表紙

Financial Results
For the Fiscal Year
Ended Nov. 30, 2013

Tosei Corporation
Securities Code:8923 Tokyo Stock Exchange, First Section
S2D Singapore Exchange, Mainboard
Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.
1

I.

Overview of Results for the Fiscal Year
Ended Nov. 2013

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2

FY Ended Nov. 2013- Highlights
Listedon the Mainboard of the Singapore Exchange (SGX)
シンガポール証券取引所へのセカンダリー上場■Objective:
With the listing in Singapore, the financial and real estate center of the Asia, Tosei intends toenhance its presence in South-East Asia and to attract the overseas property investors to theGroup’s businesses and the real estate in Tokyo. Tosei will solicit overseas funds to Tokyo andcontribute to vitalization of real estate market.
■Listing Date:■Listed Market:

March 27, 2013
SGX, Mainboard (Securities Code: S2D)The first Japanese company to list in 13 years since 2000 and the very
first as a real estate company.
SGX Listing Ceremony in Singapore

Fund-raising on the SGX■Issuance of New Shares on the SGX
Tosei resolved at the Board meeting on July 9, 2013 on the issuance of new shares, which was able
to be conducted after three months from the listing date on the SGX, and commenced the tradingof its common stock on July 26, 2013. The number of issued shares and the total amount raised
are as follows:【Use of Placement Proceeds】
・Total no. of issued shares: 2,600,000¥ 1.933 billion
・Total amount raised:¥ 1.177 billion
・ Total amount utilized¥755 million
・ Balance proceeds(As of the end of Nov. 2013)
Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

Operating Segment

Amount Utilized

Revitalization Business¥360 million

Development Business¥406 million

Fund and Consulting Business¥410 million

Total amount utilized from the proceeds¥1.177 billion

3

Operating Performance of FY Ended Nov. 30, 2013 - Highlights◆Achieved a large earning growth:
Revenue ¥35 billion(up 45% yr/yr)
Operating profit ¥3.9 billion (up 37% yr/yr)
Profit for the year ¥2 billion (up 37% yr/yr)【Revenue】(¥
million)
（百万円）

1Q

2Q

3Q

(¥ million)【Operating profit】

4,900

3,909

3,900

300

2,900

4Q
1,900

35,070

1,610

1,136

900

526

-100

736
-17

5,974
30,000(¥ million)

24,195858

2,282

40,00024,760

2,856

6,006

FY2011
2011.11月期

FY2012
2012.11月期

1,615
FY20132013.11月期【Profit for the year】

2,400

2,003

20,000

9,430

7,589

83

1,900

1,465
1,400

4,618

594

10,000Calculated byretrospectively adopting
IFRS. Therefore, IFRS
quarterly figures are notavailable.

5,121

15,501

900

5,026

1,017
740

226

400

0
FY2011
2011.11月期

FY2012
2012.11月期

460

FY20132013.11月期

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-100

4

FY2011
2011.11月期

273-52
2012.11月期
FY2012866

FY20132013.11月期

Overview of Consolidated Financial Resultsfor FY Ended Nov. 30, 2013(¥ million)

FY2012FY201335,070%100.0

10,874

%
44.9

74.7

27,759

79.2

9,677

53.5

6,113

25.3

7,311

20.8

1,197

19.6

3,257

13.5

3,401

9.7

144

4.4

2,856

11.8

3,909

11.1

1,052

36.9

-638

-2.6

-692

-2.0

-54

-23.6

2,218

9.2

3,217

9.2

998

45.0

753

3.1

1,213

3.5

460

61.1

Profit for the year

1,465

6.1

2,003

5.7

538

36.7

Comprehensive income for the
year

1,464

6.1

2,008

5.7

543

37.1

EPS (￥)

32.07

42.99

10.92

34.1

ROE (%)

5.7

7.1

1.4 pp

ROA (%)

2.3

2.9

0.6 pp

Revenue
Cost of revenue
Gross profit
Selling, general andadministrative expenses, etc.
Operating profit
Finance income/costs (net)Profit before tax
Income tax expenses

24,195%100.0

18,081yr/yr change

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Revitalization Business◆Whole buildings: Sold 12 buildings including offices such as “Meguro Ekimae Tosei Building” andincome-generating condominiums.
◆Restyling properties: Sold 89 condo units in 12 properties including “Hilltop Yokohamanegishi”
and “Hilltop Yokohama Higashiterao”.

Major Properties Sold/Being Sold

Revenues / Gross Profit Margin
Revenue(Whole buildings)
売上高（1棟販売）(¥ 百万円million)Revenue(Restyling)
売上高（Restyling)Grossprofit margin
売上総利益率30%

12,04012,00011,09824%

10,000

3,087
6,414

8,000
6,000

5,980

16.2%

18%

14.8%

Meguro Ekimae Tosei Building
12%

10.4%
4,000

3,933

8,010

5,626

Harajuku Mansion

Tosei’s “Value-up” Projects（T’s Garden Sakuradai）

6%

2,000
2,046
0

0%
11.11期
FY2011(￥ million)

Revenue
Gross profit
Operating profit

12.11期
FY2012

13.11期
FY2013

FY2011FY2012FY2013Full-year

Full-year

Full-year

12,040
1,950
1,725

5,980
624
273

BeforeAfter

11,0981,646
1,398*The gross profit is net of Cost of Revenues including the following write-down amounts under LCM:
FY2012: -¥364 mil. FY2013: -¥284 mil.
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6

BeforeAfterDevelopment Business◆Sold 1 office building, 114 condo units (in 5 properties), 78 detached houses (in 10 projects), and land lots etc.
◆Completed the sale of 5 condo projects: “THE Palms Sendagaya”, “THE Palms Shibuya Tokiwamatsu”,
and “THE Palms Nishigahara” etc.
◆ Completed the sale of 6 detached house projects: “Palms Court Kamagaya”, “Palms Court Hatsudai”, and“Palms Court Koishikawa”, etc.

Major Properties Sold

Revenues / Gross Profit Margin(¥ million)

Detached house /戸建・宅地
Land lots

分譲ﾏﾝｼｮﾝ
Condominiums

Officesオフィス

Grossprofit margin
売上総利益率Condominiums (SOLD OUT)

16,347

16000

5,141

50.0% THE Palms Sendagaya*1 and THE Palms

Nishigahara*2 were sold out, receiving recognitions
for modern designs which fully reflect the area’s
40.0% characteristics and advantages in locations.

11,259
11000

30.0%

2,239
5,874

21.5%
6000

1000

5,256
730
2,594

7,307

1,932

1,712

11.5%
5,331

-0.9%
FY2011 -0.9%-0.9%
11.11期
-4000(￥ million)

Revenue
Gross profit
Operating profit

20.0%

THE Palms Sendagaya

FY2012
12.11期

FY201313.11期

FY2011FY2012FY2013Full-year

Full-year

Full-year

5,256
-46
-189

10.0%

11,2592,422
2,197

THE Palms Nishigahara

0.0%*1: Supervised by designer Masahiko Sakamoto *2: Supervised by Koike Design
Detached houses (SOLD OUT)

-10.0%

16,347
1,878
1,447*The gross profit is net of Cost of Revenues including the following write-down amounts under* The revenues include internal transactions.
LCM: FY2011: -¥611 mil. FY2012: - ¥46 mil.
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7

Palms Court Koishikawa

Palms Court
Minamiyukigaya

Acquisitions in Revitalization and Development Businesses -Acquisition Amount and Inventories

 Revitalization Business: 29 properties – 13 office buildings, 13 income-generating apt buildings, 3 land lots
 Development Business: 16 properties - 13 detached house projects, 1 office project, 1 store project, 1 apt project
Trends in Annual Acquisition Amounts*

Breakdown of Inventories (Trends in Expected Disposition Values)(¥
million)35,00031,969Development(D)Revitalization(R)30,000

D

2,410

D

25,000Retail stores
Offices

Detached
housesActively acquiring income-generating offices and apartmentbuildings for the Revitalization Business since last year, in
response to the market recovery.

Apartments

Expected disposition value from the sale of detached houseinventory as of year-end grew to ¥13.2billion, as a result of active
acquisitions of land lots to expand the detached house business.

9,851

20,26320,000D

4,992

Detached
housesDR

1,300

Total acquisition amount for the year ended Nov. 30, 2013 was¥32.0 billion, an increase of 57% from the last full-year’s amountof ¥20 billion.

253(¥ million)

Other

As of the endof FY2011

As of the endof FY2012

As of the endof FY2013

Officebuildings

15,206

18,595

18,497

Condo/Aptbuildings

26,62723,47622,709Detached
houses

3,727

7,701

13,225

Other

1,021

354

393

TOTAL

46,581

50,12754,825

R

13,87515,000

D 3,629

Detached
houses

10,000
D 3,663

5,000

CondosD 3,562

Condos9,576

Incomegenerating
apartments

520
R
R 4,356

Restyling
Incomegenerating
apartments R

Restyling

R

R

5,460

1,122
RFY20112011.11

Incomegenerating
offices

6,817

FY2012

2012.11

Incomegenerating
offices

8,578

Incomegenerating
offices

FY20132013.11* The acquired properties whose deliveries are completed; figures are presented in expected disposition values.

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8

Rental Business Rent income increased as acquisitions of income-generating office and residentialbuildings accelerated.
Breakdown of Properties Held by Tosei

Revenues / Gross Profit Margin(¥ million)

Revenue(Current assets)
売上高(流動資産)

売上高(Restyling)
Revenue(Restyling)

売上高(固定資産等)
Revenue(Non-current assets)

売上総利益率Grossprofit margin

3,000

Office and commercial
buildings:
26
Condominiums:
29
Other:
5

85.0%
2,703

2,582

80.0%

2,510

2,500

75.0%
2,000

1,364

1,086

70.0%
65.0%

1,500

61.8%

60.1%

60.0%

494 59.0%

390

1,000
500

949

929

55.0%

60

50.0%

50

45.0%

0

40.0%
FY2011
11.11期(￥ million)

FY2012
12.11期

FY2011
Full-year

Revenue
Gross profit
Operating profit

FY201313.11期

Full-year
2,582
1,550
1,424

FY2013

FY2012

2,703
1,671
1,590

* The revenue includes internal transactions.

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Restyling
Restyling

Non-current
assets, etc.
固定資産等

60
53

40

35

30

9

20

12

33
8
11

10

14

14

0

Full-year
2,510
1,481
1,340

Current
assets*※1
流動資産(No.
of buildings)
（棟）

38

43

40

45
27

33

13

18

15

20

11

11

11

11

12

12

14

14

14

14

14

15

1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
12.1Q
12.2Q
12.3Q
12.4Q
13.1Q
13.2Q
13.3Q
13.4Q
FY2012 FY2012 FY2012 FY2012 FY2013 FY2013 FY2013 FY2013* Includes income-generating properties only.

Fund and Consulting Business AM increased due to new AM/ CRE contracts (+¥63.6 billion), but decreased due to property
dispositions (-¥126.9 billion).
 Brokerage fees, etc. related to property dispositions contributed to growth in revenue.
Breakdown of Fee Income
AM
fee
AMフィー
Dispositionfee
ディスポジションフィー
Brokerage
fee/ Other
仲介手数料･その他(¥ million)
百万円

1,600
1,400

Balance of Assets Under Management

Acquisitionfee
アクイジションフィー
Incentivefee
インセンティブフィー
Gross
profit margin
売上総利益率

100%

92.3%

92.8%

88.0%

（百万円）
(¥ million)

350,000

1,419

311,335

80%

1,252

300,000

1,200

285,904
264,135

1,000

23,130250,000

799

800

248,028

69,108209,143

46
109

600

40%

267
63

542

200

19

(￥ million)

FY2011

20%

98,679150,000
241,005

0%

FY201313.11期

FY2012Full-year

1,252
1,163
518

16,618381

FY2012
12.11期
Full-year

Revenue
Gross profit
Operating profit

51

450

FY2011
11.11期200,000

173

400

0

85,771

60%

814

575

100,000

216,796

225,564

192,525

149,349

FY201350,000Full-year
799
738
181

1,419
1,248
669

* The revenue includes internal transactions.

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100
09 /11

10/11

11/11

12/11

* The purple portion indicates the assets under consulting agreements.

13/11

Property Management Business Efforts to obtain more PM contracts and higher profit margin led to the segment’s stable income.
 The number of property buildings under management came to 546, after extending services into
property operational supports for schools and hotels, in addition to the existing PM services foroffices and condos.
百万円
5,000

New property Management Contracts

Revenues / Gross Profit Margin(¥ million)

売上高
Revenue50%

Grossprofit margin
売上総利益率

4,000

4,000

40%

3,541

3,500

3,000

30%

2,000

24.0%

23.2%

20%

19.9%
1,000

10%

0

FY2011
11.11期

FY2012
12.11期

0%

FY201313.11期

T’s Garden Koenji

Harajuku Building

FY2011FY2012FY2013Full-year
Full-year
Full-year
Revenue
4,000
3,500
3,541
Gross profit
794
812
850
Operating profit
119
-11
122
(￥ million)

1Q FY2012 2Q FY2012 3Q FY2012 4Q FY2012 1Q FY2013 2Q FY2013 3Q FY2013 4Q FY2013

Office building
management
Condo/Aptmanagement

TOTAL

313

312

308

306

313

324

328

343

209

207

232

216

215

215

204

203

522

519

540

522

528

539

532

546

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11

T’s Garden
Kawasakidaishi

Alternative Investment Business Focused on leasing and dispositions of income-generating properties
 Entered into 10 tie-up deals after promoting business alliance with players relating to realestate business, to seek alternative investment opportunities and growth in the segment earnings.
Tosei Revival Investment Co., Ltd. (“TRI”)

Revenue/Gross Profit Margin◆Revenue and Ordinary Income of TRI
Revenue
売上高（¥ million）
百万円

900

Gross Profit Margin
売上総利益率

100.0%
440

400
180

50.0%
14.2%

23.1%
0.0%

(100)

FY2011
11.11期

FY2012
12.11期-84.3%(600)-100.0%FY2011FY2012FY2013Full-year

Full-year

Full-year

Revenue

180

844

440

Gross profit

-152

119

101

Operating profit

-190

82

73

*The gross profit is net of Cost of Revenues including the following write-down
amounts under LCM: FY2011: -¥250mil. FY2012: - ¥2 mil. FY2013: -¥4 mil.
* The revenue includes internal transactions.

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FY2012FY2013

Revenue

180

1,454

1,286

Ordinary income

-262

147

168

Net profit

-208

259

100

◆Focused Themes

FY201313.11期-50.0%(¥ million)

FY2011150.0%

844（¥ million）

12

Strengthened efforts to gain more real estate M&A
deals―the acquisitions of mortgage-backed loans.
Strived to gain more business tie-up deals to expand
the segment’s business.

Have executed a total 10 deals of business alliance andconsulting contracts with the players relating to the realestate business such as marriage agency, operatingcompany of parking and/or commercial facilities, as wellas building maintenance company during FY2013.

Summary of Balance Sheet (Consolidated) I. - Assets （¥ million）

End of Nov.
2012

Total Assets

Decrease

Increase

End of May
Decrease2013

Increase

65,363-1,426

63,936

7,340

71,276

9,410

3,558

12,9691,742

14,711

Cash and cash
equivalents
Inventories(properties)
Investment
properties/PPE

37,417

16,74013,042

33,718

10,136

14,45938,04015,02775

154

15,105

2,206

3,109

16,008Other assets

3,507-1,365

A：Change in cash and cash equivalents
・ Cash and cash equivalents increased by ¥5.3 billion
from the end of the previous year.
・ Main reasons for the increase were that the proceedsfrom property sales exceeded the payments foracquisitions and also that the Company conductedfund-raising on the SGX.

2,142

373

Full year

End of Nov.
2013

Decrease

5,913

A
B

5,301
26,87727,501

2,281

3,263

2,515

-992

B：Change in inventory
The movements in dispositions and acquisitions made during the year
resulted in the year-on-year increase of ¥620 million.
（¥ million）

Full-year

Acquisitions

20,274

Increase Factor Construction/value up

5,092

Others2,135

Dispositions- 23,835

Decrease Factor Depreciations
OthersTotal

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Increase

13-3,042- 26,877

27,501

Summary of Balance Sheet (Consolidated) II. - Liabilities/Equity （¥ million）

End of Nov.
2012

Decrease

Increase

End of
May 2013

Decrease

Increase

Total Liabilities/Equity

65,363

Borrowings

32,401

18,12016,39230,673

9,247

13,60935,036

Current borrowings

7,742

4,125

5,900

9,517

5,149

3,219

Non-current
borrowings

24,65913,995

10,492

21,156

4,097

10,389Other Liabilities

6,417

-889

5,527

610

6,137

Equity26,543

1,191

27,7352,366

30,102

40.6

2.8

43.4

-1.2

42.2

-1,426

63,936

Full year

End of Nov.
2013

7,340

Decrease

71,276

Increase

5,913
27,36730,002

7,587

9,275

9,120

27,44918,092

20,882A

Equity Ratio (%)

A：Change in borrowings
Current
・As the borrowings to finance property
acquisitions exceeded the repayments ofborrowings by sales, the debt balance increasedby ¥2.6 billion from the end of the previous
year.

・ ¥18.6 billion of new borrowings (LTV: 93%)
incurred to finance acquisitions of
45 properties (book value: ¥20 billion).

Noncurrent

New Borrowings
Non-current→ Current
Increase
Portion
Other (refinance, etc.)
Repayments upon Disposition
Decrease Other repayments (refin/maturity)
Conversion to non-current borrowings
New Borrowings
Increase Other (refinance, etc.)
Conversion to non-current borrowings
Repayments upon Disposition
Decrease Other repayments (refin/maturity)
Non-curernt→ Current Portion
TOTAL

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14

29

-279

B

3,558
1.6

B: Change in Equity

9,091- 6,009-3,254-13
19,0301,840
13- 8,556- 446- 9,091- 27,367

30,002

Total equity increasedby ¥3.5 billion from theend of last year, as aresult of fund-raising on
the SGX, increase inretained earnings, anddividend payments.

Inventories (Breakdown)（¥ million）

Balance of Inventories
As of Nov. 30, 2013

Total Expected
Disposition Value

38,040 (72 38,040
properties)

54,825

Breakdown of Inventories
Inventories
Property type

Expected disposition values

Total expected
disposition
value

Revitalization(incl. Alternative
Investment)

No. ofproperties

Development

No. ofproperties

Revitalization(incl. Alternative
Investment)

Office buildings

12,954

20

1,008

2

16,1082,389

18,497

Condo/Apt buildings

16,42628835

220,6642,044

22,709

-

-

6,504

18

-

13,225

13,225

311

2

-

-

393

-

393

29,691

50

8,348

22

37,165

17,65954,825

Detached houses
Other
TOTAL

Development

Notes: * The expected disposition values above are based on Tosei‘s estimates of revenue corresponding to the properties currently in the inventories. These are calculated using
information available as of November 30, 2013. Actual amounts may vary significantly from the estimates due to various factors.
* The inventories above represent carrying amount as of November 30, 2013 and may increase due to such factors as value-up and construction costs.

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15

Inventories (Expected Disposition Values)（¥ million）

FY2008FY2009FY2010FY2011FY2012FY2013

Officebuildings

60,48731,264

22,251

15,206

18,595

18,497

Condo/Aptbuildings

14,327

12,84430,58926,62723,47622,709Detached
houses

―

―

558

3,727

7,701

13,225

Other

1,672

479

220

1,021

354

393

TOTAL

76,48744,58853,62046,581

50,12754,825

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16

Summary of Cash Flow Statements (Consolidated)（¥ million）

FY2012A
Cash flows from/used in operating activities

FY2013Byr/yr change
B-A-325 *1

2,772

3,097

2,218

3,217

998

180

173

-6

Increase/Decrease in inventories-3,862-1,118

2,744

Other

1,138

500

-613

56

-940

-996

Increase/Decrease in PPE

-25

-11

14

Increase/Decrease in investment
properties

-114

-525

-410

Other

196

-403

-600

1,316 *2
2,323

3,456

2,140

2,636

313

‐

1,825

‐

Cash dividends paid

-227

-273

-45

Interest expenses paid

-778

-729

48

-1

-1

-0

Increase/Decrease in cash and cash
equivalents

1,047

5,288

4,241

Cash and cash equivalent at beginning of the
year

8,361

9,410

1,048

Effect of exchange rate change on cash andcash equivalents

-1

12

11

Cash and cash equivalent at end of the year

9,410

14,711

5,301

Profit before tax
Depreciation expense

Cash flows from/used in investing activities

Cash flows from/used in financing activities
Increase/Decrease in borrowings
Proceeds from issuance of new shares

Other

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17(*1) Cash Flows from Operating

Activities
Cash flow from operating
activities was +¥2.7 billion,
due mainly to ¥3.2 billion of
profit before tax and ¥1.1
billion decrease in inventories.

(*2) Cash Flows from Financing

Activities
Cash flow from financing
activities was +¥3.4 billion,
due primarily to ¥2.6 billionof net increase in borrowings,¥1.8 billion of proceeds fromissuance of new shares, ¥270
million of dividend payments,and ¥720 million of interest
expenses paid.

Overview of Segment Results (Consolidated)
I. Revenue and Cost of Revenue（¥ million, %）Revenue
TOTAL
Revitalization
Development
RentalFund and Consulting
Property Management
Alternative Investment
Internal transactions

Cost of revenue
TOTAL
Revitalization
Development
RentalFund and Consulting
Property Management
Alternative Investment
Internal transactions

FY2012FY2013%24,195
5,980
11,259
2,510
799
3,500
844
-698

100.0
24.7
46.5
10.4
3.3
14.5
3.5
-

FY2012%35,07011,09816,347
2,703
1,419
3,541
440
-481

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

100.0
31.6
46.6
7.7
4.0
10.1
1.3
-

FY2013%18,081
5,355
8,837
1,028
61
2,687
724
-613

yr/yr change

74.7
89.6
78.5
41.0
7.7
76.8
85.8
18

%

10,874
5,117
5,088
193
620
41
-403
217

yr/yr change%

27,7599,451
14,468
1,032
170
2,691
338
-394

44.9
85.6
45.2
7.7
77.5
1.2
-47.9
-

79.2
85.2
88.5
38.2
12.0
76.0
76.9
-

%

9,677
4,095
5,631
3
109
3
-385
218

53.5
76.5
63.7
0.4
177.1
0.1
-53.3
-

Overview of Segment Results (Consolidated)
II. Gross Profit and Operating Profit%）（¥ million,資料編

Gross profit
TOTAL
Revitalization
Development
RentalFund and Consulting
Property Management
Alternative Investment
Internal transactions

Operating profit
TOTAL
Revitalization
Development
RentalFund and Consulting
Property Management
Alternative Investment
Corporate expenses, etc.

FY2012FY2013
%

6,113
624
2,422
1,481
738
812
119
-84

25.3
10.4
21.5
59.0
92.3
23.2
14.2
-

FY2012

%

7,311
1,646
1,878
1,671
1,248
850
101
-86

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20.8
14.8
11.5
61.8
88.0
24.0
23.1
-

FY2013
%

2,856
273
2,197
1,340
181
-11
82
-1,207yr/yr change

11.8
4.6
19.5
53.4
22.7
-0.3
9.8
19

%

1,197
1,022
-543
189
510
37
-18
-1

yr/yr change
%

3,909
1,398
1,447
1,590
669
122
73
-1,392

19.6
163.6
-22.4
12.8
69.2
4.6
-15.1
-

11.1
12.6
8.9
58.8
47.2
3.5
16.6
-

%

1,052
1,125
-750
250
488
133
-9
-184

36.9
411.6
-34.1
18.7
268.7
-11.3
-

II. Tosei’s View of the Operating Environment
and Business Development for FY2014

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20

Forecasts for FY2014 - Revenue/Profit Summary （¥ million）

Operating Profit

5,000

Revenue

4,618
3,909

4,000
（¥ million）（百万円）

45,000

2,856

3,000

41,8172,282

40,0002,000

35,07035,0001,000
030,000FY2011
2011年11月期

25,00024,76024,195FY2012
2012年11月期

FY20132013年11月期

FY20142014年11月期(Forecast)(予想）

million）（¥ （百万円）

Profit for the year

3,000

20,0002,309
15,000

2,003

2,000
1,465

10,000
1,000

5,000
0

2011年11月期
2012年11月期
2013年11月期
2014年11月期
FY2011FY2012FY2013
FY2014(予想）(Forecast)
Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

21

740

0

2011年11月期
FY2011

2012年11月期
FY2012

2013年11月期
FY20132014年11月期
FY2014(Forecast)(予想）

Forecasts for FY2014 - Segment Summary （¥ million）

FY2013A

FY2012%

Revenue
Revitalization
Development
RentalFund and Consulting
Property Management
Alternative Investment
Internal transactions
Gross profit
Revitalization
Development
RentalFund and Consulting
Property Management
Alternative Investment
Corporate expenses, etc.
Operating profit
Revitalization
Development
RentalFund and Consulting
Property Management
Alternative Investment
Corporate expenses, etc.
Finance income/costs (net)Profit before tax
Income tax expenses
Profit for the period/year

24,195 100.0
5,980 24.7
11,259 46.5
2,510 10.4799
3.3
3,500 14.5
844
3.5
-698
6,113 25.3
624 10.4
2,422 21.5
1,481 59.0
738 92.3
812 23.2
119 14.2-842,856 11.8273
4.6
2,197 19.5
1,340 53.4
181 22.7
-11
-0.3
82
9.8
-1,207
-638
2,218
9.2
753
1,465
6.1

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FY2014B%

35,070 100.0
11,098 31.6
16,347 46.6
2,703
7.7
1,419
4.0
3,541 10.1
440
1.3
-481
7,311 20.8
1,646 14.8
1,878 11.5
1,671 61.8
1,248 88.0
850 24.0
101 23.1-86
3,909 11.1
1,398 12.6
1,447
8.9
1,590 58.8
669 47.2
122
3.5
73 16.6-1,392
-692
3,217
9.2
1,213
2,003
5.7

22

Projection
as of Jan. 14

yr/yr change
B-A%

41,817 100.0
26,611 63.6
7,419 17.7
3,274
7.8
1,092
2.6
3,750
9.0
204
0.5
-535
9,831 23.5
4,539 * 17.1
1,287 * 17.4
2,028 61.9
1,021 93.5
909 24.2
122 60.2-78
4,618 11.0
3,216 12.1493
6.7
1,953 59.6
305 28.0
156
4.2
59 28.9-1,566
-818
3,800
9.1
1,491
2,309
5.5

%

6,747
15,513-8,928
571
-327
208
-235
-54
2,520
2,892
-591
357
-227
59
21
8
708
1,818
-953
362
-364
34
-13
-174
-125
583
277
305

19.2
139.8
-54.6
21.1
-23.1
5.9
-53.6
34.5
175.7
-31.5
21.4
-18.2
7.0
21.0
18.1
130.0
-65.9
22.8
-54.4
27.9
-19.1
18.2
18.1
22.8
15.3

* Gross profit s of
Revitalization andDevelopment Businesses
The sales expenses relating to
the Revitalization andDevelopment Businesses
which used to be included incost of revenues will becharged to SG&A expenses
from FY2014.

: Gross profit margin/
Operating margin

Midterm Management Plan Next Stage 2014
- Base Policies/Core Strategies Basic Policies
I.

Expansion and Growthin 6 Existing Businesses

Strengthen three main business lines of Revitalization, Development
and Fund & Consulting.

II. Entry into Global Fields

Establish an operating base and add overseas business to our businessportfolio.

III. Innovation of Management Infrastructure

Build up an organization and infrastructures suitable for developing
human resources and executing the strategies.

Core Strategies and Focused Topics
Challenge to expand the business, leveraging on the three main business lines of the Group’s growth drivers.

Strategy 1

Strategy 2

ExpandProduct Linesfor End-users

Study
Possibility to
ResumeInvestment
MarketProducts
Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

Strategy 3

Expedite
Overseas
Development

23Capping Off the Next Stage 2014 Medium-term Management Plan -Performance-

Achievements after 2nd of 3rd Years in Next Stage 2014
◆ Revenues from end-user targeted businesses increased by 1.5 times over two years.
◆ Sales of products for investment market and investments in such market increased rapidly backed by themarket recovery after Fall 2012.

FY2012 – FY2013

End of Nov. 2011
(Final Year of Previous Medium-termManagement Plan)- Strategy (1) Expansion of
product lines for
end-users(Achievements in First 2 Years of Medium-term Management Plan)Revenue (Total sale for residential properties)¥9.7B
Condominiums and detached houses- Condominiums
65 units sold in 2 properties- Detached houses
12 houses sold in 3 projects
Restyling- 204 units sold in 13 properties

Revenue (Total sale for residential properties)
FY2012: ¥13.4B FY2013: ¥14.1B
Condominiums and detached houses- Condominiums
268 units sold in 7 properties(FY2012: 154 FY2013: 114)
- Detached houses
102 houses sold in 11 projects(FY2012: 24 FY2013: 78)
Restyling- 195 units sold in 12 properties (FY2012: 106 FY2013: 89 units)- Strategy (2) Explore
opportunities toresumeinvestments in
products forinvestment market- Strategy (3) Global expansion

 Revenue(Total sale for income-generating properties)¥5.6B

 Revenue (Total sale for income-generating properties)
FY2012: ¥3.7B FY2013: ¥13.3B
 Whole-building transactions

 Whole-building transactions[Sale] Total 11 of income-generating office andresidential buildings[Acquisition] 1 income-generating office building Explore expansion opportunity into Asia
- Preparation for establishment of local
subsidiary in Singapore- Observation of the Asian market, etc.

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

[Sold] 17 income-generating office and residential buildings(FY2012: 5 FY2013: 12)
2 office buildings developed by Tosei (FY2012: 1 FY2013: 1)[Acquired] 46 income-generating office and residential buildings(FY2012: 17 FY2013: 29)
 Implementation of global expansion- Tosei Singapore local subsidiary: First posting of overseas
assignment- NAI Tosei Japan: Real estate investment tour toTaiwan- Listing on the SGX

24

Capping Off the Next Stage 2014 Medium-term Management Plan - Final Year
Efforts for FY2014◆ Concentrate on development of enduser-targeted products, especially detached houses, while carefully monitoring
the impact of rising construction costs and consumption tax.
◆ Develop product plans matching the local characteristics and customer needs of both suburban to urban areas.

Overview of the Market in 2014
Construction costs
Rising labor costs have particularly caused arise in condominium construction costs- Strategy (1) Expansion of
product lines
for end-users

Newly-built condo market in the greater Tokyoarea
The supply in 2013 is expected to be 56,000 units(45,000 units in the previous year)
Detached house market in the greater Tokyoarea
The number of housing starts in 2013 was higher
than the same period last year. (52,161 houses)

Palms Court Akabane

Palms Court Hatsudai
Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

25

Missions for FY2014
Promote acquisitions of land lots
for condominium and detachedhouse developments.
Expand detached house line-ups
to include large-scale suburban
developments and three-story
urban houses.

Palms Court Koishikawa

Capping Off the Next Stage 2014 Medium-term Management Plan - Final Year

Efforts for FY2014◆ Promote the acquisitions and refurbishment of medium to large sized income-generating properties, to beable to respond to any kind of exit strategies.
◆ Utilize overseas infrastructure to attract offshore money to investment in Japanese real estate.

Overview of the Market in 2014

- Strategy (2) Explore
opportunities
to resumeinvestments in
products forinvestment
market- Strategy (3) Global
expansion

Missions for FY2014

Abenomics- The recovery of the real estate market has become
clearer with improved economic sentiment
Real estate transactions by listed companies- Major contributors are acquisitions by J-REITs andforeign investors.
- The value of transactions in the first half of 2013 was¥1,954.0 billion.
(Pre-financial crisis level)
Property acquisitions by J-REITs- The amount of properties acquired by J-REITs in 2013
as of the end of Nov. 2013 reached ¥2 trillion, doubling
the cumulative total of 2012 (¥1 trillion).

Promote acquisitions of income-generating
properties located near train stations insuburban areas.
(Precedence: Shimousa-Nakayama andChigasaki buildings)

 Recommencement of investment in Japanese real estate byoverseas investors- With the anticipation of Abenomics, Jananese real estate ishighly rated in comparison with global real estate markets,and there has been active investments in the market.
(Stable NOI, high yield gap, weak yen)

Utilization and monetization of global
infrastructure(Local subsidiary in Singapore, NAI Tosei)

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26

Acquire seed properties aiming to set up new
funds, and seek opportunity to originate preREITs.
Conduct Value-up activities, which isrefurbishment of pre-owned properties, in astandardized manner.
Conduct marketing for our investment in
logistics real estate.

Attract high-net-worth individuals to drive
their property purchase.
Solicit overseas investors in an effort toprovide consultancy services and set up new
funds.

FY2014 Mission I - Expanding Acquisitions(i) Annual Acquisition Target for FY2014◆ Secure the revenue source for further growth leading to the next medium-term management plan.
◆ Promote of acquisitions of medium to large sized properties with an eye to further expanding options of exit
strategy, such as selling to J-REITs that are performing strong.
◆ Strive to achieve goals , leveraging on our strengths of abundant information, negotiation transactions, andvarious exit strategies.

FY2013
Approx. ¥32 billion(Expected revenue)

FY2014
Approx. ¥50 billion(Expected revenue)

Land for development, etc.
Approx. ¥20 billion[Asset Size]・Above 2-billion-yen offices and condos
・Above 100-million-yen detached houseprojects

Development
Business
Approx. ¥12 billion

Revitalization
Business
Approx. ¥20
billionMedium-term

Have expanded
1.5 times
Pre-owned income-generating
properties
Approx. ¥30 billion[Asset Size]
Income-generating office and condo
buildings at 500 million to 1 billion
yen as well as at 2 billion to 5 billion
yen

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27

Shortterm/
A partlongterm- Strengthen detached housebusiness- Resume officedevelopment- Eye on developmental realestate funds- Improve of inventory turnoverratio- Obtain seed properties for funds
and pre-REITs.
- Commence logistics marketing- Hold quality assets(Enhance stock business)

FY2014 Mission I - Expandeing Purchases(ii) Balance Sheet Simulation◆ Concentrate on the sale of inventories, while striving to achieve FY2014 acquisition target of ¥50 billion(expected revenue), and accelerate investments until the equity ratio gets to the 30% range.
◆ In the medium to long term, expand acquisitions with a view to increase the total assets to ¥100 billion.

(¥100 million)
億円

Borrowings
Cash and cash equivalents
Non-current assets

Other liabilities
CapitalInventories
Other assets(¥100 million)

億円

50% 1,200

1,200
1,100

Expected revenue: ¥54.8B

1,000(Equivalent to 144% of
inventories)* See page15.

900
800

712

700
600

147

500

400

42.2%

61

45% 1,100
1,000
40%
900
35%
800
30% 700

380

10%

100
-

160
25

301

As of Nov. 30, 20135%0%50%1,200
45%1,100(Equivalent to 144% of
inventories)

37.1%

868
26
177

40%
35%

503

300
10%

200

322

160
28

-

Forecast for FY2014(Basic plan)

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

900

28

50%
45%

1,000
26
177

40%
32.2%

800

25% 600
20% 500
15%

100

1,000

(Equivalent to 144% of
inventories)

35%
30%

30% 700520

20% 500
15% 400

300

億円(¥100 million)

Expected revenue: ¥72.4B

25% 600
350

200

Expected revenue: ¥91.4B

652

635

400

25%

20%
15%

300
200

5%

100

0%

-

10%
322
160
28
Forecast for FY2014(Aggressive plan)

5%0%FY2014 Mission II - Strategy Targeting End-users(i) Expansion of development lineups
Planning and development of long-life houses[THE Palms Court Hakuraku, 16 houses scheduled to be completed in Spring 2014]
Families (at the purchase)

A family-friendly
plan with lots ofstorage

Wheelchair-friendly(supporting care receivers/providers)

Elderly households (after children have left home)

Reducing theburden of stairs
with a mild slope

Expansion of space
through removal ofpartitions

Removal of partitions

Installation of elevator in
multi-purpose closet

Multi-purpose closet

Adopted “10 design codes required for the long-life houses”.

Changing doors to
sliding doors

Elevator

The multi-purpose closet useful for families raising children andelderly households can be modified into a space for installing anelevator when care became required (e.g. , to support easy-accessby wheelchair, etc.).

- Alterable partitions- Maintaining space to install a wheelchair-accessible elevator- Wheelchair-accessible athroom, etc.

Sky balcony―Value creation for detached houses [Palms Court Setagaya Okamoto, 40 houses currently for sale]

Palms Court Setagaya Okamoto offers aplan of effectively utilizing the roof as a
Vaulted ceilingsky balcony.

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

29

FY2014 Mission II - Strategy Targeting End-users(ii) Large-scale Development and Varied Planning Tosei’s largest town development[96 houses in a large-scale site in Kashiwa-shi, Chiba are scheduled to be completed after Fall 2014]
The project is planned based on the theme "a town forming a rich lifestyle surrounded by greenery“.
The townscape is filled with bright plants and flowers that display the change of each season. Cul-de-sacs are placedaround the curved road in the center of the site, and plots and landscaping are designed with the concept to bring out thebest of the characteristics of each area .

Overall Plan

Street Garden
Harmonized with theexisting street because thearea faces an existing street.

Existing park

Private Garden
Centered around cul-de-sacs(dead-end streets), toprovide a sense of security.

Cluster Garden
Provides a sense of unity
through a continuous garden
with fan-shaped placementof houses.

Gate Garden
Characterized by the lowrise wall, like the one seen incastles. The area is extended
straightly from the entrance
and provides a spacious
atmosphere.

* The number of plots, buildings and shape of theroads in the above plan are subject to change.

Court GardenCommon Garden

Provides a sense of comfort by
installing courtyards at every 3-4
houses for even higher privacy.

Used as a common space formedby the random placement ofhouses.

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

30

FY2014 Mission II - Strategy Targeting End-users
Curved Road and Site Layout- A curved road enriches the townscape, and the residents can enjoy pleasing sceneries from different angles as
they progress.

- Whole appearance of the houses is captured by the area’s layout in which houses are facing the main street.
Such layout gives ample space between the houses.
Rules on the relationship between
buildings and plots of land
How buildings are seen and shown+

Relationshipbetween a building
and the range ofview

The entire building canbe seen when D/H≒2
is exceeded, making
the appearance of thefront important.

Trees along the street are very distinctive when
the street image is D/H=2 or more.

- Open landscape provides the beauty of theseasons- Selection of trees with beautiful colors andshapes- Random placement of low-rise trees andplants highlights the change of seasons

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

=

D≒ Approx. 12m

Front
gardenPlanting Design of Trees and Flowers

An entire building can be seen from double thedistance (D1) of the building's height (H1).

31With this site layout,
attractive shapes and detailsof the houses can be enjoyedfrom various angles.

Townscape highlighting the seasons

FY2014 Mission III - Expansion of Fund Business

Investment in Private Placement Funds and Undertaking Asset Management◆ Obtain new asset/building management contracts through strategic equity investments. The target AUM
balance in 2014 is ¥298.2 billion, up 20% from the previous year.
◆ Build up stronger relationship of trust with investors in both Japan and overseas, in an effort to set up new
funds.

■ Investment in private placement funds and undertaking of asset managementby Tosei Asset Advisors (TAA) (September 2013)
Made a partial investment in a fund acquiring three residential properties in Tokyo,
Osaka and Nagoya jointly with institutional investors, and TAA undertook asset
management of such properties.

■ Investment in logistics real estate fund (October 2013)
Made a partial investment in a SPC acquiring six logistics properties in Kanagawa,Chiba, and Osaka, with a total value of ¥74 billion. Future undertaking ofproperty/building management contracts is considered.

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

32

Property acquired by
the fundFY2014 Mission III - Expansion of Fund Business
Setting Up a New Fund
◆ TAA was selected as the fund manager of the first fund (government-private sector fund*1) in the businesspromoting earthquake-resistant and environmentally-friendly real estate operated by Real Estate
Sustainability & Energy-Efficiency Diffusion (RE-SEED).
◆ RE-SEED, TAA and Tosei together formed an investment limited partnership and invested in a SPC (NewFund) conducting renovations for improved energy efficiency of buildings.
*1： Government-private sector fund is a term used by Tosei.

[Eco activities by the Tosei Group]

Scheme of the first for promoting earthquake-resistant andenvironmentally-friendly real estate “Tosei Group Eco Declaration” made in 2009.
 Concentrated efforts on renovation and development ofenvironmentally-friendly real estate, such as installation ofrooftop gardens and obtaining A rank certification in
CASBEE, a rating system for environmentally-friendly officebuildings.

Corporation forming the fund (Real Estate Sustainability & Energy-Efficiency Diffusion)
Public offering

National
government

 Tosei Group was able to participate in the New Fund as its
operation scheme fully reflecting its proven performance andexpertise matched the business concept of RE-SEED.
What is the “business promoting earthquake-resistant andenvironmentally-friendly real estate”?

 It is a project implemented by the Ministry of Land,
Infrastructure, Transport and Tourism and the Ministry of
the Environment.

Fund supporting earthquake-resistant andenvironmentally-friendly real estate

Public funding

Dividends

Fund manager: Tosei
Asset Advisors

LP investment

GP investment
Limited partnership for investment(LPS)

Sponsor: Tosei
LP investment

 The government intends to utilize the funds and expertiseof private companies by supplying risk-free money tostimulate their investments in the aged/ unoccupied
properties in the market, in an effort to promote thecreation of real estate with quake-resistant and energyefficient functions.

Dividends, etc.

Investment[SPC]
Renovation business for improved energy
efficiency of buildings

 The objectives are to contribute to theregeneration/vitalization of the local areas and to promote
community development and global warming
countermeasure.

FinanceFinancial
institutions

InvestInvestors(Source: Press release by the Ministry of Land, Infrastructure, Transport and Tourism and the Ministry of the Environment dated December 20, 2013)

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

33

FY2014 Mission Ⅳ–
Renovation of Management Infrastructure and Reorganization

Strengthening Asset Solution Departments◆ Reorganize business divisions to cap off the “Innovation of Management Infrastructure“, which is thebasic policy under the medium-term management plan, for more mobilized business activities and further
growth of the Group.
◆ Complete the establishment of overseas infrastructure for global expansion.
■ Reorganization of business departments■ Completion of establishment of global infrastructure

Reorganize the pre-existing four departments into four businessdivisions by establishing eight AS departments.
With this reorganization, seven people were promoted to new
general manager positions.
Work to achieve both sales and acquisition targets, bypromoting young members and mobilizing the organization.
Asset Solution
Department 1

Asset Solution
Department 2

Business Division

Asset Solution
Department 3

Asset Solution
Department 4

AS 1

池袋センター
Ikebukuro
CenterCompleted the establishment of infrastructure, the basis
for the globalization of our businesses.

January 2012
Establishment of Tosei Singapore Pte. Ltd., the local
subsidiary- A staff was sent in October 2013 to commence marketing
activities in Singapore.

AS 2

AS 4

December 2012
Establishment of NAI Tosei Japan, Inc.

AS 5

- Real estate tour was held for Taiwanese investors to develop a
Taiwan route for the Group’s brokering and consulting businesses.

AS 3

吉祥寺センター
Kichijouji
CenterAS 6

March 2013
Listing on main board of the SGX

AS 7- Adoption of IFRS (International Financial Reporting Standards)
upon listing

AS 8

Asset Solution Business
Promotion Department

July 2013
Commencement of trading of shares on the SGX

Architecture Planning
Department

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

34

Stock Split, Adoption of Unit Share System, and Trends in Dividends
Summary of Stock Split and Adoption of Unit Share System （Announced on June 5, 2013）
Effective July 1, 2013, Monday, the Company conducted 100 for 1 stock split for those common shares held by shareholders whosenames are recorded in the latest Registry of Shareholders of the same day. The number of shares increased as a result of the stock
split is as follows:
Increase in the Number of Shares due to Stock Split
1. Total number of issued shares prior to the stock split

456,840 shares

2. Increase in shares due to the subject stock split

45,227,160 shares

3. Total number of issued shares after the stock split*45,684,000 shares

4. Total number of authorized shares prior to the stock split

1,500,000 shares

5. Total number of authorized shares after the stock split

150,000,000 shares

Effective July 1, 2013, Monday, the Company has adopted the unit share system. One unit of shares has become 100 shares.
Simultaneously, the share-trading unit has also been changed to 100 shares on the Tokyo Stock Exchange as well as on the
Singapore Exchange, effective June 26, 2013.
Note: The Company issued 2,600,000 shares of its common stock on the Singapore Exchange on July 26, 2013. Consequently, thetotal number of issued shares as of November 30, 2013 was 48,284,000.

Trends in Annual Dividends
Annual Dividends
FY2010

Dividend per share (¥)

500.00FY2011500.00FY2012600.00FY2013(Scheduled)

8.00

FY2014(Forecast as ofJan. 14, 2014)

10.00* The dividend per share up until FY2012 is presented based on the pre-stock split figures.
Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

35

[Reference Materials]
I．Introduction of Tosei
1. Tosei Group Overview

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

36

Group Overview
Company name
Address

As of Nov. 30, 2013

TOSEI CORPORATION
4-2-3 Toranomon, Minato-ku, Tokyo

Date establishedFebruary 2, 1950

Paid-in capital¥6,421,390 thousand

Representative

Seiichiro Yamaguchi, President and CEO

Fiscal year-end

November 30

Stock listing

Tokyo Stock Exchange, First Section (8923)

Singapore Exchange, Mainboard (S2D)

Total outstanding shares 48,284,000 shares
Number of shareholders 8,984
Shareholder composition ・Individuals/Other
・Financial institutions
・ Foreign companies
・ Other companies
・Securities companies

Share status

Employees
Main affiliatedcompanies

48.82%
20.55%
13.87%
13.36%
3.40%(23,571,688 shares)(9,921,500 shares)(6,697,993 shares)(6,452,600 shares)(1,640,219 shares)

120 (Non-consolidated) 227 (Consolidated)
Tosei Community Co., Ltd.
Tosei Revival Investment Co., Ltd.
Tosei Asset Advisors, Inc.

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

37

Tosei Singapore Pte. Ltd.
NAI Tosei Japan, Inc.

History
History
1950: Established Yukari Kogyo Co., Ltd, the predecessor of Tosei Corporation
1983: Changed the company name to Tosei Building Co., Ltd.
1994: Mr. Seiichiro Yamaguchi assumed the role of President and CEO.
Changed its name to current“Tosei Corporation”

Revenues(¥ million)

Relocated its head office
to Toranomon

55,000Listed on Tokyo Stock
Exchange Second Section

50,00045,000Conducted
real estate M&A
through LBO

40,00035,000

Launched Began
不動産流動化
Revitalization
business
不動産流動化30,00025,000Changedits name to
東誠不動産㈱東誠不動産㈱“Tosei
Fudosan”
に商号変更
に商号変更

20,00015,00010,000Began developing
分譲マンション
Begandeveloping
分譲マンション
condominiums
事業開始
condominiums
事業開始

Registered for Real Estate
Investment Consulting

Began developing
detached houses

Established TRI.*1
Acquired 100% ownership of
TC.*2
１
TRI
32
Established TAA*TC
3

Began developing office andcommercialBeganbuildings

Listed on
JASDAQ

Registered for
Financial Instruments Business Registration; Type II
Investment Management Business; Investment
Advisor and Agency Business
Introduced commercial building
T’s BRIGHTIA
Brand T’s BRIGHTIA

Launched
Restyling business

Listed on Singapore
Exchange

Listed on Tokyo Stock
Exchange, First Section
Established
Tosei
Singapore*4
NAI Tosei *5

Set upprivate
私募ファンド
私募ファンドplacement
fund
を設立
を設立

5,000
0
1994 95年
1995 96年
1996 97年
1997 98年
1998 99年
1999 00年
2000 01年
2001 02年
2002 03年
2003 04年
2004 05年
2005 06年
2006 07年
2007 08年
2008 09年
2009 10年2010 11年
2011 12年
2012 13年2013 14年
2014
94年
Notes: 1. TRI: Tosei Revival Investment Co., Ltd.
2. TC: Tosei Community Co., Ltd.
3. TAA: Tosei Asset Advisors, Inc. (Name changed from Tosei REIT Advisors, Inc. in April 2008)
4. Tosei Singapore: Tosei Singapore Pte. Ltd.
5. NAI Tosei: NAI Tosei Japan, Inc.

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

38

Transaction Overview -Breakdown by Property Size (Revenue)Breakdown by Property Size
Revenue(¥ million)

Less than ￥1 billion￥1-2 billion

Above ￥2 billion

30,00025,000In FY2013, in addition to the properties under¥1 billion whose demand was relatively firm, Tosei
also sold properties above ¥2 billion, on the backof the recovery in real estate market.

8,401
2.0 properties

20,00015,0006,987
3.4 properties

10,0005,532
2.6 properties

5,000

2,519
0.3 properties
8,016
5.7 properties

4,992
0.8 properties

6,597
5.0 properties

4,843
2.0 properties

7,312
14.8 properties

6,761
17.1 properties

7,512
12.6 properties

FY2010FY2011FY2012*Reason for fractional number of property:
The condominium buildings and detached houses are counted as eachproject being one property. However, for those that were sold over two or
more periods, we counted fractional unit for each period in proportion to therevenue recorded during such period.

12,44621.9 properties

0

FY2010FY2013

FY2011FY2012FY2013
Investories* as of
Nov. 30, 2013

Revenue(￥million)# ofproperties

Revenue(￥million)# ofproperties

Revenue(￥million)# ofproperties

Revenue(￥million)# ofproperties

Above ￥2 billion

6,987

3.4

2,519

0.3

4,992

0.8

8,401

2.0

1.0

￥1-2 billion

5,532

2.6

8,016

5.7

4,843

2.0

6,597

5.0

7.0

Less than ￥1 billion

7,312

14.8

6,761

17.1

7,512

12.6

12,446

21.9

64.0

TOTAL

19,832

20.8

17,29723.1

17,34815.4

27,44528.9

72.0*The number of properties in inventories

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

39

Asset Breakdown - Inventories as of Nov. 30, 2013 and properties soldProperties Sold

Properties Held in Inventories


Most of them are located in Tokyo’s 23 wards.

In FY2013, we mainly sold condominiums and detachedhouses including those in Restyling business (“Restylingproperties”).

The total number of properties in inventory as of Nov.
30, 2013 was 72, of which, 54 properties (about 75.0 %)are located in the 23 wards of Tokyo.

8.3%

The main focus was on residential properties.

* Condominiums, detached houses, and Restyling properties are counted as 1unit
per property.

11.1%

16.3% 14.0%

5.6%
Tokyo 23
wards
23区内

Offices / Commercial
オフィス・商業
Condos/ Apts
マンション

75.0%

都下
Outskirts
of Tokyo

23.3%

46.5%

Detached
戸建 houses

神奈川
Kanagawa
Other 他府県

Other
その他

Property TypeNo. ofProperties

75.0%
5.6%

Offices / Commercial
Condos/Apts

6
20

14.0%
46.5%

6
8

8.3%
11.1%

Detached Houses
Other

10
7

23.3%
16.3%

72

100.0%

Total

43

100.0%

Property TypeNo. ofProperties

Tokyo's 23 wards
Outskirts of Tokyo

54
4

Kanagawa
Other
Total

%

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

40%[Reference Material]
II. Real Estate Market Conditions

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.
41

41Market Size for Revitalization Business (23 wards)

Office Buildings in Stock*1
No. of Buildings:

56,396
Market Size for Revitalization Business

Gross Floor Area:

32.53 million tsubo(107.3 million m2)

No. of Buildings:

Gross Floor Area*5 : Approx. 53.71 million tsubo

Apartment Buildings in Stock*2
No. of Buildings *3 :Approx. 125,000(177.24 million m2)

68,454(1 million units*4)

Gross Floor Area*5:* Tokyo’s 23 wards continue to be by far
the largest for revitalization business.

21.18 million tsubo(69.89 million m2)

The number of properties and the gross floor area of “Offices, shops, and department stores” included under the “Non-wooden properties” as of Jan. 1, 2011, which has
been disclosed by the Tokyo Metropolitan Government Bureau of Taxation.
*2 Refers to apartments and rental condominiums located in the 23 wards of Tokyo, and does not include those for sales purposes.
*3 Sourced from “Results of condominium survey” (as of Aug. 1, 2011) disclosed by the Tokyo Metropolitan Government Bureau of Urban Development in March 2012.
*4 Estimated based on the “Results of condominium survey” disclosed in March 2012.
*5 Estimated based on the “Results of condominium survey 2009” disclosed by the Tokyo Metropolitan Government Bureau of Urban Development.
*1

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

42

Real Estate Transactions by Listed Companies(No. of Transactions)

（件）
1,800

The Number
and Amount of Real Estate Transactions
不動産の取引件数・取引額の推移(¥
100 million)（億円）

60,000

Second half
取引額下期50,000

1,600

First
half
取引額上期

1,340

No. of Transactions

取引件数

1,400
1,199

1,155

40,00032,359846

30,000859

22,327

23,903

676

648

594

502

524

20,00016,019 11,070

11,63017,309

9,491

6,773

800

673
580

513
18,11318,901
9,255

1,000
810

18,181

10,000
8,782

1,200

FY2005 –FY2007 1H
Avg. transaction value:¥20,047 billion

19,586

8,098

23,051

11,981

8,043

10,745
5,533

400

9,831

11,115600

19,540
8,568

7,394

200

8,472

0

0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
(1st-half)
（上期）

2000年
2010 2010年
2013 2013年
2008 2008年
2003 2003年
2007 2007年
2001 2002年
2006 2006年
2012 2012年
2000 2001年
2011 2011年
2005 2005年
2004 2004年
2009 2009年
2014
（上期）
(1st-half)
Totalamount 24,801 20,325 21,121 24,082 26,279 41,228 43,489 55,410 18,788 16,648 20,549 17,225 26,585
取引額
19,540# 取引件数of Properties
594
524
648
846
859
1,155
1,340
1,199
502
513
676
673
810
580
Avg.
Value
平均単価
41.8
38.8
32.6
28.5
30.6
35.7
32.5
46.2
37.4
32.5
30.4
25.6
32.8
33.7
Source: Urban Research Institute Corporation

The number of transactions in the first half of FY2013 totaled 580, amounting to ¥1,954 billion.
Largely contributed by domestic real estate funds and increase in property acquisitions by foreign investors,
the real estate transaction amount came close to ¥2,004.7 billion, the first-half average of 2005 – 2007,
which is the pre-Lehman Crisis era.
Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

43

Acquisitions by J-REIT(¥ 100 million)（億円）

Acquisitions by J-REITs
J-REITにおける物件取得額推移

9,000
7,999

8,000
7,000
6,000

5,454
4,945

5,000

4,451

4,000
2,889

3,000
2,000

2,033 2,013

1,404
1,084

1,000

2,507

2,294

2,259

826
521

954

1,741

1,189
803

734

36

0
2009年Apr.-Jun. Jul.-Sep. Oct.-Dec. 2010年
Jan.-Mar.
Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. 2011年
Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. 2012年
Jan.-Mar. Apr.-Jun. Jul.-Sep. Oct.-Dec. 2013年
Jan.- Mar. Apr.-Jun. Jul.-Sep. Oct.-Nov.
1~3月 4~6月 7~9月 10~12月 1~3月 4~6月 7~9月 10~12月 1~3月 4~6月 7~9月 10~12月 1~3月 4~6月 7~9月 10~12月 1~3月 4~6月 7~9月 10,11月

Source：ARES

The acquisitions by J-REITs increased as there were active IPOs and additional equity funding, supportedby the improved financing environment. The acquisitions by J-REITs during FY2013 doubled that of theprevious year (¥1,027 billion), reaching ¥2,090.6 billion as of Nov. 30, 2013.

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

44Market Size for Real Estate Fund BusinessChange in the Market Size of Private Placement Fund and J-REIT(¥ trillion)

18.0

15.8

16.0

14.9
J-REIT

14.0

13.7

Private funds

13.6

14.0

14.7 14.7

14.8

15.3

13.8

15.0

12.0

10.4

10.0
10.0
8.0

6.7

4.0

4.4 4.5

7.4

7.4

7.5

7.6

7.8

7.8

Jun.
2009

Dec.
2009

Jun.
2010

Dec.
2010

8.7

9.0

6.1 6.1

5.5

6.0

6.8

8.3

8.0

5.4

3.4

2.0
0.0
Dec.
2005

Jun.
2006

Dec.
2006

Jun.
2007

Dec.
2007

Jun.
2008

Dec.
2008

Jun.
2011

Dec.
2011

Jun.
2012

Dec.
2012

Jul.
2013

Source: Sumitomo Mitsui Trust Research Institute

The market size of private placement funds as of June 30, 2013 totaled ¥16.7 trillion*, including ¥15.0 trillion
of private real estate funds shown in the above chart and ¥1.7 trillion* allocated to domestic real estate in
the global funds. Adding the J-REIT’s ¥10.4 trillion to this figure, overall real estate fund market stood at¥27.1 trillion. The existing funds had once been active in disposing their assets on the back of spurredtransactions driven by the uptick in real estate trading market. However, with the contribution of newlylaunched funds, the overall market size has been larger than the previous year’s ¥26.5 trillion.
* The figures are not provided in the above chart.
Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

45

CMBS Offering
CMBS Issuance
ＣＭＢＳ新規発行額の推移
22,500(¥ 100 million)

非公表
国内一般事業会社
Domestic
general companies
Domestic
non-banks
国内ノンバンク
Domesticbanks/securities firms
国内銀行・証券
Foreignnon-banks
外国ノンバンク
Foreignbanks/securities firms
外国銀行・証券
Not disclosed

20,000

発行額(億円)

17,50015,00012,50010,000
7,500
5,000
2,500
0
2003
2003

2004
2004

2005
2005

2006
2006

2007
2008
2007
2008
年

2009

2010
2010

2011
2011

2012
2012

2013
2013

Source: Daiwa Institute of ResearchLtd.

The issuance of CMBS peaked at ¥1,900 billion in 2007 but fell sharply to approx. ¥720 billion in 2008,
mainly due to a withdrawal of foreign non-recourse loan lenders. The continued default and downgradingof existing loans kept investors away from the market, and declined values in non-recourse loans lowered
motivations of financial institutions to issue CMBS. Due to these factors, the CMBS issuance has been on
a decreasing trend, and in 2013, it became ¥43.4 billion, the lowest in the past 10 years.
Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

46

Domestic Bank Lending for Real Estate Firms

不動産業向け貸出残高の推移
Bank Lending
for Real Estate Firms(¥
trillion)（兆円）

Lending for real estate firms
不動産業向貸出残高
Total lending by domestic banks
総貸出% of real estate lending to total lending by domestic banks
総貸出残高内における不動産業向け貸出残高比率

600

16%
14%

500

12%
400
300
200
100

10%

Year

Total lending by
domestic banks

8%

1997

¥513.7 trillion¥65.0 trillion

12.7%

6%

2003

¥ 409.9 trillion¥48.2 trillion

11.8%

4%

2010

¥413.2 trillion¥59.6 trillion

14.4%

2011

¥416.2 trillion¥59.6 trillion

14.3%

2012

¥423.9 trillion¥60.3 trillion

14.2%

Sep. 2013¥431.8 trillion¥61.0 trillion

14.1％

2%

0

Lending for realestate firms%0%1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013.9

Source: Prepared by Tosei based on the report published by Bank of JapanThe balance of lending by domestic banks to real estate firms peaked at ¥65.0 trillion in 1997 and decreased to¥48.2 trillion in 2003, however, the recovery trend continued afterward.
After 2010, both the balance of total lending and the lending for real estate firms slightly trended upward, andthe real estate lending amounted to ¥61.0 trillion in September 2013.
While corporate capital demands in general stayed low, the lending for real estate firms remained high at
14.1% of the total lending of ¥431.8 trillion by domestic banks.
Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

47

Construction Costs per Tsubo (by Building Structures)
Steel Reinforced Concrete (SRC)(¥ thousand/tsubo)

Reinforced Concrete (RC)

Wooden structure2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Ministry of Land, Infrastructure, Transport and Tourism
2000

Years

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

（単位：千円/坪）(¥ thousand/tsubo)
2012

2013

SRC
RC
Wood

The construction costs for SRC and RC structured office and condominium buildings are in increase trends since 2007, due to yen
depreciation as well as raise in labor costs attributed to the reconstruction demand after the Great East Japan Earthquake andsubsequent shortage of manpower. The construction demand is expected to continuously raise with the acceleration indevelopments of public projects and building constructions supported by the effect of Abenomics policies, as well as infrastructure
improvement in preparation for the coming Olympic Games.
Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

48

Condominium Market 1(Units)
（戸）

販売戸数
Units
sold
Units
in stock
販売在庫数
Contract
契約率 rate

Condominium
Market in Tokyo Area
首都圏分譲マンション市場動向

9,000

（％）
90

8,000

80

7,000

70

6,000

60

5,000

50

4,000

40

3,000

30

2,000

20

1,000

10

0

0
Jan.
2011年
2011
1月

Apr.

Jul.

Oct.

10月

Jan.
2012年
2012
1月

4月

7月

10月

2005
84,148-1.5

2006
74,463-11.5

2007
61,021-18.1

2008
43,733
-28.3

Apr.

Jul.

Oct.

4月

7月

Jan.
2013年
2013
1月

Apr.

Jul.

Oct

4月

7月

10月

Condominium Supply in Tokyo Area
Total
supply %首都圏合計
yr/yr 前年比
change2003
83,183-6.0

2004
85,4292.7*Forecast as of Dec. 31, 20132009
36,376-16.8

2010
44,53522.4

201144,499
-0.1

2013*
2014*
2012
2013(予測）2014(予測）45,60256,00056,000
2.5
22.8
0.0

Source: Real Estate Economic Institute Co., Ltd.

The contract rate has remained strong at above 70% since 2010, which is viewed as an indicator of favorable market
condition. Supported by Abenomics, the number of condominium supply in 2013 is expected to reach 56,000 units,
recording a large increase from the previous year. In 2014, it is expected to remain almost unchanged.
Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

49Condominium Market 2(¥（万円）
ten thousand)（％）

Condominium
Price in Tokyo Area
首都圏新築マンションの価格推移

5,500

130
Monthly
average
月別価格

Yr/Yr
Change
前年同期比

120
5,000
110
4,500

100
90

4,000
80

3,500

70
Jan.

Apr.

Jul.

Oct.

Jan.

Apr.

Jul.

Oct.

Jan.

Apr.

Jul.

Oct.

Jan.

Apr.

Jul.

Oct.

Jan.

Apr.

Jul.

Oct.

2009年
2010年
2011年
2012年
2013年
2009
2010
2011
2012
2013
4月
7月
10月
4月
7月
10月
4月
7月
10月
4月
7月
10月
1月
1月
1月
1月
1月 4月 7月 10月

Source: Real Estate Economic Institute Co., Ltd.

The condominium price in Tokyo area picked up in 2010 after bottoming out in 2009, however, it had
been on a downward trend after 2011. It is in the upward trend, moving flat in 2013.

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

50

Detached House Market

Detached
Housing Starts in Tokyo Area
首都圏House
戸建分譲着工の推移（年比較）(units)
（件）
70000

60000
50000

54,34754,19615,111

41,886

14,694

9,309

11,557

9,281

52,161

20000
10000

12,702

7,358

15,667

15,334

14,117

40000
30000

58,88057,142

9,063

9,080

13,40914,104

17,477

19,33620,02917,724

2010
2010年

2011
2011年

2012
2012年

2013
2013年
1-10月
Jan.Oct.

12,7448,300
12,0209,855

17,225

13,116

2008
2008年

2009
2009年

0

Tokyo
東京

Saitama
埼玉県

Chiba
千葉県

神奈川県
Kanagawa

Greater
首都圏
Tokyo
area

Source: Ministry of Land, Infrastructure, Transport and Tourism

The housing starts of detached houses in Tokyo area has been recovering since 2009 and totaled
58,880 in 2012. The cumulative total from January to October 2013 came to 52,161, exceeding thesame period last year .

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

51

Pre-owned Condominium Market 1

首都圏中古マンション成約戸数推移
Numberof Contracted Units in Tokyo Area

(units)（戸）

40,00035,00030,000 27,090 28,039

29,378 28,498 28,744

31,183 30,347

31,39733,532

28,871

25,00020,00015,00010,000
5,000
0
2004
04年

2005
05年

2006
06年

2007
07年

2008
08年

2009
09年

2010
10年

2011
11年

2012
12年

2013
13年
Jan.-Nov.
1-11月

Source: Prepared by Tosei based on the data published by Real Estate Information Network for East Japan.

Factors such as the improvement of legal systems to promote housing distribution and reasonable prices
as compared with the newly-built, and annual sale of over 30,000 units was recorded in both 2009 and2010. It decreased in 2011 due to the Great East Japan Earthquake but rebounded in Aug. 2012. Since
then, it has been recording a year-on-year increase for the 15th straight month.

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

52

Pre-owned Condominium Market 2

Priceof Pre-ownedCondominiums
Adjusted to 70m2
首都圏中古マンション
70㎡換算価格(¥（万円）
ten thousand)

3,20070㎡換算価格（万円）
Price adjusted to 70m2

3,000
2,900
2,800

2,700
2,600

2,895
2,870
2,833
2,755
2,749
2,705
2,680
2,739
2,794
2,767
2,833
2,794
2,893
2,900
2,933
2,924
2,945
3,083
2,960
2,969
2,958
2,996
2,992
3,005
3,007
3,009
3,005
3,000
2,996
2,975
2,975
2,969
2,971
2,962
2,945
2,956
2,950
2,941
2,933
2,893
2,880
2,846
2,825
2,818
2,833
2,814
2,814
2,821
2,801
2,801
2,780
2,770
2,759
2,770
2,763
2,789
2,789
2,821
2,823

3,100

2,500
2,400

Jan.

Jul.

Jan.

Jul.

Jan.

Jul.

Jan.

Jul.

Jan.

Jul.

2009
09/1

09/7

2010
10/1

10/7

2011
11/1

11/7

2012
12/1

12/7

2013
13/1

13/7

Source: Tokyo Kantei Co., Ltd.

The price of pre-owned condominiums (adjusted to 70m2) bottomed in the middle of 2009 andcontinued to increase until February 2011. It had again moved downward until Sep. 2012. The falling
trend had reversed in Sep. 2012, and it has been trending upward since then.

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53

Supply of Investment Condominiums

AnnualSupply of Investment Condominiums (1990-Jun. 2013)
投資用マンション供給戸数の年次別推移表(1990年～2013年6月）(Units)
戸数（戸）

Units
戸数

件数（件）
(Properties)

Properties
件数

10,000

240
224

8,000

6,000

188
172
8,939
8,983 8,616
152

183

108

105

4,000

82

81

69

2,000

3,394

46

45
38

1,874

0

200
190

16

16

647

553

6,232

180

172
8,548

7,238

220

212

199

9,210

160

143

8,387

140

122
7,006

105

120

6,966
100

100
5,101 4,583 5,298

4,591

3,758
3,423

72
3,574

73

60
3,330

1,678 2,357

40
20

1,490

0

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 201220132012 2013
Jan.-Jun.
1～6 1～6
Jan.-Jun.
Source: Real Estate Economic Institute Co., Ltd.

The supply increased steadily until 2003, backed by extremely low interest rates, resurgent popularity ofresiding in central Tokyo, and also by acquisitions by funds seeking rental income.
However, a slow period started in 2004, and the supply largely dropped toward 2010. It started to recoveragain from 2011, and significantly greater 3,330 units (in 73 properties) were supplied in the market during
the first-half of 2012, compared with the same period last year.
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80

54Apartment Market (J-REIT)

Average Occupancy Rate of Apartments Owned by J-REIT in Major 6 Cities■六大都市におけるJ-REIT保有賃貸マンションの平均稼働率の推移
The Great East Japan
Earthquake

SapporoSendaiTokyo
23 wards
NagoyaOsaka

FukuokaTrough (March 2009)

Mar.

2009

Jun.

Sep.

Trough (April 2012, Preliminary)

Dec.

Mar.

2010

Jun.

Sep.

Dec.

Mar.

Jun.

2011

Sep.

Dec.

Mar.

2012

Jun.

Sep.

Dec.

Mar.

Jun.

2013

Source: Mizuho Trust & Banking Co., Ltd.

The occupancy rates in all 6 cities started to rise in March 2010, and they have been staying above 95%
since June 2012.

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55

Expected Office Supply
Supply of Large-sized Office* in Tokyo’s 23 wards* The offices larger than 10,000 m2 of gross floor area
Completed
No. of losses
Not completed
No. of supply

No. of supply:( ) indicates no. of losses(10,000 m2)

Volume of supply:( ) indicates area of losses

Annual average :1,050,000 m2

Source: Mori Building Co., Ltd. <1986 -2012 >1) No. of supply: 784
2) No. of losses:
9

Annual averageafter 2013:
930,000 m2

Annual averagefor 2014-2017:
1,010,000 m2<2013 -2017>3) Total supply volume:4) Total loss volume:

28,440,000m2
170,000m2

The supply of large-sized office* totaled 1,750,000 m2(525,000 tsubo) in 2012. The annual supplies from 2013 to2017 will likely be less than 1,050,000 m2 (315,000 tsubo) ,the average after 1986.

Copyright © 2014 TOSEI CORPORATION, All Rights Reserved.

565) Existing stock volume: 28,270,000m2

1) No. of supply: 792) Total supply volume: 4,630,000m2

The results of survey conducted by Mori Building Co., Ltd.
(As of Dec. 31 2012)
Properties Surveyed:
Office buildings with more than 10,000 m2 of gross floor areas
No. of buildings in stock: 775
Gross Floor Area:
28,270,000 m2(8,551,675 tsubo)

Rental Office Market
都心5区
空室率と平均賃料の推移（年次）
Vacancy Rateand Average
Rent in Tokyo 5 Business Wards(¥（円/坪）/ tsubo*)*1 tsubo = 0.3m2

平均賃料（円/坪）
Averagerent price

25,00020,00019,844 19,754 19,998

8.91

21,998 22,186

8.12

Average vacancy rate
平均空室率(％)

9.01

（％）

10.00

8.67

9.00

8.09
19,406

19,3107.52

17,844
17,95417,577

17,585 16,932

7.36

16,572 16,219 7.00

18,97815,000

6.00

6.10
10,000

5.00

5.04

3.00
2.89

3.17

5,000

4.00

4.72

4.22

4.03

8.00

2.65

2.00
1.00

0

0.00
1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012 Nov.
2013.112013
Source: Miki Shoji Co., Ltd.

The average vacancy rate of Tokyo’s 5 business wards has
been on a gradual recovery as the large supplies of newlybuilt office buildings were mostly absorbed. It recorded
7.52% as of Nov. 30, 2013.
The average asking rent had been on a declining trend after
2009 but has rebounded in Oct. 2013 for the first time in 16
months showing a sign of recovery.
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57

The results of survey conducted by Miki Shoji Co., Ltd.
(As of Nov. 30, 2013)
Properties Surveyed:
Major leased office buildings in Tokyo’s 5 business wards withmore than 100 tsubo (330 m2) of typical floor area
No. of Buildings in Stock: 2,647
Gross Floor Area:
12,015,901 tsubo
Leased Floor Area:
7,122,903 tsubo [A]Vacant Floor Area:
535,803 tsubo [B]Vacancy Rate:[B] ÷ [A]=7.52%

National Office and Apartment Rent Statistics

オフィス賃料指数及び共同住宅賃料指数の動向【全国】
National Office and Apartment Rent Indices(2005=100)(2005年を100とする指数）

130
120
110
100
90
80
1995 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Officerent index
オフィス賃料指数

Apartment
rent index
共同住宅賃料指数* As of September 2013
Source: Japan Real Estate Institute

The national office rent index of 2013 was 89.2 (-0.2% from the previous year) and the apartment
rent index was 96.8 (-0.2%), both continued to decline. However, the downward trend of Tokyoarea’s office rent index has already been reversed, and the office rent indices across the country are
expected to bottom from now.

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58

National Yield Gap of Prime Office Markets

SydneyBerlinNo.1: Sydney 4.0
No. 2: Berlin 3.5
No. 3: Tokyo 3.4

Tokyo

New York

Seoul

Paris

Singapore

LondonHong Kong

Shanghai

Source: Japan Real Estate InstituteThe yield gap of Tokyo ranked No. 3 in the world, following Sydney (Australia) and Berlin (Germany)ranked No. 1 and No. 2 respectively. Tokyo has been maintaining a stable ratio as compared withother global cities in the world.
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59

% change (year-on-year)

GDP Growth Rate in Asia-Pacific Region

Source: “IHS Global Insight” by Jones Lang LaSalle

Forecast for 2013

Forecast for 2014

Driven by China who has been attaining the highest growth rate in the Asia-pacific region. The GDP
in Asia is growing steadily as a whole, but the growth rate varies depending on the country. The
Japanese GDP will continuously increase in FY2014, and such trend of year-on-year increase is
expected to be seen in other Asian countries as well.

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60

Property Investment Trend in Asia-Pacific Region 1(US$ billion)

Transaction Amount in Direct Investment in Commercial Properties by Region

U.S.

EMEA*

Asia Pacific

Global(Forecast)*EMEA: Europe, the Middle East, and Africa(Forecast)

Source: Jones Lang LaSalle

The amount for investments in the Asia Pacific accounts for approximately 30% of the total amount invested in
global markets, and it has still been increasing since 2009 after hitting the bottom.
In FY2013, the total amount invested in commercial facilities across the world is expected to total US$475 billionUS$ 525 billion, and the annual transaction amount for FY2014 is likely to be up 10% over the previous year’s.
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61

Property Investment Trend in Asia-Pacific Region 2
Amount of Direct Investment in Commercial Properties by Country(US$ billion)
Jan.-Sep. 2013: US$90 billion
Increased by 25% year-on-year2013
Jan.-Sep.

Japan

Australia

China

Singapore

Korea

Other

Hong Kong

Source: Jones Lang LaSalle (Real Estate Intelligence Service)

The total investment amount in commercial properties in the Asia-Pacific Region for the period from Jan. to
Sep. 2013 amounted to US$90 billion. Japan ranked at the top accounting for nearly one-third of the total
amount. Acquisitions by both domestic and offshore funds as well as by J-REITs have been the contributors.

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62

Overview of Global REITs
REIT Status in Each Country(Market Cap and no. of different stocks)

Singapore
45,748Hong Kong
21,440U.K.
39,958Investment Destinations of Singapore REITs(¥ 100 million)
Top 10 counties
As of Mar. 31, 2013

Brazil
12,888

Korea

Turkey8,889

Proportion based on investment
amountAs of Dec. 31, 2011

HK

Canada46,558China

South East Asia

France59,858
Non-AsiancountriesJapan
72,481

India

U.S.
628,615Japan

Australia
90,763

Source: Mizuho Trust & Banking Co., Ltd. / Real Estate Securitization Handbook 2013

# of different
stocks

Japan

U.S.

Australia

FranceCanadaU.K.

Singapore

Hong Kong

43

128

22

10

21

14

24

7

The size of Singapore REIT is rather small, with the market capitalization of 4.5 trillion yen. However, it has been stepping up
its investment destinations to overseas markets ever since it was first launched, and Japanese real estate accounts for 18% of
their total investment amount. The acquisitions of Japanese real estate by S-REITs amounted to ¥70 billion in 2013, and as
evidenced by the IPO by S-REIT specialized in Japanese commercial facilities, Japan has become one of their major
investment destinations now.
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63今後ともよろしくお願いいたします。

Thank you.

ＩＲに関するお問い合わせ先
Contact:
Corporate Planning Department
経営企画部
TEL：03-3435-2864
Tel：+81 3-3435-2864
FAX：03-3435-2866
Fax：+81 3-3435-2866
URL : http://www.toseicorp.co.jp
URL : http://www.toseicorp.co.jp/english
DISCLAIMER
Except for historical facts, all plans, forecasts, strategies and other information contained herein are forward-looking statements. Forward-looking statements
include but are not limited to descriptions of future events and performance containing words such as or similar to “believe,” “expect,” “plan,” “strategy,”“anticipate,” “forecast,” and “estimate,” and are based on judgments derived from the information available to the Company at the time of publication. Various
factors could cause results to differ materially from any projections presented herein. The Company reserves the right to maintain or change its projections
regardless of any new information, conditions or changes in performance. These materials are for informational purposes only, and should not be construed as arecommendation to invest in the Company.

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64