INFORMATIONAL MATERIALS FOR THE 125th ORDINARY GENERALMEETING OF SHAREHOLDERS
Items Subject to Measures for Providing Information in Electronic Form
Excluded From Paper-Based Documents Delivered

Situation of Share Acquisition Rights, etc.

…………………

1

Situation of Accounting Auditor…………………

2

Systems to Ensure the Propriety of Business …………………
Operations and the Operational Status of that System

3

Consolidated Statement of Changes in Net Assets…………………

8

Notes to the Consolidated Financial Statements…………………

9

Non-consolidated Statement of Changes in Net Assets …………………

33

Notes to the Non-consolidated Financial Statements

35…………………

In accordance with the provisions of laws and regulations and the Company’s Articles ofIncorporation, the above items are excluded from the paper-based documents delivered to shareholders
who have made a request for delivery of such documents.

[Translation for Reference and Convenience Purposes Only]

Situation of Share Acquisition Rights, Etc.
(1) Situation of Share Acquisition Rights Delivered in Compensation for the Execution of Duties, Which Are
Held by Officers of the Company (As of March 31, 2024)
Not applicable(2) Situation of Share Acquisition Rights Delivered to Employees, Etc., During the Fiscal Year inCompensation for the Execution of Duties
Not applicable(3) Other Important Matters Relating to Share Acquisition Rights
Not applicable
Notes:
1. There are share acquisition rights held by retired officers.
2. The Company has not issued share acquisition rights since fiscal 2016.

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[Translation for Reference and Convenience Purposes Only]

Situation of Accounting Auditor(1) Designation: Ernst & Young ShinNihon LLC(2) Amounts of Remuneration, Etc.
Amount to be Paid
Amount of remuneration, etc., to be paid by the Company to the Accounting
Auditor pertaining to the fiscal year under review
Total amount of money and other financial profits to be paid by theCompany and its subsidiaries to the Accounting Auditor¥170 million¥419 million

Notes:
1. The Audit Committee has decided to consent to the amount of remuneration, etc., to be paid to the
Accounting Auditor as it judged that the audit plan of the Accounting Auditor, the execution of auditing
duties, the basis for calculating remuneration estimate, etc., are all appropriate for implementing theauditing of the Company as a result of verification necessary for determining whether they areappropriate or not.
2. Of the Company’s material subsidiaries, MEC Group International, Inc., Mitsubishi Estate Europe Ltd.
and Mitsubishi Estate Asia Pte. Ltd. are subject to audits by an audit firm (Ernst & Young) other thanthe Accounting Auditor of the Company.
3. The audit agreement between the Company and the Accounting Auditor does not distinguish the amountof remuneration, etc., for the audit under the Companies Act and that for the audit under the Financial
Instruments and Exchange Act, and the two (2) amounts cannot be substantially distinguished from eachother. Therefore, the amount of remuneration, etc. pertaining to the fiscal year under review indicates
the total of these two (2) kinds of amounts.
(3) Contents of Non-audit Services
The services entrusted by the Company to Accounting Auditor other than those defined in Article 2,paragraph (1) of the Certified Public Accountants Act are creation of comfort letters pertaining to issuanceof corporate bonds and other services.
(4) Policy on Decisions of Dismissal or Non-Reappointment of the Accounting Auditor
If the Audit Committee deems that any circumstance stipulated in Article 340 of the Companies Act
applies to the Accounting Auditor and its dismissal is deemed appropriate, the Accounting Auditor will bedismissed based on the unanimous approval of all members of the Audit Committee.
Furthermore, the Audit Committee shall, if it is found that execution of duties by the Accounting Auditor
will be difficult and there is a need for a change in Accounting Auditor, decide on the content of a proposal
to submit to the General Meeting of Shareholders regarding the dismissal or non-reappointment of the
Accounting Auditor.
(5) Outline of the Liability Limit Agreement
Not applicable-2-

[Translation for Reference and Convenience Purposes Only]

Systems to Ensure the Propriety of Business Operations and the Operational Status of that
System(1) Systems to Ensure the Propriety of Business Operations
Outline of decisions on systems to ensure the propriety of business operations as stipulated in the
Companies Act and the Regulation for Enforcement of the Companies Act is as follows:1)

Systems to Keep and Manage Information Pertaining to the Execution of Duties by Corporate
Executive Officers
Pursuant to the “Mitsubishi Estate Group Basic Rules on Information Management,” in order toappropriately handle information assets held by the Group and improve information security andenhance its level on an ongoing basis, the Company shall appoint the Officer responsible for the risk
management as Chief Information Officer and the Officer responsible for the DX Promotion
Department as Chief Information Technology Officer and Chief Information System Security Officer,
and the Risk Management & Compliance Committee shall be in charge of companywide control of
information storage and management.
The Company shall, under such organizational systems, develop regulations on basic matters forthe management procedures necessary for the protection and handling of information held by theCompany, matters related to document storage and abolition including the storage method and period
for documents and abolition rules, and matters related to the protection of the information system andelectronic information. The Company shall appropriately store and manage relevant information
pertaining to the execution of Corporate Executive Officers’ duties by operating these internal
regulations.

2)

Rules and Other Systems Regarding Loss Risk Management in the Company and Its Subsidiaries
In the group-wide corporate management, the Group shall practice diverse risk management
measures for all business operations of the Group in order to properly evaluate and manage internaland external risk factors related to its businesses and to maintain and raise the corporate value of theGroup.
Specifically, the Company has established the “Mitsubishi Estate Group Risk Management Rules”
to realize appropriate risk management through establishing systems for risk management to be
carried out by all the executives and employees of the Group. Moreover, under the Risk Management
Rules above, at the Company, the Risk Management & Compliance Committee shall be in charge ofcontrolling the promotion of risk management activities at the group level, whereas the Risk
Management & Compliance Subcommittee shall work as a practical collegial body to collect andstreamline risk management-related information. In addition, the officer responsible for the risk
management appointed by the resolution of the Board of Directors shall be assigned the responsibility
for risk management, and to develop and promote the risk management system.
In the meantime, with these risk management systems as a basis, at the Company, the Strategic
Investment Committee, an advisory body of the Executive Committee, shall preliminarily deliberate
especially important investment subjects in making decisions thereof prior to the deliberations by the
Executive Committee to check the content and degree of risk factors as well as countermeasures, etc.,
in preparation for possibly realizing risk.
Furthermore, the Company shall appoint an officer in charge of disaster prevention by resolution of
the Board of Directors to maintain the most updated action principles, communications and initial
measures to be taken and system for business continuity program in case of the occurrence of any
emergency. The officer formulates and implements manuals, guidelines, etc., and conducts training aswell as reviews and improvements of systems and plans on a periodic basis.
The Internal Audit Department shall conduct internal audit activities in accordance with theInternal Audit Rules to raise the effectiveness of risk management.

3)

Systems to Ensure Efficient Execution of Duties by Corporate Executive Officers of the Company
and Directors, Etc., of Its Subsidiaries
The Group shall continue improving managerial system that has been designed to fit the Group, toensure the efficient execution of duties by Corporate Executive Officers of the Company anddirectors, etc. of its subsidiaries in the course of fulfilling the CSR of the Group. Under this policy,
the Company aims to reinforce the management oversight function and the business executionfunction as well as management efficiency and expedited decision making by adopting the-3-

[Translation for Reference and Convenience Purposes Only]
organizational structure of a Company with Nominating Committee, etc., thereby largely delegating
authority relating to business execution decisions to Corporate Executive Officers. In addition, theCompany shall take such actions as to appoint controlling officers and officers in charge, adopt the
Executive Officer System and the Group Executive Officer System and improve the rules related tothe authority and decision making in accordance with internal regulations, so as to allow for more
efficient execution of duties.
4)

Systems to Ensure Compliance of the Execution of Duties by Corporate Executive Officers andEmployees of the Company and Directors, Etc. and Employees of Its Subsidiaries With Laws,
Regulations and the Articles of Incorporation
The Group has established and intends to thoroughly disseminate “The Mission of the Mitsubishi
Estate Group,” “The Mitsubishi Estate Group Code of Corporate Conduct” and “Mitsubishi EstateGroup Guidelines for Conduct” to present conduct standards by which executives and employees
should abide. The Company conducts, as a Company with Nominating Committee, etc., management
oversight by the Board of Directors and audits by the Audit Committee.
In addition, while the Risk Management & Compliance Committee conducts group-wide
supervision and the Risk Management & Compliance Subcommittee conducts practical discussions inaccordance with the “Mitsubishi Estate Group Compliance Rules,” the officer responsible forcompliance appointed by the resolution of the Board of Directors shall be assigned the responsibility
for compliance to take such actions as to manage and promote overall compliance at the Group. The
Group also ensures that the execution of duties by Corporate Executive Officers and employees
complies with laws and regulations and the Articles of Incorporation through such means as
preventive legal activities, risk management promotion activities and internal audit practices.
To handle compliance-related consulting and whistleblowing on concerns, the dedicated Help
Lines shall be established and operated internally and externally as contact windows for the Groupand business partners.

5)

Systems for Reporting Matters Related to the Execution of Duties by Directors, Etc., of Subsidiaries
to the Company, and Other Systems to Ensure the Propriety of Business Operations Conducted by
the Corporate Group Consisting of the Company, Its Parent Companies and Subsidiaries
The Group shall endeavor to practice group-wide compliance-based management and businessethics and ensure the propriety of business operations by establishing “The Mission of the Mitsubishi
Estate Group,” “The Mitsubishi Estate Group Code of Corporate Conduct” and “Mitsubishi EstateGroup Guidelines for Conduct,” etc., all of which are the standards of conduct for the Group, andthoroughly disseminating them under the control of the Risk Management & Compliance Committee.
In addition, the Company specifies the department in charge of operations related to groupcompanies, such as promoting the corporate management of the respective group companies andsupporting the staff function, thereby establishes a system to link the company-wide management
plan and the measures concerning group companies. Meanwhile, group management shall beenhanced toward the achievement of maximized corporate value of the Group by promoting the
propriety and efficiency improvement and upgrading risk management of group-wide corporate
management by operating the “Mitsubishi Estate Group Management Rules,” through measures suchas compulsory consultations and exchange of information between the Company and groupcompanies for certain important matters.
Furthermore, the “Mitsubishi Estate Group Basic Guidelines on Internal Control Regarding
Financial Reporting (Basic Rules)” shall be formulated to ensure the reliability of financial reports
inside the Group with the aim of appropriately responding to the internal control reporting system forfinancial reports, as required to follow under the Financial Instruments and Exchange Act.

6)

Matters Related to Employees to Support the Duties of the Audit Committee, and Matters Related toEnsuring the Effectiveness of Instructions Given to Such Employees by the Audit Committee
The Audit Committee Office shall be established as a subsidiary organ to assist the Audit
Committee in the execution of its duties pursuant to the relevant provisions such as “Job Ladder.”The Company shall assign a dedicated General Manager and persons necessary for supporting the
Audit Committee’s duties.
The General Manager of the Audit Committee Office shall supervise other employees assigned tothe office and execute his or her business duties in accordance with the instructions of the Audit
Committee.

-4-[Translation for Reference and Convenience Purposes Only]
7)

Matters Related to Independence of Employees in the Preceding Item from Corporate Executive
Officers
The personnel relocation and/or disciplinary punishment, etc. of the General Manager of the Audit
Committee Office shall require an accord of the Audit Committee. The personnel relocation and/or
disciplinary punishment, etc. of the staff of the Audit Committee Office other than the General
Manager of the Audit Committee Office shall require prior consultation with the General Manager ofthe Audit Committee Office.

8)

Systems for Directors, Corporate Executive Officers and Employees of the Company, Directors, Etc.
and Employees of Its Subsidiaries, and Individuals Who Receive Their Reports to Provide Reports
to the Audit Committee, and Other Systems Related to Reporting to the Audit Committee
In the case where the occurrence of breach of any laws and regulations or the Articles ofIncorporation or significantly unreasonable matter is revealed, anybody shall, either Directors,
Corporate Executive Officers or employees, immediately report thereof to the Audit Committee. An
obligation shall be established by internal regulations to have important documents such as thoserequiring approval circulated to Full-time Members of the Audit Committee, and a whistleblower
program with Audit Committee members serving as contact windows shall be established. Moreover,matters that may be judged necessary in performing the duties of the Audit Committee, including
results of internal audits, the status of compliance promotion activities, the status of risk management
promotion activities, and the status of operation of Help Lines established internally and externally as
contact windows for Group companies and business partners for consultations and whistleblowing on
concerns about compliance, shall also be periodically reported to the Audit Committee. In addition, in
accordance with the “Mitsubishi Estate Group Management Rules,” matters reported by the Directors,
etc. and employees of Group companies shall be shared with the Executive Committee and othermeetings attended by the Full-time Members of the Audit Committee.

9)

Systems to Ensure Individuals Who Make the Reports in Item 8 Are Not Treated Unfavorably for
Making Those Reports
In accordance with the “Mitsubishi Estate Group Risk Management Rules,” all executives andemployees of the Group are responsible for ensuring compliance in accordance with the “Mitsubishi
Estate Group Compliance Rules,” and are responsible for collecting and reporting risk information.
Also, based on the Whistleblower Protection Act, regarding a whistleblower program with Audit
Committee Members serving as contact windows and the Group’s internal or external Help Lines, theCompany develops and operates rules related to the policy for protection of whistleblowers andnotification of redress procedures in order to ensure individuals who make the reports in Item 8 are
not treated unfavorably for making those reports.

10) Matters Related to Policy for Handling Costs and Debts Incurred by Audit Committee Members in
the Course of Executing Their Duties
In accordance with the audit standards established by the Audit Committee, the Audit Committee
Members may invoice the Company beforehand for any costs deemed necessary for the execution ofduties of the Audit Committee. The Audit Committee Members may also seek subsequent
reimbursement for costs incurred in emergency or special situations.
Based on invoices received from the Audit Committee Members, the Company shall pay costs
necessary for the Audit Committee to execute its duties.
11) Other Systems to Ensure Effective Audits by the Audit Committee
In accordance with audit standards established by the Audit Committee, the Full-time Members of
the Audit Committee shall have periodic meetings with the management executives of the Company
including the President and Chief Executive Officer, the Internal Audit Department, otherdepartments determined necessary according to the duties of the Audit Committee and the
Accounting Auditor to exchange opinions with each other.
The Full-time Members of the Audit Committee shall attend the important conferences such as the
Executive Committee.

-5-[Translation for Reference and Convenience Purposes Only](2) Operational Status of Systems to Ensure the Propriety of Business Operations
Outline of operational status of systems to ensure the propriety of business operations is as follows.
1) Status of Initiatives Related to Risk Management
 The “Risk Management & Compliance Committee” meetings and the “Risk Management &Compliance Subcommittee” meetings have been held three (3) times per year, respectively, to takesuch actions as to select priority risks that require countermeasures and report the status and resultsof risk management activities on those priority risks, and thereby monitored the Group’s risk
management on an ongoing basis.
 In addition to promoting the formulation of information system strategies for the entire Group, thedevelopment, operation, and maintenance of information systems, and the strengthening of
information system governance, we have revised various rules related to information anddeveloped additional checklists and guidelines, etc.
 We provided executives and employees of the Company with education on information security
through various training programs, drills, etc.

We rebuilt the structure and mechanism of the “Contingency Response Manual” and the “Disaster
Preparedness Outline” for the “response to emergency response risk,” which is one of our priority
risks. In addition, we examined geopolitical risks, etc., such as Taiwan contingency, with an
external consulting company and the department in charge, and developed guidelines for methods
and systems, etc. for information gathering and evacuation instructions, etc.
2)




3)




4)




5)




Status of Initiatives Related to Ensuring Efficiency in Execution of Duties
In accordance with the Long-Term Management Plan and annual plan, etc., formulated by the
Board of Directors, the Corporate Executive Officers properly executed the duties assigned to thembased on the authorities delegated by the Board of Directors. Furthermore, the Board of Directors
gauged management issues on a timely basis by receiving regular reports from the Corporate
Executive Officers on the conditions surrounding the business execution, as well as deliberating
and deciding policy on countermeasures, thereby appropriately monitoring the state of progress ofthe management plan.
With the aim of further strengthening the management oversight and monitoring functions of theBoard of Directors, we improved the ratio of Independent Directors by decreasing the number ofcandidates for Directors who concurrently serve as Corporate Executive Officers by one (1).
Status of Initiatives Related to Compliance
The “Risk Management & Compliance Committee” meetings and the “Risk Management &Compliance Subcommittee” meetings have been held three (3) times per year to discuss
compliance promotion activity plans and report the results of the activities. In this way, theCompany managed and promoted overall compliance at the Group.
Compliance education was provided to the Company’s Officers and employees in the form ofvarious trainings and drills, etc.
Status of Initiatives Related to Reporting of the Execution of Duties and Other Matters Concerning
the Group Management
Under the supervision of the “Corporate Planning Department Affiliated Group Office,” theCompany worked to promote appropriateness and efficiency of group company management andstrengthen risk management through such means as enforcement of the “Mitsubishi Estate GroupManagement Rules” and providing business support to group companies.
With the aim of appropriately responding to the internal control reporting system for financial
reports, as required to follow under the Financial Instruments and Exchange Act, in accordancewith “Mitsubishi Estate Group Basic Guidelines on Internal Control Regarding Financial Reporting(Basic Rules),” the Company evaluated the development and management status of internal
controls regarding financial reporting of the Group, targeting “companywide internal control,” etc.
Status of Initiatives Related to Ensuring the Effectiveness of the Audit Committee’s Audit
Reports were made as needed to the Audit Committee on the results of internal audits, risk
management activities and compliance promotion activities, and the Audit Committee conducted
additional hearing and provided advice to the relevant divisions based on the contents of thesereports.
Full-time Audit Committee members held periodic meetings with the management executives of
the Company including the President and Chief Executive Officer as well as the Internal Audit-6-

[Translation for Reference and Convenience Purposes Only]

Office, the Finance & Accounting Department, the Legal & Compliance Department and the
Accounting Auditor to exchange opinions with each other. In addition, they also made an effort tocollect information necessary for the Audit Committee audits by attending important internal
meetings including the “Executive Committee” and the “Risk Management & Compliance
Committee,” reviewing important documents, etc., and shared the details thereof within the Audit
Committee properly.
The Audit Committee Office is composed of eight (8) members including a dedicated General
Manager and dedicated employees as well as employees who concurrently serve as staff at othersections, and the Office duly executed affairs they are responsible for.

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[Translation for Reference and Convenience Purposes Only]

Consolidated Statement of Changes in Net Assets(April 1, 2023, through March 31, 2024)(Millions of yen)
Shareholders’ equity
Share capital
Balance at the beginning ofcurrent period
Changes in the fiscal year underreview

Capital surplus

142,414Retained earnings

157,914

Treasury shares

1,147,425

Total shareholders’equity(48,454)

1,399,299

Dividend from surplus(50,093)(50,093)

Profit attributable to owners ofparent168,432

168,432

Purchase of treasury shares
Disposal of treasury shares(14)

Changes in the scope of
consolidation
Change in equity of the parent
company on transactions with
non-controlling interests(54,260)(54,260)

644

630

(0)

(0)

(953)

(953)

Net changes in items other thanthose in shareholders’ equity
Total of changes in the fiscal year
under review
Balance at the end of current
period–(953)

118,324(53,616)

63,754142,414

156,961

1,265,749(102,071)

1,463,054(Millions of yen)
Accumulated other comprehensive income
Valuation
Deferreddifference on
gains oravailable-forlosses
saleon hedges
securities
Balance at the beginning of current
periodChanges in the fiscal year underreview

138,552

2,106

Revaluation
reservefor land526,417

Total
Share
NonForeign
Remeasureaccumulated acquisition controllingcurrency
ments ofotherrightsinterests
translation
definedcomprehenadjustment benefit plans
sive income
77,48913,695758,261

193

222,187

Total net
assets2,379,941

Dividend from surplus(50,093)

Profit attributable to owners ofparent168,432

Purchase of treasury shares(54,260)

Disposal of treasury shares

630

Changes in the scope of
consolidation
Change in equity of the parent
company on transactions with
non-controlling interests

(0)
(953)

Net changes in items other thanthose in shareholders’ equity

86,844(2,332)

Total of changes in the fiscal year
under review

86,844(2,332)

Balance at the end of current
period225,396(226)

54,97940,299179,790

(121)

1,227

180,896–

54,97940,299179,790

(121)

1,227

244,651

526,417

132,469

53,995

938,05271

223,4142,624,593-8-

[Translation for Reference and Convenience Purposes Only]

Notes to the Consolidated Financial Statements
Notes on Important Matters for the Preparation of the Consolidated Financial Statements
1. Matters Related to the Scope of Consolidation(1) Number of Consolidated Subsidiaries: 317
The names of major subsidiaries are as stated in “I. Current Situation of the Mitsubishi Estate Group, 9.
Situation of Material Subsidiaries” of the “Business Report.”
Newly included in the list of consolidated subsidiaries of the Company are Nagoya Minato Development
SPC and sixty-two (62) other companies due to new establishments, etc.
Excluded from the list of consolidated subsidiaries are Keiyo Tochi Kaihatsu Co., Ltd. due to decrease ofmateriality and 157 WEST 47TH STREET TS HOTEL LLC and fifteen (15) other companies due to adissolution, etc.
(2) Names, Etc. of Major Non-consolidated Subsidiaries
A major non-consolidated subsidiary is Fuchinobe Development SPC.
Non-consolidated subsidiaries are excluded from the scope of consolidation because their respective sumsof total assets, operating revenue, profit (loss) (corresponding to the equity ratio owned by the Company)
and retained earnings (corresponding to the equity ratio owned by the Company) have no significant
impact on the consolidated financial statements.
2.

Matters related to Application of the Equity Method(1) Number of Non-consolidated Subsidiaries Accounted for by the Equity Method: 0(2) Number of Affiliates Accounted for by the Equity Method: 128
A major affiliate in this category is Tokumei Kumiai Otemachi Kaihatsu.
Included in the affiliates accounted for by the equity method are Square 487 GL LLC and twenty-three(23) other companies due to a new establishment, etc.
Meanwhile, Rock-Kim Miramar, LLC and four (4) other companies are excluded from the affiliates
accounted for by the equity method due to a dissolution, etc.
(3) Names, Etc. of Major Companies Not Accounted for by the Equity Method
A major non-consolidated subsidiary not accounted for by the equity method is Fuchinobe Development
SPC and a major affiliate not accounted for by the equity method is No.5 MEC Urban Development SPC.
The equity method is not applied to the Company’s investments in these corporations because theirrespective sums of profit (loss) (corresponding to the equity ratio owned by the Company) and retained
earnings (corresponding to the equity ratio owned by the Company) have no significant impact on the
consolidated financial statements.
(4) Others
Concerning the companies accounted for by the equity method, the financial statements for the respective
fiscal years are used for those that have a closing date that differs from the consolidated closing date.

3. Matters Related to Business Year, Etc. of Consolidated Subsidiaries
The closing date of MEC Group International, Inc., which is a consolidated subsidiary, and two hundred
seventy-six (276) overseas subsidiaries, MEC eco LIFE Co., Ltd. and three (3) other consolidated subsidiaries
is December 31, and the closing date of Zama Development SPC and five (5) other consolidated subsidiaries
is February 29. In preparing the consolidated financial statements, the financial statements as of and for theyear ended respective closing dates are used for these companies with necessary adjustments provided forconsolidation purposes with regard to material transactions between their closing dates and the consolidated
closing date (March 31).

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[Translation for Reference and Convenience Purposes Only]
4. Matters Related to Accounting Policies(1) Valuation Basis and Method for Important Assets
Securities:
Held-to-maturity debt securities:
Carried at amortized cost (determined by the straight-line method for the Company and its
consolidated domestic subsidiaries and by the interest method for consolidated foreign subsidiaries.)
Other securities:
Securities other than shares, etc., that do not have a market price:
Stated at the market value (Unrealized gains and losses are reported, net of applicable taxes, ina separate component of net assets. The cost of securities sold is determined mainly by themoving-average method.) For investments in limited partnership for investment and similar
partnerships (deemed as securities under Article 2, Paragraph 2 of the Financial Instruments
and Exchange Act), the most recent financial statements available according to the financial
reporting date stipulated in the partnership agreement are used as the basis for calculating the
net amount equivalent to the Company’s equity interest.
Shares, etc., that do not have a market price:
Stated at cost determined mainly by the moving-average method
Equity investments:
Securities other than shares, etc., that do not have a market price:
Stated at the market value (Unrealized gains and losses are reported, net of applicable taxes, ina separate component of net assets. The cost of securities sold is determined mainly by themoving-average method.) For investments in limited partnership for investment and similar
partnerships (deemed as securities under Article 2, Paragraph 2 of the Financial Instruments
and Exchange Act), the most recent financial statements available according to the financial
reporting date stipulated in the partnership agreement are used as the basis for calculating the
net amount equivalent to the Company’s equity interest.
Shares, etc., that do not have a market price:
Stated at cost determined mainly by the moving-average method
Derivatives:
Stated at market values
Inventories:
Real estate for sale: mainly stated at cost determined by the identified cost method. (The amountposted in the consolidated balance sheet was computed by writing down the book value withregard to the inventories for which profitability was clearly declining.)
Real estate for sale in process: Same as the above
Real estate for development: Same as the above
Costs on construction contracts in progress: Same as the above
Non-current assets:
The Company and its consolidated domestic subsidiaries adopt asset-impairment accounting.
Consolidated subsidiaries overseas apply International Financial Reporting Standards and U.S.
accounting standards.
(2) Depreciation Method of Important Depreciable Assets
Property, plant and equipment:
Depreciation of property, plant and equipment of the Company and its consolidated domestic
subsidiaries is calculated principally by the declining-balance method at fixed rates.
However, the straight-line method is adopted for buildings (excluding building improvements) acquiredon or after April 1, 1998 and building improvements and structures acquired on or after April 1, 2016.
Depreciation of property, plant and equipment of consolidated foreign subsidiaries is calculated by thestraight-line method.
Intangible assets:
The amortization of intangible assets is computed by the straight-line method.
Capitalized software for internal use is amortized by the straight-line method over the estimated internal
useful life (mainly 5 years).

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[Translation for Reference and Convenience Purposes Only](3) Accounting Policies for Important Reserves
Allowance for doubtful accounts:
An allowance for doubtful accounts is provided, for possible losses from uncollectible loans andreceivables, at the amount calculated based on the actual rate of losses from the bad debt for ordinary
receivables, and on the estimated recoverability for specific receivables such as doubtful receivables.
Provision for retirement benefits for directors (and other officers):
In consolidated subsidiaries, a provision for retirement benefits for directors (and other officers) is
provided at 100% of the amount that would be required at the end of the fiscal year under review inaccordance with internal regulations.
(4) Accounting Method for Retirement Allowances
1) Method to attribute estimated retirement allowances to period of services
To calculate the Company’s liability for retirement allowances, the method of benefit formula basis ismainly adopted to attribute the estimated amounts of retirement allowance obligations to the period up
to the end of the fiscal year under review.
2) Accounting method for actuarial gains or losses and prior service cost
Prior service cost is mainly amortized on a straight-line basis over a certain period (1 year–10 years)
within an average remaining period of service of employees at the time of each occurrence.
Actuarial gains or losses are mainly amortized on a straight-line basis over a certain period (1 year–15
years) within an average remaining period of service of employees at the time of their occurrence, witheach amount recognized as an expense starting from the following fiscal year.
(5) Translation of Important Assets and Liabilities Denominated in Foreign Currencies Into Yen
The assets and liabilities denominated in foreign currencies of foreign subsidiaries are translated into yen
at the spot rate of foreign exchange in effect at the consolidated balance sheet date of the respective
subsidiaries. The revenue and expense accounts of foreign subsidiaries are translated into yen using the
average rate of foreign exchange during the fiscal year under review. The resulting translation exchange
differences have been presented as “Foreign currency translation adjustment” under “Net assets.”(6) Important Hedge Accounting
1) Hedge Accounting
The Company adopts the deferral hedge accounting, in principle. For interest rate swaps, thepreferential treatment is applied to the swaps which satisfy the requirements of such preferential
treatment. For currency swaps, the appropriation treatment is applied to the swaps which satisfy therequirements of such appropriation treatment.
2) Hedging Instruments and Hedged Items
Hedging instruments:
Hedged items:
Interest rate swaps
Borrowings and corporate bonds
Currency swaps
Borrowings and corporate bonds
Borrowings
Equity of the foreign subsidiaries
3) Hedging Policy
The risk hedging transactions are intended to hedge the exposure to fluctuation risks in interest rates
and foreign currency exchange rates, in accordance with the internal regulations such as “Market Risk
Management Rules” and “Management Guideline by Risk.”
4) Method of Assessing Hedge Effectiveness
The Company compares the cumulative amounts of fluctuations in the rates or in the cash flows of thehedged items with the cumulative amounts of fluctuations in the rates or in the cash flows of thehedging instruments, and assesses the effectiveness of hedging transactions based on the ratio between
the two amounts.
However, the assessment of hedge effectiveness is omitted for interest rate swaps to which special
treatment is applied.
(Hedge transactions to which “Treatment of Hedge Accounting for Financial Instruments Referring to
LIBOR” is applied)
Among the above hedge transactions, all hedge transactions included in the scope of application of“Treatment of Hedge Accounting for Financial Instruments that Reference LIBOR” (ASBJ Revised
Practical Solution No.40, March 17, 2022) are subject to the exceptional treatment prescribed in the
Revised Practical Solution. The details of hedging transactions to which the Revised Practical Solution
is applied are as follows.

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[Translation for Reference and Convenience Purposes Only]
Hedge accounting method:

Deferred hedge accounting, exceptional accounting for interest
rate swaps
Hedging instruments:
Interest rate swaps and currency swaps
Hedged items:
Borrowings and corporate bonds
Types of hedging transactions:Fixing cash flows(7) Accounting for the Consumption Taxes, Etc.
Non-deductible consumption tax and local consumption tax are charged to income for the fiscal year underreview.
(8) Accounting for Significant Revenues and Expenses
The Company and its consolidated subsidiaries measure revenue from contracts with customers based on
the consideration stipulated in the contract with the customer. The main performance obligations in themain business relating to contracts with customers and the usual time at which such performanceobligations are satisfied (the usual time at which revenue is recognized) are as follows.
The promised consideration for contracts with customers in our major businesses is usually paid within
one year from the time the performance obligation is satisfied, and since the amount of the promised
consideration does not include a significant financial component, there are no contracts with customers forwhich we have adjusted the consideration for this effect.
1) Commercial Property Business Segment
Primarily engaged in the business of leasing office buildings and commercial facilities developed andowned, and in the business of selling office buildings and commercial facilities developed andowned.
 Real estate leasing business
Office buildings and commercial facilities developed and owned are leased, and revenue isrecognized for lease transactions in accordance with the “Accounting Standard for Lease
Transactions” (ASBJ Statement No.13, March 30, 2007, hereinafter referred to as “Leaseaccounting standards”) and other standards.
 Real estate sales business
Office buildings and commercial facilities developed and owned are sold, and revenue isrecognized when the real estate is delivered to the customer.
 Others
Other businesses include building operation and management, and hotel business.
In the building operation and management business, we operate office buildings and commercial
facilities and provide real estate management services. As the manager of the entire building, we
assume responsibility for overall management throughout the management operations andprovide building management services by performing various management tasks such as
security, facility management, cleaning, and planting services under contract terms. Since these
services are consumed by the customer as the service is provided in satisfaction of its
performance obligation, revenue is recognized over the contractual period with the customer andis measured by the amount billed to the customer based on the passage of time. In addition, theCompany contracts with lessees for internal construction work, etc. For construction contracts
such as internal construction with customers in the building operation and management business,
the Company recognizes revenue based on the cost incurred and the degree of completion of theconstruction work over the contract period with the customer, since the customer controls theasset as the performance obligation is satisfied. In cases where the period of time over which theperformance obligation is expected to be fully satisfied from the date of inception of thetransaction in the contract is very short, revenue is not recognized over a certain period of time
based on alternative treatment of materiality, etc., and revenue is recognized when theperformance obligation is satisfied.
In the hotel business, the Company and its consolidated subsidiaries operate hotels in buildings
they own. Revenue related to the hotel business is recognized over the period of use of the
facility by the customer, as the customer consumes the service as it is provided in satisfaction of
the performance obligation.

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[Translation for Reference and Convenience Purposes Only]
2)

3)

4)

Residential Business Segment
Mainly engaged in construction, sales, and leasing of developed condominiums and residential
houses, as well as management of condominiums and houses on consignment and custom-built
housing business, etc.
 Condominium sales businessCondominiums for sale that have been conducted from the purchase of land to construction are
sold to customers, and revenue is recognized at the time the real estate is delivered to thecustomer.
 Contracted residential property management services
Property management services for condominiums, residential houses, etc., are rendered. As the
manager of the entire building, the company assumes responsibility for general management
throughout the management operations and provides building management services byperforming various management tasks such as security guard services, facility management,
cleaning, and planting under contractual terms. Since these services are consumed by thecustomer as the service is provided in satisfaction of its performance obligation, revenue isrecognized over the contractual period with the customer and is measured by the amount billed
to the customer based on the passage of time.
 Design and contract construction of custom-built houses
Custom-built houses are sold on order, and the Company constructs and delivers houses on thecustomer’s land based on building construction contracts with the customer. In this service, thecustomer controls the asset as the performance obligation is satisfied, and revenue is recognizedover the term of the contract with the customer based on the percentage of completion of theconstruction at the cost incurred. In cases where the period of time over which the performanceobligation is expected to be fully satisfied from the date of commencement of the transaction in
the contract is very short, revenue is not recognized over a certain period of time based onalternative treatment of materiality, etc., and revenue is recognized when the real estate isdelivered to the customer.
 Others
Other activities include renovation and sales of condominiums, real estate brokerage, and leasingof rental condominiums. For sales of renovated condominiums, revenue is recognized at the time
the property is delivered to the customer. Real estate brokerage services provide services toconclude real estate sales contracts and real estate lease contracts and deliver real estate on
behalf of customers based on real estate brokerage contracts with customers. For this service,
revenue is recognized upon completion of the delivery of the brokerage property. For leasetransactions related to rental condominiums, the Company recognizes revenue in accordancewith Lease accounting standards and other standards.
International Business Segment
In overseas, it is engaged in the business of developing and leasing office buildings, residences,
commercial facilities, and other properties. In the real estate leasing business, the Company
recognizes revenues in accordance with Lease accounting standards. When office buildings
developed and owned by the Company are sold to customers, revenue is recognized at the time theproperties are delivered to the customers. When the financial statements of foreign consolidated
subsidiaries are prepared in accordance with International Financial Reporting Standards (IFRS) or
U.S. GAAP, such financial statements are used in accordance with “Unification of Accounting
Policies Applied to Foreign Subsidiaries, etc. for Consolidated Financial Statements” (ASBJ Revised
Practical Solution No.18, June 28, 2019, hereinafter referred to as “PITF No.18”).
Investment Management Business Segment
It provides comprehensive services related to real estate investment, mainly offering asset
management services to investment corporations and real estate funds. Revenue from asset
management services includes asset management fees over the contract period as well as success feesfor property acquisitions and property sales. Asset management fees include the amount of assets
under management multiplied by a contractually defined rate and variable fees based on asset
performance multiplied by a contractually defined rate. Because asset management fees are
consumed by customers as obligations in contracts with customers are performed and services are
rendered, revenue is recognized over the term of the contract with the customer only to the extent that
it is probable that, upon subsequent resolution of the uncertainty based on the mode method, there
will not be a significant reduction in the revenue recorded by the time the uncertainty is resolved. For
success fees at the time of property acquisition or sale, revenue is recognized when the performanceobligation is satisfied. When the financial statements of foreign consolidated subsidiaries are- 13 -

[Translation for Reference and Convenience Purposes Only]
prepared in accordance with International Financial Reporting Standards (IFRS) or U.S. GAAP, suchfinancial statements are used in accordance with PITF No.18.
5) Architectural Design & Engineering Business and Real Estate Services Business Segment
It is engaged in the design and engineering business and the real estate service business.
 Architectural Design & Engineering Business
Building design and engineering services are provided until building construction is complete.
For such services, the Company recognizes revenue based on the percentage of completion at
cost incurred over the term of the contract with the customer, since the customer controls theasset as it satisfies its performance obligations. In cases where the period of time over which theperformance obligation is expected to be fully satisfied from the date of inception of thetransaction in the contract is very short, revenue is not recognized over a certain period of time
based on alternative treatment of materiality, etc., and revenue is recognized when theperformance obligation is satisfied.
 Real Estate Services Business
Parking management services and real estate brokerage services are provided. In the parking
management service, we assume overall management responsibility for customer-owned parking
facilities as the manager of the entire facility and provide parking management and operation
services by performing various management tasks such as security, facility management, andcleaning under contractual terms. Parking management and operation services are consumed by
the customer as the services are provided in satisfaction of its performance obligations, andrevenue is recognized over the term of the contract with the customer and is measured by theamount billed to the customer over time.
Real estate brokerage services are provided based on real estate brokerage contracts withcustomers to conclude real estate sales contracts and real estate lease contracts on behalf ofcustomers and to deliver real estate. The Company recognizes revenue from this service uponcompletion of the delivery of the brokerage property.
Recognition of revenues from operating leases
Revenue is recognized based on the monthly lease payments to be received under the lease contracts
over the elapsed term of the leases.
Recognition of revenues from finance lease transactions
The Company recognizes net sales and cost of sales related to finance lease transactions at the time ofreceipt of the lease payments.
(9) Amortization Method and Amortization Period of Goodwill
Goodwill is equally amortized over five (5) years on a straight-line basis. However, if the effect-emerging
period can be reasonably estimated, the amount is equally amortized over the estimated period or if theamount is small, it is amortized for one (1) time.

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[Translation for Reference and Convenience Purposes Only]
Notes on Accounting Estimates
1. Valuation of Property, Plant and Equipment(1) Amount Recorded in the Consolidated Financial Statements for the Fiscal Year Under Review
Amount(Millions of yen)
4,597,114
Property, plant and equipment–
Impairment losses(2) Other Information
1) Calculation Method for the Amount Recorded in the Consolidated Financial Statements for the Fiscal
Year Under Review
The Group mainly owns real estate properties such as office buildings, commercial facilities, outlet
malls, hotels, logistics facilities as property, plant and equipment. For property, plant and equipment
owned by the Group, if the total undiscounted future cash flows from an asset or asset group, forwhich events or changes in circumstances indicate that the book value of the asset or asset group may
not be recoverable, are less than the book value, the book value is reduced to the recoverable amount,and such reduced amount is recorded as an impairment loss, in accordance with the AccountingStandard for Impairment of Fixed Assets.
When grouping assets in order to judge whether to recognize impairment losses or to perform themeasurement of impairment losses, a unit for asset grouping shall be the smallest unit that generates
cash flows that are largely independent of the cash flows of other assets or groups of assets.
The higher of net sale value and value in use is used as recoverable amount. While the net sale value isexpressed as an appraised value by a real estate appraiser or estimated trading price, the discounted
future cash flows are used to measure the value in use.
2) Major Assumptions
In principle, the Group estimates rents, capital expenditures, and discount rates for each individual
property. The estimation is made based on major assumptions by each asset class, taking into accountthe condition of individual properties.
The major assumptions used when estimates were made in the fiscal year under review are as follows.
 Offices
Average rents have remained steadily high since the previous consolidated fiscal year, which is
expected to continue in the next fiscal year. The vacancy rate improved as leasing performed steadilyin the fiscal year under review. We assume that the vacancy rate will continue to stay stable in the next
fiscal year.
 Commercial facilities and outlet malls
As commercial rents include variable rents that are linked to tenant sales, there is a correlation between
rents and tenant sales at the relevant commercial facilities. Business performance for the fiscal year
under review recovered significantly as the economy normalized. We assume that steady businessperformance will continue in the next fiscal year due to strong demand from inbound tourists.
 Hotels
Business performance for the fiscal year under review recovered significantly as the economy
normalized. We assume that steady business performance will continue in the next fiscal year due tostrong demand from inbound tourists.
 Logistics facilities
For logistics facilities, the market has been favorable. Therefore, we assume that performance oflogistics facilities will continue to be steady in the next fiscal year and beyond as is expected for themarket trend.
 Redevelopment projects
The Group is engaged in multiple redevelopment projects. Compared with other development projects,
redevelopment projects have potential risks entailing that their profitability will be lower than initial
estimates as a result of delays or changes in plans. Such risks include the risk of not obtaining
agreement from other landowners in the area planned for redevelopment, and the risk of not obtaining
development permission from local governments.
The Group comprehensively assesses these various risks for redevelopment projects. However, for theredevelopment projects currently underway, we expect to make progress with their development while
securing a certain level of profitability by implementing various measures to address the deteriorationof the business environment, such as increased costs.

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[Translation for Reference and Convenience Purposes Only]
3) Impact on the Consolidated Financial Statements for the Next Fiscal YearThe estimation of impairment losses is made based on the descriptions of 2) Major Assumptions.
Therefore, if major assumptions used for estimating impairment losses worsen, impairment losses may
be recognized in the next fiscal year.
2. Valuation of Inventories(1) Amount Recorded in the Consolidated Financial Statements for the Fiscal Year Under Review
Amount(Millions of yen)
Real estate for sale
53,792453,008
Real estate for sale in process
311
Loss on devaluation of inventories recorded(2) Other Information
1) Calculation Method for the Amount Recorded in the Consolidated Financial Statements for the Fiscal
Year under Review
If the net sale value of inventories falls below the book value, due to a decline in profitability, theGroup reduces the book value to the net sale value and records the reduced amount as loss ondevaluation, in accordance with the Accounting Standard for Measurement of Inventories. The net salevalue is the estimated sales value less the estimated additional construction costs and estimated sales
expenses.
2) Major Assumptions
The major assumption used in the estimation of net sale value for the fiscal year under review are as
follows.
Considering factors such as the latest quarterly distribution of sales by agreement date, contract prices
and number of model units visitors, the net sale values of projects whose performance is generally inline with or better the initial business plan are estimated based on the initial business plan. Meanwhile,the net sale values of projects whose performance has deteriorated from the initial business plan are
estimated based on a revised business plan, taking into consideration conditions unique to each projectsuch as the status of progress, market prices in the neighborhood and incurrence of additional costs.
In addition, pre-construction land for development related to the condominium business has potential
risks entailing that its profitability may be lower than initially expected as a result of delays in the
projects or changes in the plan during the period up to the sales. Such risks include the risk of thedeclining of future selling price, the risk of excessive supply, and the risk of construction delay due toconsultation with neighbors.
The Group comprehensively assesses these various risks for pre-construction land for development.
However, for the pre-construction projects currently underway, we expect to make progress with theirdevelopment while securing a certain level of profitability by implementing various measures toaddress the deterioration of the business environment, such as increased costs.
3) Impact on the Consolidated Financial Statements for the Next Fiscal YearIn the valuation of inventories, the book value is written down based on the descriptions of 2) Major
Assumptions by the lower of cost or market (LCM) method. Therefore, changes in these major
assumptions used for the valuation of inventories may result in the recording of a gain on sales or an
additional loss on devaluation in the next fiscal year.

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[Translation for Reference and Convenience Purposes Only]
3. Valuation of Equity Investments(1) Amount Recorded in the Consolidated Financial Statements for the Fiscal Year under Review
Amount(Millions of yen)
962,175
Equity investments
12,138Loss on devaluation of equity investments recorded(2) Other Information
1) Calculation Method for the Amount Recorded in the Consolidated Financial Statements for the Fiscal
Year under Review
If the effective market value of equity investments without market price declines significantly, theGroup reduces the book value by a reasonable amount, and records such reduced amount as an
impairment loss on equity investments, in accordance with the Accounting Standard for Financial
Instruments.
In calculating the effective market value, the Group performs valuations of assets held by investees foreach purpose of holding.
2) Major Assumptions
For assets held by investees, major assumptions are determined according to the purpose of holding
such assets. For the details of assumptions made for the relevant assets, please refer to 1. Valuation of
Property, Plant and Equipment and 2. Valuation of Inventories.
3) Impact on the Consolidated Financial Statements for the Next Fiscal YearThe estimation for impairment loss on equity investments is made based on assumptions described in
2) Major Assumptions. Therefore, if there are changes in these major assumptions, it may result in
additional impairment losses on equity investments in the next fiscal year.

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[Translation for Reference and Convenience Purposes Only]
Note to the Consolidated Balance Sheet
1. Accumulated Depreciation for Property, Plant and Equipment: ¥1,930,509 million
The accumulated depreciation above includes the accumulated impairment loss.
2. Assets Subject to Collateral and Secured Debt
(1) Assets Subject to Collateral:
Cash and deposits¥150 million
Equity investment (Note)¥8,939 million
Buildings and structures¥160,512 million
Land¥163,235 million
Construction in progress¥52,920 million
Investment securities (Note)¥15,554 million
Other (Note)¥1,620 million
Total¥402,933 million(Note) Equity Investment of ¥8,939 million, investment securities of ¥15,554 million and other of ¥1,620
million are pledged as collateral for the debts of the affiliated companies.
(2) Debt Secured by the Above:
Current portion of long-term borrowings
Long-term Borrowings
Total¥3,684 million¥57,397 million¥61,081 million- 18 -

[Translation for Reference and Convenience Purposes Only]
3. Contingent Obligations(1) Guarantee Obligations
Warrantee
Amount of obligation
Substance of obligation
Takamatsu Airport Co., Ltd.
¥1,500 million
Borrowings from financial institutions
Home buyers¥60,761 million
Borrowings from financial institutions
Total¥62,261 million
The guarantee obligations for home buyers mainly mean the Company’s joint and several guarantees tosecure the repayment of housing loans of home buyers in favor of financial institutions, which continue
until the registration of the creation of the corresponding mortgages has been completed.
(2) Guarantee of Acceptance of Businesses
Warrantee
Amount of obligation
Substance of obligation¥20,368 million
PT. Windas Development
Borrowings from financial institutions(US$143,615 thousand)¥1,480 million
TRCC/Rock Outlet Center, LLC
Borrowings from financial institutions(US$10,438 thousand)¥1,311 million
3400 Walnut Street Owner LLC
Borrowings from financial institutions(US$9,248 thousand)Lendlease OSH Residential A Pty¥22,194 million
Borrowings from financial institutions
Ltd(AU$225,069 thousand)Lendlease OSH Residential B Pty¥10,210 million
Borrowings from financial institutions
Ltd(AU$105,332 thousand)¥7,661 million
RML548Co., Ltd.
Borrowings from financial institutions(THB1,842 million)
Total¥63,227 million
The Company guarantees acceptance of businesses in favor of creditors of Lendlease OSH Residential A
Pty Ltd and RML548Co., Ltd. in the amount equivalent to the percentage of equity interest owned by theCompany.
MEC Group International Inc. guarantees acceptance of businesses in favor of creditors of TRCC/Rock
Outlet Center, LLC and 3400 Walnut Street Owner LLC.
Mitsubishi Estate Asia Pte. Limited guarantees acceptance of businesses in favor of creditors of Lendlease
OSH Residential B Pty Ltd in the amount equivalent to the percentage of equity interest owned by
Mitsubishi Estate Asia Pte. Limited.
Mitsubishi Estate Asia Pte. Limited and MEA Commercial Holdings Pte. Ltd. guarantee acceptance ofbusinesses in favor of creditors of PT. Windas Development. Furthermore, for the amount in excess of theamount equivalent to the percentage of equity interest owned by Mitsubishi Estate Asia Pte. Limited and
MEA Commercial Holdings Pte. Ltd., the Company has received either the provision of collateral or
guarantees from its business partners.

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[Translation for Reference and Convenience Purposes Only]
4. Revaluation of Land
The Company and some of its consolidated subsidiaries revalued the land used for its business in accordancewith the “Act on Revaluation of Land” (Act No. 34, March 31, 1998) and the “Act Partially Amending the Act
on Revaluation of Land” (Act No. 19, March 31, 2001). The revaluation difference has been included in “Netassets” as “Revaluation reserve for land,” net of the related tax that is included in “Liabilities” as “Deferred
tax liabilities for land revaluation.”
Revaluation method: The value of land is determined based on the assessed value of the fixed property tax
adjusted reasonably, as stipulated in Article 2, Item 3, of the Order for Enforcementof the Act on Revaluation of Land (Cabinet Order No. 119, March 31, 1998).
Date of revaluation: March 31, 2002

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[Translation for Reference and Convenience Purposes Only]
Notes to the Consolidated Statement of Changes in Net Assets
1. Class and Total Number of Issued Shares and Class and Number of Treasury Shares
Number of Shares
as of the Beginningof Fiscal Yearunder Review

Increase during the
Fiscal Yearunder Review

Decrease during
the Fiscal Yearunder Review(Thousands of shares)
Number of Shares
as of the End of
Fiscal Year under
Review

Issued shares:
Shares of
1,324,288––
1,324,288
common stockTotal
1,324,288––
1,324,288
Treasury shares:
Shares ofcommon28,04330,383375
58,052stock(Note)
Total
28,04330,383375
58,052
Note: The increase of 30,383 thousand shares in the number of the treasury shares of the Company was dueto the purchase of treasury shares by resolution of the Board of Directors (30,370 thousand shares)
and the purchase of shares less than one (1) unit (13 thousand shares). The decrease of 375 thousand
shares was due to the exercise of stock options (70 thousand shares), and the disposal of treasury
shares as restricted stock compensation (305 thousand shares).
2. Matters Related to Dividends From Surplus(1) Dividends Paid
Date of Resolution
Ordinary General Meetingof Shareholders to be heldon June 29, 2023
Meeting of Board of
Directors held on
November 9, 2023

Class of
SharesTotal
Amount ofDividends(Millions ofyen)

Dividendper Share(Yen)

Commonstock

24,62819

March 31,2023

June 30,
2023

Commonstock

25,46420

September
30, 2023

December 6,
2023

Record Date

Effective
Date(2) Of the Dividends for Which the Record Date Belongs to the Fiscal Year Under Review, Those for Which
the Effective Date of the Dividends Will Be in the Following Fiscal Year
Total
AmountSource of Dividend
Class ofof
RecordEffective
Planned Date of Resolution
Funds for per Share
SharesDividends
Date
Date
Dividends(Yen)(Millionsof yen)Ordinary General Meeting
CommonRetained
March 31, June 28,of Shareholders to be held
25,32420
stock
earnings
2024
2024
on June 27, 2024

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[Translation for Reference and Convenience Purposes Only]
3. Matters Related to Share Acquisition Rights

Breakdown of Stock
Acquisition Rights

Class of
SharesSubject toShare
Acquisition
RightsNumber of the Shares subject to Share Acquisition Rights(Shares)
As of theBeginning of
Fiscal Year
under
Review

Increaseduring the
Fiscal Year
under
Review

Decreaseduring the
Fiscal Year
under
Review

As of theEnd of Fiscal
Year under
Review

Share acquisition rights granted
by a resolution at the meeting
Common
2,000
–
2,000
–
of the Board of Directors heldstock
on July 26, 2007 (Note 1)
Share acquisition rights granted
by a resolution at the meeting
Common
3,000
–
3,000
–
of the Board of Directors heldstock
on July 31, 2008 (Note 2)
Share acquisition rights granted
by a resolution at the meeting
Common
6,000
–
6,000
–
of the Board of Directors heldstock
on July 31, 2009 (Note 3)
Share acquisition rights granted
by a resolution at the meeting
Common
7,000
–
7,000
–
of the Board of Directors heldstock
on July 30, 2010 (Note 4)
Share acquisition rights granted
Commonby a resolution at the meeting
17,000–12,0005,000
stockof the Board of Directors heldon July 29, 2011 (Note 5)
Share acquisition rights granted
by a resolution at the meeting
Common19,000–13,0006,000
of the Board of Directors heldstock
on July 31, 2012 (Note 6)
Share acquisition rights granted
by a resolution at the meeting
Common14,000
–
9,000
5,000
of the Board of Directors heldstock
on July 31, 2013 (Note 7)
Share acquisition rights granted
Commonby a resolution at the meeting
19,000–10,0009,000
stockof the Board of Directors heldon July 31, 2014 (Note 8)
Share acquisition rights granted
by a resolution at the meeting
Common18,000–8,000
10,000of the Board of Directors heldstock
on July 31, 2015 (Note 9)
Note:
1. The decrease in the number of share acquisition rights, which were granted by a resolution at themeeting of the Board of Directors held on July 26, 2007, for the fiscal year under review resulted
from the exercise of the share acquisition rights.
2. The decrease in the number of share acquisition rights, which were granted by a resolution at themeeting of the Board of Directors held on July 31, 2008, for the fiscal year under review resulted
from the exercise of the share acquisition rights.
3. The decrease in the number of share acquisition rights, which were granted by a resolution at themeeting of the Board of Directors held on July 31, 2009, for the fiscal year under review resulted
from the exercise of the share acquisition rights.
4. The decrease in the number of share acquisition rights, which were granted by a resolution at themeeting of the Board of Directors held on July 30, 2010, for the fiscal year under review resulted
from the exercise of the share acquisition rights.

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[Translation for Reference and Convenience Purposes Only]
5.
6.
7.
8.
9.

The decrease in the number of share acquisition rights, which were granted by a resolution at themeeting of the Board of Directors held on July 29, 2011, for the fiscal year under review resulted
from the exercise of the share acquisition rights.
The decrease in the number of share acquisition rights, which were granted by a resolution at themeeting of the Board of Directors held on July 31, 2012, for the fiscal year under review resulted
from the exercise of the share acquisition rights.
The decrease in the number of share acquisition rights, which were granted by a resolution at themeeting of the Board of Directors held on July 31, 2013, for the fiscal year under review resulted
from the exercise of the share acquisition rights.
The decrease in the number of share acquisition rights, which were granted by a resolution at themeeting of the Board of Directors held on July 31, 2014, for the fiscal year under review resulted
from the exercise of the share acquisition rights.
The decrease in the number of share acquisition rights, which were granted by a resolution at themeeting of the Board of Directors held on July 31, 2015, for the fiscal year under review resulted
from the exercise of the share acquisition rights.

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[Translation for Reference and Convenience Purposes Only]
Notes on Financial Instruments
1. Matters Relating to Financial Instruments(1) Policies to Approach to Financial Instruments
The Group raises the necessary funds (mainly bank borrowings and bond issues) in light of the capital
investment plan. In terms of fund management, it makes every effort to avoid market risks by emphasizing
liquidity and shortening the fund management period. As for derivative transactions, the Group makes it apolicy not to engage in speculative transactions, focusing primarily on hedging exposures to fluctuation ofinterest rates, reducing interest expenses, and hedging the exposure to fluctuation risks in foreign currency
exchange rates.
(2) Contents and Risks of Financial Instruments
Trade notes and accounts receivable, which are trade receivables, are exposed to the credit risks ofcustomers. Trade receivables in foreign currencies arising from overseas operations are exposed to risks ofcurrency fluctuations.
Securities and investment securities include mainly held-to-maturity debt securities and shares ofcompanies with which we have business relationships, and are exposed to risks of fluctuations in market
prices.
Equity investments includes mainly preferred equity investments in special-purpose companies under
the Law Concerning Liquidation of Assets, investments in investment units of real estate investment trusts,
and investments in anonymous partnerships into special-purpose companies. They are exposed to credit
risks of respective issuers, risks of changes in interest rates, and risks of fluctuations in market prices.
Leasehold and guarantee deposits for leased premises are exposed to credit risks of business partners.
Most of trade notes and accounts payable, which are trade payables, are due within one (1) year. Someof them in foreign currencies are exposed to risks of currency fluctuations.
Borrowings and bonds payable are intended to raise funds required mainly for capital expenditures, andtheir maturity dates and repayment dates are in a maximum of fifty-seven (57) years after the closing date.
Although some of them have floating rates and are exposed to interest rate risks, they are hedged throughderivative transactions (interest rate swaps.)
Derivative transactions include interest rate swaps, currency swaps and forward exchange contracts.
Interest rate swaps hedge exposures to interest rates by fixing interest rates for financing at floatinginterest rates. Some of the consolidated subsidiaries trade interest rate and currency swaps based on thesame trading policies and for the same utilization purposes as the Company adopts.
(3) Risk Management Systems Relating to Financial Instruments(i) Management of credit risks (risks of contractual defaults by business partners)
The Group periodically monitors trade receivables, and leasehold and guarantee deposits of major
business partners through the department in charge of each segment, manages the due date and thebalance by business partner, and discovers promptly and reduces the risks of failures to collectmoney due to their deteriorating financial positions.
(ii) Management of market risks (risks of fluctuations in foreign exchange rates and interest rates)
The Group capitalizes on interest rate swap and currency swap transactions to limit the risks offluctuations in interest rates on borrowings and bonds payable. The Group also uses foreign
currency borrowings to hedge the risk of foreign exchange rate fluctuations on its net investments inforeign subsidiaries. In terms of securities and investment securities, the Group assesses the market
values and financial positions of issuers (business partners) on a regular basis. As for those
excluding held-to-maturity debt securities, the Group continuously reviews positions in
consideration of the market conditions and relationships with business partners.
(iii) Management of liquidity risks of financing (risks of failure to pay on the due date)
The Group in a timely way develops and updates the financing plans through departments in charge
based on reports from each department, and manages liquidity risks by maintaining cash balances.
(4) Supplemental Explanation for Matters Relating to Market Values, Etc. of Financial Instruments
Since measurement of market values of financial instruments incorporate variable factors, the relevant
values may vary depending on the assumptions adopted.

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[Translation for Reference and Convenience Purposes Only]
2. Matters Related to Market Values, Etc. of Financial Instruments
Amounts stated on the consolidated balance sheet as of March 31, 2024, market values, and their differences
are shown as follows.
(Millions of Yen)
Reported Amounts on
Market Value
Difference
the Consolidated
Balance Sheet(1) Securities and Investment
securities (*2)(i) Held-to-maturity debt
140
141
1
securities(ii) Other securities (*4)
376,640
376,640–(2) Equity investments (*2)(*4)
25,37325,373–
Total assets
402,153
402,155
1(1) Current portion of long-term
93,26193,30644
borrowings(2) Current portion of bonds
81,111
81,222111
payable(3) Bonds payable
799,472
765,321(34,150)(4) Long-term borrowings
1,931,400
1,906,648(24,751)(5) Leasehold and guarantee
deposits received

450,325

425,744(24,581)

Total liabilities
3,355,572
3,272,243(83,328)
Derivative transactions (*3)
1,262
1,262
–
(*1) Cash and items whose market value approximates their carrying amount due to their short maturities areomitted.
(*2) Equity securities without market prices are not included in “(1) Securities and Investment securities” and“(2) Equity investments.” The carrying amounts of such financial instruments in the consolidated balance
sheets are as follows.
Reported Amounts on theClassification
Consolidated Balance Sheet(Millions of Yen)
1) Unlisted stocks
48,4482) Investments in capital
1,511(*3) Net receivables and payables arising from derivative transactions are shown as net amounts, and items
that are net liabilities in total are shown in “( ).”(*4) (4) Investments in partnerships, etc., which are recorded on the consolidated balance sheet at the net
amount of the Company’s equity interest, are not included in “(1) Securities and Investment securities (ii)
Other securities” and “(2) Equity investments.”
The amount of such financial instruments recorded on the consolidated balance sheet is ¥18,059 million.

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[Translation for Reference and Convenience Purposes Only]
3. Matters Concerning the Breakdown of the Market Value of Financial Instruments by Level, Etc.
The market value of financial instruments is classified into the following three levels based on theobservability and materiality of the inputs used to calculate the market value.
Level 1 market value:
Market value calculated based on quoted market prices for assets or liabilities
for which such market value is calculated that are formed in an active market
among the inputs for the calculation of observable market value.
Level 2 market value:
Market value calculated using inputs other than Level 1 inputs for the
calculation of observable market value.
Level 3 market value:
Market value calculated using inputs for calculating unobservable market value
When multiple inputs that have a significant impact on the calculation of market value are used, the market
value is classified to the level with the lowest priority in the calculation of market value among the levels towhich each of those inputs belongs.
(1) Financial Instruments Carried on the Consolidated Balance Sheet at Market Value
Market value (Millions of Yen)
Classification
Level 1
Level 2
Level 3
Total
Securities and Investment
securities
Other securities
Stocks366,663––366,663
Corporate bonds
–
–
5,224
5,224
Other securities
4,752
–
–
4,752
Equity investment
17,082–
8,290
25,373
Total assets
388,497–
13,515402,013
Derivative transactions (*)
Interest-related
–
1,262
–
1,262
Total liabilities
–
1,262
–
1,262
(*) Net receivables and payables arising from derivative transactions are shown as net amounts, and items
that are net liabilities in total are shown in “( ).”(2) Financial Instruments Other Than Those Recorded on the Consolidated Balance Sheets at Market Value
Market value (Millions of Yen)
Classification
Level 1
Level 2
Level 3
Total
Securities and Investment
securities
Held-to-maturity debt
securities
Government bonds
141
–
–
141
Total assets
141
–
–
141
Current portion of long–
93,306–93,306term borrowings
Current portion of bonds–
81,222–
81,222
payableBonds payable–
765,321–765,321Long-term Borrowings–
1,906,648–
1,906,648
Leasehold and guarantee–
425,744–425,744
deposits received
Total liabilities–
3,272,243–
3,272,243(Notes) Explanation of valuation techniques used in the calculation of market value and inputs related to thecalculation of market value
Securities and Investment securities
Listed stocks and government bonds with quoted market prices held by the Company and its
consolidated subsidiaries are valued using quoted market prices and are classified as Level 1
market value. Non-marketable corporate bonds are valued using the discounted present value
method based on the total principal and interest based on the remaining period and interest ratetaking into account credit risk, and are classified as Level 3 market value because the effect ofunobservable inputs on the market value is significant.

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[Translation for Reference and Convenience Purposes Only]
Equity investment
Equity investments with market value held by the Company and its consolidated subsidiaries
are valued using quoted market prices and are classified as Level 1 market value. Nonmarketable equity investments are valued using the adjusted net worth method, whereby realestate owned by the investee is marked to market, and are classified as Level 3 market value dueto the significant impact of unobservable inputs on the market value.
Derivative transactions
The market values of interest rate swaps are calculated based on prices quoted by counterparty
financial institutions, etc., and are classified as Level 2 market values.
Current portion of bonds payable and Bonds payable
The market value of bonds issued by the Company and its consolidated subsidiaries is based on
the market price for bonds with market quotations and is classified as Level 2 market value. The
market value of bonds issued by the Company and its consolidated subsidiaries with no quoted
market price is calculated using the discounted present value method based on the total amountof principal and interest (for bonds that qualify for special treatment as interest rate swaps, thetotal amount of principal and interest based on the interest rate swap rate) and an interest ratethat takes into account the remaining period of the bonds and credit risk, and is classified as
Level 2 market value. (Certain bonds are subject to currency swaps, etc., and their market
values are calculated as if they were yen-denominated bonds.)
Current portion of long-term borrowings and Long-term borrowings
The market value of long-term borrowings is calculated using the discounted present value
method based on the sum of the principal and interest (or the principal and interest at the rate of
the interest rate swap for loans that qualify for the special treatment of interest rate swaps), withinterest rates taking into account the remaining term of the debt and credit risk, and is classified
as Level 2 market value. (Certain borrowings are subject to currency swaps, etc., and theirmarket value are calculated as if it were a yen-denominated debt.)
Leasehold and guarantee deposits received
The market value of leasehold and guarantee deposits received is determined using thediscounted present value method based on the amount of the obligation to return the guaranteemoney and deposits, the period until the due date, and an interest rate that takes into accountcredit risk, and is classified as Level 2 market value.

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[Translation for Reference and Convenience Purposes Only]
Notes on Leased Real Estate
The Company and some of its consolidated subsidiaries own office buildings for rent, commercial facilities
for rent and others in Tokyo and other areas including overseas areas (the United States, United Kingdom,etc.) for the purpose of obtaining revenue from leases.
Some office buildings for rent in Japan are regarded as real estate including parts used as leased real estatesince they are used by the Company and some of its consolidated subsidiaries.
The reported amounts on the consolidated balance sheet and the fair values of these leased real estate andreal estate including parts used as leased real estate at the end of the fiscal year under review are as follows:
Reported Amounts on theConsolidated Balance Sheet(Millions of yen)
Leased real estate

3,960,946

Fair Value(Millions of yen)
8,376,933

Real estate including spaces used
532,279
966,267
as leased real estate
Notes:
1. The reported amounts on the consolidated balance sheet have deducted accumulated depreciation
costs and accumulated impairment losses from the acquisition cost.
2. Fair values at the end of the fiscal year under review are based on the following:(1) Fair values of real estate in Japan are calculated by the Company based mainly on the Real EstateAppraisal Standards.
(2) Fair values of real estate overseas are values appraised principally by local real estate appraisers.

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[Translation for Reference and Convenience Purposes Only]
Notes on Revenue Recognition
1. Break-down of Revenue
The Company breaks down its operating revenues based on its business segments and further breaks down its
commercial real estate and housing businesses by goods and services.
For the fiscal year underreview(Millions of yen)
Commercial Property Business
Real estate leasing business (Note 1)
558,213
Real estate sales business
135,419
Others156,138
Sub-total
849,771
Residential businessCondominium sales business
155,929
Contracted residential property management services
60,053
Design and contract construction of custom-built
37,328housesOthers145,515
Sub-total
398,827
International business (Note 1)
173,770
Investment management business
30,962
Architectural design & engineering and real estate
73,265services business
Other business
11,009Total
1,537,606
Inter-segment transactions (Note 2)(32,918)
Amount recorded in consolidated financial statements
1,504,687
Revenue from contracts with customers
781,450
Revenue from other sources (Note 1)
723,236
Notes:
1. Operating revenues from real estate leasing in the commercial property business and from theinternational business are recognized mainly by applying “Accounting Standard for Lease
Transactions” (ASBJ Statement No.13) and other related standards. When the financial statements offoreign consolidated subsidiaries are prepared in accordance with International Financial ReportingStandards (IFRS) or U.S. GAAP, such financial statements are used in accordance with PITF No.18.
2. The above revenue breakdown includes intersegment revenues and transfers.
2. Basis Information for Understanding Revenues Arising From Contracts With Customers
As described in Note “4 Matters related to Accounting Policies (8) Accounting for Significant Revenues andExpenses” in the Notes on Important Matters for the Preparation of the Consolidated Financial Statements.
3. Information to Understand the Amount of Revenue in the Fiscal Year Under Review and Subsequent Fiscal
Years(1) Receivables, Contract Assets, and Contract Liabilities Arising From Contracts With Customers
The balances of receivables, contract assets and contract liabilities arising from contracts with customers at
the end of the fiscal year under review are as follows. In the consolidated balance sheets, receivables andcontract assets arising from contracts with customers are included in “Trade notes and accounts receivable,
and contract assets,” and contract liabilities are included in “Other” under “Current liabilities,” respectively.
For the fiscal year under review(Millions of yen)
Receivables arising from contracts
50,101
with customers
Contract assets
10,565Contract liabilities
93,532Contract assets consist mainly of the rights to the consideration based on the progress of the construction
work at the end of the reporting period for design and engineering contracts and housing contracts, excluding
receivables, which are transferred to receivables when the work is completed and the consideration is
invoiced to the customer.
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[Translation for Reference and Convenience Purposes Only]
Contract liabilities consist primarily of deposits, etc., received from customers under contracts for the sale ofcondominium units. When the condominium units are transferred to customers, the performance obligations
are satisfied and the contract liabilities are transferred to revenue.
Of the contract liability balances of ¥64,486 million at the beginning of the fiscal year under review, ¥51,558
million was related to condominium sales, of which ¥17,912 million was recognized as revenue in the fiscal
year under review. Almost all of the contract liabilities other than those related to sales of condominiums,
etc., were recognized as revenues during the fiscal year under review.
(2) Transaction Price Allocated to Remaining Performance Obligations
The transaction value allocated to the residual performance obligation was ¥236,222 million at the end of the
fiscal year, of which ¥96,073 million was allocated to the Commercial property business and ¥140,149
million to the Residential business.
As of the end of the fiscal year under review, the estimated timing of performance of outstanding
performance obligations is generally within two years for the Commercial property business and generally
within three years for the Residential business. The notes apply the practical expedient method and do notinclude contracts with initial expected contract periods of one year or less and contracts for which revenue
from satisfaction of performance obligations is recognized in accordance with Paragraph 19 of the
Implementation Guidance.
Per-Share Information
Net assets per share
Earnings per share¥1,896.25¥131.96

Significant Subsequent Events(Purchase of Treasury Shares)
The Company resolved to purchase its treasury shares under Article 156, which is applicable in accordance with
Article 165, paragraph (3) of the Companies Act, at the meeting of the Board of Directors held on May 10, 2024.
The details are as follows.
1 Reason for the Purchase of Treasury Shares
After reviewing the Long-Term Management Plan 2030 and comprehensively considering future business
forecasts and financial positions, the Company decided to purchase its treasury shares as part of its capital
policy.
2 Details of Matters Concerning Purchase(1) Class of Shares to Be Purchased
Common stock(2) Total Number of Shares to Be Purchased
32,000,000 shares (Maximum)(2.53% of the total number of issued shares (excluding treasury shares))(3) Total Amount of Purchase Price¥50,000 million (Maximum)(4) Period of Purchase
From May 13, 2024 to November 11, 2024
(5) Method of Purchase
Open market purchase on the Tokyo Stock Exchange* During the period of purchase, the Company will not purchase shares from July 11, 2024 to July 17,
2024, as it may consider to grant restricted stock compensation stipulated by the officer remuneration
system of the Company.
(Cancellation of Treasury Shares)
The President and Chief Executive Officer delegated by resolution of the Board of Directors decided the mattersconcerning the cancellation of treasury shares in accordance with the provisions of Article 178 of the Companies
Act on May 10, 2024. The details are as follows.
Details of Matters Concerning Cancellation(1) Class of Shares to Be Canceled
Common stock(2) Total Number of Shares to Be Canceled
53,012,100 shares (4.00% of the total number of issued shares before the cancellation)- 30 -

[Translation for Reference and Convenience Purposes Only](3) Scheduled Date of Cancellation
May 31, 2024
* Treasury shares to be canceled are 53,012,100 shares, which is calculated by deducting 4 million shares
which are expected to be used in the future for restricted stock compensation, etc., from the treasury shares(57,012,100 shares) which had been acquired by a resolution at the meeting of the Board of Directors held
on November 10, 2022. The total number of issued shares after the cancellation is 1,271,276,206 shares.

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[Translation for Reference and Convenience Purposes Only]
Other Notes
Asset Retirement Obligations(1) Asset Retirement Obligations Posted on the Consolidated Balance Sheet
1) Outline of the asset retirement obligations
These obligations include obligations to restore the original state related to periodically renewed
land lease contracts and building lease contracts.
2) Computation method for the asset retirement obligations
Asset retirement obligations are computed regarding the remaining contract years as an expected
use period and using a discount rate between 0.0% and 5.8%.
3) Increase (decrease) of asset retirement obligations for the fiscal year under review
Balance at the beginning of the fiscal year under review:¥9,350 million
Increase due to the acquisition of property, plant and equipment:¥235 million
Adjustments due to the elapse of time:¥82 million
Decrease due to the fulfillment of asset retirement obligations:¥(34) million
Increase (decrease) due to other reasons:¥34 million
Balance at the end of the fiscal year:¥9,668 million(2) Asset Retirement Obligations That Are Not Posted on the Consolidated Balance Sheet
The following asset retirement obligations are excluded from the posted amounts:
1) Obligation to remove asbestos that is used for some property, plant and equipment at the time ofremoval of the property, plant and equipment in a particular way required by the Ordinance on
Preventing Asbestos Hazards
For some of the property, plant and equipment of the Company, the demolition of a building
involves an obligation to remove asbestos. However, no demolition has taken place yet other thandemolition related to redevelopment or other projects that required arrangements with manybusiness associates. It is difficult to estimate the timing to fulfill such obligation due to causes suchas deterioration, based on the estimated physically usable period of the asset. We cannot estimate
when to demolish the property, plant and equipment without relevant specific management plans.
To address the issue of asbestos, we have been voluntarily conducting asbestos removal work when
tenants move out or when other opportunities allow us to do so. However, we cannot make areasonable estimate of how such voluntary asbestos removal work will progress in the future basedon the data such as how long past tenants stayed. Also, we cannot estimate the remaining amount ofasbestos when such property, plant and equipment are demolished. Moreover, it is difficult to only
estimate the asbestos removal cost separately from regular demolition costs. For these reasons, anasbestos removal-related probability assessment relative to the domain and amounts of asset
retirement obligation is difficult. Therefore, an obligation to remove asbestos is excluded from thereported asset retirement obligations although we made a best estimate taking into account theevidence available as of the closing date.
2) Obligation to restore the original state based on some real estate rental agreements
Periodically renewed land lease contracts for some commercial facilities require restoration to theoriginal state when the contract term ends and the facility must be returned. In reality, however, it
is possible to continue to use such facilities by renewing such contracts and some contracts set
forth a special provision to reduce the possibility of performing such obligation to restore theoriginal state, which makes the timing to fulfill the obligation somewhat vague. In terms of ourbusiness strategies and the business environment, we do intend to continue with our operations andtherefore fulfillment of this obligation is not intended. For these reasons, a probability assessment
relative to the domain and amounts of asset retirement obligation is difficult to ascertain.
Therefore, an obligation to restore the original state is excluded from the reported asset retirement
obligations although we made a best estimate taking into account the evidence available as of theclosing date.

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[Translation for Reference and Convenience Purposes Only]

Non-consolidated Statement of Changes in Net Assets(April 1, 2023, through March 31, 2024)(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

SharecapitalBalance at the
beginning ofcurrent period
Changes in thefiscal year underreviewDividend fromsurplus142,414

Capitalreserve

Total
capitalsurplusRetainedearnings

171,526

171,526

21,663

Reserve forReserve
Reserve for advanced
for open
specialdepreciation
innovadepreciaof nontion
tion
current
promotionassets163

152,637

761

Total
shareholders’equity(48,454)895,741

Generalreserve

Earnedsurpluscarriedforward108,254346,774

630,255(50,093)(50,093)(50,093)

146,108

146,108

146,108

ProfitPurchase oftreasury shares
Disposal oftreasury shares
Reversal ofreserve for
specialdepreciation
Provision forreserve foradvanceddepreciation of
non-current
assets
Reversal ofreserve foradvanceddepreciation of
non-current
assetsProvision forreserve for
open
innovation
promotionReversal ofreserve for
open
innovation
promotion
Net changes in
items otherthan those inshareholders’equityTotal of changes
in the fiscal year
under review
Balance at theend of current
periodTreasurysharesTotal
retainedearnings

(14)
(131)

(54,260)(54,260)

(14)

644

630

131

5,202

(5,202)(1,881)

1,881

190

(190)

(277)

277

–

–

–

–

(131)

3,320

(87)

–

92,89896,000(53,616)

42,384142,414

171,526

171,526

21,66331

155,958674

108,254439,673

726,256(102,071)

938,125- 33 -

[Translation for Reference and Convenience Purposes Only](Millions of yen)
Valuation, translation adjustments and others

Balance at the beginningof current period
Changes in the fiscal year
under review

Valuationdifference on
available-for-salesecurities

Deferred gains orlosses on hedges

Revaluation
reserve for land

Total valuation,translation
adjustments andothersShare
acquisitionrights136,415

2,888

529,822

669,125

193

Total net
assets1,565,060

Dividend from surplus(50,093)

Profit146,108

Purchase of treasury
shares(54,260)

Disposal of treasury
shares

630

Reversal of reserve for
special depreciation–

Provision for reserve foradvanced depreciation of
non-current assets
Reversal of reserve foradvanced depreciation of
non-current assets
Provision for reserve foropen innovation
promotionReversal of reserve foropen innovation
promotion
Net changes in items
other than those inshareholders’ equity––––
86,423(3,900)Total of changes in thefiscal year under review

86,423(3,900)

Balance at the end ofcurrent period

222,838(1,012)- 34 -

82,522(121)

82,400–82,522(121)

124,784

529,822751,64871

1,689,845

[Translation for Reference and Convenience Purposes Only]

Notes to the Non-consolidated Financial Statements
Notes on Matters Related to Significant Accounting Policies
1. Valuation Basis and Method for Securities
Held-to-maturity debt securities:
Carried at amortized cost (straight-line method)
Shares of subsidiaries and affiliates:
Stated at cost determined by the moving-averagemethodOther securities:
Securities other than shares, etc., that do not have a market price:
Stated at the market value (Unrealized gains andlosses are reported, net of applicable taxes, in a
separate component of net assets. The cost of
securities sold is determined mainly by the movingaverage method.) For investments in limited
partnership for investment and similar partnerships(deemed as securities under Article 2, Paragraph 2 of
the Financial Instruments and Exchange Act), themost recent financial statements available according
to the financial reporting date stipulated in thepartnership agreement are used as the basis forcalculating the net amount equivalent to theCompany’s equity interest.
Shares, etc., that do not have a market price:
Stated at cost determined mainly by the movingaverage method
Equity investments:
Securities other than shares, etc., that do not have a market price:
Stated at the market value (Unrealized gains andlosses are reported, net of applicable taxes, in a
separate component of net assets. The cost of equity
investments sold is determined mainly by themoving-average method.) For investments in limited
partnership for investment and similar partnerships(deemed as securities under Article 2, Paragraph 2 of
the Financial Instruments and Exchange Act), themost recent financial statements available according
to the financial reporting date stipulated in thepartnership agreement are used as the basis forcalculating the net amount equivalent to theCompany’s equity interest.
Shares, etc., that do not have a market price:
Stated at cost determined mainly by the movingaverage method
2. Valuation Basis and Method for Derivatives
3. Valuation Basis and Method for Inventories
Real estate for sale:

Real estate for sale in process:Real estate for development:

Stated at market values
Stated at cost determined by the identified cost method (Theamount posted in the Non-consolidated Balance Sheets wascomputed by writing down the book value with regard to theinventories for which profitability was clearly declining.)
The same as above
The same as above- 35 -

[Translation for Reference and Convenience Purposes Only]
4. Depreciation Method of Non-current Assets
Property, plant and equipment:
Depreciation is computed by the declining-balance method at fixed
rates.
However, the straight-line method is adopted for the Yokohama
Landmark Tower and buildings (excluding building
improvements) acquired on or after April 1, 1998 and building
improvements and structures acquired on or after April 1, 2016.
Intangible assets:
The amortization of intangible assets is computed by the straight-line
method.
Capitalized software for internal use is amortized by the straightline method over the estimated internal useful life (5 years).
5. Accounting Policies for Reserves
Allowance for doubtful accounts:

An allowance for doubtful accounts is provided, forpossible losses from uncollectible loans andreceivables, at the amount calculated based on theactual rate of losses from the bad debt for ordinary
receivables, and on the estimated recoverability forspecific receivables such as doubtful receivables.
A reserve for retirement allowances is provided at
the amount calculated based on the projectedamounts of retirement benefit obligations and plan
assets at the end of the fiscal year under review forordinary employees, and at 100% of the amountthat would be required at the end of the fiscal year
under review in accordance with internal
regulations for executive officers.
To calculate the Company’s liability for retirement
allowances to employees, the method of benefit
formula basis is adopted to attribute the estimatedretirement allowances to accounting periods up to
the end of the fiscal year under review.
Prior service cost is amortized, starting from thetime of its occurrence, on a straight-line basis overa certain period (10 years) within an averageremaining service period of employees at the timeof its occurrence. Actuarial gains or losses areamortized, starting from the following fiscal year,
on a straight-line basis over a certain period (10years) within an average remaining service periodof employees at the time of their occurrence.

Reserve for retirement allowances:

6. Accounting for Deferred Assets
The costs are fully charged to income when disbursed.
7. Accounting for Significant Revenues and Expenses
The Company measures revenue from contracts with customers based on the consideration stipulated in thecontract with the customer. The main performance obligations in the main business relating to contracts withcustomers and the usual time at which such performance obligations are satisfied (the usual time at whichrevenue is recognized) are as follows.
The promised consideration for contracts with customers in our major businesses is usually paid within one
year from the time the performance obligation is satisfied, and since the amount of the promised
consideration does not include a significant financial component, there are no contracts with customers forwhich we have adjusted the consideration for this effect.
The Company is primarily engaged in the business of leasing office buildings and commercial facilities
developed and owned, and in the business of selling office buildings and commercial facilities developed andowned.
In the real estate leasing business, office buildings and commercial facilities developed and owned are leased,
and revenue is recognized for lease transactions in accordance with the “Accounting Standard for Lease- 36 -

[Translation for Reference and Convenience Purposes Only]
Transactions” (ASBJ Statement No.13, March 30, 2007, hereinafter referred to as “Lease accounting
standards”) and other standards.
In the real estate sales business, office buildings and commercial facilities developed and owned are sold, andrevenue is recognized when the real estate is delivered to the customer.
Recognition of revenues from operating leases:
Revenue is recognized based on the monthly lease payments to be received under the lease contracts over theelapsed term of the leases.
Recognition of revenues from finance lease transactions:
The Company recognizes net sales and cost of sales related to finance lease transactions at the time of receiptof the lease payments.
8. Hedge Accounting(1) Hedge Accounting:
The Company adopts the deferral hedge accounting, in principle. For interest rate swaps, the preferential
treatment is applied to the swaps which satisfy the requirements of such preferential treatment. For
currency swaps and forward exchange contracts, the appropriation treatment is applied to the contracts
which satisfy the requirements of such appropriation treatment.
(2) Hedging Instruments and Hedged Items:
Hedging instruments:
Hedged items:
Interest rate swaps
Borrowings and corporate bonds
Currency swaps
Borrowings and corporate bonds
Borrowings
Equity of the foreign subsidiaries(3) Hedging Policy:
The risk hedging transactions of the Company are intended to hedge its exposure to fluctuation risks ininterest rates and foreign currency exchange rates, in accordance with the Company’s internal regulations
such as “Market Risk Management Rules” and “Management Guideline by Risk.”(4) Method of Assessing Hedge Effectiveness
The Company compares the cumulative amounts of fluctuations in the rates or in the cash flows of thehedged items with the cumulative amounts of fluctuations in the rates or in the cash flows of the hedging
instruments, and assesses the effectiveness of hedging transactions based on the ratio between the two
amounts.
However, the assessment of hedge effectiveness is omitted for interest rate swaps to which special
treatment is applied.
(Hedge transactions to which “Treatment of Hedge Accounting for Financial Instruments Referring to
LIBOR” is applied)
Among the above hedge transactions, all hedge transactions included in the scope of application of“Treatment of Hedge Accounting for Financial Instruments that Reference LIBOR” (ASBJ Revised
Practical Solution No.40, March 17, 2022) are subject to the exceptional treatment prescribed in the
Revised Practical Solution. The details of hedging transactions to which the Revised Practical Solution isapplied are as follows.
Hedge accounting method:
Deferred hedge accounting, exceptional accounting for interest rate swaps
Hedging instruments:
Interest rate swaps and currency swaps
Hedged items:
Borrowings and corporate bonds
Types of hedging transactions: Fixing cash flows
9. Accounting for Consumption Taxes
Non-deductible consumption tax and local consumption tax are charged to income for the fiscal year underreview.

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[Translation for Reference and Convenience Purposes Only]
Notes on Accounting Estimates
1. Valuation of Property, Plant and Equipment(1) Amount Recorded in the Non-consolidated Financial Statements for the Fiscal Year Under Review
Amount(Millions of yen)
2,980,512
Property, plant and equipment–
Impairment losses(2) Other Information
1) Calculation Method for the Amount Recorded in the Non-consolidated Financial Statements for the
Fiscal Year Under Review
The Company mainly owns real estate properties such as office buildings, commercial facilities,
hotels, logistics facilities as property, plant and equipment. For property, plant and equipment ownedby the Company, if the total undiscounted future cash flows from an asset or asset group, for which
events or changes in circumstances indicate that the book value of the asset or asset group may not berecoverable, are less than the book value, the book value is reduced to the recoverable amount, andsuch reduced amount is recorded as an impairment loss, in accordance with the Accounting Standard
for Impairment of Fixed Assets.
When grouping assets in order to judge whether to recognize impairment losses or to perform themeasurement of impairment losses, a unit for asset grouping shall be the smallest unit that generates
cash flows that are largely independent of the cash flows of other assets or groups of assets. The higherof net sale value and value in use is used as recoverable amount. While the net sale value is expressedas an appraised value by a real estate appraiser or estimated trading price, the discounted future cash
flows are used to measure the value in use.
2) Major Assumptions
In principle, the Company estimates rents, capital expenditures, and discount rates for each individual
property. The estimation is made based on major assumptions by each asset class, taking into accountthe condition of individual properties.
The major assumptions used when making estimations in the fiscal year under review are as follows.
 Offices
Average rents have remained steadily high since the previous fiscal year, which is expected tocontinue in the next fiscal year. The vacancy rate improved as leasing performed steadily in the fiscal
year under review. We assume that the vacancy rate will continue to stay stable in the next fiscal year.
 Commercial facilities
As commercial rents include variable rents that are linked to tenant sales, there is a correlation between
rents and tenant sales at the relevant commercial facilities. Business performance for the fiscal year
under review recovered significantly as the economy normalized. We assume that steady businessperformance will continue in the next fiscal year due to strong demand from inbound tourists.
 Hotels
Business performance for the fiscal year under review recovered significantly as the economy
normalized. We assume that steady business performance will continue in the next fiscal year due tostrong demand from inbound tourists.
 Logistics facilities
For logistics facilities, the market has been favorable. Therefore, we assume that performance oflogistics facilities will continue to be steady in the next fiscal year and beyond as is expected for themarket trend.
 Redevelopment projects
The Company is engaged in multiple redevelopment projects. Redevelopment projects have potential
risks entailing that their profitability will be lower than initially estimated as a result of delays orchanges in plans. Such risks include the risk of not obtaining agreement from other landowners in thearea planned for redevelopment, and the risk of not obtaining development permission from local
governments.
The Company comprehensively assesses these various risks for redevelopment projects. However, forthe redevelopment projects currently underway, we expect to make progress with their development
while securing a certain level of profitability by implementing various measures to address thedeterioration of the business environment, such as increased costs.

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[Translation for Reference and Convenience Purposes Only]
3)

Impact on the Non-consolidated Financial Statements for the Next Fiscal YearThe estimation of impairment losses is made based on the descriptions of 2) Major Assumptions.
Therefore, if major assumptions used for estimating impairment losses worsen, impairment losses may
be recognized in the next fiscal year.

2. Valuation of Equity Investments(1) Amount Recorded in the Non-consolidated Financial Statements for the Fiscal Year Under Review
Amount(Millions of yen)
553,955
Equity investments–
Loss on devaluation of equity investments recorded(2) Other Information
1) Calculation Method for the Amount Recorded in the Non-consolidated Financial Statements for the
Fiscal Year Under Review
If the effective market value of equity investments without market price declines significantly, theCompany reduces the book value by a reasonable amount, and records such reduced amount as an
impairment loss on equity investments, in accordance with the Accounting Standard for Financial
Instruments.
In calculating the effective market value, the Group performs valuations of assets held by investees foreach purpose of holding.
2) Major Assumptions
For assets held by investees, major assumptions are determined according to the purpose of holding
such assets. For the details of assumptions made for the relevant assets, please refer to “1. Valuation of
Property, Plant and Equipment and 2. Valuation of Inventories in the Notes on Accounting Estimates”
in the Notes to the Consolidated Financial Statements.
3) Impact on the Non-consolidated Financial Statements for the Next Fiscal YearThe estimation for impairment losses on equity investments is made based on assumptions describedin 2) Major Assumptions. Therefore, if there are changes in these major assumptions, it may result in
impairment losses on equity investments in the next fiscal year.

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[Translation for Reference and Convenience Purposes Only]
Notes to the Non-consolidated Balance Sheet
1. Accumulated Depreciation for Property, Plant and Equipment:¥1,287,050 million
The accumulated depreciation above includes the accumulated impairment loss.
2. Assets Subject to Collateral and Secured Debt
Cash and deposits¥150 million
Investment securities (Note)¥4,424 million¥11,130 million
Shares of affiliated companies (Note)
Other (Note)¥1,620 million
Total¥17,325 million(Note) Investment securities of ¥4,424 million, shares of affiliated companies of ¥11,130 million and otherof ¥1,620 million are pledged as collateral for the debts of the affiliated companies.
3. Contingent Obligations
Guarantee Obligations
Warrantee
Mitsubishi Estate London Limited
MEC Global Partners Holdings
LLC
MITSUBISHI ESTATE NEWYORK Inc.
Lendlease OSH Residential A Pty
Ltd
RML548Co., Ltd.
Takamatsu Airport Co., Ltd.
Ryoei Life Service Co., Ltd.
Total

Amount of obligation¥194,507 million(GBP938,000 thousand,
SEK1,070,162 thousand)¥84,612 million(US$464,000 thousand,
GBP8,500 thousand,€78,000 thousand)¥24,225 million(US$160,000 thousand)¥22,194 million(AU$225,069 thousand)¥7,661 million(THB1,842 million)

Substance of obligation
Borrowings from financial
institutions
Borrowings from financial
institutions

Borrowings from financial
institutions
Borrowings from financial
institutions
Borrowings from financial
institutions
Borrowings from financial¥1,500 million
institutions
Deposits for repayment obligation to¥32 million
residents¥334,732 million

4. Monetary Receivables/Payables due from/to Affiliated Companies
Short-term receivables due¥22,997 million Long-term receivables duefrom affiliated companies
from affiliated companies
Short-term payables due to¥239,563 million Long-term payables due toaffiliated companies
affiliated companies- 40 -¥93,234 million¥13,564 million

[Translation for Reference and Convenience Purposes Only]
5. Revaluation of Land
The Company revalued the land used for its business in accordance with the “Act on Revaluation of Land”(Act No. 34, March 31, 1998) and the “Act Partially Amending the Act on Revaluation of Land” (Act No. 19,
March 31, 2001). The revaluation difference has been included in “Net assets” as “Revaluation reserve forland,” net of the related tax that is included in “Liabilities” as “Deferred tax liabilities for land revaluation.”
Revaluation method: The value of land is determined based on the assessed value of the fixed property tax
adjusted reasonably, as stipulated in Article 2, Item 3, of the Order for Enforcementof the Act on Revaluation of Land (Cabinet Order No. 119, March 31, 1998).
Date of revaluation: March 31, 2002
6. Equity Investments
Of the equity investments projects, the total amount of investments in anonymous partnership and preferred
equity investments, etc. into anonymous partnerships and special-purpose companies that fall under the
category of affiliated companies is ¥530,315 million.
Notes to the Non-consolidated Statement of Income
Transactions With Affiliated Companies
Operating revenue:
Operating costs:
Transactions other than operating transactions:¥70,494 million¥71,690 million¥42,511 million

Notes to the Non-consolidated Statement of Changes in Net Assets
Class and Number of Treasury Shares at the End of the Fiscal Year Under Review
Common stock:
58,052,023 shares
Note on Tax-effect Accounting
The significant components of deferred tax assets and liabilities are summarized as follows:
Deferred tax assets:(Millions of yen)
Loss on devaluation of non-current assets
42,223
Revaluation reserve for land
22,727
Transfer of business due to reorganization
8,899
Loss on devaluation of investment securities
3,765
Impairment loss on equity investments
2,723
Accrued bonus
1,493
Other
35,183
Subtotal deferred tax assets
117,016
Valuation reserve(77,147)
Total deferred tax assets
39,868Deferred tax liabilities:
Revaluation reserve for land
Valuation difference on available-for-sale securities
Reserve for advanced depreciation of non-current assets
Non-current assets valuation difference
Gain on establishing a trust for retirement benefits
Reserve for retirement allowances
Other
Total deferred tax liabilities
Net deferred tax liabilities- 41 -

265,595
96,81968,83053,231
7,393
169
17,311
509,351
469,482

[Translation for Reference and Convenience Purposes Only]
Notes on Revenue Recognition
Since the basic information for understanding revenue from contracts with customers is identical to theinformation stated in “Notes on Revenue Recognition” in the Notes to the Consolidated Financial Statements,
the notes are omitted.
Notes on Transactions with Related Parties
Subsidiaries and Affiliates, Etc.
Category

Name ofCompany, etc.

Ownership
Percentage of
VotingRights, etc.

Subsidiary

Mitsubishi
Estate London
LimitedIndirectly
holding(100%)

Subsidiary

Subsidiary

Subsidiary

Mitsubishi
EstateResidence
Co., Ltd.

One MEA
Holdings
Pte.Ltd.

MEC Global
Partners
Holdings LLC

Directly
holding(100%)

The
Company’s
Relationshipwith theRelated Party
Guarantee
obligation
Interlocking
directors

Provision ofloansInterlocking
directors

Directly
holding (50%)
Indirectly
holding (50%)

Provision ofloans

Directly
holding(100%)

Guarantee
obligation
Interlocking
directors

Description of Transactions

Transaction
Amount(Millions ofyen)

Guarantee obligation 1

194,507

Provision of loans 2677,000

Collection of loans

664,000

Interest income 22,229

Cash management systemtransactions (Note 3)–

Provision of loans (Note 2)

26,240

Collection of loans

20,930

Provision of loans (Note 2)

72,079Collection of loans

613

Interest income (Note 2)

2,775

Guarantee obligation (Note4)

84,612

Fiscal Yearend Balance(Millions ofyen)Account
Item–
Short-termloans ofaffiliatedcompanies–

602,000–

Deposits
received–
57,685

Short-termloans ofaffiliatedcompanies
Long-term
loans

14,25871,465––

Transaction conditions and decision policy thereof, etc.:
Notes:
1. The amount represents guarantee obligation to secure bank borrowings (GBP938,000 thousand,
SEK1,070,162 thousand) of Mitsubishi Estate London Limited.
2. Interest rates on loans are determined in consideration of market interest rates.
3. Cash management system transactions are related to the cash management system provided by the Company
to its group companies. The transaction amount is not stated as transactions occur repetitively.
4. The amount represents guarantee obligation to secure bank borrowings (US$464,000 thousand, GBP8,500
thousand, €78,000 thousand) of MEC Global Partners Holdings LLC.
Per-share Information
Net assets per share
Earnings per share¥1,334.49¥114.47

Significant Subsequent Events(Purchase and Cancellation of Treasury Shares)
At the meeting of the Board of Directors held on May 10, 2024, the Company resolved the matters concerning
the purchase of treasury shares under the provisions of Article 156, which is applicable in accordance with theprovisions of Article 165, paragraph (3) of the Companies Act, and the President and Chief Executive Officerdelegated by resolution of the Board of Directors decided to cancel the treasury shares in accordance with theprovisions of Article 178 of the Companies Act. The overview is as stated in “Significant Subsequent Events” in
the Notes to the Consolidated Financial Statements.

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