Supplementary Material
Second Quarter of Fiscal 2019
(April 1, 2019 - September 30, 2019)

Sumitomo Realty & Development Co., Ltd.

【Contents】
Performance Targets for the Eighth Management Plan

3

Results for the Second Quarter of Fiscal 20195

Forecasts for Fiscal 20196

Eighth Management Plan (Apr 2019 – Mar 2022)

7

Principal New Development Projects

13

Sumitomo Realty & Development Co., Ltd.

Performance targets for the Eighth Management Plan

Performance targets for the Eighth Management Plan
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 ( + ¥ 214.2 billion,Operating Income¥

740 billion ( + ¥ 126.8 billion, + 21 % )*Ordinary Profit¥

700 billion ( + ¥ 142.2 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

2,886

3,100

Operating Income

437

501

613

740

Ordinary Profit

329

418

558

700

Financial results for March 2019 fiscal year and the 7th plan have been adjusted retroactively, reflecting theadoption of Accounting Standard for Revenue Recognition in Sumitomo Real Estate Sales effective from thebeginning of March 2020 fiscal year.

Sumitomo Realty & Development Co., Ltd.

(3)

Historical Financial Results

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)

Operating Income
Ordinary Profit(Billions of yen)

'18'19'20(F)Revenue fromOperations

948

1,012

1,020

275

Operating
Income

206

219

234

250

OrdinaryProfit

187

203

220

225

800

200

700

175

600

150

500

125

400

100

300

75

200

50

100

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

Financial results for March 2019 fiscal year have been adjusted retroactively, reflecting the adoption of
Accounting Standard for Revenue Recognition in Sumitomo Real Estate Sales effective from the beginning ofMarch 2020 fiscal year.

Sumitomo Realty & Development Co., Ltd.

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Results for Fiscal 2019

Results for the Second Quarter of Fiscal 2019 (Apr 1 – Sep 30, 2019)(Billions of yen)

Sep '18

Sep '19

Results

Results

FY '19Previously
Announced*Forecasts

Increase/Decrease

Achieved

Leasing186

194+739050%

Sales

237

255+18320

80%

Construction

80

92+12230

40%

Brokerage

3536+17350%

541

579

+38

1,020

57%

Leasing77

84+616351%

Sales

45

46+24799%

Construction

37+4

2230%

Brokerage

1011+12251%

Operating Income

125

138+12234

59%

(7)

(6)

+1(14)-119

132+1322060%

80

93+1314067%

Revenue from Operations

Other income (expenses)
Ordinary Profit
Profit attributable toowners of parent*

Financial results for the second quarter of March 2019 fiscal year have been adjusted retroactively, reflecting
the adoption of Accounting Standard for Revenue Recognition in Sumitomo Real Estate Sales effective from thebeginning of March 2020 fiscal year.

Announced on May 16, 2019

Sumitomo Realty & Development Co., Ltd.

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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

Leasing354

382

390+8Sales

311

332

320(12)

Construction

209

222

230+8Brokerage

6972

73+1948

1,012

1,020+8Leasing

139

150

163+13Sales

47

47

470Construction

162022+2Brokerage

212122+1

Operating Income

206

219

234+15(19)

(16)

(14)

+2

Ordinary Profit187

203

220+17

Profit attributable toowners of parent

120

130

140+10

Revenue from Operations

Other income (expenses)

Financial results for March 2019 fiscal year have been adjusted retroactively, reflecting the adoption ofAccounting Standard for Revenue Recognition in Sumitomo Real Estate Sales effective from the beginning ofMarch 2020 fiscal year.

Sumitomo Realty & Development Co., Ltd.

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Eighth Management Plan (Apr 2019 – Mar 2022)

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

Billions of yen
250

234
219

200

2,000

Gross Floor Area

155

operated in Leasing Business

150

1,500(right scale)

100

1,000

77

50500

Operating Income fromLeasing Business
00'78

'80

'82

'84

'86

'88

'90

'92

'94

'96

'98

'00

'02

'04

'06

'08

(Years ended/ending March 31)
*1
*2'10

'12

'14

'16

'18'20(F)'22(F)

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

Financial results for March 2019 fiscal year have been adjusted retroactively, reflecting the adoption ofAccounting Standard for Revenue Recognition in Sumitomo Real Estate Sales effective from the beginning ofMarch 2020 fiscal year.

Sumitomo Realty & Development Co., Ltd.

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Eighth Management Plan (Apr 2019 – Mar 2022)

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 ofthe 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

GrossFloorArea

5th Plan

6th Plan

7th Plan

8th Plan

150

110

210

230

2,0001 tsubo = 3.3㎡

thousands of tsubo

＋230
1,524
thousandsof tsubo

thousandsof tsubo

1,500

1,00050002001

2004

2007

(Years ended/ending March 31)

2010

2013

2016

2019

2022

2025-

Sumitomo Realty & Development Co., Ltd.

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Eighth Management Plan (Apr 2019 – Mar 2022)

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

364410535680Interest-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

1,000500

Deposits from Partnership Investors

002001
2004
2007(Years ended/ending March 31)

2010

2013

2016

2019

2022(F)

Sumitomo Realty & Development Co., Ltd.

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

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

Leasing843

886

1,073

1,200

Sales670773

957

950

Construction

500

589

635

720

Brokerage

147

177

208

220

2,170

2,442

2,886

3,100

Leasing

272

314

416

530

Sales

110

127

140

140

Construction

49

47

50

70

Brokerage

4152

62

65

Operating Income

437

501

613

740

Ordinary Profit

329

418

558

700

Revenue from Operations(Years ended/ending March 31)
Financial results for March 2019 fiscal year and the 7th plan have been adjusted retroactively, reflecting theadoption of Accounting Standard for Revenue Recognition in Sumitomo Real Estate Sales effective from thebeginning of March 2020 fiscal year.

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

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 ManagementPlan 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. (11)Eighth Management Plan (Apr 2019 – Mar 2022)

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)30272415021202218
14100

1510695000'03 '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. (12)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

18,100Aug 2019

Sumitomo Fudosan Akihabara Ekimae Building

Chiyoda Ward

7,800

Aug 2019

Sumitomo Fudosan Ikebukuro Higashi Building

Toshima Ward

4,900

Sep 2019Sumitomo Fudosan Akihabara First Building

Chiyoda Ward

8,200

Oct 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

Sumitomo Fudosan Tamachi Building East

Minato Ward

3,800

Mar 2021

Sumitomo Fudosan Ochanomizu Building

Bunkyo Ward

3,800

Mar 2021

Sumitomo Fudosan Kanda Izumicho Building

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 Project
Others56,000
8th Plan Total

229,200

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. (13)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
Ikebukuro Higashi Building

Location

Shinjuku Ward, Tokyo

Chiyoda Ward, Tokyo

Toshima Ward, Tokyo

Expected
Completion

Aug 2019

Aug 2019

Sep 2019

Gross FloorArea

18,100 tsubo

7,800 tsubo

4,900 tsubo

No. of Floor

33 above ground /2 below ground

21 above ground /2 below ground

14 above ground

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

Principal New Office Building Projects

Sumitomo Fudosan
Akihabara First Building*1 tsubo = 3.3㎡

Sumitomo Fudosan
Kojimachi Garden Tower

Sumitomo Fudosan
Tamachi Building East

Location

Chiyoda Ward, Tokyo

Chiyoda Ward, Tokyo

Minato Ward, Tokyo

Expected
CompletionOct 2019

Apr 2020

Mar 2021

Gross Floor
Area

8,200 tsubo

14,500 tsubo

3,800 tsubo

No. of Floor

23 above ground /1 below ground

21 above ground /1 below ground

8 above ground

Sumitomo Realty & Development Co., Ltd. (15)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 ground

Expected
CompletionOct 2022

Gross Floor
Area
No. ofFloor

40,800 tsubo
35 above ground/2 below groundSumitomo Realty & Development Co., Ltd. (16)Principal New Development Projects

Principal New Office Building Projects*1 tsubo = 3.3㎡

expected
completion
image

expected
completion
image

Haneda Airport Project

Ariake ProjectLocation

Haneda Airport 2-chome, Ota Ward, Tokyo(direct connection to international terminal)

Ariake 2-chome, Koto Ward, Tokyo(Ariake Kita 3-1 area redevelopment project)

Expected
Completion

Mar 2020

Mar 2020

Gross Floor
Area

27,700 tsubo

60,000 tsubo

Hotel
Main use

1,717 rooms

Commercial 1,800 tsubo (approx. 80 stores)
Event hallOthers

Capacity : approx. 1,000 people
Bus Terminal / SPA

Commercial 12,000 tsubo (approx. 200 stores)
Hotel
Event hall
Others749 rooms
Capacity : approx. 8,000 people
SPA / Theater

Sumitomo Realty & Development Co., Ltd. (17)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 / 1 below ground

23 above ground / 2 below ground

City Towers Tokyo Bay

City Tower Shinagawa Park Front

City Tower Sapporo

Koto Ward, Tokyo

Shinagawa Ward, Tokyo

Sapporo1,539 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. (18)Principal New Development Projects

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

City Tower Tokorozawa Classy

City Tower Aoi

Shinagawa Ward, TokyoTokorozawaNagoya

493 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, Tokyo

Osaka

Minato Ward, Tokyo

318 units

855 units

115 units

41 above ground / 2 below ground48 above ground / 1 below ground18 above ground / 2 below groundunits = number of units for sale

Sumitomo Realty & Development Co., Ltd. (19)