Presentation Material for FY2019 (Ended December 31, 2019)
February 12, 2020 Contents
■ Summary p.3 ■ Business Results by Segment p.17
Business Results for FY2019 and Earnings Forecast ■ p.4 (1) Commercial Properties Business p.18 for FY2020
■ Medium-Term Business Plan Progress Report p.5 (2) Residence Business p.26
■ Financials p.6 (3) Real Estate Services Business p.32
Consolidated Statement of Income for FY2019 p.7 (4) Other p.34
Consolidated Balance Sheet for FY2019 p.8 ■ Appendix p.39
Balance of Real Estate for Sale p.10 Quarterly Segment Data p.40
Consolidated Statement of Cash Flows for FY2019 p.11 List of Facilities p.42
Fair Value of Rental Properties p.12 Market Data p.44
Full-Year Earnings Forecast for FY2020 p.13
Investment Plan p.14
Shareholder Returns p.15
2 Summary
Business Results for FY2019
• Increase in revenue and income, due to increase in leasing revenue and property sales to investors in the commercial properties business and increase in the number of condominium sales posted in the residence business.
• Revenue from operations reached a new high for the third consecutive year (FY2017: ¥266.9 billion; FY2018: ¥273.3 billion) and operating income reached a new high for the second consecutive year (FY2018: ¥46.7 billion).
• With operating income of ¥52.4 billion, debt equity ratio of 2.5 times and interest-bearing debt / EBITDA multiple of 12.6 times, the indicator goals set under the medium-term business plan were each achieved. Earnings Forecast for FY2020
• Outlook is increase in revenue and income due to expected decrease in sales of for-sale condominiums in the residence business and increase in corporate costs associated with head office relocation, and increase in leasing revenue in the commercial properties business, increase in property sales to investors in each of the commercial properties business, the residence business and the real estate service business, and other factors. Dividends
• For FY2019, the plan is to raise year-end dividend by ¥3.0 per share, resulting in annual dividend of ¥41.0 per share (payout ratio of 29.0%).
• For FY2020, annual dividend of ¥45.0 per share (payout ratio of 30.3%) is estimated in light of the full-year earnings forecast. Topics
• Announced the Tokyo Tatemono Group’s long-term vision and new medium-term business plan (FY2020–FY2024)
• Announced relocation of the Company’s head office function accompanying redevelopment
• Implemented cancellation of treasury stock (the Company’s common shares) (2020/1/31)
3 Business Results for FY2019 and Earnings Forecast for 2020
• FY2019: Increase in revenue and income due to increase in leasing revenue and property sales to investors in the commercial properties business and increase in the number of condominium sales posted in the residence business. • FY2020: Outlook is increase in revenue and income due to expected decrease in sales of for-sale condominiums and increase in corporate costs associated with head office relocation, and increase in building leasing revenue and property sales to investors in the commercial properties business, the residence business and the real estate service business, and other factors.
2018/12 2019/12 Increase/ 2019/12 Achievement Unit: Billion yen Actual Actual Decrease Forecasts Rate
Revenue from operations 273.3 323.0 49.7 330.0 98% Operating income 46.7 52.4 5.6 50.0 105% Profit attributable to owners of the parent 27.2 29.7 2.5 28.0 106% 2019/12 Actual 2018/12 2019/12 Increase/ 2019/12 Unit: Billion yen Actual Actual Decrease Forecasts Total assets 1,450.0 1,564.0 113.9 - Interest-bearing debt 857.1 924.8 67.7 950.0 Debt equity ratio (times)*1 2.5 2.5 0.0 About 2.5x Interest-bearing debt / EBITDA multiple (times)*3 12.7 12.6 (0.1) About 13.0x
2019/12 2020/12 Increase/ Unit: Billion yen Actual Forecasts Decrease
Revenue from operations 323.0 350.0 26.9 Operating income 52.4 53.0 0.5 Business income*2 51.6 52.0 0.3 2020/12 Forecasts Profit attributable to owners of the parent 29.7 31.0 1.2
Total assets 1,564.0 - - Interest-bearing debt 924.8 990.0 65.1 Debt Equity Ratio (times)*1 2.5 - - Interest-bearing debt / EBITDA multiple (times)*3 12.6 - -
*1: Debt equity ratio = Interest-bearing debt / Equity capital *2: Business income = Operating income + Gain/loss on equity-method investments *3: Interest-bearing debt / EBITDA multiple = Interest-bearing debt / (Operating income + Interest & dividend income + Gain on equity-method investments + Depreciation expense + Goodwill amortization expense) 4 Medium-Term Business Plan Progress Report
• The indicator goals for operating income, debt equity ratio and interest-bearing debt / EBITDA multiple set as initial targets were each achieved in FY2019, the final fiscal year of the previous medium-term business plan. Previous plan Current plan 52.4 50.0 44.7 46.7 7.6 7.0 3.2 6.4 34.4 36.3 15.8 ■Other 30.8 30.5 15.0 29.3 3.0 5.2 16.7 14.1 (Real estate service & 2.8 3.6 3.9 6.2 Other) 0.9 3.7 10.4 7.6 ■Residence 37.0 34.0 ■Commercial properties 33.1 29.4 31.0 31.9 33.3 25.4 27.2 ■Elimination/Corporate
-6.1 -7.4 -6.5 -6.2 -6.2 -7.2 -7.3 -8.2 -6.0 (Reference) FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2019 forecasts (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) announced in Feb. 2017 Operating income ¥30.8 billion ¥29.3 billion ¥30.5 billion ¥34.4 billion ¥36.3 billion ¥44.7 billion ¥46.7 billion ¥52.4 billion ¥50.0 billion Profit ¥10.2 billion ¥10.1 billion ¥82.9 billion ¥16.3 billion ¥19.7 billion ¥22.5 billion ¥27.2 billion ¥29.7 billion ¥23.0 billion EBITDA *1 ¥41.2 billion ¥39.8 billion ¥47.0 billion ¥52.6 billion ¥55.9 billion ¥65.1 billion ¥67.7 billion ¥73.4 billion - Dividend per share *2 ¥10.0 ¥10.0 ¥12.0 ¥20.0 ¥26.0 ¥30.0 ¥35.0 ¥41.0 - Payout ratio 21.0% 21.2% 3.1% 26.3% 28.6% 28.8% 27.8% 29.0% - Debt equity ratio 2.3x 1.7x 2.6x 2.3x 2.3x 2.4x 2.5x 2.5x Within 3x Net debt equity ratio *3 2.1x 1.5x 2.3x 2.2x 2.1x 2.2x 2.4x 2.4x - Interest-bearing debt / EBITDA multiple 11.6x 10.9x 15.9x 13.4x 13.0x 12.5x 12.7x 12.6x Within 13x ROA *4 3.7% 3.5% 2.3% 2.8% 3.1% 3.6% 3.5% 3.7% - ROE *5 5.3% 4.4% 33.2% 5.6% 6.4% 6.8% 7.9% 8.2% -
*1: EBITDA = Operating income + Interest & dividend income + Gain on equity-method investments + Depreciation expense + Goodwill amortization expense *2: A 1-for-2 reverse stock split was implemented on July 1, 2015. The dividend shown for 2012 to 2015 is the annual dividend per share after factoring in the reverse stock split. *3: Net debt equity ratio = (Interest-bearing debt - Cash and deposits) / Equity capital *4: ROA = (Operating income + Non-operating income) / Average of total assets at beginning of period and total assets at end of period *5: ROE = Profit attributable to owners of the parent / Average of equity capital at beginning of period and equity capital at end of period 5 Financials Consolidated Statement of Income for FY2019
• Increase in revenue and income due to increase in leasing revenue and property sales to investors in the commercial properties business and increase in the number of condominium sales posted in the residence business.
• With each segment’s steady performance above the budget announced at the beginning of the period, operating income ultimately exceeded the goal under the medium-term business plan.
2018/12 2019/12 Increase/ 2019/12 Achievement Unit: Billion yen Main factors for increase/decrease Actual Actual Decrease Forecasts rate Revenue from operations 273.3 323.0 49.7 330.0 98%
Commercial properties 108.6 120.9 12.3 126.0 96%
Residence 97.7 131.2 33.5 129.0 102%
Real estate service 42.8 44.1 1.3 50.0 88% ・Revenue from operations; Operating income Other 24.0 26.6 2.5 Increase in revenue and income due to increase in leasing 25.0 106% revenue and property sales to investors in the commercial Operating income 46.7 52.4 5.6 properties business, increase in the number of condominium 50.0 105% sales posted in the residence business, and other factors. Commercial properties 33.3 37.0 3.7 36.5 102%
Residence 14.1 15.8 1.7 15.0 106%
Real estate service 6.3 5.8 (0.4) 5.5 107%
Other 0.1 1.7 1.5 0.5 354%
Elimination/Corporate (7.3) (8.2) (0.8) (7.5) 109%
Non-operating income 3.5 3.5 (0.0) 3.0 118%
Gain/loss on equity-method investments 0.4 (0.7) (1.1) Increase in the development costs in the overseas business Increase in fee associated with issuance of hybrid bonds and Non-operating expenses 8.3 11.3 3.0 10.0 113% increase in interest expense Interest expense 6.0 6.9 0.9
Recurring income 42.0 44.6 2.5 43.0 104% Posting of gain on liquidation and gain on sale of equity in the Extraordinary income 0.7 2.9 2.2 1.0 293% overseas business Extraordinary loss 2.6 2.2 (0.4) Posting of impairment loss, etc. - -
Income before tax 40.1 45.3 5.2 44.0 103%
Profit attributable to owners of the parent 27.2 29.7 2.5 28.0 106% 7 Consolidated Balance Sheet for FY2019
• Increase in total assets by ¥113.9 billion as a result of acquisition of fixed assets (DNP Gotanda Building, Tokyo Tatemono Kyobashi Building, etc.), acquisition of real estate for sale (land for development of for-sale condominiums, land for development of logistics facilities, hotel development projects, etc.) and other factors. 2018/12-end Increase/ Unit: Billion yen 2019/12-end Main factors for increase/decrease *1 Decrease
Total assets 1,450.0 1,564.0 113.9
Current assets 353.3 424.6 71.2
Cash and deposits 31.7 39.5 7.7 • Real estate for sale Real estate for sale 283.4 337.3 53.8 Increase due to acquisition of land for development of for-sale condominiums, logistics facilities, hotels, etc., as well as transfer of commercial properties and residences for elderly Other current assets 38.2 47.7 9.5 people from fixed assets to real estate for sale, and other factors
Fixed assets 1,096.7 1,139.4 42.7 • Property and equipment Increase due to transfer of some to real estate for sale being offset by acquisition of DNP Property and equipment 772.8 789.6 16.8 Gotanda Building, Tokyo Tatemono Kyobashi Building, etc., expenditure of construction costs of Hareza Tower, and other factors Intangible assets 110.4 113.0 2.6 • Investments and other assets Increase due to fair value of investment securities and other factors Investments and other assets 213.5 236.7 23.2
Total liabilities 1,093.5 1,179.8 86.3 • Interest-bearing debt Interest-bearing debt 857.1 924.8 67.7 Increase due to issuance of hybrid bonds and other factors Other liabilities 236.3 254.9 18.5
Total net assets 356.5 384.2 27.6 • Shareholders’ equity Shareholder’s equity 266.4 278.1 11.7 Profit attributable to owners of the parent +¥29.7 billion Accumulated other comprehensive income 81.7 96.8 15.1 Dividends paid -¥8.0 billion; Acquisition of treasury stock -¥9.9 billion
Non-controlling interests 8.4 9.2 0.7
Capital adequacy ratio 24.0% 24.0% (0.0P)
Debt equity ratio*2 2.5 2.5 0.0
Interest-bearing debt / EBITDA multiple*3 12.7 12.6 (0.1)
*1: From FY2019, the Company has applied “Partial Amendments to Accounting Standard for Tax Effect Accounting,” etc. The figures for the end of December 2018 are the figures after retrospective application of the concerned accounting standard, etc. *2: Debt equity ratio = Interest-bearing debt / Equity capital *3: Interest-bearing debt / EBITDA multiple = Interest-bearing debt / (Operating income + Interest & dividend income + Gain/loss on equity-method investments + Depreciation expense + Goodwill amortization expense)
8 Consolidated Balance Sheet for FY2019
Breakdown of Property and Breakdown of Equipment and Intangible Assets Total assets: ¥1,564.0 billion Interest-Bearing Debt
Current assets 424.6 Liabilities 1,179.8 Commercial Other Cash and deposits Interest-bearing debt 39.5 924.8 paper ¥2.8 billion 0% Real estate service ¥17.6 billion 2% ¥85.0 billion 9% Real estate for sale 337.3 Loans payable 612.0 Residence Other ¥22.4 billion ¥23.7 billion 3% Real estate for sale 151.0 Bonds payable 225.0 2% Real estate for sale in progress 98.2 Commercial paper 85.0 Real estate for development 88.1 Other 2.8 Bonds payable ¥225.0 billion 25% Other current assets 47.7 Other liabilities 254.9 Loans payable Fixed assets 1,139.4 ¥612.0 billion Property and equipment 66% Commercial 789.6 Including ¥80.0 billion properties Intangible assets procured from hybrid ¥838.6 billion 93% 113.0 bonds in 2019
Investments and other assets 236.7 Net assets 384.2 Including ¥28.0 billion procured from Shareholders’ equity 278.1 a hybrid loan in 2017 Accumulated other comprehensive income 96.8 Non-controlling interests 9.2
Breakdown of Real Estate for Sale Status of Debt Equity Ratio
• Accumulating investment while increasing profit from property sales during the previous medium-term business plan period ended FY2019, the balance of real estate for sale increased to ¥337.3 billion. • Stock of properties for sale to investors expanded to approximately ¥305.0 billion in terms of total investment amount, and land bank for for-sale condominiums, too, steadily accumulated, securing approximately 7,900 units.
4,000400 Property sales to investors (commercial properties, for-rent condominiums, real estate service, other)
3,500 337.3 350 ◆ Balance of real estate for sale: 16.4Other ¥205.3 billion (up ¥52.5 billion from the end of 2018) 3,000 Real estate ⇒Estimated gain on sale: Approx. ¥60 billion 300 283.4 51.7service 3.6 →p.33 ◆ Total investment amount* (based on decisions made): 43.5 For-rent 2,500250 29.1condominiums Approx. ¥305 billion 221.9 →p.30 (up ¥100 billion from the end of 2018) 3.7 20.4 Commercial 2,000200 35.7 properties [Projects already acquired in 2019] 1.7 107.9 →p.24 3 urban hotels, 3 logistics facilities, 1 commercial facility, 85.2 153.7 147.1 11 for-rent condominiums and 20 under asset solution 1,500150 55.4 business 112.8 27.7 [Projects already sold in 2019] 101.2 1.7 FUNDES Ueno, FUNDES Jimbocho, KY Kojimachi 89.1 24.6 1,000100 Building, Brillia ist Kitazawa KEYAKI, CREAR PALETTE For-sale Kajigaya and 34 under asset solution business 130.6 132.0 condominiums, 125.3 etc. 50050 92.9
For-sale condominiums, etc. 00 2012/12 2013/12 2014/12 2015/12 2016/12 2017/12 2018/12 2019/12 ◆ Balance of real estate for sale: ¥132 billion (up ¥1.4 billion from the end of 2018) ◆ Land bank As of the end of 2018: As of the end of 2019: (including 1,250 units scheduled to be posted in 2020): Transfer from fixed assets to real estate for sale of Transfer from fixed assets to real estate for sale of Approx. 7,900 units (2,000 units acquired in 2019) commercial properties and for-rent condominiums ¥10.0 billion for commercial properties, totaling approximately ¥35 billion ¥13.0 billion for other business.
* 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. 10 Consolidated Statement of Cash Flows for FY2019
• Increase in cash and cash equivalents at end of period due to financing through issuance of hybrid bonds, etc. despite outflow associated with acquisition of fixed assets (DNP Gotanda Building, Tokyo Tatemono Kyobashi Building, buildings for redevelopment, etc.).
2020/12 Unit: Billion yen 2018/12-end 2019/12-end Main factors for increase/decrease （Forecasts) Income before tax +¥45.3 billion; Depreciation +¥17.2 billion; Cash flows from operating activities 19.7 24.0 Increase in deposits +¥7.2 billion; Increase in inventories 10.0 -¥34.5 billion; Income taxes paid -¥12.8 billion
Cash flows from investing activities (63.5) (64.0) Purchase of fixed assets -¥64.7 billion (85.0)
Bonds payable +¥65.0 billion; Commercial paper +¥52.0 billion; Cash flows from financing activities 34.4 48.0 Long-term debt -¥48.3 billion; Acquisition of treasury stock -¥10.0 60.0 billion; Dividends paid -¥8.0 billion
Cash and cash equivalents at end of 31.7 39.4 - period
11 Fair Value of Rental Properties
• 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
Increase/ Unit: Billion yen 2018/12-end 2019/12-end Decrease ◆
*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)
12 Full-Year Earnings Forecast for FY2020
• Outlook is increase in revenue and income, due to expecting decrease in sales of for-sale condominiums and increase in corporate costs associated with head office relocation, but increase in building leasing revenue and property sales to investors in the commercial properties business, the residence business and the real estate service business, and other factors. • Under the new medium-term business plan, “business income,” which is the sum of operating income and gain/loss on equity- method investments, set as target in order to reflect growth in the overseas business.
2019/12 2020/12 Increase/ Unit: Billion yen Main factors for increase/decrease Actual Forecasts Decrease Revenue from operations 323.0 350.0 26.9 ・Revenue from operations 120.9 148.0 27.0 Commercial properties Increase in revenue, due to expecting decrease in sales of for-sale condominiums, but Residence 131.2 115.0 (16.2) increase in building leasing revenue and property sales to investors in the commercial properties business, the residence business and the real estate service business, and Real estate services 44.1 60.0 15.8 other factors. Other 26.6 27.0 0.3 Operating income 52.4 53.0 0.5 ・Breakdown of gain/loss on equity-method investments Gain/loss on equity-method Investments (0.7) (1.0) (0.2) ¥0.4 billion for commercial properties (±0), Business income *1 51.6 52.0 0.3 -¥1.4 billion for other business (-¥0.2 billion) etc. Commercial properties 37.5 43.4 5.8 ・Business income Residence 15.8 9.0 (6.8) Increase in income, due to expecting head office relocation costs and decrease in sales Real estate services 5.8 9.0 3.1 of for-sale condominiums, but increase in property sales to investors in the commercial properties business, the residence business and the real estate service business, and Other 0.5 0.6 0.0 other factors. Elimination/Corporate (8.2) (10.0) (1.7) Non-operating income 3.5 3.5 (0.0) Decrease in financing costs associated with hybrid financing implemented in the previous Non-operating expenses 11.3 10.5 (0.8) fiscal year, etc. Recurring income 44.6 46.0 1.3 Extraordinary income 2.9 2.0 (0.9) Extraordinary loss 2.2 0 (2.2) Income before tax 45.3 48.0 2.6 Profit attributable to owners of the parent 29.7 31.0 1.2
Cash flows from operating activities 24.0 10.0 Cash flows from investing activities (64.0) (85.0) Cash flows from financing activities 48.0 60.0
*1: Business income = Operating income + Gain/loss on equity-method investments 13 Investment Plan
• 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, the initial fiscal year, estimate investment of ¥240.0 billion in total inclusive of such amounts as expenditure of construction costs of Hareza Tower and Kita Aoyama 3-chome Urban Development Project, which are slated for construction completion in FY2020.
＜Investment Plan of New Medium – ＜Investment Plan for FY2020＞ Term Business Plan (2020–2024)＞
Unit: Billion yen Unit: Billion yen
Gross investment 1,400.0 240.0
Investment in large-scale 230.0 15.0 redevelopment Investment in for-sale condominium 430.0 70.0 projects Investment in properties for sale to 85.0 550.0 investors 15.0 Investment in the overseas business 70.0 55.0 *Inclusive of such amounts as Other 120.0 expenditures for Hareza Tower, Kita Aoyama 3-chome Project, parking lot facility development, Return 900.0 CAPEX, etc., and reserves for acquisition of buildings for large- Net investment 500.0 scale redevelopment and income- producing real estate.
14 Shareholder Returns
• For FY2019, the plan is to raise annual dividend from the previous fiscal year’s ¥35.0 per share to ¥41.0 per share (up ¥3.0 per share from the ¥38.0 per share forecast at beginning of period), resulting in payout ratio of 29.0%
• For FY2020, estimate annual dividend to further increase by ¥4.0 per share to ¥45.0 per share (payout ratio of 30.3%)
Plan is for a seventh consecutive year of < Per-Share Dividend Trends > (¥) dividend increase with income growth 50 50.0 45.0 ■Interim dividend ■Year-end dividend 41.0 40.040 35.0 30.0 23.0 30.030 *2 26.0 22.0 19.0 *1 20.0 16.0 20.020 Forecast at 14.0 beginning *1 12.0 of period *1 10.0 *1 10.0 12.0 ¥38.0 10.0 22.0 10 6.0 19.0 14.0 16.0 10.0 10.0 12.0 6.0 8.0 0.00 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Actual) (Forecast) Profit attributable to owners ¥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 of the parent 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 policy During the medium-term business plan period (FY2020–FY2024), establish a baseline consolidated payout ratio of 30% or more and aim to increase shareholder returns continuously through sustainable growth. Consider whether or not to repurchase company shares based on the business environment and financial situation, among other factors.
*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. 15 MEMO
16 Business Results by Segment (1) Commercial Properties Business: FY2019 Results & FY2020 Forecasts
• FY2019: Increase in revenue and income, due to increase in leasing revenue and increase in property sales to investors. • FY2020: Outlook is increase in revenue and income due to solid increase in leasing revenue, increase in property sales to investors and other factors.
Unit: Billion yen 2018/12 2019/12 Increase/ Main factors for increase/decrease 2019/12 Achievement Actual Actual Decrease Forecasts rate Revenue from operations 108.6 120.9 12.3 126.0 96% New operations +¥1.1 billion; Full-year operations +¥0.6 billion; Leasing of buildings 71.0 73.9 2.8 72.0 Sale, reconstruction, etc. -¥0.4 billion; Existing buildings: +¥1.5 billion 103% Sales of real estate 1.8 12.3 10.4 Property sales to investors +¥10.4 billion 18.0 69% Building management service, etc. 35.1 34.0 (1.0) 35.5 96% Dividends 0.5 0.5 0.0 0.5 118%
Operating income 33.3 37.0 3.7 Gross profit from property sales to investors +¥2.3 billion 36.5 102% (FY2018 cumulative total: ¥0.4 billion; FY2019 cumulative total: ¥2.7 billion)
Unit: Billion yen 2019/12 2020/12 Increase/ Main factors for increase/decrease Actual Forecasts Decrease Revenue from operations 120.9 148.0 27.0 New operations +¥1.0 billion; Full-year operations +¥2.0 billion; Leasing of buildings 73.9 76.0 2.0 Sale, reconstruction, etc. -¥1.5 billion; Existing buildings; +¥0.5 billion Sales of real estate 12.3 31.5 19.1 Property sales to investors +¥19.1 billion Building management service, etc. 34.0 40.0 5.9 Increase in construction sales, etc. Dividends 0.5 0.5 (0) Gross profit from property sales to investors +¥5.3 billion Operating income 37.0 43.0 5.9 (FY2019 cumulative total: ¥2.7 billion; FY2020 estimate: ¥8.0 billion) Business income 37.5 43.4 5.8 Gain on equity-method investments ±0 (¥0.4 billion)
New and full-year operations ・2019 new operations: Urban hotel (Midosuji) (completed in February 2019); Tokyo Tatemono Brillia HALL (Hareza Ikebukuro hall building) (completed in April 2019); Tokyo Tatemono Kyobashi Building (acquired in June 2019); Urban hotel (Omiya) (completed in September 2019); DNP Gotanda Building (acquired in September 2019) ・2019 full-year operations: Tokyo Tatemono Yaesu Sakuradori Building; TENJIN249 (completed in July 2018); Urban hotel (Ginza and Asakusa) (completed in September 2018) ・2020 new operations: Hareza Tower; Sendai Kakyoin Terrace; T-LOGI Kuki (logistics); Urban hotel (Sanjo, Kyoto); FUNDES Ginza
* 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. 18 (1) Commercial Properties Business: Office Building Portfolio
• With an extremely strong office market, average rent rose to ¥30,583 per tsubo and occupancy rate remained close to full occupancy at 98.9% at the end of December.
Number of 2019/12-End Leasable area (Yen/tsubo) buildings 98.4% 98.6% 98.8% 98.9% 98.9% 32,000 97.8% 97.8% 97.8% 100% Owned office buildings *1 *2 48 494,937 m² 30,583 30,293 30,361 30,405 30,470 Subleased buildings ー 97,737 m² 30,037 29,870 29,882 30,000 Commercial facilities, buildings ー 206,948 m² 90% for redevelopment, etc.
Commercial properties 28,000 ー 799,622 m² business’ total leasable area
26,000 80% 2018/3 2018/6 2018/9 2018/12 2019/3 2019/6 2019/9 2019/12
Other 1,000 tsubo Less than 300 tsubo 17.5% 20.7% and over 30 years and older 20.1% 28.3% Tokyo metropolitan area (excluding 23 wards) 2.6% Under 10 years old 3 central wards 46.3% of Tokyo 300–500 tsubo 23 wards (excluding 43.5% 20.9% 500–1,000 tsubo 20–30 years old 5 central wards) of 38.2% 9.4% Tokyo Average building 18.6% 10–20 years old Shibuya & *3 16.0% age Shinjuku 18 years old wards 17.8% *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 the 1Q of FY2019. For details of the standards change, please refer to the note on page 40. *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. 19 *3: The weighted average based on leasable area. (1) Commercial Properties Business: Office Building Portfolio
• In 2019, acquired Tokyo Tatemono Kyobashi Building and DNP Gotanda Building for expanding the portfolio and strengthening the revenue base. • Hareza Tower’s office building slated for completion in May 2020.
Tokyo Tatemono Kyobashi Building Hareza Tower (Area name: Hareza Ikebukuro)
⚫ Acquired at the end of June 2019 through mutual ⚫ Complex development on the former Toshima Ward Office site under cooperation with transaction with JPR the government ⚫ Owned as a fixed asset by eyeing future opportunities ⚫ Construct more theaters, including a cinema complex, and commercial facilities such as reconstruction ⇒ Completed construction of the hall building in April 2019 [Location] 3-6-18 Kyobashi, Chuo-ku, Tokyo (Facility name: Tokyo Tatemono Brillia HALL) [Access] 1-minute walk from Kyobashi Station on the Tokyo Metro Ginza Line Leasing of the office building in a state where stable occupancy is now in sight as 2-minute walk from Takaracho Station on the Toei inquiries increased further after the construction completion of the hall, etc. Asakusa Line 3-minute walk from Ginza-itchome Station on the Tokyo Metro Yurakucho Line [Total floor space] New hall building : about 10,700 m² [Total area] 547.10 m² Office building : about 68,600 m² [Total floor space] 4,419.79 m² [Total area] New hall building: 2,983.59 m² Office building : 3,619.67 m² [No. of floors] 10 floors above ground, 1 below [Construction start] December 2016 [Completion date] January 1981 Exterior [Completion date] New hall building: April 2019 Office building : May 2020 (planned)
DNP Gotanda Building Site A (site of former ⚫ Policy is to own over the medium to long term as a fixed Toshima Ward Office) Site B (site of former asset for expanding the portfolio and strengthening the Toshima Ward Office) Naka- New center for ward revenue base citizens Ikebukuro ⚫ Acquired at the end of September and the former owner Park Hareza Ikebukuro to continue to occupy for some time [Location] 3-5-20 Nishi-Gotanda, Shinagawa-ku, Tokyo East Gate [Access] 6-minute walk from Gotanda Station on the JR Yamanote Line and Toei Asakusa Line 10-minute walk from Meguro Station on the JR Yamanote Line, Toei Mita Line and other lines [Total area] 8,225.49 m²
[Total floor space] 48,063.31 m² New Toshima Ward Office [No. of floors] 25 floors above ground, 2 below, 1-story service tower [Completion date] May 2006 East side exterior
20 (1) Commercial Properties Business: Map of Office Buildings Owned Around Tokyo Station
• Owning many office buildings and promoting large-scale redevelopment, including for Tokyo Tatemono Headquarters Building and Shin-Gofukubashi Building, in the area around Tokyo Station, a key area.
FY of Building construction 1 17 completion
1 The Otemachi Tower 2014 6 3 4 Otemachi Financial City Grand 5 2 Cube 2016 2 3 JA Building / Keidanren-Kaikan 2009 7
Otemachi Financial City North 4 Tower 2012 18 1 Tokyo Tatemono Muromachi 5 Building 1966 Tokyo Tatemono Dai3 6 1971 Muromachi Building Urban Redevelopment Project for 9 2 Yaesu 1-Chome North Area 7 Nihonbashi TI Building 2012 Tokyo Tatemono 10 8 2015 Nihonbashi Building Urban Redevelopment Project for 9 Nihonbashi First Building 1994 Yaesu 1-Chome East Area in Front 8 of Tokyo Station 11 12 10 Shin-Gofukubashi Building 1977 Tokyo Tatemono Yaesu 11 Building 2011 13 Tokyo Tatemono Yaesu 12 1974 Sakuradori Building 14 15 13 NTA Nihonbashi Building 1991 20 Tokyo Tatemono 14 1929 Headquarters Building 8 15 Yaesu MEG Building 1986 18 16 16 Kyobashi YS Building 1990 19 17 17 Empire Building 2017
18 Kyobashi Edogrand 2016 20
19 Fukuoka Building 1990 21
20 Tokyo Square Garden 2013
Tokyo Tatemono Kyobashi : Redevelopment with : Redevelopment with : Buildings owned by 21 Building 1981 Tokyo Tatemono’s Tokyo Tatemono’s Tokyo Tatemono ■ Construction completed in or before 2000. participation involvement ■ Construction completed between 2009 and 2017. 21 (1) Commercial Properties Business: 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 Urban Redevelopment Project for Yaesu 1-Chome East Area in Front of Tokyo Station (Yaesu Project) North Area (Gofukubashi Project)
⚫ Large redevelopment project in front of Tokyo Station, including Tokyo Tatemono Headquarters ⚫ Establish a continuous waterfront promenade and pedestrian network in the area along Nihonbashi Building. River. ⚫ Construct a large bus terminal that connects Tokyo with international airports and regional cities. ⚫ Form a financial hub serving to strengthen global competitive edge. ⚫ Introduce functions that will enhance Tokyo’s global competitive edge, including conference halls ⚫ Strengthen disaster preparedness and reduce environmental burden. and medical facilities. ⇒ Urban development plan decided and designated as National Strategic Special Zone in ⇒ District B Urban Redevelopment Committee established in January 2019 October 2019 [Total floor space] District A: about 12,000 m² [Total floor space] South Block: about 180,500 m² District B:about 229,800 m² North Block: about 1,000 m² [Main uses] District A:offices, shops, etc. [Main uses] Offices, shops, lodging facility, parking lot, etc. District B:offices, medical facilities, bus terminal, conference halls, etc. [No. of floors] South Block: 45 floors above ground, 5 below [No. of floors] District A:11 floors above ground, 3 below North Block: 2 floors above ground, 1 below District B:50 floors above ground, 4 below [Construction start] Fiscal year 2025 (planned) [Construction start] Fiscal year 2021 (planned) [Completion date] South Block: Fiscal year 2030 (planned) [Completion date] Fiscal year 2025 (planned) North Block: Fiscal year 2035 (planned)
22 (1) Commercial Properties Business: Major Development Projects
• In addition to Yaesu Project and Gofukubashi Project, promoting several projects in 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.
■ Project period Ongoing Redevelopment Projects (construction start to completion) Estimated leasable area* Current status Name of project Area 2020 ・・・・・ 2024 2025 ・・・・・ 2030 (owned by Tokyo Tatemono)
Consortium established Yaesu Project Chuo Ward Approx. Preparation consortium 120,000 m2 established Gofukubashi in total Chuo Ward Urban development Project plan decided
Preparation consortium Redevelopment 1 Minato Ward established Leasable Approx. area Preparation consortium Redevelopment 2 Chuo Ward 150,000 m2 Approx. established 2 in total 320,000 m in total Preparation consortium Redevelopment 3 Shibuya Ward established
Under discussion Redevelopment 4 Minato Ward Approx. 50,000 m2 in total Under discussion Redevelopment 5 Minato Ward
Estimated investment amount: Estimated investment amount: About ¥230.0 billion About ¥330.0 billion
* Estimated leasable area includes leasable area of non-office space, such as conference and commercial facilities 23 (1) Commercial Properties Business: Initiatives for Property Sales to Investors
• In FY2019, secured new projects for commercial facilities, hotels and logistics facilities.
• The balance of real estate for sale increased by ¥22.7 billion from the end of 2018 to ¥107.9 billion. The value of stock in terms of total investment amount increased by approximately ¥60.0 billion from the end of 2018 to approximately ¥190.0 billion.
Construction Area Property name Status (Billion yen) completed Suidobashi FUNDES Suidobashi July 2015 Sold 120 As of the end of 2019: Transfer from 1200 107.9 fixed assets of slightly less than Jimbocho FUNDES Jimbocho Nov. 2016 Sold ¥10.0 billion 100 1000 Ueno FUNDES Ueno July 2017 Sold 85.2 As of the end of 2018: Transfer from Tenjin TENJIN249 July 2018 In operation 80080 fixed assets of slightly less than ¥20.0 billion Gotanda FUNDES Gotanda July 2019 In operation 60 55.4 600 Ginza FUNDES Ginza Nov. 2019 In operation Tenjin Nishidori Project 40 Fukuoka TBD Under development 400 Real estate for (provisional name) 24.6 sale (completed) 20020
00 2016/12 2017/12 2018/12 2019/12
Total investment amount* (based on decisions made)*1: approx. ¥190.0 billion Assume average NOI yield at stable occupancy of around 5%
FUNDES Gotanda FUNDES Ginza
*1 Calculated by aggregating the total investment amount, in which construction costs, etc. that arise * Projects acquired in 2019 are highlighted in red after the acquisition are added to the book value of each property at the time of acquisition. 24 (1) Commercial Properties Business: Initiatives for Property Sales to Investors
No. of Construction Area Hotel name Status Property name Opening Status guestrooms completed
Roppongi Candeo Hotels Tokyo Roppongi 149 Sept. 2017 In operation T-LOGI Kuki Jul. 2020 Under development
Ginza The Square Hotel Ginza 182 Aug. 2018 In operation Ayase Logistics Facility Project (provisional name) Spring 2022 Under development
Asakusa Hotel Gracery Asakusa 125 Sept. 2018 In operation Musashi Hikita Logistics Facility Project (provisional name) TBD To be acquired
Midosuji (1) the b Osaka Midosuji 306 Feb. 2019 In operation Yokohama Aoba Logistics Facility Project (provisional name) Spring 2022 Under development
Omiya Candeo Hotels Omiya 321 Aug. 2019 In operation Narashino Logistics Facility Project (provisional name) TBD To be acquired
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
T-LOGI Kuki (Image of exterior)
Sendai Kakyoin Terrace Spring 2020 In operation
TBD (Area: in front of Sapporo Station) 2023 Under development
Kodemmacho Project (provisional name) TBD Under development
the b Osaka Midosuji Candeo Hotels Omiya
* Projects acquired in 2019 are highlighted in red * Projects acquired in 2020 are highlighted in blue Sendai Kakyoin Terrace 25 (2) Residence Business: FY2019 Results & FY2020 Forecasts
• FY2019: Increase in revenue and income, due to significant increase in the number of condominium sales posted and other factors.
• FY2020: Outlook is decrease in revenue and income despite increase in sale of for-rent condominiums and due to the impact of decrease in sales of for-sale condominiums being large.
2018/12 2019/12 Increase/ 2019/12 Achievement Unit: Billion yen Main factors for increase/decrease Actual Actual Decrease Forecasts rate Revenue from operations 97.7 131.2 33.5 129.0 102% Sales of condominiums 72.6 98.3 25.7 Number of condo sales posted: 1,315 units; Condo unit price: ¥74.76 million; 97.5 101% Gross margin: 24.6% Sales of residential houses 0.1 0.0 (0.0) - - Sale of for-rent condominiums +¥5.2 billion (FY2018: nil; FY2019 cumulative Sales of residential land, etc. 2.9 8.1 5.2 7.5 109% total: ¥5.2 billion) House leasing 3.8 4.3 0.5 Increase due to new acquisition and construction completion 4.0 109% Fee from sales agency services 0.8 1.1 0.3 1.0 116%
Building management service, etc. 17.3 19.2 1.8 Increase in large-scale repair and seismic strengthening work 19.0 101% Gross profit from sale of for-rent condominiums +¥0.9 billion Operating income 14.1 15.8 1.7 (FY2018: nil; FY2019 cumulative total: ¥0.9 billion) 15.0 106%
2019/12 2020/12 Increase/ Unit: Billion yen Actual Forecasts Decrease Main factors for increase/decrease Revenue from operations 131.2 115.0 (16.2) Sales of condominiums 98.3 67.0 (31.3) Number of condo sales posted: 1,250 units; Condo unit price: ¥53.60 million; Gross margin: 21.0% Sales of residential houses 0.0 - (0.0) Sales of residential land, etc. 8.1 22.0 13.8 Increase in sale of for-rent condominiums +9.8 (FY2019 cumulative total: ¥5.2 billion; FY2020 forecast: ¥15.0 billion） House leasing 4.3 5.5 1.1 New construction completion of for-rent condominiums and full-year operation of the properties completed in the previous fiscal year Fee from sales agency services 1.1 0.5 (0.6) Building management service, etc. 19.2 20.0 0.7 Gross profit from sales of residential land, etc. +¥2.1 billion Operating income 15.8 9.0 (6.8) (FY2019 cumulative total: ¥0.9 billion; FY2020 forecast: 3.0 billion) Business income 15.8 9.0 (6.8)
26 (2) Residence Business: For-Sale Condominiums – Main Operating Indicators
• Posting of many properties in prime central Tokyo locations continuing into 2019 resulted in gross margin remaining at a high level at 24.6%. • Inventory of completed condominiums was 216 units at the end of December, centering on properties located in Tokyo suburbs, but the achievement rate at the beginning of the period against the FY2020 plan for the number of condominium sales posted remained at a high level at approximately 70%.
(Units) 300 ■Tokyo Of which, ■Tokyo metropolitan area 1,500 40% contracted: 216 1,315 ■ 33.3% 1,250 Kansai and others 18 units 29.8% 200 174 24.6% 30% 1,000 20.9% 21.0% 138 130 971 988 120 124 20% 105 87 94 700 100 83 500 10%
0 0% 0 2016/12 2017/12 2018/12 2019/12 2020/12 2017/9 2017/12 2018/3 2018/6 2018/9 2018/12 2019/3 2019/6 2019/9 2019/12 *Dotted line indicates full-year forecast. 27 (2) Residence Business: For-Sale Condominiums – Main Property Sales Posting Schedule (1)
• Acquired land for approximately 2,000 units in FY2019, securing a land bank for approximately 7,900 units (including the number of units scheduled to be posted in 2020) No. of condo sales to No. of units Main properties slated for completion be posted by for sale*1
Brillia City Mitaka 437 306
Brillia Tower Hachioji 227 136
Brillia Tower Yoyogi Park CLASSY 196 127
Completion Completion in 2019 Brillia Ichibancho 106 64
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
To be Tobe completed 2020 in Brillia Tsurumaki 72 72 Brillia Tower Yoyogi Park CLASSY Brillia Tower Ueno Ikenohata Brillia Ichibancho
BrilliaTower Nishijin 307 246
2021
Brillia Ueno Garden 99 79 To be completed in completed be To Yet to be incorporated Kansai and Brillia Tower Seiseki Sakuragaoka Blooming 520 312 into land bank others Residence (provisional name) Approx. 1,400 units 20.0% SHIROKANE The SKY 770 305 23 wards of Minato Ward Kaigan 1-chome Reconstruction Tokyo Project Approx. 140 Approx. 140 51.9% (Itohpia Hamarikyu Reconstruction Project) Other Tokyo Incorporated into metropolitan Tokyo HARUMI FLAG ( Harumi 5-chome West land bank area excluding District Category 1 Urban Redevelopment 4,145 489 Approx.7,900 units 2022 2022 or later Project) 23.4% 23 wards
To be Tobe completed in 4.7% Dojima Tower Project (provisional name) TBD TBD
Shakujii Park Danchi Reconstruction Project TBD TBD *1 Of the total number of units including units for sale, the number of units excluding land right holders’ residential units Including 1,250 units scheduled Nishishinjuku 3-chome West District TBD TBD *2 Including also the number of units scheduled for sale over to be posted in 2020 Urban Redevelopment Project several years 28 (2) Residence Business: For-Sale Condominiums – Main Property Sales Posting Schedule (2)
• Plan to continue posting sales of properties that attract great interest every fiscal year, such as large-scale redevelopment projects in central Tokyo and large-scale tower condominiums in central areas of regional cities, from 2020 onward.
• Already secured approximately 6,500 units’ worth of projects, or approximately 80% of estimated cumulative net sales, scheduled to be posted by FY2024, the final fiscal year of the new medium-term business plan.
Brillia Tower Takasaki BrilliaTower Nishijin Brillia Tower Seiseki Sakuragaoka SHIROKANE The SKY Dojima Project ALPHA RESIDENCIA (Total units: 307; Units to be Blooming Residence (Total units: 1,247; Units to be posted: 270) (provisional name) (Total units: 222; Units to be posted: 246) (Total units: 520; Units to be posted: 312) (Total units: TBD; Units to be posted: TBD) posted: 100)
2020 2021 2022 2023 2024
Minato Ward Kaigan 1-chome HARUMI FLAG Brillia Tower Ariake MID CROSS SHINTO CITY Reconstruction Project (Total units: 4,145; Units to be posted: 489) (Total units: 300; Units to be posted: 300) (Total units: Approx. 1,400; Units to be posted: (Total units: 420; Units to be posted: Approx. 350) Approx. 140)
Land bank scheduled to be posted in the medium-term business plan period: Approx. 6,500 units already secured (Approx. 80% of estimated cumulative net sales in the medium-term business plan period) 29 (2) Residence Business: For-Rent Condominiums
• In FY2019, expanded the “Brillia ist” brand and secured 11 new projects.
• The balance of real estate for sale increased by ¥8.7 billion from the end of 2018 to ¥29.1 billion, and stock in terms of total investment amount increased by approximately ¥20.0 billion from the end of 2018 to expand to approximately ¥50.0 billion.
(Billion yen) Total no. Construction 29.1 Property name Status As of the end of 2018: of units (to be) completed 30030 Transfer from fixed assets of Brillia ist Kitazawa KEYAKI 44 Aug. 2008 Sold slightly more than ¥15.0 billion Brillia ist Nishiazabu Kasumicho 21 July 2008 In operation (Excluding properties held 20.4 Brillia ist Nakano Central Park Residence 17 May 2012 In operation 200 20 for a long period of time 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 10010 Brillia ist Yotsuya Honshiocho 85 June 2018 In operation Real estate for sale CREAR PALETTE Kajigaya *2 127 Feb. 2019 Sold (completed) 1.7 1.7 Brillia ist Bunkyo Myogadani 43 Mar. 2019 In operation Brillia ist Sendagaya 149 May 2019 In operation 00 2016/12 2017/12 2018/12 2019/12 Brillia ist Komagome 75 Feb. 2020 In operation Arcade Ebara Nakanobu 29 Jan. 2020 In operation Brillia ist Ryogoku 85 Mar. 2020 Under development Total investment amount*1 (based on decisions made): approx. ¥50.0 billion Brillia ist Shinjuku Akebonobashi 49 Apr. 2020 Under development Higashiueno Project (provisional name) *3 - June 2020 Under development Assume average NOI yield at stable occupancy of around 5% Taihei 4-chome Project 45 Sept. 2020 Under development (provisional name) Motoasakusa 1-chome Project 49 Nov. 2020 Under development (provisional name) Total no. Construction Akabane Iwabuchi Project Property name Status 49 Feb. 2021 Under development of units (to be) completed (provisional name) Brillia ist Shinonome Canal Court 423 Mar. 2005 In operation Asakusabashi 1-chome Project 49 Sept. 2021 Under development (provisional name) Brillia ist Tower Kachidoki 536 Jan. 2011 In operation Shibuya Honmachi Project Kita Aoyama 3-chome Urban Development Project 47 Aug. 2022 Under development 229 May 2020 Under development (provisional name) (provisional name) Ikejiri Ohashi Project (provisional name) 200 Sept. 2023 Under development HARUMI FLAG Approx. Sept. 2022 Under development (Post Olympic Village Site Development) 1,500 * Projects acquired in 2019 are highlighted in red *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. *2: “CREAR PALETTE Kajigaya” is developed as student housing in light of the location characteristics and entirely leased to a student housing operator after construction completion. *3: “Higashiueno Project” (provisional name) is under development as a lodging facility in light of the 30 location characteristics. (2) Residence Business: For-Rent Condominiums
Brillia ist Bunkyo Myogadani Brillia ist Sendagaya (Construction completion in 2019) (Construction completion in 2019) [Location] 31-4, Daikyocho, Shinjuku-ku, Tokyo [Location] 4-4-44 Kohinata, Bunkyo-ku, Tokyo [Access] 2-minute walk from Kokuritsu-kyogijo Station on the Toei Oedo Line [Access] 5-minute walk from Myogadani Station on the Tokyo Metro Marunouchi Line 5-minute walk from Sendagaya Station on the JR Sobu Line [Scale] 7 floors above ground [Scale] 10 floors above ground [Floor plan] Studio to 2LDK [Floor plan] Studio to 2LDK [Total units] 43 units [Total units] 149 units + 1 shop section
(Left) Rooftop Terrace, (Right) Exterior
(Left) Entrance (Right) Exterior
Brillia ist Tower Kachidoki Kita Aoyama 3-chome Urban Development Project (Construction completion in 2011) (provisional name) [Location] 1-3-1 Kachidoki, Chuo-ku, Tokyo (Slated for completion in 2020) [Access] 2-minute walk from Kachidoki Station on the Toei Oedo Line [Site] 3-227-4 Kita-aoyama, Minato-ku, Tokyo [Scale] 2 floors below ground, 45 floors above ground [Use] 1F–2F: Shop, state-authorized day care center, and community center [Use] Apartment (rental), shop, clinic, 2F–4F: Residence for elderly people with service (49 units) certified child care center, office and other 5F–25F: Rental residence (229 units) [Floor plan] Studio to 3LDK [Scale] 1 floor below ground, 25 floors above ground [Total units] 536 units
(Left) Playroom (Right) Exterior Exterior image
31 (3) Real Estate Services Business: FY2019 Results & FY2020 Forecasts
• FY2019: Increase in revenue and decrease in income due to increase in property sales to investors, absence of the SPC dividends posted in the previous fiscal year, and other factors.
• FY2020: Outlook is increase in revenue and income due to increase in property sales to investors continuing, as well as new openings in the parking lots business, decrease in goodwill amortization expense and other factors.
2018/12 2019/12 Increase/ 2019/12 Achievement Unit: Billion yen Main factors for increase/decrease Actual Actual Decrease Forecasts rate Revenue from operations 42.8 44.1 1.3 50.0 88% Brokerage 3.7 3.8 0.0 4.5 85% Asset solution 13.6 14.3 0.7 Property sales to investors +¥0.7 billion (FY2018 cumulative total: ¥10.3 billion; 19.5 74% FY2019 cumulative total: ¥11.0 billion) Management service, etc. 3.9 4.2 0.2 4.0 105% Parking lots business 21.5 21.7 0.2 22.0 99% Gross profit from property sales to investors -¥0.8 billion Operating income 6.3 5.8 (0.4) 5.5 107% (FY2018 cumulative total: ¥3.6 billion; FY2019: ¥28 billion)
2019/12 2020/12 Increase/ Unit: Billion yen Main factors for increase/decrease Actual Forecasts Decrease Revenue from operations 44.1 60.0 15.8 Brokerage 3.8 4.5 0.6 Property sales to investors +¥14.0 billion Asset solution 14.3 28.5 14.1 (FY2019 cumulative total: ¥11.0 billion; FY2020 cumulative total: ¥25.0 billion) Management service, etc. 4.2 4.0 (0.2) Parking lots business 21.7 23.0 1.2 Gross profit from property sales to investors +¥2.2 billion (FY2019 cumulative total: Operating income 5.8 9.0 3.1 ¥2.8 billion; FY2020 cumulative total: ¥5.0 billion) Decrease in goodwill amortization expense +¥0.9 billion Business income 5.8 9.0 3.1
32 (3) Real Estate Services Business: Main Operating Indicators
• Asset Solution: Despite harsh acquisition environment attributable to decrease in cap rates and other factors, securing stock mainly in central Tokyo. • Parking lots business: Number of parking spaces increased by 2,048 from the end of September to 69,401 due to opening of large facilities and other factors.
Breakdown by area of location Breakdown by asset type 33 (4) Other: FY2019 Results & FY2020 Forecasts
• FY2019: Increase in revenue and income due to higher occupancy rate of existing facilities in the leisure business and the senior & child care business, expansion of AUM in the fund business, and other factors.
• FY2020: Outlook is increase in revenue and income due to increase in burden of development costs in the overseas business, higher occupancy rate of existing facilities in the leisure business and the senior & child care business, and other factors.
2018/12 2019/12 Increase/ 2019/12 Achievement Unit: Billion yen Main factors for increase/decrease Actual Actual Decrease Forecasts rate Revenue from operations 24.0 26.6 2.5 25.0 106% Leisure business 14.6 14.7 0.1 15.0 99%
Senior and child care business 7.1 8.4 1.3 Opening of new child care facilities, higher occupancy rate of existing 8.0 106% Fund business 2.2 3.0 0.8 facilities and other factors 2.0 155% Other 0.1 0.2 0.0 Operating income 0.1 1.7 1.5 0.5 354%
2019/12 2020/12 Increase/ Unit: Billion yen Main factors for increase/decrease Actual Forecasts Decrease Revenue from operations 26.6 27.0 0.3 Leisure business 14.7 15.0 0.2 Senior and child care business 8.4 9.0 0.5 Higher occupancy rate of existing facilities and other factors Fund business 3.0 3.0 (0.0) Other 0.2 0.0 (0.1) Operating income 1.7 2.0 0.2 Business income 0.5 0.6 0.0 Loss on equity-method investments +¥0.2 billion (¥1.4 billion)
* The child care business, which had been included in “Other,” has been reclassified to “Senior business,” effective from FY2019. In conjunction, “Senior business” has been renamed “Senior & child care business.” The actual figures of the first half/full year for FY2018 have been restated under the new classification.
34 MEMO
35 (4) Other: Initiatives for Overseas Business
• 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.
• Balance of investment at the end of 2019 was approximately ¥50.0 billion in total.
Basic Strategy ・ Conduct business centering on partnership 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
Scale (Total number FYFY of of Status Scale (Total number of Status Name ofName project of projectLocation LocationMain uses Main uses Total areaTotal area of units/total floor constructionconstruction (End of units/total floor space) (End of Dec.) space) completioncompletion Dec.) Residence, Shenyang Tomorrow Square Project Shenyang City Approx. 199,000 m² Approx. 5,900 units 2013 onward Sold out 瀋陽明天広場PJ 瀋陽市 住宅、商業、オフィスcommercial, 約office199,000㎡ 約5,900戸 2013年～ 完売 Residence, Qingdao Project Qingdao City Approx. 86,000 m² Approx. 1,800 units 2015 onward Sold out 青島PJ 青島市 住宅、商業commercial約86,000㎡ 約1,800戸 2015年～ 完売 徐州喬湖Xuzhou QiaohuPJ Project 徐州市 Xuzhou City住宅 Residence約122,000Approx.㎡ 122,000 m² 約2,000Approx.戸 2,000 units 20202020 年～onward 販売中On sale Residence, Yangzhou-South Project Yangzhou City Approx. 94,000 m² Approx. 1,200 units 2019 onward On sale 揚州南PJ 揚州市 住宅、商業commercial約94,000㎡ 約1,200戸 2019年～ 販売中 Residence, Yangzhou-East Project Yangzhou City Approx. 64,000 m² Approx. 1,200 units 2022 onward Before sale
揚州東PJ 揚州市 住宅、商業commercial約64,000㎡ 約1,200戸 2022年～ 販売前 China China Residence, Yinchuan Jinfeng Project Yinchuan City Approx. 98,000 m² Approx. 1,500 units 2022 onward On sale 銀川金鳳PJ 銀川市 住宅、商業commercial約98,000㎡ 約1,500戸 2022年～ 販売中
嘉興桐郷Jiaxing TongxiangPJ Project 嘉興市 Jiaxing City住宅 Residence約42,000Approx.㎡ 42,000 m² 約500Approx.戸 500 units 20202020 年～onward 販売中On sale
徐州城北Xuzhou ChengbeiPJ Project 徐州市 Xuzhou City住宅 Residence約68,000Approx.㎡ 68,000 m² 約1,500Approx.戸 1,500 units 20222022 年～onward Before販売前 sale
揚州城西 揚州市 住宅、商業 Residence,約 ㎡ 約 戸 年～ 販売前 Yangzhou PJChengxi Project Yangzhou City 97,000Approx. 97,000 m² 1,500Approx. 1,500 units 20222022 onward Before sale commercial CPFSingaporeビル再開発 CPF BuildingPJ シンガポール オフィス 約4,400㎡ 約57,400㎡ 2020年 開発中Under Singapore Office Approx. 4,400 m² Approx. 57,400 m² 2020 Redevelopment Project development 博物館跡地 ミャンマー・ Former Site of Yangon Military Yangon, Office, commercial, Under オフィス、商業、ホテル 約16,000Approx.㎡ 16,000 m²約92,000Approx.㎡ 92,000 m² 20212021年 開発中 再開発MuseumPJ Redevelopment Projectヤンゴン Myanmar hotel development Bangkok, Sukhumvit 26 Project Residence Approx. 3,200 m² Approx. 150 units 2021 On sale スクンヴィット26PJ タイ・バンコク Thailand住宅 約3,200㎡ 約150戸 2021年 販売中 Bangkok, Sathorn 12 Project Residence Approx. 2,900 m² Approx. 250 units 2022 On sale
サトーン12PJ タイ・バンコク Thailand住宅 約2,900㎡ 約250戸 2022年 販売中 Asia Asia Bangkok, Sukhumvit 38 Project Residence Approx. 5,700 m² Approx. 300 units 2024 Before sale スクンヴィット38PJ タイ・バンコク Thailand住宅 約5,700㎡ 約300戸 2024年 販売前 Office: インドネシア・ オフィス：約 ㎡ Jakarta, Approx.47,000 47,000 m² ダルマワンサDharmawangsaPJ Project オフィス、住宅Office, residence約16,000Approx.㎡ 16,000 m² 20212021年 販売中On sale ジャカルタ Indonesia 住宅：約Residence:80戸 Approx. 80 units インドネシア・ Jakarta, ロッジアLoggia PJProject 住宅 Residence約11,900Approx.㎡ 11,900 m² 約500Approx.戸 500 units 20242024年 販売中On sale ジャカルタ Indonesia ■Project city ■Local subsidiary * Projects acquired in 2019 are highlighted in red * Projects acquired in 2020 are highlighted in blue Copyright © Tokyo Tatemono Co., Ltd. All Rights Reserved. 36 (4) Other: Initiatives for Overseas Business
Indonesia Dharmawangsa Project Indonesia Loggia Project (Construction started in 2018 and slated for completion in 2021) (Construction started in 2019 and slated for completion in 2024)
Development and sale of high-end condominium Development of for-sale condominium in Potlot, South and office in Dharmawangsa, a high-class Jakarta for the upper-middle class jointly with local real residential area in South Jakarta, targeting people estate developer and a Japanese designer for interior of ultra-high net worth in Indonesia design
Total project cost: Approx. ¥42.0 billion Total project cost: Approx. ¥9.0 billion Tokyo Tatemono’s stake: Approx. 50% Tokyo Tatemono’s stake: Approx. 45%
Former Site of Yangon Military Museum Xuzhou Quiaohu Project in China Redevelopment Project A complex development project for residential and commercial properties in (Construction started in 2018 and slated for completion in 2021) Xuzhou, a Tier 3 city where infrastructure development and foreign capital A large-scale complex development project advancement are rapidly progressing (the Company is participating in the involving development/operation of an office residential portion only) building, commercial facilities and a hotel on the former site of the military museum (approximately 16,000 m²) Total project cost: Approx. ¥37.0 billion Total project cost: Approx. ¥34.0 billion Tokyo Tatemono’s stake: Approx. 25% Tokyo Tatemono’s stake: Approx. 30%
For-sale condominiums development projects Yangzhou-Minami Project in China in Bangkok, Thailand (3 projects) 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 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
Total project cost: Approx. ¥50.0 billion Total project cost: Approx. ¥23.0 billion Tokyo Tatemono’s stake: Approx. 50% Tokyo Tatemono’s stake: Approx. 25%
Copyright © Tokyo Tatemono Co., Ltd. All Rights Reserved. 37 MEMO
38 Appendix Quarterly Segment Data (1) Commercial Properties Business & Residence Business
Commercial properties business *1 2017/3 2017/6 2017/9 2017/12 2018/3 2018/6 2018/9 2018/12 2019/3 2019/6 2019/9 2019/12
Number of office buildings - - - - 48 48 48 48 48 48 48 48 *2
Leasable area of office buildings (thousand m²) - - - - 494 494 495 495 495 495 495 494 *2 Vacancy rate - - - - 2.2% 2.2% 2.2% 1.6% 1.4% 1.2% 1.1% 1.1% *2
New standard New Average rent (Unit: yen/tsubo) - - - 30,037 30,293 29,870 29,882 30,361 30,405 30,470 30,583 *2 Number of office buildings 41 43 44 45 47 47 47 47 - - - -
Leasable area of office buildings (thousand m²) 463 468 473 473 474 475 476 476 - - - - Vacancy rate 3.5% 3.1% 3.6% 2.7% 2.6% 2.6% 2.5% 1.9% - - - -
Old Old standard Average rent (Unit: yen/tsubo) 29,418 29,567 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 retail stores area accounts for a large proportion in the total leased floor area in GRAND FRONT OSAKA, the retail stores area is excluded from calculation. 3. Buildings owned by consolidated SPCs were subject to calculation based on the Company’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 2017/3 2017/6 2017/9 2017/12 2018/3 2018/6 2018/9 2018/12 2019/3 2019/6 2019/9 2019/12
Number of sales posted (cumulative) 71 119 291 972 409 442 494 989 450 937 1,053 1,316 *3 Condo sales 71 119 291 971 408 441 493 988 450 937 1,053 1,315 Housing and residential land 0 0 0 1 1 2 2 2 0 0 0 1 Gross margin ratio of condo sales (cumulative) 27.4% 25.0% 21.6% 33.3% 38.0% 37.6% 36.4% 29.8% 24.1% 25.5% 25.3% 24.6% Inventory of completed condos 89 56 120 124 138 105 87 94 174 130 83 216 Of which, contracted 21 20 17 30 25 11 8 13 30 26 17 18 Condo units supplied (cumulative) 102 264 540 953 293 531 753 1,210 449 674 956 1,301 Condo units contracted (cumulative) 134 302 577 944 211 522 720 1,107 420 651 936 1,285 Condo units contracted but yet to be posted 1,549 1,668 1,772 1,458 1,261 1,540 1,686 1,577 1,547 1,291 1,460 1,547
Number of condo buildings for rent 7 7 7 8 9 10 9 8 10 11 11 9 Number of managed condo units 54,733 91,916 91,293 92,726 92,658 92,342 92,508 93,206 93,950 93,171 93,230 94,319
*3: Given the number of share out in condominium projects and other cases which were disclosed as "Others" being small, disclosure is only of the total of number of sales in Condo sales and Housing and residential land.
40 Quarterly Segment Data (2) Real Estate Service Business & Other
Real estate service business 2017/3 2017/6 2017/9 2017/12 2018/3 2018/6 2018/9 2018/12 2019/3 2019/6 2019/9 2019/12
Brokerage: Number of deals (cumulative) 219 474 702 969 250 522 793 1,059 214 504 796 1,081
Of which, sales (cumulative) 205 452 662 895 245 504 768 1,029 209 482 769 1,044
Of which, rentals (cumulative) 14 22 40 74 5 18 25 30 5 22 27 37
Parking lots: Number of locations 1,564 1,580 1,588 1,677 1,682 1,687 1,693 1,715 1,711 1,726 1,739 1,767
Parking lots: Number of parking spaces 65,042 65,109 65,688 66,227 66,131 67,202 68,101 68,578 66,938 66,736 67,353 69,401
Other 2017/3 2017/6 2017/9 2017/12 2018/3 2018/6 2018/9 2018/12 2019/3 2019/6 2019/9 2019/12
Residences for elderly people with service 13 13 15 15 15 15 15 15 15 15 15 15
Of which, owned 9 9 11 11 11 11 11 11 11 11 11 11
Owned units 769 769 922 922 922 922 922 922 922 922 922 922 *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 3 3 4 4 4 4 4 4 4 4 4 4
Of which, owned - - 1 1 1 1 1 1 1 1 1 1
Owned units - - 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 12 12 11 11 10 10 10 10 10 10 9
Golf courses 12 12 12 12 12 12 12 12 12 12 12 12 Pet-Friendly Hotels (Regina Resort with 4 5 5 6 6 7 8 9 9 9 9 9 DOGS) Ohayo Child Care Centers - 3 3 3 3 8 8 8 8 11 11 11
*4: For jointly owned properties, disclosure is of data that have been calculated taking into account Tokyo Tatemono’s ownership in these residences.
41 List of Facilities (Senior & Child care Business)
Total No. of Construction Residences for elderly people with service Location units 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 Grapes Setagayachitosedai 14 Grapes Shonantsujido Chigasaki-shi, Kanagawa 70 July 2017 15 Grapes Setagayachitosedai Setagaya-ku, Tokyo 83 Aug. 2017 Kita Aoyama 3-chome Urban Development Project 16 Minato-ku, Tokyo 49 May 2020 (provisional name)
Total No. of Construction Private nursing homes Location units 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 Kita Aoyama 3-chome Urban Development Project (provisional name) 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 Small-Scale Day Care Center State-authorized small-scale day care center in 9 Itabashi-ku, Tokyo 19 Apr. 2019 Ohayo Child Care Oyamanishicho Itabashi, Tokyo 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 Ohayo Child Care Sekimachiminami 12 Nerima-ku, Tokyo State-authorized day care center in Tokyo 34 Apr. 2020 (provisional name) Sekimachiminami After-School 13 Nerima-ku, Tokyo Private after-school child care business 30 Apr. 2020 (provisional name) Ohayo Child Care Umeyashiki 14 Ota-ku, Tokyo State-authorized day care center in Tokyo 60 Apr. 2020 (provisional name) Ohayo Child Care Omotesando 15 Minato-ku, Tokyo State-authorized day care center in Tokyo 23 Jul. 2020 (provisional name) Ohayo Child Care Higashinakano 16 Nakano-ku, Tokyo State-authorized day care center in Tokyo 60 Apr. 2021 (provisional name) Ohayo Child Care Kameido * “Ohayo Child Care Kameido” was opened in April 2017 and operated as a day care center certified by the Tokyo metropolitan 42 government. As of April 2019, it is operated as a state-authorized day care center. List of Facilities (Leisure Business)
Pet-Friendly Hotels Number of Location Opening (Regina Resort with DOGS) guestrooms 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 Tateshina Chino-shi, Nagano 23 May 2017 6 Regina Resort Kyu-Karuizawa Kitasaku-gun, Nagano 26 Nov. 2017 7 Regina Resort Biwako Nagahama Nagahama-shi, Shiga 15 June 2018 8 Regina Resort Kamogawa Kamogawa-shi, Chiba 25 July 2018 9 Regina Resort Hakone Sengokuhara Ashigarashimo-gun, Kanagawa 22 Oct. 2018 Regina Resort Kamogawa 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 Regina Resort Hakone Sengokuhara
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 Ofuro no Osama Wako (provisional name) 10 Wako-shi, Saitama Dec. 2021 (Wako City Hirosawa Complex Development and Operation Project) Ofuro no Osama Machida 43 Market Data (1) Office Building Market
Large-scale Office Building Supply Volume Trends in Tokyo’s 23 Wards
2 (10,000 m ) Historic average 2019–2023 average (Properties)
Number of properties of supply Volume of supply supply volume supply volume Number properties of of supply 1,030,000 m2/year 1,020,000 m2/year 46 47 60 300 41 44 42 40 36 37 32 31 32 29 30 28 28 26 29 26 26 24 21 21 25 22 21 21 16 19 19 16 19 19 30 12 15 14 12 11 216 9
200 183 0 175 172 154 141 132 -30
Volume of supplyof Volume 125 118 119 121 119 117 108 114 109 100 104 99 97 99 92 91 86 85 87 100 83 77 -60 74 72 69 65 58 56 55 57 50 36 -90
0 -120 ''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
Average Rent and Vacancy Rate Trends in Tokyo’s Central Business District (Chiyoda, Chuo, Minato, Shinjuku and Shibuya)
(Yen) (%) Average rent Vacancy rate 5.30 5.12 4.53 35,000 4.03 4.34 4.07 6.0 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 4.0 rateVacancy 30,000 1.55 1.53 2.0 25,000 22,206 22,448 0.0 21,134 21,518 21,855 20,108 20,438 20,887 19,173 19,699 18,179 18,336 18,540 18,730 18,864 18,995 -2.0 20,000 17,195 17,401 17,594 17,692 17,973
Average rent Average -4.0 15,000 -6.0 10,000 -8.0 -10.0 5,000 -12.0 0 -14.0 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 20/01
Source: Mori Buildings’ “Survey of Large-scale Office Building Market in Tokyo’s 23 Wards 2019”; Miki Shoji 44 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)
(Units) Number of new units for sale Average price (10,000 yen) 100,000 7,000 5,908 5,871 5,980 5,518 5,490 6,000 Average price 80,000 4,929 5,060 4,775 4,716 4,535 4,578 4,540 5,000 56,478 60,000 4,000 43,733 44,535 44,499 45,602 44,913 40,449 36,376 35,772 35,898 37,132 3,000 40,000 31,238
Number of new units forsale units of new Number 2,000 20,000 1,000
0 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Trends in Double-income Ratio and Average Annual Household Income Among Buyers of Condominium Units
(10,000 yen) Average annual household income Double-income ratio among married households 1,400 64.9% 66.0% 70.0% 62.7%
59.5% 59.4% Double 57.0% 1,200 55.2% 56.6% 60.0% 52.9% 54.6%
46.3% 960 - 1,000 944 50.0% income ratio 872 900 796 801 752 765 754 755 800 737 40.0%
600 30.0%
400 20.0% Average annual household income householdannual Average 200 10.0%
0 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Real Estate Economic Institute; Recruit Sumai Company Ltd.’s 2018 survey on contract trend of new condominium units in Tokyo Metropolitan Area 45 MEMO
46 Disclaimer
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.
47