Creating World-Class Neighborhoods
Heiwa Real Estate Co., Ltd. Corporate Report

Contact

Heiwa Real Estate Co., Ltd.
1-10, Nihonbashi Kabutocho, Chuo-ku, Tokyo 103-8222 Japan
https://www.heiwa-net.co.jp/english/index.html

2018Creating
World-Class Neighborhoods

Heiwa Real Estate Co., Ltd. was founded as the owner of buildings for stock exchanges, which play aContents

central role in Japan’s financial market, and has subsequently been deeply involved in businesses rooted in

03

History of Heiwa Real Estate

13

Review of Operations by Business

districts that are the center of financial markets throughout Japan.

05

The Source of Corporate Value

17

Corporate Governance07

Medium- to Long-term Management Plan

18

Corporate Social Responsibility (CSR)09

To Our Stakeholders

19

Consolidated Financial Highlights

11

Focus: The‌
Nihonbashi Kabutocho andKayabacho Revitalization Project

21

Management Team

22

Corporate Profile and Shareholder Information

Competition among cities has intensified as people, economies and information have become borderless.
Heiwa Real Estate will contribute to establishing Tokyo’s position as a global financial city in Asia bypromoting the redevelopment of Nihonbashi Kabutocho and Kayabacho, where the Company was founded
and home to Japan’s largest stock exchange.

01

Disclaimer

Information in this report other than statements of historical fact are forecasts and forward-looking statements that are based on
judgments by the management of Heiwa Real Estate in light of available information. Actual results may differ materially from these
forecasts due to various factors. Heiwa Real Estate assumes no responsibility for the use of information contained in this report.

Heiwa Real Estate Co., Ltd. Corporate Report 201802

History of Heiwa Real Estate
Heiwa Real Estate was founded in 1947 as the owner of buildings for stock exchanges in Tokyo, Osaka, Nagoya and elsewhere, which​play a central role in Japan’s financial markets.

Nihonbashi Kabutocho and Kayabacho, where the Company was founded, have developed as the home of the securities industry. As the social ​environment changed with the development of information and communications, these districts have likewise witnessed significant

change, including the closure of the trading floor and relocations of securities firms.
Meanwhile, there are strong calls to improve the functions of Tokyo as a global financial city, and community expectations for the revitalization​of the districts are rising.

In this business environment, the Company aims to enhance its presence in the community and create the foundation for further growth and​an increase in corporate value by moving on to the next stage, “Aim to be a company that contributes to revitalizing districts,”

starting with the redevelopment of Nihonbashi Kabutocho and Kayabacho.

Establishment Phase:
Supporting the Securities Industry
Established as the owner of stock exchange buildings, webuilt the foundation of our business by leasing stock
exchange buildings and by developing the building leasing
business mainly in neighborhoods for stock exchanges.

1940

1950

1960

Business Diversification Phase:House Sales Business and Other
Businesses

Leasing Business Asset
Expansion Phase: Enhancing
the Revenue Base

We expanded into new businesses in step with changes inthe social environment. We entered the suburban housingdevelopment business and the condominium sales business.

We increased assets in the leasing business such as officebuildings and commercial facilities to enhance ourrevenue base.

1970

1980

1990

2000

Expanded business by developing buildings forlease other than stock exchanges

Further increased assets by acquiring large
office buildings

1947 Heiwa Real Estate established1984	
Completed construction of the stock trading

2000 Acquired Mita Heiwa Building 3

floor building (currently Arrows) within theTokyo Stock Exchange Building complex 2

exchanges 1

We are now working on redevelopment projects in
Nihonbashi Kabutocho and Kayabacho, where the Tokyo
Stock Exchange Building is located, beginning our next
phase: Aim to be a company that contributes torevitalizing districts.

2010

Established as a company that owns stock
exchange buildings

Began leasing to the respective stock1949	A New Phase of Growth2010 Completed construction of CentRise Sakae 72012	Completed construction of Ichibancho Heiwa
Building 8

Aim to be a company that contributes
to revitalizing districts through theredevelopment of Kabutocho

2001 Acquired Uchisaiwaicho Heiwa Building 4
2002 Acquired Dogin Building

1986 Completed construction of Yokohama Heiwa Building

Redeveloped stock exchange buildings into officebuildings, backed by expanding demand for officespace accompanying rapid economic growth.

Aggressively redeveloped properties in Osakaand Nagoya

1987	Completed construction of Osaka Heiwa Building
Entered the real estate brokerage business1988	
Completed construction of the main2004 Completed construction of Nagoya Heiwa Buildingbuilding of the Tokyo Stock Exchange
Building complex 2

1958	
Completed construction of Fukuoka Shoken Building
1962 Completed construction of Kyoto Shoken Building

2004	Completed construction of the Osaka

1965 Entered the residential land sales business1992	Completed construction of Kayabacho Heiwa Building

1977 Entered the detached house sales business1993	Completed construction of Daimaru Kyoto Store(West) Kyodo Building

1980 Entered the condominium sales business2013	Made The Tokyo Shoken Building Incorporated aconsolidated subsidiary

1994	Completed construction of Daimaru Kyoto Store(North) Kyodo Building
1995	Started sales of the FLARGE series of condominiums

2014	Announced the Revitalization Vision for

Nihonbashi Kabutocho

Securities Exchange Building 52007 Completed construction of the Nagoya
Stock Exchange Building 62015	Completed construction of Kitahama 1-Chome
Heiwa Building
Completed construction of Maruzen Nagoya
Honten Building

2008	Completed construction of Hotel Brighton City
Osaka Kitahama

2017	Acquired Kabutocho Heiwa Building No. 6

2009	Initiated full-scale participation in the REIT business（made the current Heiwa Real Estate Asset Management Co., Ltd.
a consolidated subsidiary）

2018	Nihonbashi Kabutocho Section 7 Development
Plan (tentative name), a National Strategic Special
Zone Approved by the Prime Minister

1

Former Tokyo Stock Exchange
Building

2

Tokyo Stock Exchange Building(Chuo-ku, Tokyo)
03

4

3

Mita Heiwa Building(Minato-ku, Tokyo)

Uchisaiwaicho Heiwa Building(Chiyoda-ku, Tokyo)

5

Osaka Securities Exchange Building(Osaka City)

6

Nagoya Stock Exchange Building(Nagoya City)

7

CentRise Sakae(Nagoya City)

8

Ichibancho Heiwa Building(Sendai City)
Heiwa Real Estate Co., Ltd. Corporate Report 201804

The Source of Corporate Value

We will contribute to the creation of a global financial city by revitalizing districts.
Heiwa Real Estate was founded as a company that owns and leases stock exchange buildings, and currently owns the Tokyo Stock Exchange ​Building, the Osaka Securities Exchange Building, the Nagoya Stock Exchange Building, and the Fukuoka Shoken Building.

Supporting Japan’s financial infrastructure, we redeveloped the Osaka Securities Exchange Building, the Nagoya Stock Exchange Building​by establishing relationships of trust with various stakeholders to obtain their cooperation. We have also launched the first phase of the

Nihonbashi Kabutocho and Kayabacho Revitalization Project.
We are leveraging the features of Nihonbashi Kabutocho, which is home to a securities market, to revitalize this district over the medium​and long term. In doing so, we will contribute to the “Global Financial City: Tokyo” vision as we fulfill our social responsibility ofcontributing to the future of Nihonbashi Kabutocho and Kayabacho.

Ownership of Stock Exchange Buildings throughout Japan

Review of Operations by BusinessSupport the
expansion of
securities markets

Tokyo Stock Exchange Building(Tokyo)Osaka Securities Exchange Building(Osaka)Nagoya Stock Exchange Building(Nagoya)Contribute to thecreation of a global
financial city

Aim to be a company
that contributes torevitalizing districts

Vitalize districts andprovide information

Support the growthof tenant companies

Fukuoka Shoken Building(Fukuoka)A Building Leasing Business in Japan’s Major Cities

Nihonbashi Kabutocho and Kayabacho Revitalization Project

Sapporo• Dogin Building• Shin-Odori Building• Park East Sapporo• Sapporo Ekimae Godo Building• AFT Building

Tenjin Heiwa Building
Sendai• Fukuoka Shoken Building• Tenjin Heiwa Building

Dogin Building

Fukuoka

Real Estate
Solutions Business

Develop, lease, manage and operate

Develop, sell, operate and manage

office buildings and other properties

income-generating properties

Ichibancho Heiwa
Building• Ichibancho Heiwa Building• Fukuoka Heiwa Building

Leasing BusinessTokyo• Tokyo Stock Exchange Building• Kayabacho 1-Chome Heiwa Building• Nisshokan Building• Kayabacho Broad Square• Kabutocho Heiwa Building• Kayabacho Heiwa Building No. 2• Kabutocho Heiwa Building No. 1• Hamacho Heiwa Building• Kabutocho Heiwa Building No. 2• Quatro Muramachi Building• Kabutocho Heiwa Building No. 4• Mita Heiwa Building• Kabutocho Heiwa Building No. 5• Uchisaiwaicho Heiwa Building• Kabutocho Heiwa Building No. 6• Yokohama Heiwa Building

Summary of Results for FY 2017

32,698 million• Osaka Securities Exchange Building• Hotel Brighton City Osaka Kitahama

Kitahama 1-Chome
Heiwa Building

05¥

1,588 million(4.9%)–21.7% YoY
Operating revenue

Operating income

Osaka• Osaka Heiwa Building

Other Businesses

Operating revenue¥

Operating Revenue by Segment¥

Nagoya• Heiwa Real Estate Kitahama Building• Nagoya Stock Exchange Building• Kitahama 1-Chome Heiwa Building• CentRise Sakae• Osaka Midosuji Building• Nagoya Heiwa Building• Kyoto Shoken Building• Maruzen Nagoya Honten Building• Daimaru Kyoto Store (West) Kyodo Building• Isemachi Heiwa Building• Daimaru Kyoto Store (North) Kyodo Building• Sakae Center Building

9,432 million¥–2.5% YoY

Net income attributable to owners of parent
Maruzen Nagoya
Honten Building

Kabutocho Heiwa
Building No. 6¥

5,288 million+17.1% YoY

32,698million

Real Estate
Solutions Business¥

11,710 million(35.8%)

Leasing Business¥

19,398 million(59.3%)

Heiwa Real Estate Co., Ltd. Corporate Report 201806

Medium- to Long-term Management Plan

Aim to be a company that “contributes to revitalizing districts,” beginning with the redevelopment of the Nihonbashi Kabutocho and Kayabacho areas.
Achieve consolidated operating income of over ¥10 billion toward the end of the NEXT DECADE (FY 2023).

Phase II Positioning
In the three years of Phase II, aiming to continuously increase corporate value by building a base for businessgrowth, mainly by steadily implementing the Nihonbashi Kabutocho and Kayabacho Revitalization Project.

[Vision for the medium- to long-term management plan]

Over the NEXT DECADE

Phase II

Phase I

Aim to be a company that contributes to revitalizing districts

Phase IIIFY 2014-2016

FY 2017-2019

FY 2020-2023

Preparation to build a growth
foundation

Build a base for business growth

Speed up the pace of growth

10 billion

Target consolidated operating income: Over ¥Key Strategies
Key Strategy 1

The Nihonbashi Kabutocho and Kayabacho Revitalization ProjectStart and steadily implement the first stage of the project, the Nihonbashi Kabutocho 7 Development
Plan (tentative name) and the Nihonbashi Kayabacho 1-6 Development Plan (tentative name).

Implementation of the Nihonbashi Kabutocho
and Kayabacho Revitalization Project

Key Strategy 2Strengthening of the Building Leasing Business
Enhance the revenue base to form a base for the redevelopment project by renewing and increasing
assets for the Leasing Business and by implementing measures to improve profitability.

Key Strategy 3

Strengthen the businesses that form thebase for our redevelopment businessLeasing business(Business with stableearnings)

Strengthenorganizational
controls(Business with highcapital efficiency)

Maintain financial
discipline

Targets (Consolidated)

Ordinary income

Net debt-to-equity (D/E) ratio

Key Strategy 4

Strengthening the Structure for Implementing Strategies and Providing
Shareholders with Stable Returns
Formulate an organizational framework suitable for executing the key strategies, as well as strive to enhancefinancial strength, while keeping management efficiency in mind. Aim to raise ROE and maintain the D/E
ratio at an appropriate level. Also, provide shareholders with stable returns, mainly through dividends.

Investment Plan

Shareholder Returns

Business

Investment amount(Breakdown) Leasing Business: ¥7.4 billion/Real Estate Solutions Business: ¥3.0 billion

The Nihonbashi Kabutocho
and Kayabacho
Revitalization Project

Approx. ¥15.0 billion¥8.0 billion

Leasing Business

1.5 times or lower

Real Estate Solutions
Business

Targets for FY 2019
Operating income

Support Heiwa Real Estate REIT Inc. as its sponsor to increase its assets and improve their quality, andsteadily expand revenue from the fee businesses. Aim to diversify revenue-generating opportunities
in the Real Estate Solutions Business, including selling properties after maximizing their value by
developing income-generating properties, leasing-up, conducting renewal construction, etc.

Strengthen the base to implement
our business strategies

Real estatesolutions business

Expansion and diversification of the Real Estate Solutions Business¥9.0 billion*

We will provide stable shareholder returns mainly through dividends. Our
medium- to long-term target for the consolidated payout ratio is 30%, with
due regard for the internal reserves required to increase corporate value.
Annual Dividends per Share and Payout Ratio

Approx. ¥24.0 billion(Approx. ¥7.0 billion recovered byrenewing the portfolio)

Approx. ¥42.0 billion

(Yen)
40
30

(%)
40

35.2
30.3
23.5

23.0

27.9

20

20
10

22

22

26

26

37*

2013

2014

2015

2016

2017 (FY)10(Approx. ¥54.0 billion recovered)00* Operating income includes corporate expenses that belong to the administration division and are not allocated to any of the reportable segments.

30

Payout ratio (Right scale)
Annual dividends per share (Left scale)* Includes 4.0 yen 70th anniversary commemorative dividend

07

Heiwa Real Estate Co., Ltd. Corporate Report 201808

To Our Stakeholders

Medium- to Long-term Management
Plan Roadmap

employees who are responsible for the Company’s next

We are advancing to our next phase: “Aim to be a company“Global Financial City: Tokyo” vision, including thethat contributes to revitalizing districts.” Our objective is todissemination of financial information, human resource

increase our presence in society and build the foundation fordevelopment, and the promotion of dialogue and exchanges

further growth and increased corporate value. We also plan toamong investors and companies. Creating infrastructure for

employ the expertise we acquire through the redevelopment ofstudying and teaching investment will support the growth of

Nihonbashi Kabutocho and Kayabacho in revitalizing otherindividuals, companies and society. In 2016, we also led theurban districts.

establishment of The Consortium for Japan International Asset

We achieved all of our numerical targets for Phase I (FY 2014

The Next-Generation Heiwa Real Estate:
Taking on the Challenge of Becoming a Company
That Contributes to Revitalizing Districts
Hiroyuki Iwakuma Representative Director and President

Heiwa Real Estate’s Roles

Kabutocho and Kayabacho areas, we must also focus on

Management Center Promotion (JIAM), which has visited
approximately 200 investment companies from Europe, North

We made preparations for building the foundation for growth

America and Asia. Response to these initiatives to promote andin ways such as strengthening of the Building Leasing

attract entrepreneurship in Tokyo is steadily growing.

Business, expansion of the fee businesses and enhancing ourMoreover, business is not our only concern. We create

financial soundness. We made steady progress toward thespace and promote drivers and mechanisms that generate andplan target of consolidated operating income of approximately

sustain activity with the goal of contributing to the vitality of¥10 billion.

the entire community.

Phase II from FY 2017 to FY 2019 involves building thefoundation for business growth, and the full-scale start of theredevelopment of Nihonbashi Kabutocho and Kayabacho.
Through steady progress of the Nihonbashi Kabutocho andObjective: Sustained Growth in
Corporate Value

Kayabacho Revitalization Project, strengthening of ourGiven intensifying competition among the world’s cities, we

Building Leasing Business and other initiatives, we aim toneed to create value unique to Heiwa Real Estate and enhanceachieve sustained growth in corporate value. The revitalization

our social presence as a facilitator of Japan’s financial districts.

project is a challenging initiative, and the entire Company is

While maintaining steady growth, we will continue to evolve

pushing forward together in the spirit of creating the next-

by enhancing our development, proposal and planninggeneration Heiwa Real Estate. We are fortunate that the efforts

capabilities in order to take on various new challenges. Inof our predecessors have given Heiwa Real Estate a stable

addition, I would like Heiwa Real Estate to position itself tofinancial base, but we need to consider our future operating

contribute significantly to revitalization as part of the “Global

environment and the new initiatives it will require.

Financial City: Tokyo” vision and in other urban districts,
and to be a company that contributes more than ever to

Key Strategies: The Nihonbashi Kabutocho
and Kayabacho Revitalization Project

revitalizing districts.

We are counting on your continued support.

buildings for stock exchanges in Tokyo, Osaka, Nagoya andKabutocho in 2014, and began creating a district where

elsewhere, which play a central role in Japan’s financial

people connect, and where investment and growth are born.

markets. The Company celebrated its 70th anniversary in July

The Company has been located in Nihonbashi Kabutocho

We plan to appropriately redevelop this district in two

2017. In my current and former jobs, I have spent a total ofand Kayabacho since its establishment, enabling us to inherit

medium-scale stages rather than in a single redevelopment

more than 40 years in Nihonbashi Kabutocho and Kayabacho,and develop the unique qualities of this district. Our goal is

project. As the owner of the Tokyo Stock Exchange Building,which is the district where Heiwa Real Estate was established,“the classic look and feel” of Kabutocho, which is taking shape

our strength is in the relationships of trust we have establishedand have watched this neighborhood evolve. The basic mission

throughout the district in tandem with the Tokyo Metropolitan

with the community, including local companies andof a real estate company is to provide an environment ofGovernment’s ongoing “Global Financial City: Tokyo” vision.

governments, through 70 years in the business of leasing

convenience, comfort and safety that allows tenant companies

Redevelopment of Nihonbashi Kabutocho and Kayabacho isbuildings in securities and financial districts.

and people to connect and demonstrate their capabilities, andone component of this vision, and helps us fulfill our role ofhave an affluent life. In other words, developing infrastructure iscontributing to improving the infrastructure of Tokyo’s

have established with our customers have provided a solid

thought to be the livelihood of real estate companies. Therefore,

financial district.

base for our new initiatives. Heiwa Real Estate will be

I have come to believe that since we operate in the Nihonbashi

09

We announced our Revitalization Vision for Nihonbashi

The development will provide functions that support theto FY 2016) of our medium- to long-term management plan.

enhancing Tokyo’s international competitiveness.
Heiwa Real Estate was founded in 1947 as the owner ofgeneration to lead this project with a sense of ownership.

I believe the relationships of trust that all of our employees

I hope you will share our enthusiasm as we take on thechallenge of creating the next-generation Heiwa Real Estate.

Hiroyuki Iwakuma
Representative Director and President

redeveloping this district for 10 to 20 years, so I want the

Heiwa Real Estate Co., Ltd. Corporate Report 201810

Foc usThe History of
Nihonbashi
Kabutocho andKayabacho

The Nihonbashi Kabutocho andKayabacho Revitalization Project

Nihonbashi
Kabutocho
Japan’s Financial andEconomic Heart

Nihonbashi Kabutocho is home to the Tokyo Stock Exchange andthe center of securities markets in Japan. Along with Wall Street in
New York City and the City in London, it is one of the world’s
leading securities districts. The three major securities markets inJapan are Kabutocho, where the Tokyo Stock Exchange is located,
Kitahama, where the Osaka securities Exchange is located, andIsemachi, where the Nagoya Stock Exchange is located.

Meiji Era (1870s)

Taisho Era to about 1945

Post War (from 1945)

The Present

From a Banking to a Securities andFinancial District

Reconstruction after the Great Kanto
Earthquake and World War II

A Securities District Once Again

Changes in Kabutocho

Eiichi Shibusawa led the opening of Japan’s first modern bank, First
National Bank, in Kabutocho in 1873. Kabutocho subsequently
developed as a center of the Japanese economy with theestablishment of a stock exchange, which then became the Tokyo
Stock Exchange, and numerous companies in the district.

The construction of a new Tokyo Stock Exchange (thepredecessor of the current building) began at the end of 1923
following the Great Kanto Earthquake. The stock trading floor
was completed in 1927 and the main building in 1931. The
building became a familiar landmark of Kabutocho.

Japan’s securities markets resumed with theapproval of the GHQ in 1949. As a securities
district, Kabutocho became synonymous with thecountry’s financial markets and economy due tothe development of the Japanese economy andthe boom in its securities markets.

The trading floor of the Tokyo Stock Exchange, which had
been active for many years, closed in 1999 due to factors
including the introduction of electronic trading and theincrease in Internet transactions. The district changed
significantly as securities companies moved elsewhere.

The Nihonbashi Kabutocho and Kayabacho Revitalization Concept

Recreating the Classic Look and Feelof Kabutocho
We are implementing the Nihonbashi Kabutocho and Kayabacho
Revitalization Project while preserving the district’s history as thebirthplace of Japan’s financial markets. Aligned with the Tokyo
Metropolitan Government’s “Global Financial City: Tokyo” vision,
we are creating a new Kabutocho as a district where people
connect, and where investment and growth are born.

Initiatives to Add Appeal to Nihonbashi Kabutocho and Kayabacho
The planned district revitalization covers a total area of approximately 100,000 m2. The

A district where people connect, and where investment and growth are born

Nihonbashi Kabutocho Section 7 Development Plan (tentative name) is certified as a project inSince the Meiji era, Kabutocho has been an entrepreneurial district for investment and securities, a district where innovation has been in step with thea National Strategic Special Zone. We will also develop three office buildings as a new financial

times, where investors have gathered and where a broad array of information has been exchanged. This historical background and other factors were thecenter for the district called FinGATE. This is one initiative in support of the “Global Financial

basis for our concept of a district where people connect, and where investment and growth are born. Our goal is revitalization that is unique to

City: Tokyo” vision. We will revitalize Nihonbashi Kabutocho and Kayabacho to support the

Kabutocho by harmonizing Kabutocho’s potential with neighboring districts.

growth of start-ups such as fintech companies.

The Role of Nihonbashi Kabutocho and Kayabacho in the “Global Financial City: Tokyo” Vision

et

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sak

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Heiwa Real Estate Co., Ltd.
Yamatane Corporation
Chibagin Securities Co., Ltd.
Kabutocho Heiwa Building No. 3 Co., Ltd.

Primary uses

Offices, retail stores, financial related facilities

Gross floor area

Approx. 3,350 m²

Planned floor-area ratio

1,000%

Total floor area

Approx. 38,000 m²

Number of stories/Height

15 above ground and 2 underground/Approx. 90 m

tre

Chuo Police
StationDaini-Shoken
Kaikan Bldg.

Participating companies

etTokyo Shoken Kaikan Bldg.

hi S

Planned site for
Nihonbashi
Kabutocho Section
7 Development Plan
(tentative name)

Exterior image

FinGATE BASE

has

nter

Yaesu and Kyobashi

Ch

to

bo
ri

St

re
e

t

JR Tokyo StationSo

Kabutocho

l Ce

Sho

Marunouchi

Tokyo Stock Exchange

Shin-Ohashi
Streetncia

Planned site for
Nihonbashi Kabutocho
Section 7 Development
Plan (tentative name)

Kabutocho Heiwa Bldg. No. 1

n-O

St
bo
ri
Uc
hi

Large securities
companies

Kabutocho Heiwa
Bldg. No. 4

FinGATE KABUTO

Shi

re
et

Kabutocho Heiwa Bldg. No. 6
Kabutocho Heiwa
Bldg. No. 2

Coordination andcollaboration

Fina

er

The Bank of Japanhi Riv

MIZUHO
BANK, LTD.

Coordination andcollaboration
Nihonbashi

nbas

Headquarters of major
financial institutions

Kabutocho Heiwa
Bldg. No. 5

Niho

OtemachiNisshokan Bldg.
Tokyo Stock Exchange Bldg.

Sho

Toe

Nihonbashi
Post Office

Kabutocho Heiwa Bldg.

Coordination andcollaboration(tentative name)A leading redevelopment projectsecurities-related concepts outlined below. Our staged development plan will promote coordination and collaboration among Otemachi, which is
The plan looks to the future as a means to support the fulfillment of the “Global Financial City: Tokyo” vision in the district.

Director andManaging Executive Officer

Nihonbashi Kabutocho Section 7 Development Plan
District revitalization

The Nihonbashi Kabutocho and Kayabacho redevelopment proposal we presented to the relevant authorities is based on the three finance- andheadquarters to many major financial institutions, and Nihonbashi, the home of The Bank of Japan, as it works to add finance-related functions.

Kazuo Yamada

Kayabacho Station
Kayabacho 1-Chome
Heiwa Bldg.
FinGATE KAYABA

To
z

ai

Eit

ai

Lin

e

Str
ee

t

Scheduled construction period From FY 2018 to FY 2020
Note: The above data are subject to change.

F i n G AT E
Financial Function Development Concepts
Support for development ofentrepreneurial financial start-ups
focusing on asset management
11

The center for dialogue andexchange between investors
and companies

New financial center in the district

Attracting highly skilled financial
professionals mainly from abroad
FinGATE KABUTOFinGATE KAYABAFinGATE BASE

Heiwa Real Estate Co., Ltd. Corporate Report 201812

Review of Operations by BusinessLeasing Business
The Leasing Business focuses on stock exchange buildings and office buildings in Tokyo, Osaka, Nagoya, Fukuoka, Sapporo,

FY 2017 Results

Sendai and other major cities in Japan.

Operatingrevenue

Stock Exchange Buildings

OperatingincomeMain Points

19,398 million¥• Contribution of Osaka Midosuji
Building(4.3% YoY increase of ¥802 million)

7,566 million• Full-year operation of Kabutocho
Heiwa Building No. 6 (acquired in
the previous fiscal year)¥(12.2% YoY increase of ¥821 million)

Osaka Midosuji Building(Osaka City)

Operating Revenue from Building Leasing (¥18.7 billion) by Region (FY 2017)
Sendai and Sapporo
14%
Fukuoka
6%
Sendai and
Sapporo areas

Osaka area

Tokyo Stock Exchange Building(Chuo-ku, Tokyo)

Osaka Securities Exchange Building(Osaka City)

Nagoya Stock Exchange Building(Nagoya City)

Fukuoka Shoken Building(Fukuoka City)

Nagoya area

Gross Leasable Space(Billions of yen)(Thousands of square meters)

18.3
2.6
15

1.3
1.6
3.6

10

3.9
5

Kabutocho Heiwa Building No. 6(Chuo-ku, Tokyo)

Nisshokan Building(Chuo-ku, Tokyo)

Osaka
22%

Operating Revenue from Building
Leasing (excluding building sales)
20

Mita Heiwa Building(Minato-ku, Tokyo)

Tokyo
48%

By Region

Tokyo area

Office Buildings and Commercial Facilities

Uchisaiwaicho Heiwa Building(Chiyoda-ku, Tokyo)

Nagoya10%

Fukuoka area

Operating Revenue from Building Leasing(¥18.7 billion) by Usage (FY 2017)

500

17.6

17.9

2.6

2.7

1.1
1.9

1.0
1.8

3.7

3.8

2.7

2.7

5.1

5.5

2014

2015

5.7

Other
2%

18.7
2.7

400

1.0
1.8
4.1
2.7
6.2

384
50

300

40
200

100

0

120

28

373

378

50

50

31
120

20

31
118

405
49
20

31
147

20

Office64%

Commercial
18%

By Usage
49

49

49

49

95

100

107

107

2014

2015

2016

2017 (FY)020162017 (FY)Tokyo (excl. Tokyo Stock Exchange Building)Tokyo Stock Exchange Building
Osaka
NagoyaFukuoka
Sendai and Sapporo

Tokyo (excl. Tokyo Stock Exchange Building)Tokyo Stock Exchange Building
Osaka
NagoyaFukuoka
Sendai and Sapporo

Stock Exchange 16%* Excl. Kayabacho Kyodo Building

Strategies for the Future
Strengthening the Building Leasing BusinessWe will upgrade our portfolio by concentrating it in the three central wards ofTokyo and near Company branches in other areas. This will increase profitability
and strengthen the earnings base that will support redevelopment.

Dogin Building (Sapporo City)

13

Ichibancho Heiwa Building(Sendai City)

CentRise Sakae (Nagoya City)

Hotel Brighton City Osaka
Kitahama (Osaka City)

Kiyoyuki
Tsuchimoto
Director andManaging Senior
Executive Officer

1. Renew the portfolio to improve asset quality.
2. Expand earnings by acquiring assets in the Leasing Business.
3. Structure an earnings base that will support redevelopment.

Heiwa Real Estate Co., Ltd. Corporate Report 201814

Review of Operations by Business

Real Estate Solutions Business
The Real Estate Solutions Business generates earnings by developing office buildings, housing and other properties, and by

FY 2017 Results

acquiring, investing in, managing, and improving the value of real estate. It enhances the overall earnings power of the Heiwa
Real Estate Group by collaborating with other Group companies such as Heiwa Real Estate Asset Management Co., Ltd., which
manages the assets of Heiwa Real Estate REIT, Inc., and in other ways that include providing Heiwa Real Estate REIT withwarehousing functions.
Structuring a Value Chain with Heiwa Real Estate REIT
As the sponsor of Heiwa Real Estate REIT, the Company supports its growth, generating earnings in the process to strengthen
the earning power of the entire Group. We will generate earnings in a value chain that links the various types of value
available from real estate.

Heiwa Real Estate Co., Ltd.

(45.1% YoY decrease of ¥9,634 million)

Operatingincome(26.1% YoY decrease of ¥1,065 million)

Property management fees

Capital gains

Warehousing

Property disposal

Property acquisition

Development

Dividend
incomeBrokeragecommissions• Asset management fees of Heiwa Real Estate AssetManagement remained stable(Millions of yen)
1,200(Millions of yen)
600

1,121

1,100

900

1,096

1,132

500

458

469

481

2013

2014

2015

513

566

400

979
917

300
200

800

2014

2015

2016

2017 (FY)2016

2017 (FY)

Sale of Properties
Heiwa Real Estate REIT, Inc.

Stable asset
management

Increase
assetsAssetmanagement fees

Add value using
expertise

3,022 million¥• HF Tabata Residence and HF Ryogoku Residence soldto Heiwa Real Estate REIT

Dividend Income from Heiwa Real Estate REIT

2013

Bridgefunding¥

Asset Management Fee Income from Heiwa Real Estate REIT

1,000

Leasing income

11,710 million

Operatingrevenue

Main Points

Heiwa Real Estate AssetManagement Co., Ltd.

Ginza 8166 Building

LA01 Building

HF Tabata
Residence

HF Ryogoku
Residence

ORE Meieki Higashi
Building

Ginza, Chuo-ku

Shibuya, Shibuya-ku

Tabata-shinmachi,
Kita-ku

Midori, Sumida-ku

Nakamura-ku,
Nagoya City

Total floor area
(No. of units)

1,198.44 ㎡

388.19 ㎡

2,511.94 ㎡(56 units)

2,734.45 ㎡(66 units)

4,227.29 ㎡

CompletedFebruary 2004

October 2016

December 2015

March 2017

October 1995

AcquiredAugust 2015

January 2017Same as above

Same as above

September 2017

Sold

August 2017

May 2017

August 2017

December 2017

December 2017

Increase
portfolio
quality

Building
management fees

Heiwa Service Co., Ltd.

Housing Development

Location

We develop carefully selected condominiums for sale and condominiums for lease for supply to REITs.

Strategies for the Future
Expansion and Diversification of the Real Estate Solutions Business
As the sponsor of Heiwa Real Estate REIT, we will steadily expand the fee businessin ways such as increasing the scale and quality of assets under management.
Another objective is to diversify revenue-generating opportunities through Real
Estate Solutions Business operations such as selling income-generating properties
after maximizing their value through development and renovation, and lease up.

HF Tabata Residence(Kita-ku, Tokyo)

15

HF Ryogoku Residence(Sumida-ku, Tokyo)

Akabane Iwabuchimachi PJ I
(tentative name) (Kita-ku, Tokyo)

Akabane Iwabuchimachi PJ II(tentative name) (Kita-ku, Tokyo)

1. A
 s the sponsor of Heiwa Real Estate REIT, we will expand the fee
businesses to steadily increase earnings.
2. A
 goal of the Real Estate Solutions Business is to diversify earnings opportunities.

Shinichi Hayashi
Director andManaging Officer

Heiwa Real Estate Co., Ltd. Corporate Report 201816

Corporate GovernanceCorporate Social Responsibility (CSR)

Environmental Initiatives

Basic Approach
Heiwa Real Estate considers the enhancement of corporate governance an important business issue. We strengthen Group corporate
governance to earn the trust of shareholders and other stakeholders and to manage our businesses fairly and efficiently.

The trend toward buildings with higher environmental performance has been gaining momentum because of their large energy
requirements. We consider the environment as well as the urban landscape when constructing and renovating buildings. Our approach

Corporate Governance System (As of June 26, 2018)helps to reduce the life cycle cost of buildings through long-term use and to preserve historical value.

General Shareholders’ Meeting
Dismissal Election

Dismissal Election

Cooperation
Audit

Board of Statutory Auditors

Board of Directors(1 internal statutory auditor, 3 external statutory auditors)

Independent auditor

Tokyo Stock
Osaka Securities
Exchange Building Exchange Building(Auditing firm)

CentRise Sakae

Heiwa Real Estate
Kitahama Building

Ichibancho
Heiwa Building

Nisshokan
Building

Kitahama 1-Chome
Heiwa Building

Audit

Compensation Committee
Management ConferenceManaging Officers’ Meeting

Cooperation

Election

Representative Director and President(7 managing officers)

Internal
audit

The SMBC Sustainable Building Assessment Loan Program1 and DBJ Green Building Certification2 (As of June 30, 2018)

Dismissal Election

Nomination Committee

Appointment
Supervision

ReportCooperation

Internal Audit
Department

Report(5 internal directors, 4 external directors)

Audit

Corporate
Auditors Office

To address environmental concerns (reduce energy use) our initiatives focus on resources (reducing costs).

Corporate Planning and General Affairs Department
Development Promotion Department
Administration
Legal Office
Office Building Development Department
Finance Department
Real Estate Solutions Department

Subsidiaries

Board of Directors• The committee selects director and statutory auditor candidates of good• The Board of Directors makes decisions on matters specified by laws andcharacter with sufficient ability and discernment to properly perform the duties

regulations and the Regulations of the Board of Directors’ Meetings (development

required of the respective positions. It addresses inquiries from and presentsof medium- to long-term management plans, disposal of important assets, etc.),

opinions to the Board of Directors. Based on these opinions, the Board ofand makes decisions on and supervises the execution of business.

Directors determines the specifics of the agenda for the election of director and• The Board of Directors consists of nine directors, including four external

statutory auditor candidates to be submitted to the General Shareholders’directors, of whom four are independent external directors.

Meeting, subject to the consent of the Board of Statutory Auditors in the case of

SMBC
Assessment

Gold

—

Platinum

SilverPlatinum—

Platinum

DBJ
Assessment

Gold

Gold

Gold

—

Gold

Gold

Gold

1. SMBC Sustainable Building Assessment Loan Program: An evaluation of environmental performance based on a set of criteria independently developed by Sumitomo Mitsui
Banking Corporation and Woonerf Inc. (formerly CSR Design & Landscape Corporation).
2. DBJ Green Building Certification: A program for identifying and certifying green buildings, which are highly sought after in today’s real estate market, based on acomprehensive assessment system that includes consideration of the societal needs of various stakeholders surrounding the property in addition to the property’s
environmental performance.

Community Initiatives
Kabuto Live!: A Community Information Source

Participation in the Sanno Festival

Kabuto Live! (URL: https://kabuto-live.com/) is the community

We participate in the Sanno Festival, one of the three major

statutory auditor candidates.

website we operate for Nihonbashi Kabutocho and Kayabacho.

festivals of Tokyo since the Edo era, by collaborating with the• Heiwa Real Estate has a Compensation Committee consisting of a majority ofBoard of Statutory Auditors

Through it, we help vitalize the community by providing

neighborhood association in carrying a mikoshi (portable shrine)

external directors with the discretion to ensure the objectivity and transparency of• The Board of Statutory Auditors consists of four statutory auditors, including one

information on the culture of the Nihonbashi Kabutocho andthrough the streets of Nihonbashi Kabutocho.

director compensation.

internal statutory auditor and three external statutory auditors. Board members• The committee determines the basic policy for director compensation, total amountexchange opinions on audits, and full-time statutory auditors attend the

Kayabacho financial district, neighborhoodof compensation, and compensation for individual directors. It addresses inquiries

Compensation Committee

The participation of numerous local companies has vitalized

Managing Officers’ Meeting to reinforce management oversight.

events and other topics. Kabuto Live!

Nihonbashi Kabutocho andfrom and presents opinions to the Board of Directors.

• The Board of Statutory Auditors cooperates with external directors throughcontributes to the district’s vibrancy, andKayabacho. We will continue to• Director compensation consists of fixed basic compensation, Company stock anddiscussions at Board of Directors’ meetings. In addition, statutory auditors andperformance-based bonuses under a system that motivates directors to improveexternal directors cooperate as necessary. The Board of Statutory Auditors also

informs people about subjects including asset

deepen interaction with local

business performance and enhance corporate value over the medium and longformulates the standards for evaluating independent auditors and appropriately

term and helps Heiwa Real Estate secure outstanding people.

selects independent auditors by verifying and confirming their independence andother events.

residents by actively participating in(Kabuto Live!)

community events.

expertise, among other aspects, and ensures that audits are of high quality andNomination Committee• Heiwa Real Estate has a Nomination Committee consisting of a majority of

conducted with appropriate timing.

external directors with the discretion to ensure the objectivity and transparency ofContributions to the Community

personnel affairs associated with directors and statutory auditors.

Initiatives to Strengthen Corporate Governance
FY 2011

formation and about business matching and

FY 2012FY 2013

Medium-term management plan 2013:
Foundations for the Future

FY 2014

FY 2015

FY 2016

over the “NEXT DECADE” Phase I

FY 2017

FY 2018

over the “NEXT DECADE” Phase II

Compensation Committee established.
Corporate Governance Guidelines established. Standards for Assessing theIndependence of Independent Officers established. Nomination Committee established.
Evaluation of the effectiveness of the Board of Directors
implemented. Initiation of stock-based compensation.
Number of external directors increased by one.

Gift of Boulevard Trees to Chuo-ku

Placement and Exhibition of the Red Stone from Sado in

We gifted boulevard trees (20 dogwood trees) toConnection with Eiichi Shibusawa

the district from 1-9 to 2-4 Nihonbashi

In 1888, when Eiichi Shibusawa, who is known as the father of capitalism in

Kayabacho, Chuo-ku, Tokyo, which was targeted

Japan, built his Kabutocho house in the place where the Nisshokan Building, inby the landscape improvement and boulevard tree

which our headquarters resides, is currently

planting project that the Chuo-ku government

located, he placed the Red Stone from Sado there

promoted for 2017.

as a lucky stone to wish for the development ofJapan’s economy. As one of the activities to markthe 70th anniversary project, we exhibited the
Red Stone from Sado in the Nihonbashi
Kabutocho district for the first time in 110 years.

Number of external
directors to be
increased by one.
17

Heiwa Real Estate Co., Ltd. Corporate Report 201818

Consolidated Financial Highlights(Millions of yen)
Negative numbers in parentheses

FY 2013

FY 2014

FY 2015

FY 2016

43,28434,34737,01041,74732,698Operating income

8,055

8,548

8,267

9,673

9,432

Ordinary income

5,644

6,568

6,708

8,431

8,395

1

43.2
34.3

6

2

0

0

4,989

5,028

4,878

4,661

10

Cash flows from operating activities

13,824

12,557

9,954

20,98013,4820(18,026)(8,923)(3,218)(4,222)(2,499)Balance of cash and cash equivalents
at end of period

22,903

11,242

15,377

19,117

12,784

Net assets

85,99092,29894,827

97,524

104,900

Total assets

296,834

297,736

294,021

293,025

302,795

Interest-bearing liabilities

170,335

162,490

160,232

157,051

155,786

As of March 31:

29.0

31.0

32.3

33.3

34.6

Performance indicators:02013 2014

Net Income Attributable to
Owners of Parent and EPS(Billions of yen)
6.0

Dividends per share (Yen)

22.00

22.00

26.00

26.00

37.00

Earnings per share (EPS) (Yen)

72.72

62.53

110.50113.17132.57

Book value per share (BPS) (Yen)2,154.94

2,313.34

2,377.02

2,444.84

2,630.07

Price-earnings ratio (PER) (Times)

22.66

27.00

12.67

13.91

15.46

Price-book ratio (PBR) (Times)

0.76

0.73

0.59

0.64

0.78

Payout ratio (%)

30.3

35.2

23.5

23.0

27.9

EBITDA3

13,64813,883

13,641

14,92014,476

3

D/E ratio (Times)

1.98

1.76

1.69

1.61

1.49

Net D/E ratio3 (Times)

1.71

1.64

1.53

1.41

1.36

Ratio of EBITDA to net interest-bearing
liabilities (Times)

10.79

10.89

10.61

9.24

9.84

2.6

2.9

2.8

3.3

3.2

Return on assets (ROA)3 (%)
3Return on equity (ROE) (%)
4

3.4
285

2.8
281

4.7
281

4.7
224

5.2
233

1. Due to the revision of the Accounting Standard for Business Combinations and other revisions, the line item name used in the consolidated financial statements has been
amended. The amended name was applied from FY 2015.
2. Annual dividends per share for FY 2017 included a 4.0 yen commemorative dividend celebrating the 70th anniversary of the Company’s founding.
3. Financial indicators are calculated as follows:
EBITDA:
Operating income + Financial income + Depreciation
D/E ratio:
Interest-bearing liabilities ÷ Net assets
Net D/E ratio: (Interest-bearing liabilities – cash and deposits – marketable securities) ÷ Net assets
ROA:
Operating income ÷ Total assets (average of total assets at beginning and end of period) x 100
ROE:
Net income ÷ Equity (average of equity at beginning and end of period) x 100
4. The decrease in the number of employees in FY 2016 is mainly due to the exclusion of Heiwa Health Care Co., Ltd. from the scope of consolidation because the Heiwa Real
Estate Group sold its entire stake in this company.

2014 2015

2013

2013

2014 2015

4.4

4.5

160

132.57300

Annual Dividends per Share andPayout Ratio(%)
100

296.8 297.7 294.0 293.0 302.7 45

75

34.6 30

50

(Yen)
40

37.0*

2.4

72.72

2.4

110.50200113.17
80

62.53

40
0

0

2013

2014

100

29.0

31.0

32.3

33.3

85.9

92.2

94.8

97.5 104.9

00(Billions of yen)
20

(Times)
2

1.71

1.64

1.53

15

1.41

1.36
10

1

13.6

13.8

13.6

30.3

22.0

20

35.2

10

27.9

23.5

23.0

2015

2016 2017 (FY)02013 2014

Annual dividends per share (Right scale)
Payout ratio (Left scale)* Includes 4.0 yen 70th anniversarycommemorative dividend(Times)
16

14.9

22.0

26.0

0

Total assets (Left scale)
Net assets (Left scale)
Equity ratio (Right scale)

EBITDA and Ratio of EBITDA to
Net Interest-bearing Liabilities

Net D/E Ratio

25

2013 2014 2015 2016 2017 (FY)2015 2016 2017 (FY)Net income attributable to ownersof parent (Left scale)EPS (Right scale)

1.5

15

30

26.0

120

2.9

2

2016 2017 (FY)

5.2
4.8

2.8

2.3

Ordinary income (Left scale)
Ratio of ordinary income tototal assets (Right scale)(%)
60(Billions of yen)
400

2.2

0

2016 2017 (FY)

Total Assets, Net Assets andEquity Ratio
(Yen)
200

3

1

Operating income (Left scale)
Ratio of operating income tooperating revenue (Right scale)

1.2

19

2015 2016 2017 (FY)

4

6.7

5.6

1.9

3.6

2

6.5

8.3

2.9

2

5,326

Cash flows from financing activities

8.4

6
4

Depreciation(17,265)

18
12

5,288

(13,017)

22.3

6

23.2

(%)
5

8

4

4,514

(2,600)

24.9

32.6

28.8 24(Billions of yen)
10

20

4,408

(15,160)

8.2

9.4 30

18.6

2,495

(6,388)

(%)

9.6
8.5

8.0

8

37.0

30

2,901

Cash flows from investing activities

41.7

40

Net income attributable to owners of parent

Number of employees(Billions of yen)
10

(Billions of yen)
50

Operating revenue

Ordinary Income and Ratio ofOrdinary Income to Total Assets

FY 2017

Fiscal year (April 1 to March 31):

Equity ratio (%)

Operating Income and Ratio of
Operating Income to Operating Revenue

Operating Revenue

14.4 12

ROE
(%)
6
5

4.7

4.7

5.2

4

10.79 10.89 10.61
9.24

9.84

8

3.4
2.8

3
2

4

5

0.5

1
0

0

0

2013

2014 2015 2016 2017 (FY)2013 20142015 2016 2017 (FY)

0

2013

2014 2015 2016 2017 (FY)EBITDA (Left scale)
Ratio of EBITDA to net interestbearing liabilities (Right scale)Heiwa Real Estate Co., Ltd. Corporate Report 201820

Management Team (As of June 26, 2018)

Corporate Profile and Shareholder Information (As of March 31, 2018)

Corporate Profile

3

2

Heiwa Real Estate Co., Ltd.
July 1947
1-10, Nihonbashi Kabutocho, Chuo-ku,
Tokyo 103-8222, Japan
Osaka Branch, Nagoya Branch,
Fukuoka Branch, Sapporo Branch
Hiroyuki Iwakuma,
Representative Director and President¥21,492 million
233

Company name:Date of establishment:
Head office:5
4Group Companies

1110

Branches:
8

7

6

12

9

13

1

Representative:
Capital:Number of employees(consolidated):

Status of Shares

Hiroyuki Iwakuma
Representative Director
and President

6

MotoyaAizawaExternal Director

8

Kiichiro
Masui
External Director

10

Kiyoyuki Tsuchimoto
Director

Kazuo Yamada
Director

1965:	Joined Nippon Kangyo Securities Co., Ltd. (current Mizuho
Securities Co., Ltd.)
1973: Managing Director of Aizawa Securities Co., Ltd.
1979: President and CEO of Aizawa Securities Co., Ltd.
2008: Chairman and President of Aizawa Securities Co., Ltd.
2010: External Director of the Company (current position)
2011:	President and CEO of Aizawa Securities Co., Ltd.
2018:	Chairman of Aizawa Securities Co., Ltd.
(current position)

1973: Entered the Ministry of Finance
2003:	Director-General of the Planning and Coordination Bureau of
the Financial Services Agency
2013:	Chairman of the Japan Investor Protection Fund
2014:	Chairman of the Board of the Japan Securities ResearchInstitute (current position)
2016:	Outside Director of Japan Credit Rating Agency, Ltd.
(current position)
2017: External Director of the Company (current position)

Naoto
Kato

ChikamiTsubakiExternal Statutory
Auditor

21

Norio Iwasaki
Director

7

Kunitaro
Saida
External Director

9

Junji
Ota
External Director

11

Statutory Auditor(Full-time)

12

4

Masayuki
HiroseExternal Statutory
Auditor (Full-time)

1970:	Joined Ebara - Infilco Co., Ltd. (current Ebara Corporation)
1979:	Registered and commenced practice as Certified Public
Accountant (current position)
1999:	Representative Partner of Asahi & Co.
(current KPMG Azsa LLC)
2014:	External Statutory Auditor of the Company (current position)
2016:	Outside Director of Seiko Epson Corporation(Audit Committee Member) (current position)

13

Jun
SekineExternal Statutory
Auditor5

Shinichi Hayashi
Director

1969: Appointed public prosecutor
2005:	Superintendent public prosecutor of Osaka High Public
Prosecutor’s Office
2006:	Registered and commenced practice as attorney(current position)
2007:	External Statutory Auditor of Nichirei Corporation(current position)
2008:	External Director of Sumitomo Osaka Cement Co., Ltd.
(current position)
2010: External Director of the Company (current position)
2014: External Director of Canon Inc. (current position)

1971:	Joined Nippon Steel Corporation (current Nippon Steel &Sumitomo Metal Corporation)
2005:	Managing Director, Member of the Board of Nippon SteelCorporation (current Nippon Steel & Sumitomo Metal
Corporation)
2008:	Senior Auditor of Nippon Steel Corporation (current Nippon
Steel & Sumikin Metal Corporation)
2011:	Chairman of Japan Audit & Supervisory Board Member
Association
2012:	External Auditor of Enterprise Turnaround Initiative
Corporation of Japan (current Regional Economy Vitalization
Corporation of Japan) (current position)
2016:	Public Governor, Chair of Self-regulation Board & Vice-Chairmanof Japan Securities Dealers Association (current position)
2018:	External Director of the Company (current position)
1979: Joined Tokyo Stock Exchange
2009:	Director of Japan Exchange Group, Inc.
	Statutory Corporate Auditor of Tokyo Stock Exchange, Inc.
2013:	Director of Japan Exchange Group, Inc.
(Statutory Corporate Auditor)
2014:	Chairperson of Japan Audit & Supervisory Board Members
Association
2017:	External Statutory Auditor of the Company (current position)

1978: Joined The Bank of Japan
2007:	Director-General, Research and Statistics Department,
The Bank of Japan
2008: Joined Okasan Securities Co., Ltd.
	Director, Okasan Securities Co., Ltd.
2017:	Executive Officer, Okasan Securities Group Inc.;
Managing Executive Officer, Okasan Securities Co., Ltd.
2018:	External Statutory Auditor of the Company(current position)

The Tokyo Shoken Building Incorporated

Total outstanding shares:

40,059,996

Number of shareholders:     19,211

Individuals and others
7,672,000 (19.15%)

Other
corporations
7,457,000

Number
Percentageof sharesof total equity(Thousands)
(%)*

Name

Securities companies
789,000 (1.97%)
3

Heiwa Real Estate Asset Management Co., Ltd.

110,000,000

Distribution of Shares by Shareholder Type2

Housing Service Co., Ltd.

Major Shareholders (Top 10)

Total authorized shares:

1

Heiwa Service Co., Ltd.

(18.62%)

Total outstanding
shares:40,059,996
Financial
institutions
9,345,000

Foreigncorporations
14,796,000

4,274

10.72

Japan Trustee Services Bank, Ltd. (Trust Account)

1,954

4.90

Misaki Engagement Master Fund

1,552

3.89

The Master Trust Bank of Japan, Ltd. (Trust Account)

1,541

3.86

Japan Trustee Services Bank, Ltd. (Trust Account 9)

1,211

3.04

DFA International Small Cap Value Portfolio

989

2.48

BNP Paribas Securities Services Luxembourg/
JASDEC/Securities-AIFM

856

2.15

Government of Norway

763

1.91

Japan Trustee Services Bank, Ltd. (Trust Account 5)

665

1.67

The Bank of New York Mellon 140042

657

1.65

* Percentage of total equity was calculated after deducting the number of shares
held by the Company as treasury stock (174,783) from total outstanding shares.

(23.33%)(36.93%)

Mitsubishi Estate Co., Ltd.

Share Price and Trading Volume
(Yen)
2,000

TOPIX
(Points)
2,000

1,500

1,500

1,000

1,000
(Shares)
5,000,000

500

4,000,000
3,000,000
2,000,000
1,000,000

4

5

6

7

8

9

10

11

12

1

2

3

4

5

7
2017

2016
Share price (Left scale)6

Trading volume (Right scale)

8

9

10

11

12

1

2

3

0

2018

TOPIX (Right scale)Heiwa Real Estate Co., Ltd. Corporate Report 201822