into three categories based on their profit characteristics: leasing,

property sales (condominiums/sales), and services. We manage each segment with a focus on the value chain.

■We promote five key strategies with a focus on the balance between profitability, efficiency, and stability.

■Business Portfolio Concepts (1)

(5) Growth in Overseas

Business

(4) Strengthening of Brokerage, Fund, and Parking Lot Businesses

(2) Further Strengthening of

Condominium Business

(1) Promotion of Large-Scale

Redevelopment

(3) Expansion of Property Sales

to Investors

Leasing

Property

sales

Services

Property

sales

Property

sales

Key Strategy Profit Source

Key Strategies and Their Profit Sources利益特性に応じた分類

LeasingProfit from leasing

offices, condominiums,

etc.

Highly stable profit

Requires significant

investment

Property

Sales

Development profit,

acquired from sale of

properties held

Highly volatile profit

High capital efficiency

ServicesFee revenue from facility

management/operation,

provision of services

Highly stable profit

Does not require

significant investment

Profit Type Characterized By

Business classification and management by

profit characteristics, with awareness of the

balance between profitability, efficiency,

and stability

47



■Business Portfolio Concepts (2)

■Working under our five key strategies, we are steadily growing our Services area, with profit growth driven

especially by the Property Sales area through 2024 and expansion of Leasing in 2025 and beyond,

achieving a well-balanced profit structure mindful of capital efficiency.

Well-balanced

profit structure

focused on

leasing profit and

mindful of capital

efficiencyServices

Property Sales

Ongoing profit generationExpansion primarily through recovery

on held properties

Steady growth

Around2030

¥120 billion

Leasing

Property Sales

Services

50%

30%

20%

Projected Shift in Per-Area Profit Over Time

2019 2024

¥51.6 billion

¥75 billion

60%

30%

10%

40%

40%

20%

* Chart percentages are

approximations

Project completions in 2025and beyond drive major expansion

LeasingPromotion of large-scale redevelopment

Growth of leasing revenue from active properties


48



■We will target enhancement of ROA by improving margin and turnover, appropriate control of the debt-equity ratio

through earnings growth and asset sales, realization of ROE of 8% to 10%, and optimization of our business

portfolio and asset composition.

1) Increase equity through

accumulation of greater profit

2) Recover funding by sales, not only

of for-sale real estate but also fixed

and non-business assets

(e.g. cross-shareholding)

1) Enhance asset profitability by investing

while being mindful of capital cost

2) Improve turnover rate through greater

profit on property sales

3) Adjust businesses with

low profitability/poor growth outlook

Assets

Owners’

equity

Interest-

bearing

debt

Realize appropriate

ROENet income ÷ owners’ equity

Improve ROABusiness income ÷

total assets

Decrease debt-equity ratio

Interest-bearing debt ÷owners’ equity

Guide optimization of business portfolio and

asset composition

Improve Margin/Turnover Secure Fiscal Stability

2024: 8-10%

2024:

4%

2024:

2.4x

■Management Mindful of Capital Efficiency


49



■Estimated net investment of ¥500.0 billion in total over five years.

■In addition to enhancing owned capital through stable profit growth, we aim to optimize our asset composition by

selling fixed assets in consideration of profitability and reducing cross-shareholdings in order to either maintain or

reduce the debt-equity ratio and simultaneously control the balance sheet in an appropriate fashion.

Unit:

Billion yen

Gross investment total 1,400

Investment in large-scale redevelopment 230

Investment in condominium projects 430

Investment in properties for sale

to investors550

Investment in the overseas business 70

Other 120

Recovered 900

Net investment 5002024 (Expected)

Debt-

equity

ratio

Appr. 2.4x

Owners’

equity

¥500

billion

Assets

¥1,900

billion

Interest-

bearing debt

¥1,200

billion

Assets

¥1,564.0

billion

2019

Debt-

equity

ratio

2.5X

Medium-Term Investment Plan

(Cumulative)

Balance Sheet Changes

Other

¥200 billion

Owners’

equity

¥375.0

billion

Interest-

bearing debt

¥924.8

billion

Other

¥264.2 billion

■Investment Plan


274 314 323 338 375 38549.0

106 64169 141

158 135

18.0

34 65

43 6564 55

17.0

-62 -62 -72 -73 -82 -100 -9.0

352 382464 471

516 475

75.0

Main Indicators

• Business income and main indicators for past fiscal years are as follows.

50

■Other

(Real estate service &

Other)

■Residence

■Commercial properties

■Elimination/Corporate

*1: A 1-for-2 reverse stock split was implemented on July 1, 2015. The dividend shown for 2015 is the annual dividend per share after factoring in the reverse stock split.

*2: Net debt equity ratio = (Interest-bearing debt - Cash and deposits) / Equity capital

*3: ROA = Business income / Average of total assets at beginning of period and total assets at end of period

*4: ROE = Profit attributable to owners of the parent / Average of equity capital at beginning of period and equity capital at end of period

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2024 forecasts

announced in Feb. 2020(Actual) (Actual) (Actual) (Actual) (Actual) (Forecast)

Operating income ¥34.4 billion ¥36.3 billion ¥44.7 billion ¥46.7 billion ¥52.4 billion ¥48.0 billion ¥70.0 billion

Business income ¥35.2 billion ¥38.2 billion ¥46.4 billion ¥47.1 billion ¥51.6 billion ¥47.5 billion ¥75.0 billion

Profit ¥16.3 billion ¥19.7 billion ¥22.5 billion ¥27.2 billion ¥29.7 billion ¥31.0 billion ¥45.0 billion

Dividend per share*1 ¥20.0 ¥26.0 ¥30.0 ¥35.0 ¥41.0 ¥45.0 -

Payout ratio 26.3% 28.6% 28.8% 27.8% 29.0% 30.3% -

Debt equity ratio 2.3x 2.3x 2.4x 2.5x 2.5x - About 2.4x

Net debt equity ratio*2 2.2x 2.1x 2.2x 2.4x 2.4x - -

Interest-bearing debt / EBITDA multiple 13.4x 13.0x 12.5x 12.7x 12.6x - About 12x

ROA*3 2.7% 2.9% 3.4% 3.3% 3.4% - -

ROE*4 5.6% 6.4% 6.8% 7.9% 8.2% - -

Previous plan (2015-2019) Current plan (2020-2024)


27.4 31.4 32.3 33.8 37.5 38.5

10.66.4

16.9 14.115.8 13.5

3.4 6.5

4.3 6.56.4 5.5

-6.2 -6.2 -7.2 -7.3 -8.2 -10.0

35.2 38.246.4 47.1 51.6

47.5

249.8274.0

343.4372.2

422.1

463.5

0

1,000

2,000

3,000

4,000

5,000

2014/12 2015/12 2016/12 2017/12 2018/12 2019/12

Fair Value of Rental Properties

(No change from the announcement in Feb. 2020)


<Unrealized Gain> <NAV per Share*1>

• Revision of the portfolio led to transfer of some properties from fixed assets to real estate for sale, while increase in

revenue due to upward rent revisions, etc. and decrease in cap rates, etc. led to rise in fair value, resulting in

unrealized gain increasing to ¥463.5 billion as of the end of December 2019.

◆ <Subject properties> Of fixed assets, properties that are currently

leased or properties under development that are scheduled to be

leased after completion to third parties by the Company and its

subsidiaries (including properties where a portion is used by the

Company and its subsidiaries) are subject to calculation

◆ <Method of calculation> For properties newly acquired during the

period or properties under development as at the end of the period, the

carrying value at the end of the period is taken as the fair value

Unit: Billion yen 2018/12-end 2019/12-endIncrease/

Decrease

Fair value at end of period 1,272.4 1,334.9 62.5

Amount on B/S (carrying value) 850.2 871.4 21.1

Amount of difference 422.1 463.5 41.3

*1: NAV per share = (Equity capital + Unrealized gain, net of tax) / Number of shares issued and outstanding at end of period, excluding treasury stock.

*2: Unrealized gain, net of tax = Unrealized gain × (1 − Statutory tax rate applicable to that fiscal year)

Unrealized gain,

net of tax*2

Equity capital

(Billion yen) (Yen per share)

500

400

300

200

100

0

1,331 1,390 1,465 1,590 1,606 1,794

722 814

1,059 1,186

1,345

1,539

2,053 2,204

2,524

2,776 2,951

3,333

0

500

1,000

1,500

2,000

2,500

3,000

3,500

2014/12 2015/12 2016/12 2017/12 2018/12 2019/12

52

Quarterly Segment Data(1) Commercial Properties Business & Residence Business


Commercial properties business*1 2017/9 2017/12 2018/3 2018/6 2018/9 2018/12 2019/3 2019/6 2019/9 2019/12 2020/3 2020/6

New

sta

ndard Number of office buildings - - 48 48 48 48 48 48 48 48 46 45 *2

Leasable area of office buildings (thousand m²) - - 494 494 495 495 495 495 495 494 490 520 *2

Vacancy rate - - 2.2% 2.2% 2.2% 1.6% 1.4% 1.2% 1.1% 1.1% 1.0% 2.0% *2

Average rent (Unit: yen/tsubo) - - 30,037 30,293 29,870 29,882 30,361 30,405 30,470 30,583 30,846 30,288 *2

Old

sta

ndard

Number of office buildings 44 45 47 47 47 47 - - - - - -

Leasable area of office buildings (thousand m²) 473 473 474 475 476 476 - - - - - -

Vacancy rate 3.6% 2.7% 2.6% 2.6% 2.5% 1.9% - - - - - -

Average rent (Unit: yen/tsubo) 29,867 29,624 29,798 30,019 29,964 29,965 - - - - - -

*1: Standards for areas subject to calculation have been changed as below from FY2019. For FY2018, figures calculated under the new standards are also shown for comparison.

1. Office buildings owned by group companies were added to areas subject to calculation.

2. Since the area of retail stores accounts for a large proportion under total leased floor area at GRAND FRONT OSAKA, the area of retail stores is excluded from calculation.

3. Buildings owned by consolidated SPCs were subject to calculation based on Tokyo Tatemono’s investment ratio. Under the new standards, however, the areas owned by other companies have also

been added to areas subject to calculation to align with areas subject to recording of leasing revenue.

*2: “DNP Gotanda Building,” which was acquired at the end of September 2019, is not included in areas subject to calculation.

Residence business 2017/9 2017/12 2018/3 2018/6 2018/9 2018/12 2019/3 2019/6 2019/9 2019/12 2020/3 2020/6

Number of sales posted (cumulative) 291 972 409 442 494 989 450 937 1,053 1,316 646 872 *3

Condo sales 291 971 408 441 493 988 450 937 1,053 1,315 646 872

Housing and residential land 0 1 1 2 2 2 0 0 0 1 0 0

Gross margin ratio of condo sales (cumulative) 21.6% 33.3% 38.0% 37.6% 36.4% 29.8% 24.1% 25.5% 25.3% 24.6% 21.7% 22.9%

Inventory of completed condos 120 124 138 105 87 94 174 130 83 216 321 305

Of which, contracted 17 30 25 11 8 13 30 26 17 18 40 31

Condo units supplied (cumulative) 540 953 293 531 753 1,210 449 674 956 1,301 201 286

Condo units contracted (cumulative) 577 944 211 522 720 1,107 420 651 936 1,285 200 275

Condo units contracted but yet to be posted 1,772 1,458 1,261 1,540 1,686 1,577 1,547 1,291 1,460 1,547 1,101 950

Number of condo buildings for rent 7 8 9 10 9 8 10 11 11 9 12 14

Number of managed condo units 91,293 92,726 92,658 92,342 92,508 93,206 93,950 93,171 93,230 94,319 95,401 95,958

*3: Given that the number of share outs in condominium projects and other cases disclosed as “Others” was small, disclosure is of the total of number of sales in Condo sales and Housing and residential land only.

53

Quarterly Segment Data

(2) Real Estate Service Business & Other


Real estate service business 2017/9 2017/12 2018/3 2018/6 2018/9 2018/12 2019/3 2019/6 2019/9 2019/12 2020/3 2020/6

Brokerage: Number of deals (cumulative) 702 969 250 522 793 1,059 214 504 796 1,081 259 458

Of which, sales (cumulative) 662 895 245 504 768 1,029 209 482 769 1,044 250 448

Of which, rentals (cumulative) 40 74 5 18 25 30 5 22 27 37 9 10

Parking lots: Number of locations 1,588 1,677 1,682 1,687 1,693 1,715 1,711 1,726 1,739 1,767 1,751 1,805

Parking lots: Number of parking spaces 65,688 66,227 66,131 67,202 68,101 68,578 66,938 66,736 67,353 69,401 69,683 74,176

Other 2017/9 2017/12 2018/3 2018/6 2018/9 2018/12 2019/3 2019/6 2019/9 2019/12 2020/3 2020/6

Residences for elderly people with service 15 15 15 15 15 15 15 15 15 15 15 16

Of which, owned 11 11 11 11 11 11 11 11 11 11 11 12

Owned units 922 922 922 922 922 922 922 922 922 922 922 971 *4

Of which, operated 4 4 4 4 4 4 4 4 4 4 4 4

Operated units 349 349 349 349 349 349 349 349 349 349 349 349 *4

Private nursing homes 4 4 4 4 4 4 4 4 4 4 4 4

Of which, owned 1 1 1 1 1 1 1 1 1 1 1 1

Owned units 48 48 48 48 48 48 48 48 48 48 48 48

Of which, operated 3 3 3 3 3 3 3 3 3 3 3 3

Operated units 167 167 167 167 167 167 167 167 167 167 167 167

Ofuro no Osama (Spa facility) 12 11 11 10 10 10 10 10 10 9 9 9

Golf courses 12 12 12 12 12 12 12 12 12 12 12 12

Pet-Friendly Hotels

(Regina Resort with DOGS)5 6 6 7 8 9 9 9 9 9 8 8

Ohayo Child Care Centers/After-school child

care facility 3 3 3 8 8 8 8 11 11 11 11 14

*4: For jointly owned properties, disclosure is of data that have been calculated taking into account Tokyo Tatemono’s ownership in these residences.

List of Facilities (Senior & Child Care Business)

Ohayo Child Care Kameido

Grapes Setagayachitosedai

54

Nonoaoyama Private Activity Building

Residences for Elderly People with Service LocationTotal No. of

UnitsConstruction Completion

1 Grapes Asakusa Taito-ku, Tokyo 98 Dec. 2009

2 Grapes Fujimino Fujimino-shi, Saitama 86 Oct. 2013

3 Kosha Heim Chitose Karasuyama Setagaya-ku, Tokyo 86 Feb. 2014

4 Grapes Garden Nishi-arai Daishi Adachi-ku, Tokyo 62 Aug. 2014

5 Grapes with Omori-nishi Ota-ku, Tokyo 56 Dec. 2014

6 Grapes J Higashi Ikebukuro Toshima-ku, Tokyo 51 Dec. 2014

7 Grapes Felicity Totsuka Yokohama-shi, Kanagawa 97 Jan. 2015

8 Grapes Kawasaki Shinmachi Kawasaki-shi, Kanagawa 69 Mar. 2015

9 Grapes Season Totsuka Yokohama-shi, Kanagawa 74 Nov. 2015

10 Grapes Tsujido Nishikaigan Fujisawa-shi, Kanagawa 158 Aug. 2016

11 Grapes Tateishi Katsushika-ku, Tokyo 96 Jan. 2017

12 Grapes Yoga Setagaya-ku, Tokyo 120 Mar. 2017

13 Kosha Heim Hirao Inagi-shi, Tokyo 65 Mar. 2017

14 Grapes Shonantsujido Chigasaki-shi, Kanagawa 70 July 2017

15 Grapes Setagayachitosedai Setagaya-ku, Tokyo 83 Aug. 2017

16 Tsukui Nonoaoyama Minato-ku, Tokyo 49 May 2020

Private Nursing Homes LocationTotal No. of

UnitsConstruction Completion

1 Adonis Plaza Omiya Saitama-shi, Saitama 45 Jan. 2000

2 Sans Souci Kita-Urawa Saitama-shi, Saitama 69 Aug. 2004

3 Sans Souci Owada Saitama-shi, Saitama 53 Nov. 2012

4 Grapes with Yotsuya Shinjuku-ku, Tokyo 48 Aug. 2017

Name of Facility Location Management Style Capacity Opening

1 Ohayo Child Care Mitsuzawa Shimocho Yokohama-shi, Kanagawa Child care business led by company 15 Apr. 2017

2 Ohayo Child Care Yokohama Negishi Yokohama-shi, Kanagawa Yokohama City small-scale child care business 15 Apr. 2017

3 Ohayo Child Care Minami-sunamachi Koto-ku, Tokyo State-authorized day care center in Tokyo 80 Apr. 2018

4 Ohayo Child Care Nishi-sugamo Toshima-ku, Tokyo State-authorized day care center in Tokyo 51 Apr. 2018

5 Ohayo Child Care Shiinamachi Toshima-ku, Tokyo State-authorized day care center in Tokyo 40 Apr. 2018

6 Ohayo Child Care Omorimachi Ota-ku, Tokyo State-authorized day care center in Tokyo 60 Apr. 2018

7 Ohayo Child Care Hanasakicho Yokohama-shi, Kanagawa State-authorized day care center in Yokohama City 58 Apr. 2018

8 Ohayo Child Care Machinoma Omori Ota-ku, Tokyo State-authorized day care center in Tokyo 50 Apr. 2019

9Small-Scale Day Care Center

Ohayo Child Care Oyamanishicho Itabashi-ku, Tokyo

State-authorized small-scale day care center in Itabashi, Tokyo

19 Apr. 2019

10 Ohayo Child Care Kiyosumi Shirakawa Koto-ku, Tokyo State-authorized day care center in Tokyo 60 Apr. 2019

11 Ohayo Child Care Kameido* Koto-ku, Tokyo State-authorized day care center in Tokyo 45 Apr. 2019

12 Ohayo Child Care Sekimachiminami Nerima-ku, Tokyo State-authorized day care center in Tokyo 34 Apr. 2020

13 Sekimachiminami After-School Nerima-ku, Tokyo Private after-school child care business 30 Apr. 2020

14 Ohayo Child Care Umeyashiki Ota-ku, Tokyo State-authorized day care center in Tokyo 60 Apr. 2020

15 Ohayo Child Care Center Nonoaoyama Minato-ku, Tokyo State-authorized day care center in Tokyo 23 Jul. 2020

16Ohayo Child Care Higashinakano

(provisional name) Nakano-ku, Tokyo State-authorized day care center in Tokyo 60 Apr. 2021

* “Ohayo Child Care Kameido” was opened in April 2017 and is operated as a child care center certified by the Tokyo Metropolitan Government. As of April 2019, it is designated as a state-authorized child care center.


List of Facilities (Leisure Business)

Regina Resort Kamogawa

Regina Resort Hakone Sengokuhara

Ofuro no Osama Machida


Pet-Friendly Hotels

(Regina Resort with DOGS)Location

Number of

GuestroomsOpening

1 Regina Resort Fuji Minamitsuru-gun, Yamanashi 21 Nov. 2013

2 Regina Resort Hakone Ungaiso Ashigarashimo-gun, Kanagawa 10 July 2014

3 Regina Resort Izu Murin Ito-shi, Shizuoka 8 Mar. 2016

4 Regina Resort Karuizawa Mikage Yosui Kitasaku-gun, Nagano 26 July 2016

5 Regina Resort Kyu-Karuizawa Kitasaku-gun, Nagano 26 Nov. 2017

6 Regina Resort Biwako Nagahama Nagahama-shi, Shiga 15 June 2018

7 Regina Resort Kamogawa Kamogawa-shi, Chiba 25 July 2018

8 Regina Resort Hakone Sengokuhara Ashigarashimo-gun, Kanagawa 22 Oct. 2018

Golf Courses Location

1 Kawaguchiko Country Club Minamitsuru-gun, Yamanashi

2 J-Golf Tsurugashima Hidaka-shi, Saitama

3 River Fuji Country Club Fuji-shi, Shizuoka

4 Holon Golf Club Kikugawa-shi, Shizuoka

5 J-Golf Kasumigaura Itako-shi, Ibaraki

6 Byron Nelson Country Club Iwaki-shi, Fukushima

7 Miyako Golf Club Tsuru-shi, Yamanashi

8 Washu Golf Club Kurashiki-shi, Okayama

9 Tojo Golf Club Kato-shi, Hyogo

10 Akasaka Country Club Akaiwa-shi, Okayama

11 Tohnosho Golf Club Katori-gun, Chiba

12 Shirakawa Kogen Country Club Nishishirakawa-gun, Fukushima

Bathing Facilities Location Opening

1 Ofuro no Osama Shiki Shiki-shi, Saitama Jan. 2003

2 Ofuro no Osama Konandai Yokohama-shi, Kanagawa Mar. 2005

3 Ofuro no Osama Hana Koganei Kodaira-shi, Tokyo Nov. 2006

4 Ofuro no Osama Tama Mogusa Tama-shi, Tokyo July 2008

5 Ofuro no Osama Ooimachi Shinagawa-ku, Tokyo Mar. 2011

6 Ofuro no Osama Ebina Ebina-shi, Kanagawa Acquired in Feb. 2014

7 Ofuro no Osama Seya Yokohama-shi, Kanagawa Acquired in Feb. 2014

8 Ofuro no Osama Kouza-Shibuya Ekimae Yamato-shi, Kanagawa Acquired in Feb. 2014

9 Ofuro no Osama Machida Sagamihara-shi, Kanagawa June 2015

10Ofuro no Osama Wako (provisional name)

(Wako City Hirosawa Complex Development and Operation Project)Wako-shi, Saitama Dec. 2021

17,195 17,401 17,594 17,692 17,973 18,179 18,336 18,540 18,730 18,864 18,995 19,173 19,699 20,108 20,438 20,887 21,134 21,518 21,855 22,206 22,880

5.30 5.12 4.53 4.03 4.34 4.07 3.70 3.61 3.60 3.26 3.17 3.12 2.80 2.57 2.33 1.88 1.78 1.72 1.64 1.55 1.97

-14.0

-12.0

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

15/3 15/6 15/9 15/12 16/3 16/6 16/9 16/12 17/3 17/6 17/9 17/12 18/3 18/6 18/9 18/12 19/3 19/6 19/9 19/12 20/06

Average rent Vacancy rate

56 55

83100 108 104

114 118

183

92

119

74

99

36

7291

125

216

121

77

154

119

65

86 85

117

175

58

87

10997

69

141

85

187

54 54

143

77

1224

3241 40 36

44 46 47

29 3021

15 14 16 1928

4237

1928 26

21 2531 29 32

16 19 22 21 1926 24 22

12 13 149

-120

-90

-60

-30

0

30

60

0

100

200

300

86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Number of properties of supply Volume of supply


Market Data

(1) Office Building Market

Ave

rag

e r

en

t

(Yen)

Vo

lum

e o

f su

pp

ly

(10,000 m2)

Vacancy ra

te

(%)

Source: Mori Buildings’ “Survey of Large-scale Office Building Market in Tokyo’s 23 Wards 2020”; Miki Shoji

Num

be

r of p

rop

ertie

s o

f su

pp

ly

(Properties)

Average Rent and Vacancy Rate Trends in Tokyo’s Central Business District (Chiyoda, Chuo, Minato, Shinjuku, and Shibuya)

Large-Scale Office Building Supply Volume Trends in Tokyo’s 23 Wards

Historic average

supply volume

1,030,000 m2/year

2019–2024 average

supply volume

1,030,000 m2/year

737752 765 754 755

796 801872 900

944 960 988

46.3%

52.9%55.2% 54.6% 56.6% 57.0%

59.5% 59.4%62.7% 64.9% 66.0% 68.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

0

200

400

600

800

1,000

1,200

1,400

Average annual household income Double-income ratio among married households


Market Data

(2) For-Sale Condominium Market

Number of New Condominium Units for Sale and Average Price in the Tokyo Metropolitan Area (Tokyo, Kanagawa, Saitama, and Chiba)

Trends in Double-Income Ratio and Average Annual Household Income Among Buyers of Condominium Units

Num

be

r o

f n

ew

un

its fo

r sa

le

(Units)

(10,000 yen)

Ave

rag

e a

nn

ua

l h

ou

se

ho

ld in

co

me

(10,000 yen)

Ave

rag

e p

rice

Dou

ble

-inco

me

ratio

43,733

36,376

44,535 44,499 45,602

56,478

44,913 40,449

35,772 35,898 37,132 31,238

4,775 4,535 4,716 4,578 4,540

4,929 5,060 5,518 5,490

5,908 5,871 5,980

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

0

20,000

40,000

60,000

80,000

100,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Number of new units for sale Average price

Source: Real Estate Economic Institute; Recruit Sumai Company Ltd.’s 2019 survey on contract trend of new condominium units in Tokyo Metropolitan Area

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