Supplementary Material
Second Quarter of Fiscal 2023
(April 1, 2023 - September 30, 2023)

【Contents】
Basic Management Strategy and Medium- to Long-term Outlook
for “Sustainable Growth”

3

Business in India

7

The Ninth Management Plan (Apr 1, 2022 - Mar 31, 2025)

14

Results for the Second Quarter of Fiscal 2023 (Apr 1 - Sep 30, 2023)

16

Forecasts for Fiscal 2023 (Apr 1, 2023 - Mar 31, 2024)

17

Principal New Development Projects

18

ESG Initiatives

24

Sumitomo Realty & Development Co., Ltd.

Basic Management Strategy and Medium- to Long-term Outlook for “Sustainable Growth”(3)

Earnings Targets
Aiming to surpass ¥300.0 billion in ordinary profit in the next medium-term
management plan For Fiscal 2023, aiming at record-high ordinary profit for the third consecutive year andrecord-high profit attributable to owners of parent for the eleventh consecutive year
Surpassing
 Medium- to long-term outlook is expected to be achievable earlier than forecast¥300 billion
set out in the Ninth Management Plan (announced in May 2022)
in next plan

(Billion yen)
300
300

250

200

Achieve record ordinary profit for thethird consecutive year in Fiscal 2023

(Billion yen)
Revenue from Operations :Operating Income:
Ordinary Profit
:

‘22
939
234
225

‘23
940
241
237

‘24 (F)
970
255
250

GlobalFinancial
Crisis150

100

COVID-19

Ordinary
Profit50

Profit increase for 23 years out of 26 years
0'97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 '31(予)
1st Plan
2nd
3rd
4th
5th
6th
7th
9th
10th
11th
8th
(Years ended/ending March 31)

Sumitomo Realty & Development Co., Ltd.

Basic Management Strategy and Medium- to Long-term Outlook for “Sustainable Growth”

Earnings Targets

Growth strategy by segment(4)

Aiming to “surpass ¥300.0 billion in ordinary profit” with the comprehensive
strengths of the Group as a whole, while continuing to position office building
leasing business in Tokyo as our solid foundation* 1 tsubo ≈ 3.3 m2

For office buildings, by steadily capturing the needs such as increasing floor space which is becoming apparent as economic
activity normalizes, maintain and improve the profitability of existing buildings and continue on the trajectory of long-term
profit growth through operation of new buildings to be completed with gross floor area of over 700,000 tsubo*
Leasing• The “La Tour” premium leasing residences series has grown to a scale of 4,000 units. Continue to improve our brand value and further
extend our strong performance• In the hotel and event hall business, strive to restore the profitability to the pre-COVID-19 levels during the current fiscal year, and aim
for further growth in the next medium-term management plan and beyond with the contribution to earnings from the full-scale operationof Haneda Airport Garden with the flagship hotels

Maintain our policy of focusing on profit with controlling the pace of sales, rather than chasing volume of units or sales, andmaintain the high level of profit scale that we have achieved in previous medium-term management plans
Sales• More than 90% of the 3,000 units planned to be delivered in the current fiscal year were already sold, and sales activities including
those for the next fiscal year and beyond are making steady progress• Although rising construction costs continuously needs to be addressed, we have already secured the necessary amount of land for
condominiums to be delivered by the next medium-term management plan
• Promote development that contributes to decarbonization with the adoption of the “ZEH-M Oriented” as the standard specifications for
all condominiums we design from the Ninth Management Plan

Aim to achieve record-high profit by increasing orders through appealing to customers for high disaster prevention andenvironmental performance, while focusing on cost control and minimizing the impact of material price fluctuations
Construction

Brokerage“STEP”• In Japan, 90% of the over 50.0 million existing houses do not meet the latest energy-saving standards, posing a major challenge fordecarbonization→ In “Shinchiku Sokkurisan” remodeling, the percentage of orders for “high-insulation remodeling” has reached 30% at present (target of
20% for the Ninth Management Plan)• In custom homes, launched the sale of “SUMICA” in 2022 with the latest ZEH (Zero Energy House) specifications as standard; it combines
the solar power generation service “SUMIFU × ENEKARI” and high thermal insulation specifications, and the ZEH ratio reached 80%(target of 60% for the Ninth Management Plan)

While the supply of new housing is on the decline, the existing housing market, which is being revitalized by an increase inhigh-quality stock, is expected to grow, and we will strive to expand our market share by strengthening Group collaborationand further pursuing customer-oriented services• Focus on spreading “STEP” brand, while operating Mansion Plaza brokerage offices nationwide which exclusively handle high-classcondominiums• STEP Auctions offering fairer and more transparent transactions has been well-accepted by many sellers• Promote efficiency by paperless operations and digital transformation (DX), including the discontinuation of distributing insert flyers andSumitomo Realty & Development Co., Ltd.
sending direct mail (DM) in consideration of protecting personal information

(5)Basic Management Strategy and Medium- to Long-term Outlook for “Sustainable Growth”

Investments for Growth

Steady progress in investment in leasing office assets with gross floor area of over
700,000 tsubo* in central Tokyo, mainly comprising redevelopment* 1 tsubo ≈ 3.3 m
2 Strive to further expand our earnings base and increase corporate value by completing and putting
the development projects into operation with gross floor area of over 700,000 tsubo
 Maintain our policy of taking advantage of opportunities that arise for new properties (securing¥300.0 billion for investments in new projects for the three years of Ninth Management Plan)
Redevelopment projects underway in
Yaesu, Roppongi, Tsukiji, and otherlocations in central Tokyo(Billion yen)

220
200

Additional
700,000 tsubo
and more★

¥172.0 billion

180(March 2024 forecast)

160

Gross floor area (owned)(right scale)

120

1,200
1,000

Redevelopment projects completed in Fiscal 2022
- Sumitomo Fudosan Tokyo Mita Garden Tower- Sumitomo Fudosan Shinjuku First Tower¥33.0 billion(March 1997)

40

800
600
400

Operating income from leasing business

20
0

1,800

1,400

100

60

2,000

1,600

140

80

(Thousand tsubo)
2,200

'97

'00

* Year ended / ending March 31

'03

'06

'09

'12

'15

'18

200
'21

'24
(F)

0

Sumitomo Realty & Development Co., Ltd.

Basic Management Strategy and Medium- to Long-term Outlook for “Sustainable Growth”(6)Profit Distribution Policy

Double the dividend within seven years to ¥100 per share, and continue
sustainable dividend increase in line with profit growth Increased the pace of dividend increase from ¥5 to ¥7 per share per year as the outlook has
improved (announced in November 2022)
 Raise it to “¥100 per share per year” within seven years, doubling the current ¥52
 In Fiscal 2023, plan to increase the dividend for the 10th consecutive year to ¥59 per share
March 2023
¥52

Profit350(Billion yen)

DoubleWithin 7 years Dividends(yen)¥100 dividend
105
100
100

300

90

250

75

200

45

150

Dividends
100
50
0

52

59
Continue
to increase
年７円増配
dividend
継続by¥7 per year

30

20
6
'03

'05

'07

* Year ended / ending March 31

'09

'11

'13

'15

'17

'19

'21

45
30
15

Dividend increased for
10 consecutive terms

Profit

60

'23

0
'25
'27
'29
'31
'33
Sumitomo Realty & Development Co., Ltd.

Business in India

The Positioning of Business in India(7)

 Actively investing in “Mumbai, India”, a growing market comparable to Tokyo With the expansion of businesses such as office buildings, hotels, commercial facilities,
and residential development in mind, we aim to build a major base second to Tokyo
Tokyo:Existing 1.5 million tsubo (GFA, Owned, as of the end of Mar 2022)+ additional 700,000 tsubo and more ⇒Over ¥5 trillion

Mumbai :3 properties, a total of over 380,000 tsubo⇒Over ¥500 billion

Compared to Tokyo

10% ofinvestment

20% of GFA* 1 tsubo ≈ 3.3 m2

Project 1 in BKC(Acquired in Jul 2019)
Location

Project 2 in BKC(Acquired in Nov 2022)

Bandra East, Mumbai, Maharashtra State

Project in Worli（Acquired in Oct 2023)
Worli, Mumbai

Acquisition value(Yen equivalent)

22.38 billion INR(38.0 billion JPY)

20.67 billion INR(35.1 billion JPY)

46.7 billion INR(79.5 billion JPY)

Type ofownership

Leasehold for 80 years

Leasehold for 80 years

Freehold

Site area

12,486 sqm(Approx. 3,780 tsubo)

11,885 sqm(Approx. 3,595 tsubo)

80,903 sqm(Approx. 24,473 tsubo)

Approx. 130 thousand sqm(Approx. 40 thousand tsubo)

Approx. 130 thousand sqm(Approx. 40 thousand tsubo)

Over 1 million sqm(Over 300 thousand tsubo)

Office building for lease

Office building for lease

Super high-rise mixed-use
development project*1 INR = 1.7 JPY

Building
scale*Gross floor area

Use

Sumitomo Realty & Development Co., Ltd.

Business in India

3 Key Areas of Mumbai ― Rapid Progress in Transportation
Infrastructure
Key office areas within Mumbai city
New city center 2

BKC

AirportNew city center 1

Worli

Former city center

Nariman Point
Source: Google Maps

Indian Shinkansen (high-speed railway)Using Japanese Shinkansen technology
Planned to connect the approx. 500 km distance between Mumbai
and Ahmedabad in about 2 hours
Its new station planned to open in BKC

Metro Line 3 (scheduled to open in 2024)Planned to connect BKC, Worli and Nariman Point from the current
airport area

Sea bridge bypass “Sea Link” (scheduled to open in 2024)Planned to connect Worli and Nariman Point

Mumbai Trans Harbour Link

Connecting the new airport (under construction) and the center of
MumbaiPlanned to connect to the sea bridge bypass

Sumitomo Realty & Development Co., Ltd.

(8)

Business in India

Sumitomo Realty’s Business in India – Worli (1) Location in the heart of city center, surrounded by five-star hotels, luxury high-rise
condominiums, office buildings housing top-tier foreign companies, and high-end
shopping malls With work, living, and leisure in close proximity

Worli

Sumitomo Realty & Development Co., Ltd.

(9)

Business in India (10)Sumitomo Realty’s Business in India – Worli (2)* 1 tsubo ≈ 3.3 m2

 Independent acquisition of a site for a “super high-rise mixed-use urban development”
exceeding one million sqm in gross floor area
 Approximately 80,000 sqm (about 24,000 tsubo) of “freehold” land with no restrictions on
development use
 The largest urban redevelopment by a Japanese company in India⇒ aiming for the full opening of the facilities in the 2030s
Road under development – 22m wide
(Scheduled to open in Apr 2024)

Site area
80,903 sqm(Approx. 24,473 tsubo)

Building scale*Gross floor area

Over 1 million sqm

Road – 24m wide(i)

The land cost per floor area is expected to be reduced toalmost half of the BKC properties through the acquisition of
additional FAR (Floor Area Ratio).

(ii)

A freehold land without usage restrictions, allowing for largescale mixed development(Over 300,000 tsubo）

High
Profitability
Sumitomo Realty & Development Co., Ltd.

Business in India (11)

Sumitomo Realty’s Business in India – BKC (1)* 1 tsubo ≈ 3.3 m2

 Expanding our “Stand-alone” approach of Tokyo office building business on one of
the largest sites in BKC The 1st project is currently under construction, and the 2nd project is also proceeding⇒ Towards sequential completion after 2026
with permit procedures
Acquiring the development site independently,
developing, leasing, managing by ourselves,and owning for the long term＝

Our “Stand-alone” approach ofTokyo office building business

Project 1

Project 2

Site area

Site area
11,885 sqm

12,486 sqm(Approx. 3,595 tsubo)(Approx. 3,780 tsubo)

Building scale

Building scale*Gross floor area

*Gross floor area

Approx. 130,000 sqm

Approx. 130,000 sqm(Approx. 40,000 tsubo)(underground excavation is underway)(Approx. 40,000 tsubo)(i)

BKC is being developed as a financial center, and further
development as a business district is expected.

(ii)

The rent for prime office buildings in BKC is on par withcentral Tokyo, and expected yield is more than three times
that of investment properties traded in Tokyo.

High
Profitability
Sumitomo Realty & Development Co., Ltd.

Business in India (12)Sumitomo Realty’s Business in India – BKC (2)Ranking of Office Rent in Major World Cities
Rank

Panoramic view of BKC

City

Occupancy cost

(US＄/sq/year on NLA basis)

1

Hong Kong, Central

$259

2

New York, Midtown

$220

3

London, West End

$182

10

San Francisco

$114

11

Singapore

$110

17

Tokyo, Marunouchi

$103

20

Delhi, Connaught Place

$99

21

Mumbai, SBD BKC

$97

27

Tokyo, Shibuya

$87

32

Paris, City

$80

34

Tokyo, Shinjuku

$78

37

Los Angeles

$76

86

Bengaluru$47

92

Delhi NCR, Gurugram

$42

129

Chennai$19

131

Hyderabad$18

Source: Compiled by Sumitomo Realty, based on JLL Global Premium Office Rent Tracker (Q3 2022)＜BKC地区立地概念図＞

Sumitomo Realty & Development Co., Ltd.

Business in India (13)Aiming Beyond the Ordinary Profit of ¥300.0 Billion－ Continuing the Investment for Growth Aiming to surpass ¥300.0 billion in ordinary profit in the next medium-term
management plan As the investment for growth beyond that, actively investing inTokyo CBD and Mumbai
Surpassing(Billion yen)

* 1 tsubo ≈ 3.3 m2¥300 billion

300
300

in next plan

250

・ Additional 700,000
tsubo and more inTokyo・ Business in Mumbai

COVID-19
200

GlobalFinancial
Crisis150

Ordinary
Profit100

50

Profit increase for 23 years out of 26 years
0

'97

'99

'01

1st Plan

'03

2nd

'05

'07

3rd

(Years ended / ending March 31)

'09

4th

'11

'13

5th

'15

6th

'17

'19

7th

'21

8th

'23

'25

'27

'29

'31

9th
10th
11th
Sumitomo Realty & Development Co., Ltd.

The Ninth Management Plan (14)Three-year Cumulative Earnings Targets

Consecutive record profit for the period covered
Achieve cumulative ordinary profit of ¥750 billion and profit of ¥500 billion over thethree-year period

Aim to achieve record profits for the fourth consecutive plan since the Sixth Management Plan by
maintaining the pace of growth that we attained until the Eighth Management PlanThree-year cumulative earnings targets
3 trillion (Vs. 8th Plan

+ ¥ 130 billion,+ 5 %)“+¥

83 billion,+ 12 % )(“+¥94 billion,+ 14 % )(“+¥67 billion,+ 16 % )Revenue from Operations¥

Operating Income¥

770 billion(

Ordinary Profit¥

750 billion

Profit¥

500 billion(Billion yen)

6th Plan(Three-year
cumulative totals)

2014 - 2016

7th Plan2017 - 2019

8th Plan2020 - 2022

9th Plan2023 - 2025,

Revenue from Operations

2,442

2,886

2,870

3,000

Operating Income

501

613

687

770

Ordinary Profit

418

558

656

750

Profit

238

353

433

500

* Year ended / ending March 31

Sumitomo Realty & Development Co., Ltd.

The Ninth Management Plan (15)Performance Targets and Strategies by Segment
Maintain the position of office building leasing in Tokyo as a solid foundation, and aim
to utilize the comprehensive strengths of the Group as a whole to achieve our targets(Billion yen)

Performance Targets
by Segment(Three-year cumulative totals)

6th Plan2014 - 2016

7th Plan2017 - 2019

8th Plan

9th Plan2023 - 2025

2020 - 2022

886
773
589
177

1,073
957
635
208

1,219
822
612
210

1,300
750
700
250

2,442

2,886

2,870

3,000

Brokerage

314
127
47
41

416
140
50
47

487
151
55
44

520
150
75
68

Operating Income

501

613

687

770

Ordinary Profit

418

558

656

750

Profit

238

353

433

500

Leasing
Sales
Construction
Brokerage
Revenue from Operations
Leasing
Sales
Construction* Year ended / ending March 31

Sumitomo Realty & Development Co., Ltd.

Results for the Second Quarter of Fiscal 2023 (16)Results for the Second Quarter of Fiscal 2023 (Apr 1 – Sep 30, 2023)(Billion yen)Sep ‘22

Sep ‘23

Results

Increase/
Decrease

Results

FY ‘23

Forecasts

Achieved

Leasing

208

220

+12

445

49%

Sales

154

171

+17

225

76%

Construction

76

75

(0)

220

34%

Brokerage

36

37

+1

77

48%

475

505

+30

970

52%

Leasing

87

89

+2

172

52%

Sales

47

56

+9

54

103%

Construction

3

4

+1

23

17%

Brokerage

10

11

+1

22

48%

Operating Income

138

150

+12

255

59%

(2)

(0)

+1

(5)

-

Ordinary Profit

136

150

+13

250

60%

Profit attributable toowners of parent

94

106

+12

175

61%

Revenue from Operations

Other income (expenses)

Sumitomo Realty & Development Co., Ltd.

Forecasts for Fiscal 2023 (17)Forecasts for Fiscal 2023 (Apr 1, 2023 – Mar 31, 2024)(Billion yen)

FY ‘21

FY ‘22

Results

FY ‘23Results

Increase/
Decrease

Forecasts

Leasing

425

425

445

+20

Sales

234

222

225

+3

Construction

204

214

220

+6

Brokerage

73

75

77

+2

939

940

970

+30

Leasing

163

166

172

+6

Sales

50

54

54

+0

Construction

19

21

23

+2

Brokerage

18

20

22

+2

Operating Income

234

241

255

+14

(9)

(5)

(5)

(0)

Ordinary Profit

225

237

250

+13

Profit attributable toowners of parent

150

162

175

+13

Revenue from Operations

Other income (expenses)

Sumitomo Realty & Development Co., Ltd.

Principal New Development Projects (18)

Principal New Office Building Projects* 1 tsubo ≈ 3.3 m2

Project Name

Location(Tokyo)Gross Floor
Area (Tsubo*)

Completion(Expected)

Sumitomo Fudosan Tokyo Mita Garden Tower

Minato Ward

59,400Feb 2023

Sumitomo Fudosan Shinjuku First Tower

Shinjuku Ward

27,000Mar 2023

Sumitomo Fudosan Nakano Ekimae Building(Nakano 2-chome Project)

Nakano Ward

30,000Feb 2024

Sumitomo Fudosan Akihabara East Building

Taito Ward

3,000

Mar 2024

Sumitomo Fudosan Shinjuku Minamiguchi Building(Shinjuku Minamiguchi Project)

Shibuya Ward

7,200

Mar 2024

Roppongi Ekimae Project

Minato Ward

9,700

Jan 2025

Shinagawa Ward

8,800

Mar 2025

Sumitomo Fudosan Osaki Twin Building West
Others

9th Plan Total

34,100179,200

Sumitomo Realty & Development Co., Ltd.

Principal New Development Projects (19)Principal New Office Building Projects

Sumitomo Fudosan Tokyo Mita Garden Tower
Location

Completion

Minato Ward,Tokyo
Feb 2023

Gross Floor
Area

59,400 tsubo

No. of Floor

42 above ground/
4 below ground* 1 tsubo ≈ 3.3 m2

Sumitomo Fudosan Shinjuku First Tower
Location

Completion

Shinjuku Ward,Tokyo
Mar 2023

Gross Floor
Area

27,000 tsubo

Office:35 above ground/2 below groundNo. of Floor
Residence:35 above ground/2 below ground

Sumitomo Realty & Development Co., Ltd.

Principal New Development Projects (20)

Principal New Office Building Projects

Sumitomo Fudosan Nakano Ekimae Building(Nakano 2-chome Project)* 1 tsubo ≈ 3.3 m2

Sumitomo Fudosan Shinjuku Minamiguchi
Building (Shinjuku Minamiguchi Project)

Location

Nakano Ward,Tokyo

Gross Floor
Area

30,000 tsubo

Location

Shibuya Ward,Tokyo

Gross Floor
Area

7,200 tsubo

Completion

Feb 2024(Expected)

No. of Floor

37 above ground/2 below ground

Completion

Mar 2024(Expected)

No. of Floor

17 above ground/
1 below ground

Sumitomo Realty & Development Co., Ltd.

Principal New Development Projects (21)Principal New Office Building Projects

Roppongi Ekimae Project* 1 tsubo ≈ 3.3 m2

Sumitomo Fudosan Osaki Twin Building West

Location

Minato Ward,Tokyo

Gross Floor
Area

9,700 tsubo

Location

Shinagawa Ward,Tokyo

Gross Floor
Area

8,800 tsubo

Completion

Jan 2025(Expected)

No. of Floor

22 above ground

Completion

Mar 2025(Expected)

No. of Floor

14 above ground/
1 below ground

Sumitomo Realty & Development Co., Ltd.

Principal New Development Projects (22)Principal Condominium Projects (Scheduled Delivery in FY2023)*

Units = No. ofunits for sale

City Tower Shinjuku

City Terrace Nakano

City Terrace Bunkyo Koishikawa

Shinjuku Ward, Tokyo

Nakano Ward, Tokyo

Bunkyo Ward, Tokyo

162 units

119 units

120 units

35 above ground / 2 below ground

6 above ground

7 above ground / 1 below ground

City Terrace Yokohama Hoshikawa

City Tower Tennoji

Bay City Towers Kobe

Yokohama

Osaka

Kobe

140 units

177 units

WEST: 346 units, EAST: 344 units

7 above ground

25 above ground27 above ground / 1 below ground(Both WEST and EAST)

Sumitomo Realty & Development Co., Ltd.

Principal New Development Projects (23)Principal Condominium Projects (Scheduled Delivery from FY2024)*

Units = No. ofunits for sale

City Terrace Zenpukujikoen

City Tower Toranomon

City Towers Itabashi Oyama

Nerima Ward, Tokyo

Minato Ward, Tokyo

Itabashi Ward, Tokyo

170 units

138 units

273 units

4 above ground

28 above ground / 1 below ground

NORTH: 25 above ground / 2 below ground
SOUTH: 26 above ground / 1 below ground

City House Yokohama

City Terrace Miyagaoka

City Tower Aoba-Dori
Ichibancho

Yokohama

SapporoSendai165 units

97 units

155 units

18 above ground

9 above ground

24 above ground / 1 below ground

Sumitomo Realty & Development Co., Ltd.

ESG Initiatives (24)

ESG-related Certifications from Third Parties
Third-party environmental recognitions for leasing assets (acquisition of DBJ Green Building Certification)
 68 properties with approx. 1,050,000 tsubo, acquired certification, accounting for 67% of the total
floor area of properties owned by the Company(GFA basis, as of April 2023, 1 tsubo ≈ 3.3 m2)

 The constant “environmental and social awareness” of our properties was highly recognized
Properties that have acquired ★5*DBJ Green Building Certification is acertification system established by theDevelopment Bank of Japan to evaluate
real estate for its performance andShinjuku Grand Tower
initiatives regarding “environmental andsocial awareness” beyond its “profitability.”

Osaki Garden Tower Shinjuku Garden Tower Tokyo Nihombashi Tower Azabujuban Building

Roppongi Grand Tower

Ariake Garden

Included in ESG Index
FTSE

MSCI

S&P

SNAM

Sumitomo Realty & Development Co., Ltd.

(25)Sumitomo Realty & Development Co., Ltd.
Investor Relations & ESG Section, Corporate Planning Department

Disclaimer
The purpose of this material is to provide information, and not to solicit investments, etc.
This material includes statements regarding future performance. These statements are based on certain
Disclaimer
assumptions
deemed rational by the Company as of the date of publication. They include risks and uncertainties
and do not guarantee the achievement of targets and forecasts, or future performance. The actual results of theCompany' s performance may differ due to various factors such as changes in the economic situation, market
trends, and the management environment.
The Company has carefully prepared the information provided in this material, but does not guarantee the accuracy
and completeness of the information. Moreover, this content may be changed or eliminated without notice.

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Sumitomo Realty & Development Co., Ltd.