Supplementary Material
Fiscal 2018
(April 1, 2018 - March 31, 2019)

Sumitomo Realty & Development Co., Ltd.

【Contents】
Results for the Seventh Management Plan

3

Results for Fiscal 20185

Forecasts for Fiscal 20196

Eighth Management Plan (Apr 2019 – Mar 2022)

7

Principal New Development Projects

14

Sumitomo Realty & Development Co., Ltd.

Results for the Seventh Management Plan

Results for the Seventh Management Plan (Apr 2016 – Mar 2019)（Billions of yen）

Forecast*

CumulativeTotals

Increase/
Decrease

1,013

2,887＋ 187

206

220614＋ 64187

204559＋ 79(Cumulative Totals)

FY '16

FY '17FY '18

Results

Results

Results

Revenue fromOperations

2,700925948

Operating
Income550188

Ordinary
Profit480168*

Announced on May 12, 2016

≪Reference≫ Results of the Past Management Plans (Years ended March 31)*

2nd Plan

3rd Plan

4th Plan

5th Plan

6th Plan

7th Plan

1999-2001

2002-2004

2005-2007

2008-20102011-20132014-20162017-2019

1st Plan

Three-year
Cumulative totals

Revenue fromOperations（Billions of yen）

1,270

1,606

1,939

2,107

2,170

2,442

2,887

Operating
Income

202

265

349

435

437

501

614

Ordinary
Profit87

170

274

339

329

418559*The 1st plan began in the March 1998 fiscal year and spanned four years.
Figures shown represent cumulative totals for the final three years of the plan.

Sumitomo Realty & Development Co., Ltd.

(3)

Results for the Seventh Management Plan

Historical Financial Results
Revenue fromOperations(Billions of yen)

Achieve record results
for the seventh consecutive fiscal year

1,100
Revenue from Operations
1,000

Operating Income
Ordinary Profit

900(Billions of yen)

'18

'19

'20(F)

Revenue fromOperations

948

1,013

1,020

OperatingIncome206

OrdinaryProfit

187

220
204

Operating Income
Ordinary Profit(Billions of yen)

234
220

275
250
2258002007001756001505001254001003007520050100

2500'97 '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(Years ended/ending March 31)(F) (F) (F)
1st Plan
2nd Plan
3rd Plan
4th Plan
5th Plan
6th Plan
7th Plan
8th Plan

Sumitomo Realty & Development Co., Ltd.

(4)

Results for Fiscal 2018

Results for Fiscal 2018 (Apr 1, 2018 – Mar 31, 2019)(Billions of yen)

FY '17

FY '18Results

Results

FY '18Previously
Announced*Forecasts

Increase/DecreaseIncrease/Decrease

Leasing354

382+28365+17Sales

311

332+21310+22

Construction

209

222+12220+2Brokerage6973+470+3948

1,013+65970+43

Leasing139

150+11145+5Sales

47

47047

0

Construction

1620+418+2Brokerage

2122+1220

Operating Income

206

220+15213+7(19)(16)+3(18)+2Ordinary Profit

187

204+17195+9

Profit attributable toowners of parent

120

131+11130+1

Revenue from Operations

Other income (expenses)*

Announced on May 10, 2018

Sumitomo Realty & Development Co., Ltd.

(5)

Forecasts for Fiscal 2019

Forecasts for Fiscal 2019 (Apr 1, 2019 – Mar 31, 2020)(Billions of yen)

FY '17

FY '18FY '19Results

Results

Forecasts

Increase/Decrease

Leasing

354

382

390+8

Sales

311

332

320(12)

Construction

209

222

230+8

Brokerage

69

73

73

0948

1,013

1,020+7

Leasing139

150

163+13

Sales

47

47

470

Construction

1620

22+2

Brokerage

21

22

220

Operating Income

206

220

234+14(19)(16)(14)+2

Ordinary Profit

187

204

220+16

Profit attributable toowners of parent120

131

140+9Revenue from Operations

Other income (expenses)

Sumitomo Realty & Development Co., Ltd.

(6)

Eighth Management Plan (Apr 2019 – Mar 2022)

1. Performance targets
Achieve consecutive record results for the three-year period covered, withcumulative ordinary profit of ¥700 billion.
Achieve record results for the ninth consecutive fiscal year under the three management plans since the Sixth
Management Plan by maintaining the pace of growth attained under the Seventh Management Plan withwhich substantial profit increase was achieved.

Three-year cumulative earnings targets+ 7 % )*Revenue from Operations¥ 3,100 billion ( + ¥ 213.2 billion,

Operating Income¥740 billion ( + ¥ 125.8 billion, + 20 % )*Ordinary Profit¥

700 billion ( + ¥ 141.2 billion, + 25 % )**Compared with results for the Seventh Management Plan

≪Reference≫ Comparison of Management Plan results (Years ended/ending March 31) （Billions of yen）
Three-year
Cumulative totals
Revenue from Operations

5th Plan

6th Plan

7th Plan

8th Plan

2011-20132014-20162017-20192020-2022

2,170

2,442

2,887

3,100

Operating Income

437

501

614

740

Ordinary Profit

329

418

559

700

Sumitomo Realty & Development Co., Ltd.

(7)

Eighth Management Plan (Apr 2019 – Mar 2022)

Consolidated Operating Income and Gross Floor Area
Thousands of tsubo*12,500

Billions of yen
250

234
220

200

2,000

155
150

1,500

Gross Floor Area
operated in Leasing Business(right scale)

100

1,000

77

50

500

Operating Income fromLeasing Business
00
'78

'80

'82

'84

'86

'88

'90

'92

'94

'96

'98

'00

'02

'04

(Years ended/ending March 31)*1*2

1 tsubo = 3.3㎡
Segment information has been disclosed since the March 1991 fiscal year

'06

'08

'10

'12

'14

'16

'18

'20
(F)

'22(F)

Sumitomo Realty & Development Co., Ltd.

(8)

Eighth Management Plan (Apr 2019 – Mar 2022)

2. Leasing asset investment plan
(Non-current asset investment excluding sales assets, such as condominiums for sale)

Further investment in leasing office assets in central Tokyo, strengthening ourearnings base.
1. Concrete development plan for over 800 thousand tsubo* of gross floor area, mainly comprisingredevelopment projects. (Equivalent to over 50% of 1,520 thousand tsubo of gross floor area for leasing asof the end of the Seventh Management Plan)
The total investment will amount to ¥2,000 billion, expected to generate profits within six to seven years.
2. During the Eighth Management Plan, approximately 30%, or 230 thousand tsubo, of total gross floor area of
the investment pipeline will be completed and brought to market.
Thousands of tsubo

Pace of Gross Floor Area Development

*

3,000

More than＋800(Thousands of tsubo)
2,500

GrossFloor
Area

5th Plan

6th Plan

7th Plan

8th Plan

150

110

210

230

2,000

1 tsubo = 3.3㎡

thousands of tsubo

＋230
1,524
thousandsof tsubo

thousandsof tsubo

1,500

1,000500

02001

2004

2007

(Years ended/ending March 31)

2010

2013

201620192022

2025-

Sumitomo Realty & Development Co., Ltd.

(9)Eighth Management Plan (Apr 2019 – Mar 2022)

2. Leasing asset investment plan
(Non-current asset investment excluding sales assets, such as condominiums for sale)

Further investment in leasing office assets in central Tokyo, strengthening ourearnings base.
3. Of ¥2,000 billion, ¥600 billion is expected to be invested in the next three years.
Funding will be covered by expanding cash flows from the leasing business*1. (No increase in interest-bearing
debt expected.)*2
1 tsubo = 3.3㎡

Billions of yen
4,000

3,000

Thousands of tsubo*2

Interest-bearing Debt and Gross Floor Area
5th Plan

6th Plan

7th Plan

8th PlanCapital Investment

(268)

(422)

(664)

(600)

Cash Flows from theLeasing Business

364

410

535

680

Interest-bearing Debt

2,651

3,159

3,343

3,300

*1

2,000
Cash Flows from the Leasing Business:
Operating Income from the Leasing Business+ Depreciation and Amortization

1,500

Gross Floor Area(right scale)
2,000

1,000

Interest-bearing Debt

1,000

500

Deposits from Partnership Investors

002001
2004
2007(Years ended/ending March 31)

2010

2013

2016

2019

2022(F)

Sumitomo Realty & Development Co., Ltd. (10)Eighth Management Plan (Apr 2019 – Mar 2022)

3. Performance targets and strategies by segment
Office building leasing in Tokyo to be the driving force of growth.
< Performance targets by segment >Three-year
Cumulative totals（Billions of yen）

5th Plan

6th Plan

7th Plan

8th Plan

2011-20132014-20162017-20192020-2022

Leasing

843

886

1,073

1,200

Sales

670

773

957

950

Construction

500

589

635

720

Brokerage

147

177

209

220

2,170

2,442

2,887

3,100

Leasing

272

314

416

530

Sales

110

127

140

140

Construction

49

47

5070Brokerage41526365

Operating Income

437

501

614740Ordinary Profit

329

418

559

700

Revenue from Operations(Years ended/ending March 31)

Sumitomo Realty & Development Co., Ltd. (11)Eighth Management Plan (Apr 2019 – Mar 2022)

3. Performance targets and strategies by segment*1 tsubo = 3.3㎡

Profit growth of the Seventh Management Plan, supported by the buoyant market
environment, to be surpassed.

Leasing• Profitability of existing properties, which improved on the back of lower vacancy rates andhigher rents, to be further strengthened.
• Earnings secured by full-year contribution from the properties completed in the SeventhManagement Plan (210 thousand tsubo* of gross floor area) and by starting operation of newly
completed projects in the Eighth Management Plan (230 thousand tsubo of gross floor area).

High level of profit of the Seventh Management Plan to be maintained.

Sales• Marketing speed adjustment, following profit-pursuing policy rather than volume-pursuing policy.
• The policy of securing prime sites without fail amid continuing intensified competition for landacquisition, to be maintained.
• The policy of pursuing as many projects as possible when such opportunities arise, to bemaintained.

Remodeling (Shinchiku Sokkurisan): Growth track, recovered in the Seventh Management
Plan following the sluggish period until the Sixth Management Plan, to be maintained.

Construction• Expansion in remodeling demand expected in a growing market, matching the Japanese
government's policy of accumulating high-quality residential property stock.

Custom Homes: Business base to be strengthened through improvement of construction
systems and quality control.
• Annual contract volume expanded to 3,000 units in the Seventh Management Plan. Businessbase to be reinforced for growth in the Ninth Management Plan onward.

Brokerage

Group collaboration to be strengthened, establishing the base for growth in the NinthManagement Plan onward.
• Efficiency of the brokerage business to be further improved, with Sumitomo Real Estate Sales
Co., Ltd. becoming a wholly owned subsidiary in the Seventh Management Plan.

Sumitomo Realty & Development Co., Ltd. (12)Eighth Management Plan (Apr 2019 – Mar 2022)

4. Policy for shareholder returns“Sustainable dividend increase” policy, in line with profit growth, to be maintained.
Cash flow allocation policy of prioritizing investment in office properties for lease, to be maintained.
Cash Dividends per Share and Ordinary Profit

Billions of yen

Yen

30
Ordinary Profit

200

Cash Dividends per Share(right scale)302724150

2120

22

18
14100

15

10695000'03 '04 '05 '06(Years ended March 31)

'07

'08

'09

'10

'11

'12

'13

'14

'15

'16

'17

'18

'19

Sumitomo Realty & Development Co., Ltd. (13)Principal New Development Projects

Principal New Office Building Projects
Project Name

Location*

1 tsubo = 3.3㎡

Gross Floor*
Area (Tsubo )Expected
Completion

Sumitomo Fudosan Shinjuku Central Park Tower

Shinjuku Ward

18,200Aug 2019

Sumitomo Fudosan Akihabara Ekimae Building

Chiyoda Ward

8,700

Aug 2019

Sumitomo Fudosan Akihabara First Building

Chiyoda Ward

8,200

Sep 2019

Sumitomo Fudosan Ikebukuro Higashi Building

Toshima Ward

4,800

Dec 2019

Haneda Airport Project

Ota Ward

27,700Mar 2020

Ariake Project

Koto Ward

60,000Mar 2020

Chiyoda Ward

14,500

Apr 2020

Shinagawa Ward

14,300Mar 2021

Shibaura 3-chome Project

Minato Ward

3,800

Mar 2021

Ochanomizu Project

Bunkyo Ward

3,800

Mar 2021

Kanda Izumicho Project

Chiyoda Ward

3,800

Apr 2021

Shinagawa Ward

6,300

May 2021

Sumitomo Fudosan Kojimachi Garden Tower
Kita-shinagawa 5-chome Project

Higashi-gotanda 2-chome ProjectOthers

56,000
8th Plan Total

230,100

Mita 3- and 4-chome Project (Fudanotsuji)

Minato Ward

69,000Jul 2022

Nishi-shinjuku 5-chome Kita Project

Shinjuku Ward

40,800

Oct 2022

Sumitomo Realty & Development Co., Ltd. (14)Principal New Development Projects

Principal New Office Building Projects

Sumitomo Fudosan
Shinjuku Central Park Tower*1 tsubo = 3.3㎡

Sumitomo Fudosan
Akihabara Ekimae Building

Sumitomo Fudosan
Akihabara First Building

Location

Shinjuku Ward, TokyoChiyoda Ward, Tokyo

Chiyoda Ward, Tokyo

Expected
Completion

Aug 2019

Aug 2019

Sep 2019

Gross Floor
Area

18,200 tsubo

8,700 tsubo

8,200 tsubo

No. of Floor

33 above ground /2 below ground

21 above ground /2 below ground

23 above ground /1 below ground

Sumitomo Realty & Development Co., Ltd. (15)Principal New Development Projects

Principal New Office Building Projects

Sumitomo Fudosan
Ikebukuro Higashi Building*

1 tsubo = 3.3㎡

Sumitomo Fudosan
Kojimachi Garden Tower

Shibaura 3-chome Project

Location

Toshima Ward, Tokyo

Chiyoda Ward, Tokyo

Minato Ward, TokyoExpected
Completion

Dec 2019

Apr 2020

Mar 2021

Gross Floor
Area

4,800 tsubo

14,500 tsubo

3,800 tsubo

No. of Floor

14 above ground

21 above ground /1 below ground

8 above ground

Sumitomo Realty & Development Co., Ltd. (16)Principal New Development Projects

Principal New Office Building Projects

Mita 3- and 4-chome Project (Fudanotsuji)
Location

Minato Ward,Tokyo

Expected
Completion

Jul 2022

Gross Floor
Area
No. ofFloor*1 tsubo = 3.3㎡

Nishi-shinjuku 5-chome Kita Project

69,000 tsubo

Location

Shinjuku Ward,Tokyo

42 above ground/
3 below groundExpected
CompletionOct 2022

Gross Floor
Area
No. ofFloor

40,800 tsubo
35 above ground/2 below ground

Sumitomo Realty & Development Co., Ltd. (17)Principal New Development Projects

Principal New Office Building Projects

Haneda Airport Project*

Ariake Project

Location

Ota Ward, Tokyo(direct connection to international terminal)

Koto Ward, Tokyo

Expected
Completion

Mar 2020

Mar 2020

Gross Floor
Area

27,700 tsubo

60,000 tsubo

Main use

Hotel

1,700 rooms

Commercial

Commercial

2,000 tsubo

Hotel

800 rooms

Event hall

750 tsubo

Event hall

1,500 tsubo

OthersBus Terminal / SPA

1 tsubo = 3.3㎡Others

12,000 tsubo

SPA

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

Principal Condominium Projects (Scheduled Delivery in FY 2019)*City Tower Ginza Higashi

Shinagawa East City Tower

City Tower Ebisu

Chuo Ward, Tokyo

Shinagawa Ward, Tokyo

Shibuya Ward, Tokyo

483 units

363 units

307 units

22 above ground / 1 below ground

26 above ground

23 above ground / 2 below ground

City Towers Tokyo Bay

City Tower Shinagawa Park Front

City Tower Sapporo

Koto Ward, Tokyo

Shinagawa Ward, TokyoSapporo

1,539 units

312 units

165 units

32 above ground / 1 below ground (West)33 above ground (Central / East）

23 above ground / 1 below ground

31 above ground / 1 below groundunits = number of units for sale

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

Principal Condominium Projects (Scheduled Delivery in FY 2020-)*City Tower Oimachi

City Tower Tokorozawa Classy

City Tower Aoi

Shinagawa Ward, Tokyo

Tokorozawa

Nagoya493 units

276 units

354 units

29 above ground / 1 below ground

29 above ground / 2 below ground

20 above ground

City Tower Musashi-koyama

City Tower Osaka Honmachi

Grand Hills Minami Aoyama

Shinagawa Ward, TokyoOsaka

Minato Ward, Tokyo

318 units

854 units

115 units

41 above ground / 2 below ground48 above ground18 above ground / 2 below groundunits = number of units for sale

Sumitomo Realty & Development Co., Ltd. (20)