Supplementary Material
Fiscal 2022
(April 1, 2022 - March 31, 2023)

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

3

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

15

Results for Fiscal 2022 (Apr 1, 2022 – Mar 31, 2023)

17

Forecasts for Fiscal 2023 (Apr 1, 2023 – Mar 31, 2024)18

Principal New Development Projects

19

ESG Initiatives

27

Sumitomo Realty & Development Co., Ltd.

(2)

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

Earnings Targets(1) Aiming to surpass ¥300.0 billion in ordinary profit in the next mediumterm management plan For Fiscal 2023, aiming at record-high ordinary profit for the third consecutive year andrecord-high profit attributable to owners of parent for the eleventh consecutive year
Surpassing
 Medium- to long-term outlook is expected to be achievable earlier than forecast¥300 billion
set out in the Ninth Management Plan (announced in May 2022)
in next plan

(Billion yen)
300
300

250

200

Achieve record ordinary profit for thethird consecutive year in Fiscal 2023

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

‘22
939
234
225

‘23
940
241
237

’24 (F)
970
255
250

GlobalFinancial
Crisis150

100

COVID-19

Ordinary
Profit50

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

Sumitomo Realty & Development Co., Ltd. (3)Basic Management Strategy and Medium- to Long-term Outlook for “Sustainable Growth”

Earnings Targets(2) Growth strategy by segment

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

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

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

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

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

While the supply of new housing is on the decline, the existing housing market, which is being revitalized by an increase inhigh-quality stock, is expected to grow, and we will strive to expand our market share by strengthening Group collaborationand further pursuing customer-oriented services• Focus on spreading “STEP” brand, while operating Mansion Plaza brokerage offices nationwide which exclusively handle high-classcondominiums• STEP Auctions offering fairer and more transparent transactions has been well-accepted by many sellers• Promote efficiency by paperless operations and digital transformation (DX), including the discontinuation of distributing insert flyers andsending direct mail (DM) in consideration of protecting personal information
Sumitomo Realty & Development Co., Ltd. (4)Basic Management Strategy and Medium- to Long-term Outlook for “Sustainable Growth”

Earnings Targets(3) Impact of rising interest rates on earnings is expected to be negligible
 Continue the conservative financing policy with a higher ratio of fixed interest rates
focusing on long-term debt, and strive to minimize the impact of rising interest rates
in the future
Ensuring financial soundness and stability

Conservative finance focusing on long-term debt

Fixed interest rate ratio
of interest-bearing debt

Over 80%

Shareholders’equity ratio

At the end of Fiscal 2022
Long-term debt ratio

: 95%

28%

Fixed interest rate ratio: 86%

Debt ratings
by JCR and R&I

AA-＜Trend of Debt Ratings＞

AA

AA

★ AA-

AAA+

A+

A

A

A-

A-

JCR

BBB+
BBB

BBB+
BBB

R&I

BBBBB+'99'01* Year ended March 31

'03

'05

'07

BBBBB+
'09

'11

'13

'15

'17

'19

'21

'23

Sumitomo Realty & Development Co., Ltd. (5)Basic Management Strategy and Medium- to Long-term Outlook for “Sustainable Growth”

Earnings Targets(3) Impact of rising interest rates on earnings is expected to be negligible

 Target of ordinary profit exceeding ¥300.0 billion in the next medium-term management plan
incorporates the assumption of a 0.5% rise in market interest rates
 Annual refinancing amount is ¥300 to ¥400 billion, approx. 10% of total interest-bearing debt of
3.9 trillion yen, and if the market interest rates were to rise by 0.5%, the increase in interest
payments would be about ¥2.0 billion each year

Only a 0.5% impact on current leasing revenue of ¥400.0 billion= Well within the range of absorption
Rising interest rates simulation (next 5 years)
Repayment amount(refinancing)(Billion yen)

2024

2025

2026

2027

2028

294.1

383.8

345.9

440.6

302.4

18.0

18.0

18.5

19.5

―

―

+0.5

+1.0

19.0

21.0

23.0

26.0

+1.0

+2.0

+2.0

+3.0

* Year ending March 31

If interest rates remain at current levels...
Interest amount

18.0

YoY change
If interest rates increase by 0.5% ...
Interest amount

18.0

YoY change*Long-term debt and bonds*Interest-bearing debt as ¥3.9 trillion as of March 31, 2023

Sumitomo Realty & Development Co., Ltd. (6)Basic Management Strategy and Medium- to Long-term Outlook for “Sustainable Growth”

Profit Distribution Policy(1) Policy to return the fruits of sustainable growth to employees first,
implementing a total of 7% wage increase in the previous fiscal year
✔ Salary increase based on ability and performance
SalaryIncrease▶ Highly diverse workforce with career hires accounting for 90%▶ Evaluate solely on ability (job responsibilities) and performance ineach of the job categories, and implement pay raises that arecommensurate with the growth of individual employees

Lump-sumpayment 1:
Specialallowance

Lump-sumpayment 2:
Renewing
record profit✔ A special allowance as a daily living support(uniformly ¥100,000)

Fiscal 2022
Wage increase
rate of 7%▶ Taking into consideration the rapid rise in prices, especially for
utilities, for all 10,000 Group employees*Including two lump-sum
payments for a total of¥2.3 billion✔ Lump-sum payment at the end of the fiscal year in
conjunction with the renewal of record profit(uniformly ¥100,000)▶ Given to all Group employees, instead of only to those at Sumitomo
Realty & Development as in the past, to share the joy of the good
performance with the entire Group

Continue to make human capital investments in our employees
as the driving force of our sustainable growth

Sumitomo Realty & Development Co., Ltd. (7)Basic Management Strategy and Medium- to Long-term Outlook for “Sustainable Growth”

Profit Distribution Policy(2) Double the dividend within 7 years to ¥100 per share, and continue
sustainable dividend increase in line with profit growth Increased the pace of dividend increase from ¥5 to ¥7 per share per year as the outlook has
improved (announced in November 2022)
 Raise it to “¥100 per share per year” within seven years, doubling the current ¥52
 In Fiscal 2023, plan to increase the dividend for the 10th consecutive year to ¥59 per share

DoubleMarch 2023
¥52

Profit350(Billion yen)

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

300

90

250

75

59

200

45

150

Dividends
100
50
0Continue
to increase
年７円増配
dividend
継続by¥7 per year

30

20
6
'03

'05

'07

* Year ended / ending March 31

'09

'11

'13

'15

'17

'19

'21

45
30
15

Dividend increased for
10 consecutive terms

Profit

60

52

'23

0
'25
'27
'29
'31
'33
Sumitomo Realty & Development Co., Ltd. (8)Basic Management Strategy and Medium- to Long-term Outlook for “Sustainable Growth”

Investments for Growth(1) Steady progress in investment in leasing office assets with gross floor area ofover 700,000 tsubo* in central Tokyo, mainly comprising redevelopment *1 tsubo ≈ 3.3㎡
 Strive to further expand our earnings base and increase corporate value by completing and putting
the development projects into operation with gross floor area of over 700,000 tsubo
 Maintain our policy of taking advantage of opportunities that arise for new properties (securing¥300.0 billion for investments in new projects for the three years of Ninth Management Plan)
Redevelopment projects underway in
Ikebukuro, Yaesu, Tsukiji, Roppongi, andother locations in central Tokyo(Billion yen)

220
200

Additional
700 thousand tsubo
and more★

¥172.0 billion

180(March 2024 forecast)

160

Gross floor area (owned)(right scale)

120

1,200
1,000

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

40

800
600
400

Operating income from leasing business

20
0

1,800

1,400

100

60

2,000

1,600

140

80

(Thousand tsubo)
2,200

'97

'00

* Year ended / ending March 31

'03

'06

'09

'12

'15

'18

200
'21

'24
(F)

0

Sumitomo Realty & Development Co., Ltd. (9)Basic Management Strategy and Medium- to Long-term Outlook for “Sustainable Growth”

Investments for Growth(2) Investment of ¥500.0 billion in India, aiming to increase profits by ¥30.0 billion
 Developing two office buildings in Bandra Kurla Complex (BKC), which is the new city center of Mumbai,
the largest economic city of India
 In the next medium-term management plan, aim to surpass ¥300.0 billion in domestic ordinary profit, and*1 1 INR = 1.7 JPY, *2 1 tsubo ≈ 3.3㎡
generate 10% of that amount, or ¥30.0 billion, from overseas business• Make full-fledged overseas
expansion in India with our “Tokyo
office building leasing business”
model• Aim for higher investment efficiency
than in Tokyo, considering overseas
risk premiums such as interest rates
and exchange rates• Aim to complete construction of bothproperties during the next mediumterm management plan

Project #1
Location

Project #2

Bandra East, Mumbai, Maharashtra State

Site acquisition

July 2019

November 2022

Acquisition value
Yen equivalent*1

22.38 billion INR
38.0 billion JPY

20.67 billion INR
35.1 billion JPY

Type of ownershipLand lease rights for 80 yrs

Land lease rights for 80 yrs

Site area

12,486 sqm (approx. 3,780 tsubo*2)

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

Building scale

Gross floor area of approx.
40,000 tsubo

Gross floor area of approx.
40,000 tsubo

Building use

Leasing office building

Leasing office building

Project#1

BKC

Pakistan

Delhi

Nepal

8-min walk

Project#2

Project#1

7-min walk

National Stock
Exchange of
India

India

World
Convention
CenterMumbai

Project#2

Maharashtra State

Sri Lanka

Sumitomo Realty & Development Co., Ltd. (10)Basic Management Strategy and Medium- to Long-term Outlook for “Sustainable Growth”

Governance(1) Ensuring diversity of the Board of Directors
 The number of Outside Directors will be increased from the current two to three,accounting for one-third of the Board of Directors
 Appointing one female Director, resulting in a total of two female officers for one Director
and one Corporate Auditor(Planned to be effective from June 29, 2023)
Number of
Directors:

Number of
Corporate Auditors:

Current

New

Inside223Outside2

2(1)(of which, female)

(1)

(1)

Current

New

Inside76Outside2(of which, female)(0)

List of New Directors and Corporate Auditors

Corporate Auditors

Directors
Kenichi
OnoderaKojun
Nishima
MasatoKobayashi
Yoshiyuki
Odai
Hiroshi
Kato
Hisatoshi
Katayama
Yozo
IzuharaNobumasa
Kemori
ChiyonoTeradaDirector - Chairman of the
Board
Representative Director President
Representative Director Deputy President
Representative Director Deputy President
Director - Senior Managing
Executive Officer
Director - Senior Managing
Executive Officer

Male
Male
Male
Male

Yoshifumi
Nakamura
Toshikazu
TanakaTakashi
Sakai
Naoko
Hasegawa

Full-time Corporate
AuditorMale

Full-time Corporate
AuditorMale

Outside Corporate Auditor

OutsideIndependent

Male

Outside Corporate Auditor

OutsideIndependent

FemaleMale
Male

Outside Director

OutsideIndependent

Male

Outside Director

OutsideIndependent

Male

Outside Director

OutsideIndependent

FemaleSumitomo Realty & Development Co., Ltd. (11)Basic Management Strategy and Medium- to Long-term Outlook for “Sustainable Growth”

Governance(2) Considering abolishing “advance warning takeover defense measures against
malicious takeover action”

 In light of trends in the review of corporate takeover rules by the Ministry of Economy, Trade andIndustry and the Financial Services Agency, consider abolishing the “advance warning takeover
defense measures against malicious takeover action” that we have introduced“Problems in the legal system” that necessitate our takeover defense measurese.g. Being taken all of a sudden by a malicious acquirer who rapidly purchases shares in the market,
and the takeover being consummated without sufficient time for consideration or an appropriate
decision-making process at the General Meeting of Shareholders, posing a risk of damage tocorporate value and the interests of other shareholders

Progress in "review of corporate takeover rules," expected to possibly resolve the problems
Discussions on ensuring the fairness and transparency of acquisition procedures
METI: Reviewing the guidelines for takeovers at the “Fair Acquisition Study Group”
FSA: Reviewing the tender offer system and considering to tighten the large shareholding reporting rule

If the problems are solved in light of trends in these system revisions,abolish the "advance warning takeover defense measures"
Sumitomo Realty & Development Co., Ltd. (12)Basic Management Strategy and Medium- to Long-term Outlook for “Sustainable Growth”

Governance(3) Progress in reducing strategic shareholdings
 In Fiscal 2022, sold issues with book value of approximately ¥7.0 billion, and the ratio of
the book value of shares to shareholders’ equity declined to 16.6%
 Continuously, proceed to sell shares that are deemed to have lost their significance tocontinue holding

Book value ofshares(Billion yen)

Shareholders’equity(Billion yen)

Ratio
(%)

6th Plan

7th Plan

8th Plan(March 31,
2016)(March 31,
2019)(March 31,
2022)

Results

190.3

255.5

271.9

269.0

821.0

1,099.3

1,479.2

1,618.9

23.2

23.2

18.4

16.6

March 31,2023

Fiscal 2030

Target

10% orless

Sumitomo Realty & Development Co., Ltd. (13)Basic Management Strategy and Medium- to Long-term Outlook for “Sustainable Growth”

Capital Efficiency(1) Achieved ROE of 9.4%, well above the cost of capital In Fiscal 2022, ROE was 9.4%, achieving high capital efficiency on par with the preceding year The shareholders’ equity ratio has improved every year, and R&I upgraded our credit rating to
AA- in February 2023

Maintain ROE that exceeds the cost of capital, while balancing financial
stability with enhanced profitability
2019

2020

2021

2022

2023

ROE

11.2

11.3

10.1

9.6

9.4

Profit

130.1

141.0

141.4

150.5

161.9

Shareholders’equity(Billion yen)

1,202.1

1,295.0

1,503.0

1,634.0

1,799.4

Shareholders’equity ratio
(%)

23.4

24.4

26.5

28.1

28.3

R&I rating

A

A+

A+

A+

AA-

(%)

(Billion yen)

* Year ended March 31

Profitability

Stability

Sumitomo Realty & Development Co., Ltd. (14)Basic Management Strategy and Medium- to Long-term Outlook for “Sustainable Growth”

Three-year Cumulative Earnings Targets

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

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

+ ¥ 130 billion,+ 5 %)“+¥

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

Operating Income¥

770 billion(

Ordinary Profit¥

750 billion

Profit¥

500 billion(Billion yen)

6th Plan(Three-year
cumulative totals)

2014 - 2016

7th Plan2017 - 2019

8th Plan2020 - 2022

9th Plan2023 - 2025,

Revenue from Operations

2,442

2,886

2,870

3,000

Operating Income

501

613

687

770

Ordinary Profit

418

558

656

750

Profit

238

353

433

500

* Year ended / ending March 31

Sumitomo Realty & Development Co., Ltd. (15)The Ninth Management Plan

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

Performance Targets
by Segment(Three-year cumulative totals)

6th Plan2014 - 2016

7th Plan2017 - 2019

8th Plan

9th Plan2023 - 2025

2020 - 2022

886
773
589
177

1,073
957
635
208

1,219
822
612
210

1,300
750
700
250

2,442

2,886

2,870

3,000

Brokerage

314
127
47
41

416
140
50
47

487
151
55
44

520
150
75
68

Operating Income

501

613

687

770

Ordinary Profit

418

558

656

750

Profit

238

353

433

500

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

Sumitomo Realty & Development Co., Ltd. (16)Results for Fiscal 2022

Results for Fiscal 2022 (Apr 1, 2022 – March 31, 2023)(Billion yen)

FY '21

FY ‘22

FY '22

Results

Increase/
Decrease

Results

Previously
Announced
Forecasts

Achieved

Leasing

425

425

+0

430

(5)

Sales

234

222

(12)

220

+2

Construction

204

214

+9

220

(6)

Brokerage

73

75

+2

78

(3)

939

940

+0

950

(10)

Leasing

163

166

+3

165

+1

Sales

50

54

+3

50

+4

Construction

19

21

+3

21

+0

Brokerage

18

20

+2

20

+0

Operating Income

234

241

+7

240

+1

(9)

(5)

+4

(5)

+0

Ordinary Profit

225

237

+12

235

+2

Profit attributable toowners of parent

150

162

+11

160

+2

Revenue from Operations

Other income (expenses)

Sumitomo Realty & Development Co., Ltd. (17)Forecasts for Fiscal 2023

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

FY ‘21

FY ‘22

Results

FY ‘23Results

Increase/
Decrease

Forecasts

Leasing

425

425

445

+20

Sales

234

222

225

+3

Construction

204

214

220

+6

Brokerage

73

75

77

+2

939

940

970

+30

Leasing

163

166

172

+6

Sales

50

54

54

+0

Construction

19

21

23

+2

Brokerage

18

20

22

+2

Operating Income

234

241

255

+14

(9)

(5)

(5)

(0)

Ordinary Profit

225

237

250

+13

Profit attributable toowners of parent

150

162

175

+13

Revenue from Operations

Other income (expenses)

Sumitomo Realty & Development Co., Ltd. (18)Principal New Development Projects

Capital Investment Plans(Non-current asset investment excluding sales assets, such as condominiums for sale)

Further investment in leasing office assets in central Tokyo, strengthening our earnings base
Expect to invest ¥1 trillion over the three years of the Ninth Management Plan
(1) Invest ¥700 billion in concrete development projects for over 700 thousand tsubo* of gross floor area, mainly comprisingredevelopment projects * 1 tsubo ≈ 3.3㎡(2) Ensure that we take advantage of opportunities that arise by securing ¥300 billion for investments in new projects(Thousand tsubo)< Development Pace of Gross Floor Area for Leasing >3,000

More than+700

Pace of development (Thousand tsubo)
2,500

2,000

Gross
floor
area

6th Plan

7th Plan

8th Plan

9th Plan

10th Plan
onward

110

210

180

190

520

1,700

2019
7th Plan2022
8th Planthousand tsubo

thousand
tsubo

+190

thousand
tsubo

1,500

1,000

500

0

2001
1st Plan2004
2nd Plan2007
3rd Plan* Year ended / ending March 31

2010
4th Plan2013
5th Plan2016
6th Plan2025
9th Plan

202810th Plan-

Sumitomo Realty & Development Co., Ltd. (19)Principal New Development Projects

Principal New Office Building Projects*

Project Name

Location(Tokyo)1 tsubo ≈ 3.3㎡

Gross Floor
Area (Tsubo*)

Completion(Expected)

Sumitomo Fudosan Tokyo Mita Garden Tower

Minato Ward

59,400Feb 2023

Sumitomo Fudosan Shinjuku First Tower

Shinjuku Ward

27,000Mar 2023

Nakano 2-chome Project

Nakano Ward

30,000Feb 2024

Sumitomo Fudosan Akihabara East Building

Taito Ward

3,000

Mar 2024

Sumitomo Fudosan Shinjuku Minamiguchi Building(Shinjuku Minamiguchi Project)

Shibuya Ward

7,200

Mar 2024

Roppongi Ekimae Project

Minato Ward

9,700

Oct 2024

Shinagawa Ward

8,800

Dec 2024

Sumitomo Fudosan Osaki Twin Building West
Others

9th Plan Total

34,100179,200

Sumitomo Realty & Development Co., Ltd. (20)Principal New Development Projects

Principal New Office Building Projects

Sumitomo Fudosan Tokyo Mita Garden Tower
Location

Completion

Minato Ward,Tokyo
Feb 2023

Gross Floor
Area

59,400 tsubo

No. of Floor

42 above ground/
4 below ground*

1 tsubo ≈ 3.3㎡

Sumitomo Fudosan Shinjuku First Tower
Location

Completion

Shinjuku Ward,Tokyo
Mar 2023

Gross Floor
Area

27,000 tsubo

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

Sumitomo Realty & Development Co., Ltd. (21)Principal New Development Projects

Principal New Office Building Projects*

1 tsubo ≈ 3.3㎡

Sumitomo Fudosan Shinjuku Minamiguchi
Building (Shinjuku Minamiguchi Project)

Nakano 2-chome Project
Location

Nakano Ward,Tokyo

Gross Floor
Area

30,000 tsubo

Location

Shibuya Ward,Tokyo

Gross Floor
Area

7,200 tsubo

Completion

Feb 2024(Expected)

No. of Floor

37 above ground/2 below ground

Completion

Mar 2024(Expected)

No. of Floor

18 above ground/
1 below ground

Sumitomo Realty & Development Co., Ltd. (22)Principal New Development Projects

Principal New Office Building Projects

Roppongi Ekimae Project*

1 tsubo ≈ 3.3㎡

Sumitomo Fudosan Osaki Twin Building West

Location

Minato Ward,Tokyo

Gross Floor
Area

9,700 tsubo

Location

Shinagawa Ward,Tokyo

Gross Floor
Area

8,800 tsubo

CompletionOct 2024(Expected)

No. of Floor

22 above ground

Completion

Dec 2024(Expected)

No. of Floor

14 above ground/
1 below ground

Sumitomo Realty & Development Co., Ltd. (23)Principal New Development Projects

Haneda Airport Garden: Grand opening in January 2023

Aerial view of Haneda Airport Garden

Spa "Izumi Tenku no Yu Haneda Airport"

Location

Ota Ward, Tokyo

Gross Floor
Area

91,500 m2

Completion

Mar 2020

No. of Floor

12 above ground

Main
PurposesSumitomo Fudosan Shopping City
Haneda Airport Garden

Hotel (a luxury hotel with 160 guestrooms, a high-grade hotelwith 1,557 guestrooms), spa, commercial facility, event
hall, conference/banquet room,bus terminal, etc.

Sumitomo Realty & Development Co., Ltd. (24)Principal New Development Projects

Principal Condominium Projects (Scheduled Delivery in FY2023)*

Units = No. ofunits for sale

City Tower Shinjuku

City Terrace Nakano

City Terrace Bunkyo Koishikawa

Shinjuku Ward, Tokyo

Nakano Ward, Tokyo

Bunkyo Ward, Tokyo

162 units

119 units

120 units

35 above ground / 2 below ground

6 above ground

7 above ground / 1 below ground

City Terrace Yokohama Hoshikawa

City Tower Tennoji

Bay City Towers Kobe

Yokohama

Osaka

Kobe

140 units

177 units

WEST: 346 units, EAST: 353 units

7 above ground

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

Sumitomo Realty & Development Co., Ltd. (25)Principal New Development Projects

Principal Condominium Projects (Scheduled Delivery from FY2024)*

Units = No. ofunits for sale

City Terrace Zenpukujikoen

City Tower Toranomon

City Towers Itabashi Oyama

Nerima Ward, Tokyo

Minato Ward, Tokyo

Itabashi Ward, Tokyo

170 units

138 units

273 units

4 above ground

28 above ground / 1 below ground

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

City House Yokohama

City Terrace Miyagaoka

City Tower Aoba-Dori
Ichibancho

Yokohama

SapporoSendai165 units

97 units

155 units

18 above ground

9 above ground

24 above ground / 1 below ground

Sumitomo Realty & Development Co., Ltd. (26)ESG Initiatives

The Progress in Promoting Decarbonization in the Ninth Plan
Making favorable progress toward the numerical targets in each segment
FY2022

Targets in the Ninth Management Plan
Office buildings
30% of energy consumption in tenant office spaces to be green

15%

Green Power Plan options that can be chosen by each tenant company

Condominiums
100% of condominiums to be ZEH-M Oriented designs
Standardization of high-level energy-saving design; The contributions to reductions by
the subject properties will be in the 10th Plan onward when they are completed

Approx. 4,600 units*Including ones under application

Shinchiku Sokkurisan remodeling
20% of orders to be high thermal insulation remodeling products(already introduced)
Renovation with advanced energy saving for the poor thermal insulation of existinghouses14%

Custom homes
60% of orders to be ZEH homes (already standardized) *Including ZEH equivalent
Thermal insulation and energy-saving performance that exceeds the latest ZEH
standards + New solar power generation service “SUMIFU×ENEKARI”

57%

OthersAll of electric power used in the Group’s own offices to be green
Obtain environmental value generated by solar power through “SUMIFU×ENEKARI”

Approx. 70%*Equivalent to 4,000 units of housing with "SUMIFU x ENEKARI"

Sumitomo Realty & Development Co., Ltd. (27)ESG Initiatives

The Progress in Procurement of Funds from Green Financing
Target in the Ninth Management PlanAt the end of FY2022

Procure ¥1 trillion in long-term funds
from green financing

Procured 477.2 billion yen<Target properties> 12 buildings out of buildings owned by the Company that have alreadyacquired a rating of 3 stars or above in DBJ Green Building Certification* The number of buildings and commercial facilities with the DBJ Green Building Certification increased to 62 (as*Thousand tsubo,1 tsubo ≈ 3.3㎡
of April 30, 2023) from 27 (as of March 31, 2022).
Property name*DBJ Green Building
Certification is a certification
system established by theDevelopment Bank of Japanto evaluate real estate for its
performance and initiatives
regarding “environmental andsocial awareness” beyond its“profitability.”

Gross floor area*

The end of Fiscal 2022
Balance of GF / TTL costs (Billion yen)

Shinjuku Grand Tower

★★★★★

54

1,260

/

1,264

Shinjuku Garden Tower

★★★★★

43

777

/

783

Roppongi Grand Tower

★★★★

64

2,215

/

2,216

Tokyo Nihombashi Tower

★★★★★

41

520

/

1,212

Osaki Garden Tower

★★★★★

54

-

/

Azabujuban Building

★★★★★

14

-

/

Shinjuku Oak Tower

★★★★

49

-

/

Shinjuku Central Park Building

★★★★

46

-

/

Shiodome Sumitomo Building

★★★★

30

-

/

Iidabashi First Tower

★★★★

24

-

/

Shibakoen First Building

★★★★

19

-

/

Shinjuku Central Park Tower

★★★★

18

-

/

458

4,772

/

12 properties TOTAL

Property image (Shinjuku Grand Tower)

Rank

5,475

Principles for target properties during financing period:• Disclose environmental performance information, including CO2 emissions and energy
consumption• Maintain at least three stars in the DBJ Green Building Certification• Prohibit the sale of the target properties since this financing contributes to addressing social
issues such as environmental improvement
Rating: Obtain assessment of conformity with green finance from JCR and R&I

Sumitomo Realty & Development Co., Ltd. (28)

ESG Initiatives

List of ESG Initiatives (Fiscal 2022) (1)Date(Released)

Apr 2022

E S G

ESG Initiatives● ●Shinchiku Sokkurisan started offering SUMIFU × ENEKARI, a new solar power generation service through renovating
existing detached houses●

Participated in the “30by30 Alliance for Biodiversity” and strengthened biodiversity conservation activities● ●Launched “SUMICA” detached houses with thermal insulation and energy-saving performance exceeding the latest ZEH
standards● Establishment of CO2 emissions reduction targets (Ninth Management Plan target and interim target by Fiscal 2030)●● Integrated Risk Management Committee into Sustainability Committee
May 2022● Disclosed skill matrix of each director● Introduced numerical target for strategic shareholdings

Jun 2022●

Signed a comprehensive collaboration agreement with Susono City for forest cultivation● ●Large-scale renovation of Shinjuku Sumitomo Building and its “Sankaku Hiroba (triangular plaza)” won the achievement
award of Japan Association for Real Estate Sciences, “Award of Minister of Land, Infrastructure, Transport and Tourism”●

Released the result of joint research with The University of Tokyo and Musashino University on the decarbonization
effect of “Shinchiku Sokkurisan” building renovation●

Signed a comprehensive collaboration agreement with Daikin for decarbonization of air conditioning systems
Phase 1: Regeneration and reuse of recovered refrigerants● ● ● Included in “MSCI Japan ESG Select Leaders,” the ESG Indexes●
Aug 2022
Sep 2022

Held the 111th STEP Concert, a classic concert for families to enjoy (registration required, free invitation)● ●Held wood education event at Ariake Garden using timber cut from the "Sumitomo Fudosan no Mori" forest regeneration
project● ●Conducted a visiting lecture on SDGs, “Development of Environmentally Friendly Housing” at Shishibone-higashi Elementary
School (Edogawa Ward, Tokyo)

Most of the above initiatives have been announced through news releases.

Sumitomo Realty & Development Co., Ltd. (29)

ESG Initiatives

List of ESG Initiatives (Fiscal 2022) (2)Date(Released)

E S G
●

Replaced vending machines in office buildings with "LOVE the EARTH Vendor" powered by virtually zero CO2 emissions
electricity● ●One of our largest office buildings, Sumitomo Fudosan Tokyo Mita Garden Tower, certified as “ZEB Ready” (Zero Energy
Building with energy saving of 50% or more)●

Sumitomo Fudosan Onarimon Ekimae Building won the award of the "Minato Model Carbon Dioxide Fixation Certification
System Awards" from Minato Ward●

Signed an agreement with the major Canadian lumber manufacturer and lumber importer for promotion of two-by-fourhousing supply to promote decarbonization● ●Held a “PET Bottle Horizontal Recycling Event” encouraging waste separation at Shinjuku Sumitomo Building

Oct 2022

Nov 2022
Jan 2023

ESG Initiatives● ● Disclosed our Multi-Stakeholder Policy● ● Disclosed our Declaration of Partnership Building●● ● Announced a new female outside director (formally elected June 2023)

Feb 2023●

Started "Urban Oasis 2023," a series of mini-concerts at public spaces of our office buildings●

Held a disaster drill for operation of temporary evacuation facility as a member of an association for disaster prevention
in Shinjuku Station area
FASION and REAL ESTATE: Collaboration with TSI Holdings for initiatives of resource circulation at office●●

Introduced hygiene products to the emergency supplies at our temporary evacuation facilities for stranded commuters●

Recognized as a 2023 Certified Health & Productivity Management Outstanding Organization under the large enterprise
category

Mar 2023
Apr 2023

Higashi-Ginza Area Management Project: Held "HIGASHIGINZA Art Gallery 2"● ●Five properties of "La Tour,” the finest premium leasing residence, acquired the highest ratings in DBJ Green Building
Certification

Most of the above initiatives have been announced through news releases.

Sumitomo Realty & Development Co., Ltd. (30)

ESG Initiatives

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

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

Osaki Garden Tower Shinjuku Garden Tower Tokyo Nihombashi Tower Azabujuban Building

Roppongi Grand Tower

Ariake Garden

Included in ESG Index
FTSE

MSCI

S&P

SNAM

Sumitomo Realty & Development Co., Ltd. (31)Sumitomo Realty & Development Co., Ltd.
Investor Relations & ESG Section, Corporate Planning Department

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

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Sumitomo Realty & Development Co., Ltd. (32)