Supplementary Material
Fiscal 2019
(April 1, 2019 – March 31, 2020)

Sumitomo Realty & Development Co., Ltd.

【Contents】
Progress of the Eighth Management Plan

3

Results for Fiscal 20195

Forecasts for Fiscal 2020 (Apr 1, 2020 – Mar 31, 2021)

6

Policy for Shareholder Returns

7

Principal New Development Projects

8（Reference）Targets for the Eighth Management Plan

17

Sumitomo Realty & Development Co., Ltd.

Progress of the Eighth Management Plan

Progress of the Eighth Management Plan (Apr 2019 – Mar 2022)（Billions of yen）*(Cumulative Totals)

Results

Achievement
Rate

Revenue fromOperations

3,100

1,01433%Operating
Income740

23432%

Ordinary Profit

70022132%

Forecast*

FY '19Announced on May 16, 2019

≪Reference≫ Results of the Past Management Plans (Years ended March 31)
Three-year
Cumulative totals

Revenue fromOperations（Billions of yen）

1st Plan*

2nd Plan

3rd Plan

4th Plan

5th Plan

6th Plan

7th Plan

1999-2001

2002-2004

2005-2007

2008-20102011-20132014-20162017-2019

1,270

1,606

1,939

2,107

2,170

2,442

2,886

Operating
Income202265

349

435

437

501

613

OrdinaryProfit

87170

274

339

329

418

558

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

Sumitomo Realty & Development Co., Ltd.

(3)

Progress of the Eighth Management Plan
(Billions of yen)

Historical Financial Results
Revenue fromOperations

Revenue fromOperations

1,100
Revenue from Operations
1,000

Operating Income
Ordinary Profit

'19

'20

'21(F)

1,012

1,014880

Operating Income
Ordinary Profit(Billions of yen)

275

OperatingIncome

219

234204

OrdinaryProfit

203

221

190

250

900

225

800

200

700

175

600

150

500

125

400

100

300

75

200

50100

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)
2nd Plan
3rd Plan
4th Plan
5th Plan
6th Plan
7th Plan
8th Plan
1st 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 of March 2020 fiscal year.

Sumitomo Realty & Development Co., Ltd.

(4)

Results for Fiscal 2019

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

FY '18FY '19Results

Results

FY '19
Increase/Decrease

Previously
Announced*
Forecasts

Achieved

Leasing382

396+14390+6

Sales

332

325(7)

320+5

Construction

222

219

(3)

230

(11)

Brokerage

72

69(3)

73

(4)

1,012

1,014+11,020(6)

Leasing150

169+19

163+6

Sales

47

47+047+0Construction

2021+022(1)Brokerage2119(2)22(3)Operating Income

219

234+15234+0(16)(14)+2(14)+0Ordinary Profit

203

221+17220+1

Profit attributable toowners of parent

130

141+11140+1

Revenue from Operations

Other income (expenses)

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 of March 2020 fiscal year.

Sumitomo Realty & Development Co., Ltd.

(5)

Forecasts for Fiscal 2020

Forecasts for Fiscal 2020 (Apr 1, 2020 – Mar 31, 2021)(Billions of yen)

FY '18FY '19FY ‘20Results

Results

Forecasts

Increase/Decrease

Leasing382

396

390(6)

Sales

332

325

270(55)Construction

222

219

170

(49)

Brokerage72

69

50(19)

1,012

1,014

880

(134)

Leasing

150

169

163

(6)

Sales

47

47

48

+1

Construction

20

21

10(11)

Brokerage21

1910(9)Operating Income

219

234

204(30)

(16)

(14)

(14)

(0)

Ordinary Profit

203

221

190

(31)

Profit attributable toowners of parent

130141130(11)

Revenue from Operations

Other income (expenses)

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 of March 2020 fiscal year.
The impact by the outbreak of COVID-19 on our business activities and business results is unclear. We estimate the forecasts based on the assumption thatduring the Fiscal 2020, the business activities will not return to the same level as the previous fiscal year, despite the anticipation that they will be gradually
resumed from the second quarter.
Sumitomo Realty & Development Co., Ltd. (6)Policy for Shareholder Returns

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 Dividend per Share and Ordinary Profit

Billions of yen

38

250
Ordinary Profit

Yen

35

Cash Dividend per Share(right scale)

30

200

32

27
24150

1418

21 2220

10100

16

6 950

0'03

'04

'05

'06

(Years ended March 31)

'07

'08

'09

'10

'11

'12

'13

'14

'15

'16

'17

'18'19'20'21(F)0

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.

(7)

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 BuildingChiyoda Ward

7,800

Aug 2019Sumitomo Fudosan Ikebukuro Higashi Building

Toshima Ward

5,000

Sep 2019

Sumitomo Fudosan Akihabara First Building

Chiyoda Ward

8,200

Oct 2019

Haneda Airport Garden (Commercial Complex)

Ota Ward

27,700Mar 2020

Ariake Garden (Commercial Complex)

Koto Ward

60,100Mar 2020

Sumitomo Fudosan Kojimachi Garden Tower

Chiyoda Ward

14,500

May 2020

Sumitomo Fudosan Ochanomizu Building

Bunkyo Ward

3,800

Jan 2021

Sumitomo Fudosan Tamachi Building East

Minato Ward

3,900

Apr 2021

Sumitomo Fudosan Kanda Izumicho Building

Chiyoda Ward

3,000

Aug 2021

Shinagawa Ward

14,400Jan 2022Osaki Higashi Project
Others45,100

8th Plan Total

211,700

Tokyo Mita Redevelopment Project(Mita 3- and 4-chome Project)

Minato Ward

60,400Jan 2023

Nishi-shinjuku 5-chome Kita Project

Shinjuku Ward

41,300Mar 2023

Nakano 2-chome Project

Nakano Ward

30,000Feb 2024

Sumitomo Realty & Development Co., Ltd.

(8)

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, TokyoToshima Ward, Tokyo

Completion

Aug 2019

Aug 2019

Sep 2019

Gross Floor
Area

18,200 tsubo

7,800 tsubo

5,000 tsubo

No. of Floor

33 above ground /2 below ground

21 above ground /2 below ground

14 above ground

Sumitomo Realty & Development Co., Ltd.

(9)

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
Ochanomizu Building

Location

Chiyoda Ward, Tokyo

Chiyoda Ward, Tokyo

Bunkyo Ward, Tokyo

Expected
CompletionOct 2019

May 2020

Jan 2021

Gross Floor
Area

8,200 tsubo

14,500 tsubo

3,800 tsubo

No. of Floor

23 above ground /1 below ground

22 above ground

12 above ground /1 below ground

Sumitomo Realty & Development Co., Ltd. (10)Principal New Development Projects

Principal New Office Building Projects

Sumitomo Fudosan
Tamachi Building East*

1 tsubo = 3.3㎡

Sumitomo Fudosan
Kanda Izumicho Building

Osaki Higashi Project

Location

Minato Ward, Tokyo

Chiyoda Ward, Tokyo

Shinagawa Ward, Tokyo

Expected
Completion

Apr 2021

Aug 2021

Jan 2022

Gross Floor
Area

3,900 tsubo

3,000 tsubo

14,400 tsubo

No. of Floor

8 above ground

8 above ground /1 below ground

19 above ground /2 below ground

Sumitomo Realty & Development Co., Ltd. (11)Principal New Development Projects

Principal New Office Building Projects

Tokyo Mita Redevelopment Project(Mita 3- and 4-chome Project)
Location
Expected
Completion

Minato Ward,Tokyo
Jan 2023

Gross Floor
Area
No. ofFloor*

Nishi-shinjuku 5-chome Kita Project
Location

Shinjuku Ward,Tokyo

Gross Floor
Area

60,400 tsubo
42 above ground/
4 below ground

1 tsubo = 3.3㎡

Expected
Completion

Mar 2023

No. ofFloor

41,300 tsubo
Office:33 above ground/2 below ground
Residence:35 aboveground/2 below ground

Sumitomo Realty & Development Co., Ltd. (12)Principal New Development Projects

Principal New Office Building Projects

Nakano 2-chome Project
Location

Nakano Ward, Tokyo

Expected
Completion

Feb 2024

Gross Floor Area
No. of Floor

30,000 tsubo
37 above ground/ ２ below ground*1 tsubo = 3.3㎡

Shinjuku Sumitomo Building “Sankaku Hiroba”（Renovation）
Location

Shinjuku Ward, Tokyo
AtriumMain use

Expected
Completion

June 2020

Capacity: approx. 2,000 people（Maximum ceiling height: approx. 25 meters）

Event Hall

Capacity: approx. 1,000 people

Commercial

20 stores（Shops and Restaurants）

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

Principal New Office Building Projects*1 tsubo = 3.3㎡

expected
completion
image

expected
completion
image

Haneda Airport Garden

Ariake Garden

Location

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)

Completion

Mar 2020

Mar 2020

27,700 tsubo

60,100 tsubo

Gross Floor Area
Hotel
Main use1,717 rooms

Commercial 90 stores
Event hall
OthersCapacity : approx. 700 people
Bus Terminal / SPA

Commercial

203 stores

Hotel749 rooms

Event hall
OthersCapacity : approx. 8,000 people
SPA / Theater

Sumitomo Realty & Development Co., Ltd. (14)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

277 units

354 units

29 above ground / 1 below ground

29 above ground / 2 below ground

20 above groundunits = number of units for sale

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

Principal Condominium Projects (Scheduled Delivery from FY 2021)*City Tower Musashi-koyama

City House Shimomeguro

Grand Hills Minami Aoyama

Shinagawa Ward, Tokyo

Meguro Ward, Tokyo

Minato Ward, Tokyo

318 units

195 units

105 units

41 above ground / 2 below ground

5 above ground18 above ground / 2 below ground

City House Koganei Koen

City Tower Osaka Honmachi

City Terrace Yokohama

Kodaira, TokyoOsakaYokohama

740 units

855 units

313 units

9 above ground48 above ground / 1 below ground

North:10 above ground
South:15 above groundunits = number of units for sale

Sumitomo Realty & Development Co., Ltd. (16)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

613740Ordinary Profit329

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.

Announced on May 16, 2019

Sumitomo Realty & Development Co., Ltd. (17)Targets for the Eighth Management Plan

Consolidated Operating Income and Gross Floor Area
Thousands of tsubo*1
2,500

Billions of yen
250

234
219

200

2,000

Gross Floor Area

155

operated in Leasing Business

150

1,500(right scale)100

1,0007750500

Operating Income from
Leasing Business
0'78

'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

'22(F)

01 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 of
Accounting Standard for Revenue Recognition in Sumitomo Real Estate Sales effective from the beginning ofMarch 2020 fiscal year.

Sumitomo Realty & Development Co., Ltd. (18)

Targets for the Eighth Management Plan

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

GrossFloorArea

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

2016

2019

2022

2025-Sumitomo Realty & Development Co., Ltd. (19)

Targets for the Eighth Management Plan

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
4,0003,000Thousands 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. (20)

Targets for the Eighth Management Plan

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

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 Income437

501613740

Ordinary Profit329

418

558700

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.

*Announced on May 16, 2019

Sumitomo Realty & Development Co., Ltd. (21)

Targets for the Eighth Management Plan

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

Profit growth of the Seventh Management Plan, supported by the buoyant marketenvironment, 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-pursuingpolicy.
• 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. (22)