INTEGRATED REPORTTOKYO TATEMONO GROUP

2024

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01
Foreword

Corporate Philosophy

Introduction
Foreword and Table of Contents
Corporate Philosophy and Corporate Stance

01

02

03

Long-Term Vision and Materiality

07

Progress on the Medium-Term Business Plan

08

Message from the CFO

09

Financial and Non-Financial Highlights

12Interview with the Division Director of the Commercial Properties Division

14

Special Feature 1: 10th Anniversary of the Opening of THE OTEMACHI TOWER

18

Interview with the Division Director of the Residential Development Division

19

Special Feature 2: Interview with the Leader of the ONE DOJIMA PROJECT

22

Special Feature 3: Tokyo Tatemono’s Condominium Reconstruction andRedevelopment Projects

24

We aim to create comfortable urban environments.
We create worthwhile spaces offering peace of mind.

Message from theCEO 3Aiming toward Becoming a
Next-Generation Developer
through Stable Growthover the Course of theCurrent Medium-TermBusiness Plan

Message from the

CFO 9We take the opinions of ourinvestors seriously, aiming
for both profit growth andcapital efficiency improvement from a medium- tolong-term perspective
TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

Message from the CEO

We support affluent and dream-filled living.

The Tokyo Tatemono Group’s
Value Creation Foundations

The Tokyo Tatemono Group’s Value
Creation and VisionCorporate Stance

The Tokyo Tatemono Group’s
Value Creation Initiatives

CONTENTS

01

We aim to grow the Company and to create a prosperous society,taking pride in the level of trust placed in us for more than a century.

The Tokyo Tatemono Group’s
Value Creation and Vision

July 2024
Representative Director, Senior Managing Executive Officer“Trust beyond the era.”

Introduction

Thank you for taking the time to review the Tokyo Tatemono Group Integrated
Report 2024.
We have been publishing integrated reports since 2019, and this is our
sixth. I speak regularly with our shareholders, our investors, and a wide rangeof other stakeholders. Each year, I keep those interactions in mind as we work
to improve the content of this report. I hope it can serve as a tool to help
people understand our company more deeply and to enrich ourconversations.
We will continue working to enhance and improve the content of ourdisclosure and the transparency of information so that we can clearlycommunicate our management vision and goals. I hope that you will read thisintegrated report in full and share frankly any thoughts or impressions you may
have. We appreciate your continued support.

1

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01
03

The Tokyo Tatemono Group’s Value Creation Initiatives

Residential Business

28

Asset Service Business

30

Other Businesses

31

A History of Value Creation

32

Value Creation Process

35

A Sophisticated Approach to ESG Management

36

Material Issue KPIs and Targets

37

Environment

38

04

The Tokyo Tatemono Group’s Value Creation Foundations
43

Social Initiatives

47

Messages from External Directors

49

Corporate Governance

51

Risk Management

59

Compliance60

Disclosure

61

05

Data Section
62

Financial Statements

64

Corporate Data

67

With property sales to investors growing,
we aim to achieve medium- to long-term
expansion in tandem with large-scale
redevelopment

Sincerely engaging with customers,
we aim to achieve stable growth based on the
Brillia brand

Editorial Policy

The Tokyo Tatemono Integrated Report 2024 has been prepared with the goals of enhancing communication with stakeholders
and fostering understanding regarding the intentions of the Tokyo Tatemono Group to create value over the medium to long term
through the provision of financial and non-financial information. For future reports, we intend to incorporate feedback from readers to improve the contents.

Reporting
PeriodThis report primarily covers fiscal 2023, the fiscal year ended December 31, 2023. However, some information on activities
before or after this period and forward-looking forecasts are also included.

Scope of
Reporting

The scope of this report includes Tokyo Tatemono Co., Ltd. and Tokyo Tatemono Group companies.

Referenced
Frameworks

In preparing this report, we referenced the Guidance for Integrated Corporate Disclosure and Company Investor
Dialogues for Collaborative Value Creation: ESG Integration, Non-Financial Information Disclosure, andIntangible Assets into Investment released by the Ministry of Economy, Trade and Industry and the IFRSFoundation’s International Integrated Reporting Framework. Non-financial information has been disclosed withreference to the standards of the Global Reporting Initiative.

Disclaimer
Regarding
ForwardLooking
Statements

Data and information regarding future outlooks provided in this integrated report are forward-looking statements based on the
Company’s judgments in light of currently available information. Actual results may differ materially from those projected as aresult of economic conditions, market trends, demand fluctuations, foreign exchange rate movements, and other factors.

The Tokyo Tatemono Group’s
Value Creation Foundations

Key Financial and Non-Financial Data

Interview with the Division Director of
the Residential Development Division 19

The Tokyo Tatemono Group’s
Value Creation Initiatives

Human CapitalInterview with the Division Director of
the Commercial Properties Division 14

The Tokyo Tatemono Group’s
Value Creation and Vision

25
Introduction

Commercial Properties Business

Target for 2030 and Long-Term Vision
Data Section

Becoming a Next-Generation Developer
Solving Social Issues/ Growth as a Company

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

2

Message from the CEO

Aiming toward Becoming a Next-Generation
Developer through Stable Growthover the Course of the Current
Medium-Term Business Plan

Representative Director
President and CEO

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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Message from the CEO

My commitment to achieving
the Medium-Term Business Plan

2020: Tokyo Tatemono Senior Life Support Co., Ltd.
2023: Tokyo Tatemono Kids Co., Ltd. and Tokyo Tatemono Staffing Co., Ltd.

Accelerating ESG initiatives
with the aim of achieving
medium- to long-term growthWith this year marking its 128-year anniversary of its founding, Tokyo Tatemono is Japan’s oldest general real estate

The Tokyo Tatemono Group’s
Value Creation Initiatives
The Tokyo Tatemono Group’s
Value Creation Foundations
Data Section

With 2024 being the final year of the current medium-termbusiness plan, I would like to reflect back on the years
covered by the plan.
The Company formulated the current plan in 2020, but
major environmental changes soon followed, including the
rapid spread of the COVID-19 pandemic, widespread revisions to corporate workstyles (including a shift to working
from home), and a drastic drop in the flow of people due toemergency declarations.
Due to these external environmental changes, theCompany’s mainstay business of office leasing struggled
more than initially planned. We nevertheless took various
measures to further enhance the added value of physicalspaces in line with the belief held by the majority of companies in Japan that people would eventually return to working
at the office. And, regarding our overall business performance,
we steadily achieved our targets on the back of the strong
performance of the for-sale condominiums business andproperty sales to investors. Market conditions were also
good, including low interest rates, but I think the main driving

Share transfers of consolidated subsidiaries under the current
medium-term plan02

The Tokyo Tatemono Group’s
Value Creation and Vision

Nimbly responding to external
environmental changes and taking bold
action to achieve the targets of the plan

forces were our accumulation of quality real estate stockfrom the previous medium-term plan and the Company’s
strong product planning capabilities.
We are simultaneously working to optimize our businessportfolio through share transfers of consolidated subsidiaries.
We have also been able to both secure solid businessresults and optimize our business portfolio and asset composition, such as by selling non-current assets.
As a result, we achieved higher revenue and profit in 2023
and gained strong confidence in achieving our 2024 targets
on the back of the business results, organization, andhuman resources base we have built so far.

Introduction

In 2011, Tokyo Tatemono recorded a major loss and,despite striving under a medium-term business plan, failed
to achieve its consolidated operating profit target in 2014. It
was against this backdrop that I was appointed President
and CEO in 2017, and ever since I have been committed tosteadily achieving the Company’s declared targets andensuring stable growth. To realize this commitment, theCompany has focused on three initiatives related to thecorporate structure.
The first initiative is aimed at strengthening our earnings
power. Because the bulk of my career has been in the sales
field, I tend to be highly focused on achieving targets andhave come to believe that boosting our earnings power isjust as important as promoting sustainability management
and solving social issues.
We use the phrase “sales by all members” to drive home
the importance of earnings power across the Group. We
have worked hard to ensure a constant awareness that nomatter which department they work in or what kind of work
they do, everyone should remain diligent and think about theutility of various types of data and how this data can beused to secure better results. Looking back on the businessresults of the current medium-term business plan, I feel that
this earnings power mindset has become well ingrained.
The second initiative is aimed at strengthening our hiring
practices and placing personnel appropriately in line withbusiness strategies. Believing that securing human resources
is necessary to the achievement of our long-term vision andmedium-term business plan targets, in 2020 we began tohire mid-career professionals for the first time in a decadeand increased the number of new graduates hired. And,
although the amount of work has significantly increased
during the current medium-term business plan, especially forredevelopment projects and property sales to investors, wehave been able to steadily promote business through theappropriate placement of highly skilled human resources
possessing a wealth of experience and expertise.

The third initiative is aimed at ensuring that we remain aflat organization. Team play continues to facilitate excellent
numbers across the Company. We consider this a uniquebenefit of a flat organizational culture in which top management and employees can communicate freely with one
another. In line with the conviction that sustainable growth ispossible only by fostering this organizational culture, I myself
proactively create space for frank communication and regularly invite seven to eight employees to join me in doing so.
In addition, we are once again engaging in Company-wide
parties and other communication stimulating activities that
had been suspended during the COVID-19 pandemic. By
expanding our human resources and fostering our uniqueorganizational culture in such ways, we are building a basefor growth.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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Message from the CEO

The Tokyo Tatemono Group’s
Value Creation Foundations
Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

The Tokyo Tatemono Group’s
Value Creation Initiatives

The Company has set out a long-term vision of becoming anext-generation developer by around 2030. Because fiscal
2024 is serving as a year in which we are reflecting on our
progress, we are accelerating discussions related to the next
medium-term business plan. Based on the drastic changes
in the external environment and the Company’s current situation, Tokyo Tatemono is earnestly preparing for theannouncement of the next plan around spring 2025. Here,
we hope to be able to provide a glimpse into our outlook forthe future, and I also discuss my views on current issues
and the outlook moving forward.
We recognize that the most pressing issue at present is

The Tokyo Tatemono Group’s
Value Creation and Vision

Aiming to achieve stable growththrough the appropriate control of
our portfolio

soaring construction costs and expect this to have a major
impact on the Company’s overall business in the form of, forexample, lower profitability and higher demand for funding.
Regarding this situation, the Board of Directors has thoroughly studied and discussed various scenarios from theperspective of risk management and considered actions toimprove profitability and meet funding demand as well as
management schedules for projects for which construction
is slated to begin in the near future.
Regarding the three fields constituting our profit composition as outlined under the current plan (leasing, property
sales, and services), based on changes in the external
environment, I believe that the specific compositions ofthese fields will themselves differ from those existing when
the plan was initially formulated.
First, profit from office buildings in the leasing field has fallen below initial assumptions due to rising energy costs andincreasing vacancy rates due to the COVID-19 pandemic.
On the other hand, the Company is set to finish constructionof the Yaesu Project in fiscal 2025 and plans to steadily build
up leasing profit through the development of multiple largescale redevelopment projects thereafter. In addition, vacancy
rates from the end of 2023 onward have been trending
down, and, with the feedback loop caused by rising inflation
and wages, I think that there is no way for office building
rents to be the only cost not rising. I believe it is certainly
necessary to hold deep in-person conversations and intend
to continue working hard to expand leasing revenues fromexisting office buildings while carefully monitoring market
trends, such as the supply of office buildings going forward.
In addition, the Company is proud that under the current
plan it has constructed a well-balanced asset portfolio andaccumulated a wide range of stock that includes logistics
properties and hotels in addition to its existing mainstay
office buildings. Over our history, we have owned mainly
office buildings and earned leasing revenue. We are now
striving to expand leasing profit by, for example, increasing
the ownership ratio of for-rent condominiums, rents forwhich have been rising.
Regarding property sales to investors, we will continue toIntroduction

developer. I believe that surviving 128 years is in and of itself
proof that the Company is sustainable. Going forward, we
intend to overcome various environmental changes and set
a track record attractive to stakeholders while addressing
social issues as they arise in an effort to continue benefiting
sellers, buyers, and the broader community.
Because developers’ business operations can significantly
impact the environment and society, we have proactively
incorporated ESG measures into the current medium-termbusiness plan to ensure sustainable medium- to long-term
growth.
As for governance, to stimulate discussion of medium- tolong-term issues at Board of Directors meetings, in 2023 weestablished the Management Discussion Board, whichenables the free discussion of particular themes. The
Company’s Board of Directors meetings have always had an
atmosphere that welcomes frank discussions, butthere are times when medium- to long-term issues are notfully discussed, so we created an appropriate framework to
aid in the formulation of the next medium-term plan. In theprevious year, the Management Discussion Board
covered such topics as management that is aware of capitalcosts and share price, soliciting valuable insights fromoutside directors and accelerating discussion.

Regarding its human resource strategy, the Company
again disclosed its approach related to human capital in thefiscal 2023 securities report. In addition, the aforementioned
Management Discussion Board took up our human resource
strategy as a topic, sorted out the initiatives under the current medium-term business plan and in light of present-day
issues, and deepened discussion on how to connectbusiness strategies with the human resource strategy inorder to ensure that the Company continues to growmoving forward.
Regarding our environmental strategy, we have beenpromoting initiatives in line with ambitious targets, having set
stricter medium- to long-term targets for greenhouse gas(GHG) emission reduction in October 2023. The Company
has also conducted eco-conscious development before theSDGs were announced, with the prime example being the
Otemachi Forest on the grounds of THE OTEMACHI TOWER.
Last year, praising our initiatives to date, the Ministry of theEnvironment certified the forest as a nature symbiosis site
( p. 18).
We will continue to accelerate ESG initiatives under the
next medium-term business plan with the aim of remaining avital part of society.

025Message from the CEO

Ideas intrinsic to our vision of
becoming a next-generation developer
Companies that cannot simultaneously solve social
issues and achieve corporate growth amid this rapidlychanging era will not be able to survive for very long.

Developer

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

Developers create more than such tangible assets asbuildings and residences, their purview encompasses
places where people live, work, and relax (including associated services) along with the development of community culture and functions from a long-term perspective. All Group employees, not just those involved in realestate development but including those related to sales
and management, help in this regard while maintaining
an awareness of community and societal development.

I believe that securing medium to long-term growth for theCompany and enhancing corporate value will lead to Tokyo
Tatemono becoming a good company in the eyes of all
stakeholders as outlined in the long-term vision. In addition,
our business track record has made me constantly mindfulof the fact that steadily forging ahead and achieving ourtargets one by one is the best way to ensure that all our
stakeholders feel that ours is a company that keeps its
promises into the future.
Last year, I visited Europe and North America for the firsttime since the COVID-19 pandemic began and was able toexchange opinions with overseas investors in a face-to-facesetting. I recognize that investors, whether domestic or overseas, offer perspectives that can be very valuable to theCompany. When formulating the targets and agendas of thenext plan, we intend to reflect opinions that we receive,
ensuring that stakeholders can feel confident that Tokyo
Tatemono will enjoy stable growth well into the future. I
thank you for your continued understanding and support for
the Group and praise for the Company over the medium tolong term.

The Tokyo Tatemono Group’s
Value Creation Foundations

Next-generation

Medium- to long-term growth will help
us become a good company in the eyesof stakeholders

The Tokyo Tatemono Group’s
Value Creation Initiatives

I believe there is value in being self-motivated. This belief
dates back to my beginnings as and has been strongly
influenced by my experience as real estate broker. Backthen, if I did not take the initiative myself, there would simply
be no work. I started by going out to search for information

on who was looking to buy, sell, lease, and rent real estate.
When someone would reach out with that kind of information, I felt thankful and learned to express my gratitude.
From this experience, I realized that because I was willingto take the initiative, I was able to connect with people, gain
new information, and create new value. I believe that

02

The Tokyo Tatemono Group’s
Value Creation and Vision

Realizing our vision of becoming anext-generation developer throughself-motivated actions

self-motivated action is necessary to the realization of ourlong-term vision of becoming a next-generation developer.
To create new value not yet mapped out in the growthtrajectory of our business, it is important that everyone in the
Company take the initiative and strive to secure theirpersonal strengths so that we may win our customers’ trust,which is a strength of the Company.
Looking toward 2030, we plan to finish construction on
multiple redevelopment projects, including the Yaesu
Project, and will be looking to take on challenges oriented
toward expanding the services field and investing in overseas businesses. Amid this situation, I myself will strive to bea self-starter and work to achieve the long-term vision
together with top management and employees.

Introduction

step up the sale of our currently owned stock. We will
simultaneously strive for the optimal asset portfolio composition. With the aim of maximizing profit, we have establisheda system that enables us to sell assets to meet needs as
they arise, such as selling some non-current assets
as needed.
Regarding for-sale condominiums, we recognize that thisis our best performing business under the current plan. As
the current plan has played out, we have garnered highpraise from customers for the quality and locations of ourproperties, such as SHIROKANE The Sky and Brillia Tower
Dojima. Although the condominium business is generally
considered highly volatile, the Company is backed by strong
product planning capabilities based on the Brillia brand andowns an excellent land bank built through the acquisition ofcarefully selected parcels of land. We believe this businesswill underpin our results under the next medium-termbusiness plan. While there is some cause for concern, like
Bank of Japan policy shifts, we will strive to continuously
build on our solid track record to grow profit.
Finally, regarding the services field, we believe it necessary
to achieve further expansion under the next plan. Currently,
the leasing and property sales fields generate the majority of
the Company’s profit, but we plan to strengthen the Brokerage,
Parking, and Fund businesses in their role as the core of theservices field from the perspective of capital efficiency.
Compared with when the current plan was formulated,
although there are some deviations from our initial assumptions, we aim to secure stable growth under the next plan
through appropriate control of our portfolio.

SECTION

6SECTION

02

Long-Term Vision and Materiality
Becoming a NextGeneration Developer

Solve a Variety ofSocial Issues

Materiality of the Tokyo Tatemono Group
Material Issues

Contribute to the SDGs

Shared Values with Society

Contribution to SGDs

Strengthening Tokyo’s competitiveness as an international city

Our basic policy for profit growth is to steadily increase stable leasing profit and make it the core of our
profit composition. We also aim for a well-balanced profit structure with an awareness of capital efficiency.

Community building and revitalization* Consolidated business profit = consolidated operating profit + share of profit (loss) of entities accounted for using equity method

Approach to Value Creation by Addressing Materiality

Social value creation

Contributing to a safe and secure society

On our path to realizing our long-term vision, we have identified 14 key issues from the perspective

Wellbeing
Addressing the diverse needs of customers and society
Value co-creation and innovation
Social implementation of technology
Revitalizing and utilizing real estate stock•C oexistence with the
Earth and theenvironment

Promoting a decarbonized societyof the shared value with society that we will realize through our business.

Promoting a recycling-oriented society

have on society while minimizing negative impact, we will contribute to the realization of a

Improve employee growth and job satisfaction

Materiality Assessment Process

Value creation platform

By working to solve critical issues through our business and maximizing the positive impact we• Value-creating talent
Diversity & Inclusion
Advancement of governance
Strengthen risk management framework• Realizing sustainability
management

Reviewed the SDGs and other social issues, aiming to take in a wide range of social issues connected to ourbusiness. Identified the 35 social issues that the Tokyo Tatemono Group should consider.

2019

Assessed the importance of the 35 social issues in terms of the magnitude of social needs and alignment with ourbusiness. Identified material issues.

KPIs and ESG-related targets were establishedsion or business department. The Sustainability

based on the identified material issues.

Promotion Committee ascertains the status ofConducted studies for revising material issues based on recent social trends as well as knowledge gained throughadvice from external experts, participation in various initiatives, and communication with stakeholders. Approved
material issues after validation and discussion by the Sustainability Committee and the board of directors.

with process targets in mind are incorporated

establishes a PDCA cycle and manages

into the business plans of each business divi-

progress toward achieving the targets.

2021

In order to achieve the targets, action plans

initiatives, and the Sustainability Committee

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

2018

p. 37

The Tokyo Tatemono Group’s
Value Creation Foundationsof both creating social value and the infrastructure needed to create such value with an awarenesssustainable society as well as to our growth as a company.

• Creating value of placeand value of experience

The Tokyo Tatemono Group’s
Value Creation Initiatives

Steady Profit GrowthTarget for 2030: Consolidated business profit* of 120 billion yen

The Tokyo Tatemono Group’s
Value Creation and Vision

Fundamental Policy for Our Long-Term Vision

Introduction

Long-Term
VisionWe live in a time of profound change. We are experiencing shifting demographics, growing diversity among personal values,
ever-accelerating technological development, and more. Amidst these uncertainties, a broad range of challenges to achievingsocial sustainability have emerged. The Tokyo Tatemono Group understands that the role of developers must also change infundamental ways. We are committed to using our business to offer better solutions to society’s problems and bring our own
growth as an enterprise to a higher level. By doing so, we aim to be a good company for all our stakeholders.

7

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02

Progress on the Medium-Term Business Plan

Accomplishing the long-term vision

Becoming a NextGeneration Developer

Around 2030

Growth as acompany

Solving social
issuesAchievements of MediumTerm Business Plan targets

2024

2020–2024 Medium-Term Business Plan

1

Profit Target
Capital Efficiency

p. 14

Financial Guidelines

5

2

Further strengthening of for-salecondominium
business
p. 19

Implementationof KeyStrategies

Growth in overseas business
p. 31

4

3
Expansion ofproperty sales toinvestors
p.14, p.19

An Evolved Approach to ESG Management(Sustainability Report 2024)
ESG Management pp. 7-15

Business profit (Billion yen)Debt-equity ratio (times)

13.4

13.3

8.3

8.7

Interest-bearing debt / EBITDA multiple

ROE(%)

11.1

10.9

Approx. 12 times

9.6

10.0
66.3

Consolidated business profit
120.0 billion yen

74.4

75.0

Approx. 2.4 times

49.8

47.9

ROE: 8%–10%

2.5

2.3

2.2

2.2

Debt-equity ratio: 2.4 times
Interest-bearing debt / EBITDA multiple:
Approx. 12 times

FY2020

FY2021

FY2022

FY2023

Consolidated business profit*: 75 billion yen

FY2024(Assumptions at thetime of formulation of
the medium-termbusiness plan)* Consolidated business profit = consolidated operating profit + share of profit (loss) ofentities accounted for using equity method

Investment Plans
With regard to large-scale redevelopment, although there is a delay in the
progress of investment compared to the plan due to changes in scheduleand other factors, the procedures and other aspects of the redevelopment
project are progressing steadily. In condominiums for sale and property
sales to investors, we have adopted a selective investment stance amid
an intensifying land acquisition environment, and as a result, the numberof projects that require time to commercialize has increased, which has
pushed back the demand for funds compared to our plan, but we havesecured a stock of projects in line with our medium-term projection.
With regard to the balance of real estate for sale for property sales toinvestors, we have been able to build up our stock due to the favorable
market conditions to date, which enabled us to generate sufficient profits
from a smaller number of properties sold than expected. On the other
hand, with regard to financial soundness, as a result of building up equity
capital through steady profit growth throughout the current plan period, theD/E ratio has remained within the level expected in 2024, the final year of
the medium-term business plan, and our A rating has been maintained.

Approx. 8%–10%

Around FY2030(Assumptions at thetime of formulation of
the long-term vision)

Shareholder Return Policy
Return Policy∙The Company’s basic policy is to pay a consolidated dividend payout ratio of
30% or more, and to continuously increase shareholder returns throughsustainable growth.
∙The Company will consider the purchase of treasury shares based on thebusiness environment and its financial condition.

The dividend per share for fiscal 2023 was increased to 73 yen from theprevious year’s annual dividend of 65 yen, resulting in a payout ratio of
33.8%. The annual dividend for fiscal 2024 is planned to be 79 yen (payout ratio 34.4%), representing an 11th consecutive year of increase. We
are considering our future shareholder return policy for the next mediumterm business plan and beyond in the form of expanded dividends, whileremaining conscious of the need to maintain appropriate financial discipline and balance our investment opportunities for growth.

Data Section

Strengthening of
brokerage, fund,and parking
businesses
p. 30

2020-2024 Medium-Term Business Plan

The Tokyo Tatemono Group’s
Value Creation Foundations

Promotion oflarge-scale
redevelopment

Long-Term Vision Around 2030

The Tokyo Tatemono Group’s
Value Creation Initiatives

Profit / Financial Plan
With regard to the profit / financial plan set forth in the current MediumTerm Business Plan, the condominium business and property sales toinvestors, which have been strengthened as growth drivers, are driving
our performance, and we were making steady progress as of the end of
fiscal 2023. We expect business profit for fiscal 2024 to be 77.0 billion
yen, exceeding our initial target of 75.0 billion yen for fiscal 2024, thanks
to a significant contribution from the condominium business, which
continues to perform well. In addition, the ROE, D/E ratio, andinterest-bearing debt / EBITDA multiple as of the end of 2024 are also
expected to land within the target range of the current plan.

p. 7

The Tokyo Tatemono Group’s
Value Creation and VisionRoadmap 2030

Building an Earnings Characteristic-Based Portfolio
Tokyo Tatemono manages its business portfolio in three main categories in line with their earnings characteristics: “leasing,” which provides highly stableprofits; “property sales,” which possesses high capital efficiency; and “services,” which are capital-saving and directly contribute to improving capitalefficiency. Under the current Medium-Term Business Plan, the Company aims to achieve consolidated business profit of 75 billion yen in fiscal 2024 by setting
profit from property sales, particularly from the sale of condominiums, and property sales to investors as a growth driver, increasing profit from leasing mainlyin the Commercial Properties Business, and steadily growing profit from services, including the Brokerage and the Parking Business.
To date, the property sales sector has made steady progress, posting higher-than-expected profits on the back of favorable market conditions for sales ofcondominiums and property sales to investors.
On the other hand, in the leasing sector, profits were lower than expected in the building leasing business due to the impact of rising energy costs and the
COVID-19 pandemic. Growth in the overseas business has also been slower than expected due to the effects of political upheaval and the COVID-19
pandemic in the countries where we operate. Although the profit structure for fiscal 2024 may differ in some areas from our initial assumptions, we aim toachieve our business profit target by compensating for slowdowns in growth areas while responding to changes in the environment.

Introduction

Positioning of the Medium-Term Business Plan
In February 2020, to accomplish “Becoming a Next-Generation
Developer,” the Group’s long-term vision looking ahead to around 2030,
we formulated a medium-term business plan covering the five years fromfiscal 2020 to 2024. By undertaking five key strategies and with the evolution of ESG management, we aim to achieve our stated targets.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

8

Akira Izumi
Representative Director
Senior Managing Executive
Officer & Chief Financial Officer

Message from the CFO

We take the opinions of our investors seriously, aiming forprofit growth and capital efficiency improvement from a
medium- to long-term perspective
Please share your assessment of fiscal 2023
performance and your forecasts for fiscal 2024.

flexibly respond to market conditions led to a positive performance. In addition, steady progress was made in efforts tooptimize our business portfolio, as outlined in the medium-term

In fiscal 2023, ended December 31, operating revenue reached abusiness plan, by transferring two consolidated subsidiaries.

record high for the seventh consecutive year and profit attribut-

In the results forecast for fiscal 2024, we expect to see operat-

able to owners of parent increased for the eighth consecutive

ing revenue of 495.0 billion yen and business profit of 77.0 billion

year due to an increase in property sales to investors and higher

yen, both record highs, thanks to the significant contributions ofearnings in the brokerage and parking businesses. Results weresales of condominiums and property sales to investors, which

extremely positive with business profit at 74.4 billion yen, close tohave been strengthened as growth drivers in the medium-term

the medium-term business plan’s final year target of 75 billion

business plan. As of the first half of this fiscal year, 85% of theyen, and ROE coming in at 9.6%, which is at the target level ofcondominiums up for booking have already been contracted,

the medium-term business plan. While we postponed ourand, although property sales to investors will be biased toward

planned listing of a logistics REIT in light of the sluggish REIT mar-the second half of the fiscal year, the real estate sales market isket during the period, we steadily realized gains on the sale ofexpected to remain strong, so there is a high probability oflogistics properties in accordance with plans, and our ability toachieving the earnings forecast.

9

SECTION

02

Message from the CFO

Our basic financing policy is to build up equity capital throughties but with the steady acquisition of new projects. We expect

profit generation and to finance this through borrowings and thethat the quality of assets developed and held by the Company

issuance of corporate bonds within a moderate leverage range

will ensure continued smooth sales against the backdrop of abased on financial discipline, with the aim of maintaining finan-strong real estate sales market.

plan period, we were able to expand our stock of properties due
to better-than-expected performance without selling any proper-

Based on the above ideas, we will strive to maintain stable

continuing to exercise stable management and investment for

profit growth and capital efficiency while maintaining financial

long-term growth. As of the end of 2023, the DE ratio is 2.2

soundness by more flexibly selling various assets in accordancetimes and the debt/EBITDA ratio is 10.9 times, which are withinwith the business environment and the Company’s financial

the range of the levels set forth in the medium-term businesscondition, in addition to basic financing centered on borrowings.

plan, and the basic preparations for interest rate fluctuation risk

Please share your business portfolio strategy

and a diversification of repayment terms.

and approach to profit composition moving
forward.

The financing for the planned investment of 440 billion yen in
fiscal 2024, which has been high in recent years, is proceedingsmoothly. From fiscal 2025 onward, the number of properties
undergoing large-scale redevelopment is expected to increase,which, combined with the impact of rising construction costs,
will increase demand for funds.
To prepare for such a large rise in the demand for funds andchanges in the financing environment, we have taken all possirelationships with more than 100 lenders, including megabanks,
maintaining credit ratings, and diversifying our financing methods, including ESG finance.

Profit classifications

Characteristics

Leasing

Leasing income fromoffices, condominiums,
etc.

High profit stability
Involves large
investments

Property Sales

Development income
from the sale ofproperty holdings

High profit volatility
High capital efficiency

Services

Fee income from theoperation and management of facilities and theprovision of services

High profit stability
Does not involve large
investments

Moreover, we will further expand property sales to investors
and actively sell non-current assets and cross-shareholdings,
thereby accelerating the use of recovered funds for growth

The Tokyo Tatemono Group’s
Value Creation Foundations

ble measures on the borrowing side, including strengthening

Under both our long-term vision and medium-term businessplan, we aim to “achieve a well-balanced profit composition with
an awareness of capital efficiency,” centered on stable leasing
income. To this end, we manage a balanced profit structure
whose components are classified according to profit characteristics into three areas: “leasing,” which enjoys stable earnings,“property sales,” which boasts high profitability and capital efficiency, and “services,” which are capital-saving and directly
contribute to capital efficiency improvement.

The Tokyo Tatemono Group’s
Value Creation Initiatives

are well in place, with the long-term fixed loan ratio at over 90%

biased toward office buildings, and diversifying our asset holdings.
While selling some office buildings, taking into consideration
maintaining their leasing revenue and their holding priorities,
we will consider holding and managing some logistics properties,
for-rent condominiums, hotels, etc., that are currently positioned
as real estate for sale in principle, as mid- to long-term rental
assets.
Furthermore, with regard to the large-scale development currently under way, taking into account the anticipated fluctuations
in completion dates and construction costs, we will strive for
profit growth mainly in the “property sales” sector until stable
operations are achieved, while flexibly examining the use of
external capital at the development stage and partial sales after
completion, etc., from the perspectives of both balance sheet
control and capital efficiency.

The Tokyo Tatemono Group’s
Value Creation and Vision

cial soundness regardless of the business environment while

With regard to the profit composition targeted in the longterm vision, we expect the ratio of “leasing” to be approximately
50%, taking into account that the construction of several largescale redevelopment projects is expected to be completed byaround 2030. While we will continue to emphasize stable leasing
profit, we believe that in the next medium-term business plan, inorder to maintain and improve capital efficiency while taking into
account changes in the business environment, it will be necessary to revise the profit composition breakdown in the directionof reducing the proportion of “leasing” and increasing the proportion of “property sales.”As a measure to improve capital efficiency in the “leasing”
sector, we are considering reviewing our asset portfolio, which is

Introduction

Please share the Company’s financing approachand investment plans.

portfolio. In addition, during the current medium-term business

investments while controlling our balance sheet. With regard toproperty sales to investors, the organizational reforms andData Section

human resource enhancements undertaken since the previous
medium-term business plan period have enabled us to expand
development capacity and diversify asset types, thereby building
a revenue base that is resilient to changes in the business environment, leading to the strengthening of the overall business

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

10

SECTION

02

Message from the CFO

Please tell us about your efforts toward realizing
management with an awareness of cost ofcapital and stock price as requested by the

Are there any final thoughts you’d like to sharewith the Company’s stakeholders?

Exercise Appropriate • Sale of non-current assets, review of business portfolioof cross shareholdings• ReductionBalance Sheet
Controls with an• Financial leverage control based on financial guidelines:
Awareness of Capital Continue to maintain D/E ratio and other ratios at the
Efficiency
levels set forth in the medium-term business plan• Enhanced disclosure of strategies and initiatives forsustainable growth: Modified disclosures to reflect
recognition of current status, such as the amount of
Enhanced Disclosure
investment in large-scale redevelopment
and Active and• Strengthened engagement with investors: Proactive
Courteous Dialogue
dialogue with approximately 250 companies (upapproximately 30% from last year) in terms of the numberof individual meetings• Acceleration of sustainability initiatives: Accelerate initiatives
such as raising GHG targets• Reduce business risks by strengthening risk management:
An Evolved Approach Risk Management Committee identifies priority risks toaddress, etc.
to ESG Management• Enhancing human capital: Identifying issues by discussing
human capital management at management discussion
meetings, etc.
• Increase dividends through sustained profit growth (consider
raising the dividend payout ratio and introducing progressive
dividends): For fiscal 2023, the annual dividend is 73 yen
Improving(payout ratio 33.8%), an increase of 1 yen over the
Shareholder Returns
beginning of the year forecast. In fiscal 2024, the annual
dividend is expected to be 79 yen (payout ratio 34.4%), the11th consecutive such increase.

Data Section

In fiscal 2023, the Company further focused on dialogue
with investors and conducted approximately 250 meetings,
an increase of 30% from the previous year. I myself havereceived a lot of valuable feedback through numerous
meeting opportunities, which helped me realize how theneed to maintain and improve capital efficiency is morepressing than ever before. We will continue to take theopinions of investors seriously and aim to achieve profit
growth and improve capital efficiency from a medium- tolong-term perspective.

Improvement ofCapital Efficiency• Strengthen sales of condominiums and property sales toinvestors: Continued acceleration of sales and disposals• Expansion of fee income due to growth in the Group’s
assets under management• Expand non-asset business: Continue to strengthen
brokerage and parking business

The Tokyo Tatemono Group’s
Value Creation Foundations

approach to ESG management during the current medium-termbusiness plan period. On the environmental front, we raised our
medium- and long-term targets for greenhouse gas (GHG)
emission reductions, and, on the social front, we establishedsustainable procurement standards, strengthened our outreachto suppliers, and expanded our investment in human resourcesand diversity. In terms of governance, the Risk Management
Committee was established to strengthen risk management.
Going forward, we will continue to promote a variety of corporate value enhancement initiatives.

Improvement ofProfit Margins in
Each Business• Use ingenuity and leverage our strengths to acquire sites:
Continue to maintain a selective investment stance andacquire projects for rebuilding and redevelopment, etc.
• Steady promotion and leasing of large-scale redevelopment
projects: Pursue business promotion and leasing activities
centered on the Yaesu Project• Focus on cost management: Focus on cost management in
the development phase, including value engineering (VE)and cost reduction (CD)The Tokyo Tatemono Group’s
Value Creation Initiatives

Last August, we responded to a request from the Tokyo Stock
Exchange to disclose our corporate value enhancement efforts.
Our current P/B ratio as of June 2024 is around 1.07 times,
which is not a high valuation. When broken down into ROE andPER, which make up PBR, the ROE at the end of fiscal 2023
was 9.6%, which is above our estimated cost of shareholders’equity of 7%–8%. Going forward, the Company will strive tomaintain and improve capital efficiency through the aforementioned sale of non-current assets and cross-shareholdings, aswell as by considering and implementing a review of its businessportfolio. On the other hand, based on the assumption that ROE
exceeds the cost of shareholders’ equity, we conclude that themain reason for the poor PBR is the low PER level, and we see
this as an issue of insufficiently fostering growth expectations for
the Company’s earnings. In order to foster growth expectations,
we believe that it is necessary to maintain financial soundness
and stable profit growth, while at the same time working to fur-shareholder return policy is to pay a consolidated dividend
payout ratio of 30% or more, and to continuously increase
shareholder returns through sustainable growth. The dividend
per share for fiscal 2023 was increased to 73 yen from the previous year’s annual dividend of 65 yen, resulting in a payout ratioof 33.8%. The annual dividend for fiscal 2024 is planned to be
79 yen (payout ratio 34.4%), an increase for the 11th consecutive year. This is expected to achieve a continuous and progressive increase in the dividend payout ratio throughout the current
medium-term business plan period. The Company will consider
expanding its shareholder return policy in the future whileremaining conscious of the need to maintain progressive dividend payments.
In addition, as part of our efforts to enhance corporate value
over the medium to long term, we accelerated our evolved

Initiatives to Enhance Corporate ValueThe Tokyo Tatemono Group’s
Value Creation and VisionTokyo Stock Exchange.

ther improve shareholder returns.
During the current medium-term business plan period, ourIntroduction

In the next medium-term business plan, we would like todemonstrate the renewed picture of our business portfolio strategy described above, with the aim of maintaining and improving
capital efficiency.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

11

SECTION

02

Financial and Non-Financial Highlights

Introduction

Financial Highlights
Operating Revenue

Business Profit / Profit Attributableto Owners of Parent

Operating Revenue per Segment(FY2023)

Business Profit per Segment(FY2023)(Billion yen)

Business Profit(Billion yen)

Other 6%

Other 5%

22.7

4.4

375.9

74.4
66.3
51.6

49.8

29.7

Commercial
Properties
41%

63.8

47.9
31.7

Asset Service
15%

Asset Service
17%

43.0

45.0

375.9

34.9

12.9

74.4

155.2

Residential
36%

40.1

billion yen*

27.1

134.1
*After elimination and corporate

FY2019 FY2020 FY2021 FY2022 FY2023

FY2019 FY2020 FY2021 FY2022 FY2023

Interest-bearing Debt /EBITDA Multiple(Times)(Times)

2.5

Earnings per Share (EPS) / ROE
Earnings per share (EPS) (Yen)ROE (%)

206.15

2.5
2.3

2.2

2.2

12.6

13.4

Annual Dividend per Share / Payout Ratio (Yen)
Payout Ratio (%)

215.82
29.0

13.3
11.1

10.9

141.59152.12FY2019 FY2020 FY2021 FY2022 FY2023

30.2

30.5

167.35

8.3

8.7

31.5
65

10.0

9.6

FY2019 FY2020 FY2021 FY2022 FY2023

41

46

33.8
73

51
Data Section

8.2

FY2019 FY2020 FY2021 FY2022 FY2023

Annual Dividend per Share /Payout Ratio

The Tokyo Tatemono Group’s
Value Creation Foundations

Debt-equity Ratio

The Tokyo Tatemono Group’s
Value Creation Initiatives

Residential
32%

billion yen

Commercial
Properties
47%

The Tokyo Tatemono Group’s
Value Creation and Vision

340.4 349.9
323.0 334.9

Profit Attributable to Owners of Parent

FY2019 FY2020 FY2021 FY2022 FY2023

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

12

SECTION

Financial and Non-Financial Highlights*For detailed information and notes on each item, please refer to the Data section of the Sustainability Report.

02(Sustainability Report 2024) Data (Environment and Social) pp. 87-94

Introduction

Non-Financial Highlights
Scope of Collection: Tokyo Tatemono Group

Scope of Collection: Tokyo Tatemono Group

Scope of Collection: Tokyo Tatemono*2

Scope of Collection: Tokyo Tatemono

CO2 Emissions*

Renewable Energy (electricity) Usage
Rate

Waste Emissions per Unit Load of
Production and Recycling rate

Percentage of Management Positions
Held by Women

Targets: Scopes 1, 2, 3		 Net zero CO2 emissions by FY2050
Scopes 1, 2		46.2% reduction in CO2 emissions comparedto FY2019 by FY2030
Scope 3		 40% reduction in CO2 emissions compared to(Categories 11 and 13) FY2019 by FY2030

Target: 100% of electricity consumed in business activities will be generated
from renewable energy sources by FY2050.

Targets: 20% reduction emissions per unit load of production by FY2030
compared with FY2019
Waste recycling rate: Achieve a waste recycling rate of 90%
by FY2030

1(Thousand t-CO2)

984
290

68
17

1,035 1,015
201

334
762

9.4
5.1

318

56
16

622

54
18

30
14

68.4

65.7

7.2

5.3

5.3

5.2

60.9

7.2

6.0
5.0

58.4

11.2
No
data

No
data

1.8

FY2019 FY2020 FY2021 FY2022 FY2023

FY2019 FY2020 FY2021 FY2022 FY2023
Scope of Collection: Tokyo Tatemono

(%)

7.4

984

596

Recycling rate (%)

31.1

61.9

513
59
15

347

Waste Emissions per unit loadof production (ton/thousand㎡)(%)

FY2019 FY2020 FY2021 FY2022 FY2023

FY2019 FY2020 FY2021 FY2022 FY2023

Scope of Collection: Tokyo Tatemono

Scope of Collection: Tokyo Tatemono

Average Annual Paid Leave
Utilization Rate

Average Annual Training Hours
per Employee

Health Check-up and Reexamination
Rate

Target: 30% or more by FY2025

Target: 70% or more each fiscal year

Target: 15 hours or more each fiscal year

Target: Health check-up rate and reexamination rate:100% each fiscal year

(%)

(%)

78.1
67.8
57.7
50.0

Percentage of employees who
underwent a health check-up

18.3

72.2

57.5

15.8
14.4

(%)

15.2
100

12.2

51.2

Reexamination rate

100

100

100

100

98.0

98.3
83.7

81.5

18.2

Data Section

63.0

4.8

The Tokyo Tatemono Group’s
Value Creation Foundations

Scope of Collection: Tokyo Tatemono

Percentage of Childcare Leave Taken(men)

The Tokyo Tatemono Group’s
Value Creation Initiatives

608

921

Scope 2 (Market-based)
Scope 3
(Excluding Categories 11 and 13)

The Tokyo Tatemono Group’s
Value Creation and Vision

Scope 1 (Fuel-derived)
Scope 3(Categories 11 and 13)

Target: 10% or more by FY2030

13.0

FY2019 FY2020 FY2021 FY2022 FY2023

FY2019 FY2020 FY2021 FY2022 FY2023

FY2019 FY2020 FY2021 FY2022 FY2023*1 Due to a change in the calculation method for CO2 emissions, amounts for previous years are also calculated using the new calculation method.
*2 S cope of tabulation: Long-term buildings and commercial facilities over which Tokyo Tatemono has substantial energy management authority and for which waste reuse/
reduction plans have been submitted.

FY2019 FY2020 FY2021 FY2022 FY2023

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

13

SECTION

02
Interview with the Division Director of the Commercial Properties Division

Introduction

With property sales to investors growing, we aim to achieve medium- tolong-term expansion in tandem with large-scale redevelopment
Representative Director
Senior Managing Executive Officer

Review of the current Medium-Term Business Plan:

Over the course of the current Medium-Term Business Plan, theexternal environment has undergone major changes, beginningwith the COVID-19 pandemic. At the same time, we havesteadily carried out key strategies and recognize that we have

The Tokyo Tatemono Group’s
Value Creation Initiatives

Property sales to investors are becoming a
growth driver.

The Tokyo Tatemono Group’s
Value Creation and Vision

Katsuhito Ozawa

been able to achieve respectable business results.
redevelopment—our businesses made steady progress,
including starting new construction for the Yaesu Project.

Progress on Large-scale Redevelopments
Feb. 2024, District A: Start of new construction
Oct. 2021, District B: Start of new construction

Gofukubashi Project

Sep. 2023, Approval of rights conversion plan

Shibuya 2-Chome
Project

Jan. 2023, Approval of establishment of urban
redevelopment consortium

Kyobashi 3-Chome
Project

Apr. 2024, Approval of establishment of urban
redevelopment consortium

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

Yaesu Project

The Tokyo Tatemono Group’s
Value Creation FoundationsFirst, regarding Key Strategy 1—Promotion of large-scale

14

SECTION

Interview with the Division Director of the Commercial Properties Division

Regarding Key Strategy 3—Expansion of property sales toinvestors—my assessment is that we made major progress.
One focus when formulating the current plan was how to
ment. Having positioned property sales to investors as a growth
driver, we expanded diverse asset types in the Commercial
Properties Business, mainly logistics properties but also hotels,commercial facilities, and medium-size office buildings. We haveas of the end of fiscal 2023 compared to the end of fiscal 2019
when the plan was formulated, in terms of the balance of realestate for sale.
Most of the Company’s property sales have traditionally beenin the for-sale condominium business, but around 20% ofbusiness profit in fiscal 2024 came from property sales toinvestors in the Commercial Properties Business. In this andterms of returns on investment.

Commercial Properties Business: Balance of real estate for sale
Balance of real estate

As for properties for sale to investors, the stock of T-LOGI logis-

Wielding swift decision making to expand

tics properties saw particular expansion. Although the Company

investment through integrated organizations

was late to enter the logistics business, it has built up over 30
properties, including a number already developed and sold,To expand property sales to investors, since the previous man-based on medium-scale product planning of between 6,000 toagement plan, we have focused on conducting a reorganization,

7,000 tsubo (nearly 20,000 m2 to 23,000 m2), and leasing

expanding staff, and training development personnel. In 2018,

performance has been steady. We have been able to deepen

there was only one department handling property sales torelationships with tenants through direct sales, with some mov-investors in the Commercial Properties Business, but now there

ing into multiple properties, and the results have been positive.

is a three-department structure, one for each asset type, andWe have also been able to develop plans for new projects, suchthe staff has expanded from 20 to 67 people.

as cold storage, based on suggestions from tenants, creating avirtuous cycle.
Regarding hotels, our efforts have been proceeding apace as

The three departments function in harmony, sharing an
integrated operational structure spanning everything from landacquisition to development, leasing, management, mainte-

the needs of operators targeting a post-pandemic inboundnance, and sales. This integrated structure enables us torecovery complement the needs of the Company, which is aim-

provide those in charge of land acquisition with direct feedback

ing to ramp up development. At the Hilton Kyoto, slated to open

on customer needs discovered in the course of leasing andin 2024, the Company is trying its hand at its firstmanagement operations, and this, in turn, informs swift invest-

management contract style operations. It has not been simple

ment decision making. I believe swift investment decision mak-as a newcomer to promote business with a world-class opera-

ing, including on the management side, is one of the Company’s

tor, but we have built a solid relationship based on trust and thestrengths when compared to its competitors. Although the(Billion yen)

194.7

The Tokyo Tatemono Group’s
Value Creation Foundations

steady accumulation of expertise. I believe going forward that
we will be able to fully utilize that experience in the Commercial
Properties Business as among our future large-scale redevelopment projects, some will be properties planned to house hotels.

157.6

Meeting the diversifying needs and workstyles of office work107.9

110.2

ers, we are also engaged in the development of T-PLUS

114.7

The Tokyo Tatemono Group’s
Value Creation Initiatives

other ways, we have been able to achieve solid successes inor suburbs.

The Tokyo Tatemono Group’s
Value Creation and Vision

steadily built up our stock, achieving an increase of around 80%

02
Introduction

expand business results while promoting large-scale redevelop-

Deepening relationships with customers andexpanding diverse asset types

we will continue promoting development whether in city centersmedium-size office buildings. Under this brand, we provide various services that help enhance convenience for customers,such as the utilization of cutting-edge technologies and leasing
Data Section

models that go beyond conventional models.
Lastly, let’s look at commercial facilities. The Company has
the expertise that developed the urban compact retail facility
FY2019FY2020

FY2021

FY2022

FY2023brand FUNDES and SMARK Isesaki, which is the largest
shopping center in the northern Kanto region. Going forward,

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

15

SECTION

Interview with the Division of the Commercial Properties Divisioncompetition for land acquisition is fierce, we have still been able

ecosystem and aim to revitalize the entire area and, in turn,to a wide range of examples of regeneration-related initiatives

to systematically build up our stock by leveraging thisstrengthen the competitive advantages of Tokyo as a city.

undertaken in Japan and overseas. Going forward, we aim toorganizational strength.

(achieve regenerative city, town, and area development thatP. 27 )

Promoting multiple large-scale redevelopmenttion*2 in its urban development operations with the aim of finding

projects in the YNK area

solutions to social issues. Specifically, we have developed a
training program attended by employees that focuses on the

Establishing wellbeing as the foundation of the

The Company is promoting multiple large-scale redevelopment

concept of regeneration. Furthermore, we held an international

Yaesu Project

meeting, RegenerAction Japan 2023, that exposed employees

which is where the Company was founded and its headquarters

The core of our urban development efforts in the YNK area is

are currently located. In contrast with Marunouchi, which once

the Yaesu Project. Moving forward, we intend to more thoroughly

had a high concentration of houses owned by warriors, the YNK

evolve urban development in the YNK area as the launchpad forarea was historically home to a wider variety of people, not justthis project.

regular townsfolk, and attracted merchants and professionals
from all over Japan to supply materials and food to Edo Castle.
The Company is promoting urban development with an
local culture, such as the historic stores, interesting streets,

The international RegenerAction Japan 2023 meeting held by the Company

Otemachi
StationTokyo Station
Central Exit

The Company’s Initiatives in the YNK Area

food, and art.

Tokyo M

Tokyo International
Forum

etro MarunouchiCharacteristics of the YNK areaLine

JR Tokyo Station
Shangri-la Tokyo
Daimaru Tokyo
Tekko Building

Tokiwabashi TowerneTokyo Tatemono
Yaesu Naka-dori
Building

Kyobashi 3-chome ProjectMuseum Tower
KyobashiTakaracho Station

Nihonbashi
Takashimaya S.C.

Tokyo
Nihonbashi
Tower

COREDO
Nihonbashi

YNK area

Showa dori Ave.

Metropolitan Expressway Inner Circular Route*1 In addition to being an acronym for Yaesu, Nihonbashi, and Kyobashi, YNK area (pronounced “ink”) also stands for “You Never Know!” our message for this area.
*2 R egeneration: This concept is not about maintaining the status quo. It is about the drive to continuously create new value while balancing considerations ranging from revitalizing the
global environment and ensuring the richness of people’s lifestyles to accommodating economic factors, maintaining social connections, and passing down and developing culture.

Toei Asakusa Line

Nihonbashi Station

Redevelopment promotedby Tokyo Tatemono

Buildings owned by
Tokyo Tatemono• Tradition and modernity coexist
Since the Edo period, traditional values
have persisted in the area, with festivals,
food, art, and crafts ensuring a thriving
culture. And, it is not just traditional culture
and history that are alive and well, the area
offers an abundance of new experiencesthat draw crowds.

• Diversity dating back to the Edo period
The lasting impact of this vibrant area on
Japan is largely due to its having served as
the starting point of the country’s Five
Routes,* making it a natural hub for thediverse array of people that congregate
there even today. Reflecting centuries ofvaried townsfolk, professionals, merchants,
and others working and living in the area,
the land was divvied into smaller andsmaller segments.
* The Five Routes were established by the
Shogunate in 1604 to facilitatetransportation and trade.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

Kyobashi YS
Building

Yaesu St.

Kajibashi-doriHigashi-ginza exit

Nihonbashi Station Tokyo Metro Ginza Line

Kyobashi StationnTokyo Tatemono
Kyobashi Building

Nihonbashi First Building
Tokyo Tatemono
Nihonbashi Building

StatioNihonbashi
South Post Officeimae

NTA Nihonbashi
Building

Nihonbashi
Mitsukoshi
Main Storekosh

Yaesu Project

Sousei
Tatemono
Building

Gofukubashi
Project

With a high concentration of train andsubway stations within walking distance ofthe entire area, YNK provides excellent
accessibility to such prime locations asinternational airports, other major hubs
within Tokyo, and regional cities.

The Tokyo Tatemono Group’s
Value Creation Foundations

TOKYO MIDTOWNYAESUKYOBASHIEDOGRAND

Sotobori-dori Ave.

Tokyo Tatemono
Yaesu Building

Mitsu

TOKYO
SQUARE GARDEN

Yaesu
Central Exit

Tokyo Tatemono
Yaesu Sakura-dori Building

yo LineNishi-ginza JCT

Four Seasons Hotel Tokyoat Marunouchi

JR Keibackgrounds and characteristics, we form an innovation

Nishi-ginza Exit

Bank
of
Japan

Tozai Li

to attract start-ups, investors, laboratories, research institutions
and more. By bringing together people with a diverse array of• Incredibly convenient transportation

Metro

the YNK area has implemented initiatives and operated facilities

Tokyo Metro
Hanzomon LineTokyo

Once known mainly as the hub for many major corporations,this in its office concepts. Because the expectations of cities
The Tokyo Tatemono Group’s
Value Creation Initiatives

emphasis on adding new functions while passing down the rich

The Yaesu Project includes the idea of wellbeing and reflects

The Tokyo Tatemono Group’s
Value Creation and Visionprojects, mainly in the Yaesu-Nihonbashi-Kyobashi (YNK) area,*1

treasuring deeply rooted local cultures.

Introduction

continually enhances value and incorporates innovations while

The Company also embraces the policy of urban regenera-

02

16

SECTION

02

Interview with the Division of the Commercial Properties Division

have changed significantly due to the pandemic, we are emphasizing how workers and visitors can comfortably, securely, andRedevelopment Projects in the YNK Area

vigorously work, utilize facilities, and enjoy their free time.

Urban Redevelopment Project for Yaesu 1-Chome East Area insubjective, it is difficult to devise specific measures to achieve it.

Front of Tokyo Station (Districts A and B)

The Company therefore conducted a large-scale survey ofLocation
Chuo Ward, Tokyo

around 10,000 office workers, analyzed the results, identified 20

New construction start year
District A: 2024
District B: 2021

factors that enhance wellbeing, and is currently in the process ofCompletion year
Plan for fiscal 2025

named “Wab.” on the 13th floor and the tentatively named
wellbeing.

Building size
District A:
10 floors above ground, 2 floors below ground
District B:
51 floors above ground, 4 floor below groundAround 70% of the world’s population is expected to beresiding in cities in 2050, and the importance of urban development and redevelopment is expected to further increase. We will

Main uses
Offices, stores, medical facilities, bus terminals, etc.

diligently respond to rising construction costs and other press-

Community building andrevitalization

strive to add new value to make cities more attractive to talentand investment. I think it is important to pursue urban development on a continuous basis so as to ensure a space fordeveloping new technologies and business models. Going forFestival squareYAESU SKY LOUNGE (tentative name)
View lounge• Enticing world-class, advanced medical facilities tolocate here• Strengthening emergency preparedness and making theentire area barrier-free• Providing various services to building users and holding
events that utilize theaters, conference halls, andoutdoor spaces• Making the area more attractive by introducing area
management• Conducting office product planning under the theme ofwellbeing and shifting the focus from upgrading
peripheral facilities

Wellbeing
Addressing the diverse
needs of customers
and society• Implementing initiatives that lead to sustainability,
wellbeing, and the resolution of social issues

Value co-creation andinnovation• Building support environments and systems that make iteasy for large corporations and startups to implement
proofs of concept (POC)

Social implementation oftechnology• Increasing efficiency and customer satisfaction by applying
technology, such as smart buildings and automation(planned)

Revitalizing and utilizing
real estate stock• Demolishing outdated existing buildings and working withlandowners to redevelop and utilize the land as real estatewith high public benefit and market value

Promoting adecarbonized society• Introducing energy-saving equipment and supplying energy
to the area from local building-based sources

Promoting a
recycling-oriented society• Building an ecosystem aimed at realizing a sustainable city

Factors That Improve Wellbeing
HEALTH
Living healthfully

LEARN
Learning new things

NATURE
Feeling nature

SMILE
Smiling

TRUST
Fulfilling roles

IDENTITY
Being yourself

EXERCISE
Exercising
appropriately

SENSES
Experiencing withthe five senses

CHAT
Casual conversation

COOPERATION
Helping each otherand expressing
appreciationOWN WAY
Living at your own
pace

IMPRESSION
Tugging on heart
strings

MEAL
Mindful foodselection

LINK
Smooth connections

COMPASSION
Acting kindly

ENTHUSIASM
Being enthusiastic

REFRESH
Changing yourattitude

TOGETHER
Meeting up withfriends

CONTRIBUTE
Contributing tocommunities and society* Under the supervision of Yoshiki Ishikawa, a preventive medicine researcher, we
conducted a survey of 10,000 businesspeople working in the Tokyo metropolitan area
and identified 20 factors that improve wellbeing, specifically, situations and behaviors that
help improve wellbeing.

Kyobashi 3-chome Project(Urban Redevelopment Project for Yaesu 1-chome North Area)(Kyobashi 3-chome East District Urban Redevelopment Project)

Main Value Creation Initiatives

Main Value Creation Initiatives

Forming financial bases that help strengtheninternational competitiveness

Upgrading urban infrastructure to help enhance the fun
within a walkable distance across a broader area

• Upgrading support facilities for high-level financial personnel who
support international finance and urban Meeting, Incentive Travel,
Convention, Exhibition/Event (MICE)

Upgrading water-adjacent spaces and pedestrian networks• Conducting various collaborations to realize underground highways
in Tokyo, upgrading outdoor public spaces, and upgradingpedestrian networks

Strengthening emergency preparedness and reducing
environmental impact• Upgrading emergency response facilities and working to promote themore effective use of energy across the entire area
Total floor space: South Block: approx. 185,500 m2; North Block: 1,000 m2
Main uses: Offices, stores, lodging facilities, facilities to support advanced
financial personnel, etc.
Number of floors: South Block: 44 floors above ground, 3 floors
below ground
North Block: 2 floors above groundStart of new construction: Planned for FY2024
Completion of construction: South Block: Planned for FY2028
		
North Block: Planned for FY2031• Fostering excitement and building multilevel pedestrian networks
connecting the Tokyo Sky Corridor

Introducing urban functions that help foster excitementin the area
• Facilities with functions for promoting, fostering, and exchanging thearts and craft culture and upgrading world-class lodging facilities

Strengthening emergency preparedness and reducing
environmental impact• Taking measures to strengthen emergency preparedness and reduce
environmental impact in the area

Total floor space: approx. 164,900 m2
Main uses: Offices, hotels, stores, etc.
Number of floors: 35 floors above ground, 4 floors below groundStart of new construction: Planned for FY2026
Completion of construction: Planned for FY2030

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

COMFORT
Spending
comfortable time

Gofukubashi Project

The Tokyo Tatemono Group’s
Value Creation Foundations

taking measures to enhance the area value of cities.

The Tokyo Tatemono Group’s
Value Creation Initiatives

ing issues through cost controls and other measures. We will

enhancing the marketability of redevelopment projects andContributing to a safe
and secure society

Total floor space
District A: approx. 12,000 m2
District B: approx. 225,000 m2

YAESU SKY LOUNGE on the 41st floor to further enhanceward, we aim to continue stably growing by simultaneously

Strengthening Tokyo’s
competitiveness as aninternational city

What We Can Accomplish through the Yaesu Project• Upgrading urban infrastructure, including high-grade offices
and large-scale bus terminals connecting regional cities

The Tokyo Tatemono Group’s
Value Creation and Vision

product planning. The project plans to feature the tentatively

Material Issues

Introduction

Yaesu Project

However, because the assessment of wellbeing is largely

17

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02

Special Feature 1
10th Anniversary of the Opening of THE OTEMACHI TOWER

Introduction

Aiming to Be the Best Urban Forest
in Japan[Pre-Forest]

Variation in density: Having areas where the spacing of trees is naturally denser or sparser in a complex landscape of hills and valleys
Variation in tree ages: Having trees of various ages, as evidenced by the thickness of their trunks and their disparate heights, reflecting the natural cycle of trees constantly sprouting up and dying off
Variation in species: Having a mix of diverse species, including evergreen, deciduous, and groundcover plants

We secured space in Chiba that was one-third the final site’s scale to grow the plants that were transplanted along with the soil they were cultivated in for around three years.

An ecosystem of 208 plant species emerged as the fittest ones
competed and survived.
As of 2013–2014
PlannedVarious inspections

Transplantation to planned site

Anemone flaccida

Hylomecon japonica

Viola grypoceras

Lycoris sanguinea

253 species

208 species

The fittest species
begin competingand surviving

Leptogramma mollissima

Polystichum fibrillosopaleaceum

Before development
Without Otemachi Forest

After development
With Otemachi Forest

On the grounds:

On the grounds:

Separate grounds“Kimitsu”

Planned site
“Otemachi”

35.0°C

Around the grounds: 35.0°C

33.3°C

Data Section

3yearsHeat distribution

Evergreen

301 species

2021

Easing Effect of the Heat Island Phenomenon
Transitional measures

Mixed grove in Otemachi Forest
Deciduous

117 species

2015

The Tokyo Tatemono Group’s
Value Creation Foundations

We aimed to create a young forest with a mix of evergreen and deciduous trees.

Certified as a Nature Symbiosis Site

The Tokyo Tatemono Group’s
Value Creation Initiatives

In October 2023, THE OTEMACHI TOWER along with its
Otemachi Forest was certified as a nature symbiosis site,*2 by
Japan’s Ministry of the Environment, in recognition of its efforts
to conserve biodiversity. In addition to Otemachi Forest, theCompany has established inner city forests at Brillia City NishiWaseda and Kyobashi Hill in TOKYO SQUARE GARDEN. Goingforward, we will continue working hard to sustainably create andpreserve green spaces and thereby to help realize asustainable society.

Growththerefore paid constant and careful attention to changes inthe situation.
As a result, in Otemachi Forest, competition for survival
occurs among the plants, and we have confirmed that the forest
has plants that appear on the Red List of Threatened Species
Tokyo.*1 This is evidence that we have recreated a genuine
forest. Also, compared to before the forest was transplanted,
the heat island phenomenon on the grounds has eased, with theaverage temperature falling 1.7°C. This genuine forest surroundedby buildings has become a site of respite for visitors.

The Tokyo Tatemono Group’s
Value Creation and Vision

In 2023, Tokyo Tatemono celebrated the 10th anniversary of the
opening of THE OTEMACHI TOWER, which is operated by theCompany. The most distinctive feature of THE OTEMACHI TOWER
is Otemachi Forest, which extends over approximately 3,600 m2,
corresponding to around one third of the total site. Before theSDGs and ESG became well known in Japan, we aimed torecreate a genuine forest in the city center by establishing Otemachi
Forest in line with the development concept of “regenerating thecity and the natural environment at the same time.”
In the development stage, we incorporated the three elements
necessary for a genuine forest: variation in density, variation intree ages, and variation in species. In addition, we used a“pre-forest” method, growing the trees and other plants inadvance over a period of around three years in Kimitsu, Chiba
Prefecture. Upon completion of the building, we transplanted
the soil and plants to the site.
In line with our conviction that a genuine forest has significant
value, we did our best in the management and operation stage
to allow nature to do its work free from human interference.
However, we requested partner companies to manage the forest
onsite, checking on it about once every two days. We haveAround the grounds: 34.7°C

Time*1 Red List: A list of species of wild organisms threatened by extinction*2 The Ministry of the Environment, in fiscal 2023 began recognizing areas where biodiversity conservation is being promoted through initiatives, including those from the private-sector, as its principal
measure toward achieving the global 30by30 target, which aims to effectively preserve at least 30% of the land and sea as healthy ecosystems by 2030.

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Interview with the Division Director of the Residential Development Division

Introduction

Sincerely engaging with customers, we aim toachieve stable growth based on the Brillia brand.

The Tokyo Tatemono Group’s
Value Creation and Vision

Hideshi Akita
Senior Managing Executive Officer
and Director

Review of the current Medium-Term Business Plan:

The Tokyo Tatemono Group’s
Value Creation Initiatives

Both condominium sales and rentals help
expand profit
Under the current Medium-Term Business Plan, the performance of the Company’s Residential Business remained verystrong. Since fiscal 2020, we have achieved ever higher income
and profit, with business profit reaching a record high of ¥27.1
billion in fiscal 2023. We plan to break this record by raising thisfigure to ¥33.5 billion in fiscal 2024.

The Tokyo Tatemono Group’s
Value Creation Foundations

The largest contributor to profit growth is the for-sale condominium business. Thanks to higher customer purchasing power
amid persistently low home loan interest rates and an increasein dual-income households, the entire for-sale condominium
market—and not just Tokyo Tatemono—has performed very wellover the last few years. Although it is true that our results havebeen underpinned by this strong market, by maintaining a stablesupply of high value-added condominiums, we were able torealize the highest profit margin in the industry—33.4%—

Data Section

in fiscal 2023.
Under the current plan, the for-rent condominium businesshas also significantly contributed to business performance. Thisbusiness was positioned as part of the plan’s key strategy of
expansion of property sales to investors, and since fiscal 2020

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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SECTION

Interview with the Division Director of the Residential Development Divisioncustomers most prize, in addition to location, price, and specifi-

External acclaim for the Brillia brandreturns. Because the Company’s for-sale condominium busi-

cations, are management and after-sales services. Based on•Tokyo Tatemono ranks second in brand awareness in the Tokyo metropolitan area.

ness is predicated on delivering the property to customers rightthese results, we introduced the brand philosophy of refinement

after construction is completed, it is difficult to adjust the record-and comfort with the target of being the No. 1 rated company

ing period. Nevertheless, we recognize that a major achievement

among customers following their taking up residence.

under the current plan has been building a portfolio that enables

The construction site tours we have conducted since 2004

the Residential Business to contribute to the stable profit growth

best represent our efforts to realize the brand philosophy. Underof the entire Company through the growth of the for-rent

this initiative, we invite customers to tour buildings under con-condominium business.

struction even though stopping construction for a tour places aheavy burden on general contractors and seems like an unreasonable choice. However, by letting customers see buildings
before completion, we have garnered high praise as they can

The residential brand Brillia—a total brand—constitutes thebetter appreciate and really get a feel for the comfort of thefoundation of growth in the Company’s Residential Business.

future residence.

Brillia celebrates its 20th anniversary in 2023 and proudly boasts

The turning point for enhancing brand power was when we
conducted structural reforms in 2015 aimed at integrating

lished in 2003, we forecast a decline in population and the

manufacturing (development) and sales functions. At that time,

shrinking of the condominium market in the Tokyo metropolitan

by integrating the sales functions of Tokyo Tatemono Realarea. At that time, the Company ranked around 30th in the

Estate Sales into the Company, we became able to smoothly

industry in terms of condominium supply in the Tokyo metropoli-

share customer evaluations with the manufacturing department.

tan area, so we brought an intense sense of urgency to ourendeavors to create a new brand, knowing that the businesscould not survive as it was.

Sales

Renovation

Brokerage

In a survey assessing condominium residents’ satisfaction with condominium management companies conducted by Stay Act, a real estate consultant, Tokyo
Tatemono Amenity Support ranked first for the sixth consecutive year, achieving the
top ranking for almost all items in the category for companies with fewer than
100,000 units under management.

Brillia Initiatives•bloomoi: This is a co-creation project for residences and daily life born from Brillia.
When it was launched in 2012, this initiative spotlighting working women wasannounced to the world. For its tenth anniversary, we further expanded the scopeand range of the project’s engagement method, solicited opinions from a morediverse array of people, and proposed product planning and services that prioritize
individuality.

•After-sales services: We offer such services as 10-year warranty (with compensation) for equipment and Brillia’s pre-owned condominium certification system forsecondary distribution.

Management

Data Section

After-sales
service

Life support
Interior

Brillia’s NEW LUXURY RESIDENCE

The Tokyo Tatemono Group’s
Value Creation Foundations

buyers from competitor companies and learned that what

•Ranked first for the sixth consecutive year in the group of companies
with less than 100,000 units under management•Crime prevention and emergency preparedness: We, of course, provide triple security encompassing entrances, elevators, and residence doorways, ensuring customers’ peace of mind while refining Brillia’s unique emergency preparedness guidelines.

Planning anddevelopment

First, we conducted a survey of around 1,000 condominium

SUUMO AWARD 2023: Received the Outstanding Performance Award in theComprehensive Evaluation category for condominium developers and sales companies in the Tokyo metropolitan area, as well as Grand Prize in the Livable Residence
category, the After-Sales Inspection Satisfaction category for condominium sales
and after-sales service, and the High Brand category for condominium developers
and sales companies in the Kansai region.

The Tokyo Tatemono Group’s
Value Creation Initiatives

a solid ranking as a condominium brand. When it was estab-•Won the Grand Prize in three separate categories as well as the Outstanding
Performance Award in the Comprehensive Evaluation category of the
SUUMO AWARD, the winners of which are chosen by buyers.

The Tokyo Tatemono Group’s
Value Creation and Vision

Brillia—Celebrating two decades of refinement
and comfort

Nikkei 2023 Condominium Brand Survey (responses of Tokyo metropolitan area residents (Tokyo, Kanagawa, Chiba, Saitama))

02
Introduction

we have steadily invested in these properties and collected

A construction site tour

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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SECTION

Interview with the Division Director of the Residential Development Division

In addition, seizing this opportunity for unification, we launched

formulate action guidelines for decision making throughthe for-sale condominium business, we are considering further

a project to reform the mindsets of management and employees

workshops participated in by managers and employees of thestrengthening the development and sales system for high-priced

and aligned our manufacturing and sales efforts. As a result, we

Residential Development Business Division.

products due to the strong performance of such high-priced

Through internal branding, we integrated manufacturing,

condominiums as Brillia Tower Dojima (p. 22). And, in the for-rent condominium business, we began investing in new asset

the Livable Residence, After-Sales Inspection Satisfaction, andproducts customers genuinely want to recommend. Aiming totypes, such as condominiums for students and hospice facili-High Brand (Kansai) categories. In addition, Tokyo Tatemono

achieve the No. 1 rank in customer evaluations has continuously

ties. In terms of development and management, we leverage theranks second in brand awareness in the Tokyo metropolitan

enhanced Brillia’s commerciality, supports stable land acquisi-

integrated manufacturing, sales, and management system toarea in the Nikkei 2023 Condominium Brand Survey.

tions, and helps us steadily seize business opportunities based

extend the life of condominiums and aim to strengthen businesson the brand itself.

throughout the entire value chain.
rising home loan interest rates, there has currently been no

Brands often conjure the concept of an external image, but I

Aiming to achieve sustainable growth based on
our accumulated expertise and brands

think Brillia has played a major role in internal branding. ThroughWe need to continuously acquire land for the Company’s stable

tomers and we are maintaining sales prices that can cover the

Brillia, all managers and employees involved in the Residential

growth under the next Medium-Term Management Plan. Landeffects of soaring construction costs thanks to strong sales. We

Business use net promoter score as a KPI to achieve the sharedacquisition in the Residential Business is a strength of the recon-

realize that a falling purchase appetite and the effects of soaring

goal of being ranked No. 1 in customer evaluations. Throughstruction and redevelopment businesses (construction costs pose a challenge, but the Company’s

internal branding, instilling the universal recognition of the Brillia

reconstruction and redevelopment efforts face the difficult chal-

Residential Business maintains a robust value chain based onbrand will lead to higher customer evaluations by allowing thelenge of reaching agreements with relevant parties, thethe Brillia brand and can acquire high value-added land by lever-appropriate sharing of customer opinions received through mar-Company launched the Project Development Department inaging the expertise of reconstruction and redevelopment busi-

keting and management with the manufacturing department.

2013, specializing in reconstruction and redevelopment, andnesses. By enhancing customer evaluations through the steadyIn line with this idea, we aim to further enhance the Brillia

has been able to build up a solid track record that includes

accumulation of meticulous improvements while leveraging

brand and launched the internal branding project dubbed theBrillia City Shakujiikoen ATLAS and SHIROKANE The SKY.

these characteristics and constantly reflecting on how to truly

Brillia PRIDE PROJECT in July 2023. Under this initiative, weAnother characteristic of the Company is its for-salemeet customer needs, I believe we will overcome these issues

Conducting internal branding to further enhancebrand powerp. 24). Althoughmajor change in the adjustable interest rates used by many cus-

and continue achieving stable growth moving forward.

interests in land. Because this business rents land from owners
over the long term, gaining the trust of owners is crucial. This
process resembles that which the reconstruction and redevelopment businesses engage in, and it is precisely because theCompany has many employees highly experienced in building

The Tokyo Tatemono Group’s
Value Creation Foundations

condominium business, which has established regular leasehold

Although we are worried about falling purchase appetite amid

The Tokyo Tatemono Group’s
Value Creation Initiatives

sales, and management and continue to provide trusted, quality

The Tokyo Tatemono Group’s
Value Creation and Vision

SUUMO AWARD 2023 sponsored by Recruit Co., Ltd., including

Introduction

were able to win the Grand Prize in multiple categories of the02

relationships of trust based on the Corporate Philosophy of“Trust beyond the era” that it has been able to build up thesestrengths.
Going forward, we feel that the competition for acquiring land
Data Section

will become even more intense, but by carefully selecting investments utilizing the Company’s strengths, we plan to avoid
competition while seizing business opportunities in highly convenient locations and developing high value-added residences.
Brillia PRIDE PROJECT Action Guidelines

We are also accelerating measures aimed at further growth. In

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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02
Special Feature 2

Manifesting an original concept eight years in the making

Interview with the Leader of the ONE DOJIMA PROJECT

opportunity to see such a large cluster of well-maintained land plots available in the Umeda neighborhood, which is in the heart of Osaka. Bearing in mind that the amount of land we’ve acquired
Yacht sails, the concept
inspiring the exterior design.

in the Kansai region pales in comparison to our acquisitions in the Tokyo metropolitan area, weIntroduction

Creating a uniquespace and time

Shishido: I was a part of this project since the land acquisition phase, and it was a partially rare

undertook this acquisition in May 2016 with the hope of taking advantage of this rare opportunity
to acquire this land and develop it into a landmark project symbolizing both Osaka and theCompany. Although we had considered the possibility of developing a mixed-use development
combining residences and a hotel since the land acquisition phase, there were few precedents for* This will be Japan’s first ultra-high-rise building with aresidential condominium housing and a Four Seasons
Hotel. An ultra-high-rise building is defined as having aheight of around at least 60 m (equivalent to about 20
stories). Survey conducted by Four Seasons Hotels andTokyo Tatemono (as of July 26, 2024).

world had on me. Incidentally, this is where the idea of the building’s exterior resembling yacht

such a project, so we acquired the land with the assumption that the apartments would be independently developed.
However, at the time of acquisition, Osaka’s hotel market was booming thanks to a number offactors, including rising inbound demand. In order to create an even higher value-added development, we continued deliberating on the development of a mixed-use residential and hotel project,even after the land was acquired. With so few domestic precedents, we visited New York City as
part of our research into precedents overseas. While there, I encountered a residential and hotelon the upper floors, which offered excellent views, as well as Four Seasons Residences in abuilding known as a branded residence. These encounters upended my preconceived notions ofhotels being optimal for the upper floors and residences for the lower floors, and led me to rethink
how to maximize added value through mixed-use development with a luxury hotel.
Through these studies, a framework was established for an apartment complex and a luxury
hotel, with the development concept of “travel and art.” The impetus for incorporating art was thesails took root.
Amid those deliberations, I believe the project met with two turning points that enabledsignificant progress.

George Shishido
Residential Development Division
Project Management (Kansai)
Department Senior Manager

its approval and decided on the urban planning for the specific area. As a result, the floor-arearatio was relaxed from the standard floor area ratio of 480% to 1,200%. This meant that we could
area of over 80,000 m2, far exceeding the initial projection.
I believe the second turning point and a major key to our overall success was the realization of a
joint venture with Hotel Properties Limited (“HPL”), a Singapore-based real estate company with

Data Section

construct a building up to 49 stories above ground with one subterranean level with a total floor

Residential Development Division
Sales (Kansai) Department
Senior Manager

The Tokyo Tatemono Group’s
Value Creation Foundations

strong impact and the vibrant use of art in high-end housing in New York and other parts of the

The first turning point was when, after two years of negotiations with the City of Osaka regarding

Residence: 4-27F, 38-49F
Four Seasons Hotel: 28-37F

The Tokyo Tatemono Group’s
Value Creation Initiatives

complex tower project, with the lower levels housing a five-star hotel and residential units locatedthe concept of a mixed-use luxury hotel and residential project, the municipality gave the project

Kenichi Garan

The Tokyo Tatemono Group’s
Value Creation and Vision

In January 2024, we marked the completionof the ONE DOJIMA PROJECT, which combines the world’s leading luxury hotel brand,
Four Seasons Hotels & Resorts, with Brillia
Tower Dojima, an apartment building built forsale. This project is Japan’s first* ultra highrise mixed-use building comprising a Four
Seasons Hotel and apartments.
Standing 195 m tall with 49 abovegroundstories, the building itself can be regarded awork of art; the upper floors of the building
are gradually set back, and three types of
balcony have been combined to create an
exterior evoking the image of a yacht’s sail, afitting and symbolic design for Osaka, which
is known for its waterways.
The project is expected to help strengthen
Osaka’s international competitiveness, whichis expected to rise as it hosts such events as
the Expo 2025 Osaka, Kansai, Japan.

expertise in mixed-use hotel and residential development, and the attraction of the Four
Seasons Hotel.

Exterior view of the ONE DOJIMA PROJECT / Photo by: Nacása & Partners Inc.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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Interview with the Leader of the ONE DOJIMA PROJECT

Introduction

Gallery Corridor (2nd floor) / Photo: Nacása & Partners Inc.

A hotel room / Courtesy of the Four Seasons Hotel Osaka; Photo: Seet, Ken

At the project’s genesis, we looked into the atmosphere of several foreign hotel operators

What I found the most surprising was that most of the project’s customers were wealthy Osaka

through a process of trial and error, at one point receiving a joint venture proposal from HPL,

residents. It was then we realized that receiving reasonable compensation for what we considered towhich was looking for opportunities to expand into Japan. HPL’s extensive business experience

be truly valuable was possible, particularly because this was a product with no substitute.

with the Four Seasons and many other luxury hotel operators, as well as its corporate culture,
which emphasizes relationships between individuals, seemed to be a good fit with our company.

Leveraging lessons learned from the ONE DOJIMA PROJECT for the future
Shishido: This project was supported by the understanding and cooperation of many people within

At this point, nearly three years had passed since the land acquisition and the design phase was

the Company as well as HPL and our many other joint venture partners. I developed an even deeper

well under way. However, HPL liked the design concept we were working on, and we were able toappreciation for our corporate culture, which sincerely takes to heart the desire to achieve things thatmove forward with bringing the project to life, creating something unique and symbolic without

drives its members, including my supervisor, who encouraged the development of a complex with astraying from our initial concept.

five-star hotel and a joint venture project with an overseas partner, a project that had no precedents,

The Tokyo Tatemono Group’s
Value Creation Initiatives

As such, we signed a formal agreement in March 2019, with the Four Seasons Hotel taking aninterest soon after.

The Tokyo Tatemono Group’s
Value Creation and Vision

Public Art Kohei Nawa “Trans-Mio” / Photo: Nobutada OMOTE | Sandwich

and the sales department, which strongly supported the project’s rather expensive promotional

Rise in sales motivation brought on by a “once-in-a-lifetime” opportunity

activities.
asset to the sales department. In the course of developing and executing these activities targeting

working on, I felt as though it was a “once-in-a-lifetime” opportunity.

the affluent, we gathered valuable knowledge and experience, ventured into new areas, and tried ourThere were more than 450 units supplied and the high price range was something the Company

hand at a number of novel things. As a result, we are proud to have accumulated further expertise in

did not have much experience with. Because we knew the key to success would lie in the number ofselling high-priced properties that fully utilize the Brillia brand. We intend to apply this expertise to

wealthy people we could attract to our target market, we began conducting preliminary activities notother projects and use it as a source of further sales enhancement.

only in Osaka but also in the Tokyo metropolitan area and nationwide. It would be no exaggeration to

Shishido: After a total of eight years with this project, from the land purchasing phase to comple-

say that we had never before approached such a wide range of wealthy people for a single property,tion, it gives me an immense sense of satisfaction to see it finally done. Upon wrapping everything

and we pulled out all the stops to do so.

up, my boss asked me what I would turn my attention to next. Just hearing those words has kicked
my desire to create even better products into high gear.
Personally, I’ve learned a lot from interacting with our partner affiliates HPL and the Four Seasons

it would be a Four Seasons Hotel met with an overwhelmingly positive response. The project was

Hotel, including a straightforward way of doing business and about quick decision making. Going

highly acclaimed for its rarity as a project that integrates a luxury hotel, with many desiring aforward, I would like to spread this knowledge and experience throughout the Company, while also

condominium for themselves “at any cost,” because they felt that “there will never be otherencouraging those in my department to go out and do it—create a project that will surpass even theapartments like them.”

ONE DOJIMA PROJECT.
TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

In the beginning, the only information we made public was that it would be a mixed-use hotel andresidential project, without disclosing the hotel brand. However, the announcement in April 2021 that

The Tokyo Tatemono Group’s
Value Creation Foundations

Garan: We believe that the experience gained from the project’s promotional activities will be an
Garan: In August 2020, when I was assigned to this project that Shishido and his team had been

23

Brillia City Shakujiikoen ATLAS

Special Feature 3

T

Brillia Towers
MeguroExteriors

Shakuji-ii BASE

econstruction and redevelopment projects involve an
extremely large number of stakeholders, making
consensus-building difficult and time-consuming.
However, Tokyo Tatemono has worked on numerous
such projects, gaining the trust of property rights holders
through sincere dialogue. Using the knowledge we haveaccumulated in reconstruction and redevelopment, we
continually strive to seize business opportunities, even in realestate markets where there is intense competition to acquireland, mainly in the Tokyo Metropolitan Area. In the Residential
Business, we will continue aiming to solve social issues andgrow as a company while collaborating closely with all property
rights holders.

R

The Tokyo Tatemono Group’s
Value Creation Initiatives

and redevelopment projects to meet the needs of urban
districts currently densely packed with wooden houses andto address the growing need to replace aging
condominiums. Accordingly, we have established therevitalization and utilization of real estate stock as a material
issue. By upgrading our existing stock, we will promote
safer and more secure urban development for customers
and local residents while creating new value aligned with thetimes and helping revitalize local communities.

2017

Evolution of Tokyo Tatemono’s
Reconstruction and Redevelopment
Projects

02

The Tokyo Tatemono Group’s
Value Creation and Vision

he large-scale apartment complexes built to
support Japan’s rapid post-war growth arecontinuing to age, and a not insignificant numberof buildings have serious problems, including
questionable levels of earthquake resistance and anti-crime
security features as well as a lack of elevators. As theirresidents also age and decline in number, a major issue will
be how to revitalize the aging buildings and communities
connecting neighbors. We are focusing on reconstruction

SECTION

rights holders to collaborate on and promote theproject.
The reconstruction increased the number ofresidential units from 490 to 844. As part of thereconstruction, we established a residential
community space dubbed Shakujii-ii BASE with theaim of encouraging mingling among residents andthe community. We are pleased that many of theexisting property rights holders chose to continue
living on the property. We aim to continue
connecting with the thoughts of residents moving
forward, and leading this historic community into
the future.

Introduction

Tokyo Tatemono’s
Condominium
Reconstruction andRedevelopment
Projects

Brillia City Shakujiikoen ATLAS, which wascompleted in September 2023, is one of Tokyo
Tatemono’s representative reconstruction projects.
The Shakujiikoen Complex was burdened with aging
facilities and insufficient accessibility, including a lackof elevators. This prompted the formation of areconstruction and renovation study committee
around 2007, led by the management association to
discuss the revitalization of the complex. In 2015,
the management association selected the Company
as a project collaborator and set up a consultation
office within the grounds of the housing complex
where property rights holders could easily seek
advice. In addition, we regularly met with property

Trend in the Number of Condominium Stock Units over 40 Years Old
Aged 40 or more years

Approx.1,257

Numberof condominium
stock units as ofDecember 31, 2022

Number of
4,450 units(thousands)

6,943
2,608

The Tokyo Tatemono Group’s
Value Creation Foundations

A large-scale redevelopment with5,000m2 of lush green space in frontof Meguro Station

1,257

2013

Brillia Tama New Town

Japan’s largest reconstruction project, a 640-unit
complex being rebuilt with 1,249 units

2015

Brillia Tower Ikebukuro

Japan’s first redevelopment project integrating amain ward office building and a high-riseapartment complex

2023

SHIROKANE
The SKY

A large-scale mixed-use redevelopment with a totalof 1,247 units. Enhances the charm of the area by
centralizing access to retail outlets as well as healthcare, childcare support, and other urban facilities.

2024

Brillia Tower
Hamarikyu

Forerunner of large-scale condominium
redevelopment in a city center. The project
expands residences near work places in the
rapidly developing Takeshiba area.

2012

2022

2032

2042

(year-end)(Prior to 1973) (Prior to 1983) (Prior to 1993) (Prior to 2003)

Data Section

293(Note 1) Figures in parentheses indicate when condominiums were constructed.
(Note 2) Estimates reflect the number of condominiums for sale based on statistics on when construction began and the number of units removed as identified by the Ministry of Land, Infrastructure, Transport and Tourism.
 reated by Tokyo Tatemono based on the Ministry of Land, Infrastructure, Transport and Tourism’s document entitled
Source: C
Extending the Life of and Facilitating the Revitalization of Condominiums (Japanese only)(https://www1.mlit.go.jp/policy/shingikai/content/001708225.pdf)

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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SECTION

03
Commercial Properties BusinessBusiness Fields

Introduction

The Commercial Properties Business focuses mainly on the international city of Tokyo. Its business activities include urban development,
the development and operation of office buildings and retail facilities, facility management, building maintenance, and preservation andremodeling. We are working together as a group to provide not only quality properties and facilities, but also a range of services that give
office building users a sense of safety, security, and comfort. Tokyo Tatemono is pursuing a wide range of development opportunities
according to differing locations and area characteristics. Projects now under way include medium-size office buildings, logistics
properties, hotels, and retail facilities. After these projects start operations, we sell them to investors.

Related Material Issues

Office buildings, large retail facilities, etc.

Strengthening Tokyo’s competitivenessas an international city

Contributing to a safe and securesociety

Property sales to investors

Logistics properties, medium-scale officebuildings, retail facilities, and hotels

Addressing the diverse needs ofcustomers and society

Value co-creation and innovation

Building management service and others

Building management and operation, construction,and cleaning

A

145.1

155.2

120.9

Occupancy Rate (%)

98.9

97.7

96.8

96.8

30,58330,835 30,954

30,836

Proportion of Leasable Space by Building Age*

28,227

37.5

40.8

44.8

41.2

40.1

24.8%

20 years
FY2019 FY2020 FY2021 FY2022 FY2023

FY2019FY2020

FY2021 FY2022 FY2023

20–29 years old

10–19 years old

4.6%

The Company’s Advantages

Specific Initiatives under the Medium-Term Business Plan

Diversifying needs for real estate utilization in line withsuch trends as an expansion in the e-commerce market
and strong performance in the inbound tourism market• A track record of tenant leasing and urban development that increases
area value• Providing choice office space through product planning based ondiversifying workstyles• A highly competitive office building portfolio• Enhancing the attractiveness and competitiveness of the areas
surrounding the Company’s owned buildings by promoting area
management• A wide array of information sources, including financial institutions andexisting business partners, in addition to the Group network• Expeditious property sales attuned to the market and the effective
utilization of information sources to acquire properties for sale toinvestors

Decline in the real estate investment market due torising interest rates, etc.

Under 10 years old

Average age of building(Weighted average byleasable space)• Expanding our future earnings base by promoting redevelopment
projects in prime urban centers

Rising construction costs due in part to increasing
labor costs

30 years and older

25.8%• A wealth of know-how and experience in large-scale redevelopment
and asset-type development

Intensifying competition between global cities andeconomic areas

36.8%

20.3%

95.8

There is a pressing need for increasingly sophisticatedoffice space in order to secure personnel and enhance
productivity

Expansion of needs related to real estate investment
needs and investment assets

Risks

155.6

Average Rent (Yen/tsubo)

500–999 tsubo(1,652–3,304 m2)

300–499 tsubo(991–1,651 m2)

44.8%

Proportion of Leasable Space by Location*
Other

Tokyo 3 eastern central wards(Chiyoda, Chuo, andMinato wards)

17.1%
Other areas of theTokyo metropolitan
area

2.4%
Tokyo 23 wards(excluding 5 central
wards of Tokyo)

30.7%

38.8%
Five central wards of Tokyo
Around50%

Tokyo 2 western
central wards(Shibuya andShinjuku wards)

Data Section

Opportunities

144.5

Business Profit

539,965 m2

The Tokyo Tatemono Group’s
Value Creation Foundations

External Environment / Social Issues

Operating Revenue(Billion yen)

Leasable space

Revitalizing and utilizing
real estate stock

Average Rent / Occupancy Rate

Operating Revenue / Business Profit

18.5%

24.5%

The Tokyo Tatemono Group’s
Value Creation Initiatives

gainst a backdrop of tightening supply in therental office market until fiscal 2019, ourbusiness results expanded, thanks especiallyto an increase in leasing profit from buildings.
From fiscal 2020, this growth slowed due in part to theeffects of the COVID-19 pandemic and the widespread
adoption of new workstyles, and the vacancy rate forthe market as a whole has been on a downward trend
since the end of 2023. In addition, the average rent andoccupancy rates of the Company’s owned office buildings remained at high levels compared with the overallmarket, reflecting the strong competitive advantages of
their large scale and prime locations.
The Commercial Properties Business as a whole has
maintained strong performance, mainly due to anincrease in property sales to investors, such as logistics
and commercial facilities, against the backdrop of afavorable real estate transaction market.

Community building andrevitalization

Wellbeing

1,000 tsubo (3,305 m2)
or moreUnder 299 tsubo (990 m2)

The Tokyo Tatemono Group’s
Value Creation and Vision

Proportion of Leasable Space by Standard Floor Space*

Leasing of buildings business

10.9%* The above proportions are for office buildings owned by Tokyo
Tatemono as of December 31, 2023

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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SECTION

03
Key Strategy 1

Promotion of large-scale redevelopment

Under its Long-Term 2030 vision of becoming a next-generation developer, Tokyo Tatemono aims to achieve an
overarching balance between solving social issues and growing as a company. The promotion of large-scale
redevelopment is one of the key strategies for this goal.
Current large-scale redevelopment projects include undertakings in Shibuya Ward, Minato Ward, and Chuo
Ward, especially the Yaesu-Nihonbashi-Kyobashi (YNK)* area in front of Tokyo Station, which we have positioned
as a priority area. By around 2030, plans call for the completion of construction on projects with a gross usable
area*2 owned by the Company equivalent to around 320,000 m2, and we expect the significant contributions
these projects to generate to drive rapid growth in our leasing revenue.
Not only does the redevelopment business contribute to the Company’s profitability, it possesses an outsizedsocial significance in that it enables us to use our business help solve social issues, enhancing the attractivenessof the area being redeveloped even further. Increasing the overall attractiveness of an area leads, in turn, to higher
value for our entire portfolio, as the gain in value spills over from newly completed redevelopments to enhance thevalue of our nearby existing buildings. In this way, we aim to strengthen the competitiveness of the city andthe Company.
* Includes conference facilities, retail facilities, and a variety of non-office usable areas

Tokyo Tatemono not only develops and operates buildings, it also provides area management services. We areworking with local communities to utilize the event and public spaces of buildings to plan events and activities that
contribute to the vibrancy and appeal of the area. In this way, we help people interact with each other, heighten
the appeal of entire areas, and strengthen cities’ competitive advantages.
In addition, we aim to provide services and establish attractive urban bases while passing on tradition andculture to the next generation and nurturing our bonds with local populations through such activities as
participation in local events in redevelopment areas.

Key Strategy 1

Promotion of large-scale redevelopment

Large-scale redevelopment in the YNK area p. 16

Initiatives Supporting Redevelopment

An Event Held in the YNK Area
Meet with Flowers in Tokyo YNKThe Sanno Festival, a tradition continuing fromthe Edo period

Management and Operations

With the diversification of workstyles, including the widespread adoption of remote work in recent years,
workplace awareness has evolved dramatically among both companies and employees. The way a company’s
office strategy is implemented has become an important factor in attracting human resources.
Offering custom combinations of sophisticated centralized and serviced offices, coworking spaces, and spacesharing options that enable diverse workstyles, we are striving to comprehensively meet wide-ranging corporate
office needs. As a developer, we believe it is necessary to be able to propose workstyle options to tenants, andwe do so both at a conceptual level and at a physical level based on dialogues with them. For example, at
NAKANO CENTRAL PARK, Park Avenue and Nakano Shiki no Mori Park are seamlessly connected to each othervia a large green space, offering the new workstyle option of “working within nature.”

Every year, we conduct a customer satisfaction survey of our office building tenants. We have been gathering their
feedback from the perspective of safety, security, and comfort as we work to make improvements based on
customer needs.
Every year, all Group companies in the Commercial Properties Business Division participate in an internal event
focused on building management and customer service. The event introduces specific examples of outstanding
performance, honoring notable achievements with awards. This raises awareness of the importance of improving
quality and customer satisfaction.
Trends in Overall Satisfaction and Intention toContinue Occupancy

Overall satisfaction

The Tokyo Tatemono Group’s
Value Creation Foundations

Proposing Diverse Work Styles

The Tokyo Tatemono Group’s
Value Creation Initiatives

Initiatives for area management

The Tokyo Tatemono Group’s
Value Creation and Vision

Promoting Large-Scale Redevelopment—a Field of Great Social SignificanceIntroduction

Commercial Properties Business / Progress on the Key Strategies of the Medium-TermBusiness Plan and Next Steps

Intention to continue occupancy(Score)4.0 (Full score)

3.69

3.66
Data Section

2.00
Wooden deck offers an open space

The “Garden Lounge,” created based on tenant feedback

FY2019 FY2020 FY2021 FY2022 FY2023* Based on the Company’s own monitoring indicators

An event held by the Commercial Properties Division andparticipated in by all Group companies: Human Building
Exhibition

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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SECTION

03

Commercial Properties Business / Progress on the Key Strategies of the Medium-Term Business Plan and Next Steps

Key Strategy 3

Expansion of property sales to investors

Highlights

Initiatives for Property Sales to Investors(Billion yen)

As of December 31, 2023

194.7

Number of Properties

107.9 110.2 114.7
Completed
construction

FY2019 FY2020 FY2021 FY2022 FY2023

In operation

Logistics
properties

7

15

98.9

Around 270.0

Hotels, retailfacilities,
offices, etc.

18

16

95.7

Around 150.0

Total

25

31

194.7

Around 420.0

Project
Scale (Supporting Growth)
Supporting the growth andglobalization of start-ups
utilizing the unique characteristics of the YNK area

Alliance bases
TOKYO FOOD LAB

Start-up Supporters

TOKYO FOOD INSTITUTE

Output1. E stablished a new award at a pitch event for overseas
business (supporting the overseas expansion of award
recipients)
2. Dispatched start-ups to global exhibitions

xBridge-Yaesu*Total amount invested = construction cost incurred since acquisition + book value at time by acquistion

XTech Ventures

3. E stablished a new pilot test course that lowered
hurdles to applying for the accelerator
program X-Gate

Urbanist
General Incorporated Association
GBP Laboratories

4. Established a new program to nurture students andyoung adults considering founding businesses
specialized mainly in the environmental field

FIREPLACE INC.

5. Host a café that matches venture capital and start-ups
with students and young adults who aim to launch
new businesses or to intern or work at start-ups

City Lab Tokyo

THE FLYING PENGUINS

xBridge-Tokyo
ProtoStar Inc.
EDGEof INNOVATION, LLC

T-PLUS Sendai

CANDEO HOTELSOSAKASHINSAIBASHI

Synchronize (Harmonizing)
Strengthening the start-up
xBridge-Global
ecosystem
NEXTBLUE

6. As a central hub for SYNK, we took measures tostrengthen the start-up ecosystem, including the
support of major corporate entities in the YNK areaand between alliance bases.
Note: Conducted office functions and management of SYNK
as a whole
Note: As of April 30, 2024, xBridge Tokyo has closed and xBridge
Kyobashi was opened.

7. As a central hub for SYNK, we took measures tostrengthen the start-up ecosystem, including the
support of major corporate entities in the YNK areaand between alliance bases.

Data Section

FUNDES Kamata

The Tokyo Tatemono Group’s
Value Creation Foundations

Spread(Expanding Boundaries)
Supporting founding
entrepreneurs

T-LOGI Fukuoka Island CityThe Tokyo Tatemono Group’s
Value Creation Initiatives

Asset type

157.6

Asset Scale (billion yen)
Balance of
Under
Total amountreal estate fordevelopment
invested*sale

SYNK’s Three Projects

The Tokyo Tatemono Group’s
Value Creation and Vision

Commercial Properties Business:
Balance of Real Estate for Sale

The Company was the only general real estate developer selected to participate in TOKYO SUTEAM, astart-up support project targeting a diverse range of entities that was launched by the Tokyo Metropolitan
Government in 2023. In line with this project, we have collaborated with multiple innovation bases andstart-up supporters in the YNK area to launch the SYNK Project, which aims to further enhance theinnovation ecosystem.
Through this project, Tokyo Tatemono will strive to push the boundaries for start-ups while fostering
their growth and globalization and strengthening the network of start-up supporters and peers. We willcontinue helping realize the Tokyo Metropolitan Government’s “10×10×10 Innovation Vision to Develop
the Future.”

Introduction

To achieve sustainable profit growth and enhance asset efficiency, since the start of the previous Medium-TermBusiness Plan (FY2015–2019), we have been developing diverse asset types that we expect to sell to investors.
As for assets for property sales to investors in the Commercial Properties Business, we handle logistics
properties, hotels, retail facilities, medium-size office buildings, and more.
Development of logistics properties has accelerated in recent years against a backdrop of growth in
e-commerce and an expansion in warehouse demand in line with that growth. In the logistics properties operated
by the Company (T-LOGI series), we are steadily accumulating stock, and these properties account for around
60% of our total investment amount out of assets for sales to investors in the Commercial Properties Business.
There is still stiff competition for acquiring land, but we are steadily securing properties through such various
means as restructuring organizations, expanding and nurturing human resources, and building tenant relations.
Going forward, we will consider expanding new asset types in addition to our existing efforts and continue toacquire sites.

TOKYO SUTEAM∙SYNK

Note: Because NEXTBLUE was selected for this business in a different project, we took measures to enable collaboration
between the two projects.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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SECTION

03
Residential Business
Introduction

Tokyo Tatemono is engaged in the condominium and residential leasing businesses, with operations centering on the
Brillia brand of refinement and comfort. We offer high-quality housing based on a unique, comprehensive frameworkthat includes all the functions needed to support a more comfortable life for our customers, ranging from planning anddevelopment to management, after-sales services, repair, and brokerage.

Business Fields

Contributing to a safe and secure society

For-sale condominiums

Property sales to investors

For-rent condominiums

Building management service
and others

Condominium management, remodeling, renovation
work, leasing management

R

Opportunities

Operating Revenue

Number of Condominium Sales Posted / Gross Margin
Number of Condominium Sales Posted (units)

Business Profit

131.2

120.5

131.3

134.1

1,315

15.8

7.1

1,196

1,109

1,058
33.3

17.0

23.3

22.4

33.4

FY2026FY2019 FY2020 FY2021 FY2022 FY2023• Strong track record and expertise in large-scale redevelopment
and reconstruction• Focusing on redevelopment and reconstruction that requires
expertise and has high added value• A service supply framework that integrates production, sales,and management• Using our information sources to acquire properties for sale toinvestors and engaging in dynamic, market-sensitive sales

Drop in customer purchasing sentiment due in part tohigher interest rates

Approx.3,100

Breakdown of Land Bank* by Region(As of December 31, 2023)
Total: Approx.
7,600 units

Kansairegion andothers29.9%
Other areas of
the Tokyo metropolitan area

Tokyo 23
wards

42.5%

19.8%

Tokyo,
other than
23 wards

Data Section

Contraction in the condominium market due topopulation decline

Approx.1,300

FY2027–

Already in theland bankSpecific Initiatives under the Medium-Term Business Plan

A strengthening trend toward prioritizing convenienceamid an increase in household income as the numberof dual-income households rises

Rising construction costs due in part to rising laborcosts

FY2025
Approx.1,400

Approx.4,300• Investing in select locations expected to have strong competitive
advantages• A wide array of information sources, such as financial institutions andexisting business partners, in addition to the Group network

1,740
Not yet in theland bank7,600units
The Company’s Advantages

FY2024

Total: Approx.
11,900 units

24.4• Brand recognition and customer satisfaction ratings are among thehighest in Japan

Growing interest in environmental measures due toclimate change and the increasing severity of natural
disasters

24%

Projects That Tokyo Tatemono is Pursuing(As of December 31, 2023)

27.1

FY2019 FY2020 FY2021 FY2022 FY2023

48%

1,435

99.1
24.6

Tokyo 23 wards

9%Gross Margin (%)(Billion yen)

Diversifying lifestyles are engendering moresophisticated, more diverse customer needs

Expansion of real estate investment needs and assets
for investment

Risks

Operating Revenue / Business Profit

Tokyo,
other than
23 wards

19%

Other areas of
the Tokyo metropolitan area

The Tokyo Tatemono Group’s
Value Creation Foundations

External Environment / Social Issues

Community building and revitalization
Revitalizing and utilizing real estate stockKansai regionand others

The Tokyo Tatemono Group’s
Value Creation Initiatives

egarding for-sale condominiums, underpinned by an ongoing low interest rateenvironment, an increase in dual-earnerhouseholds, and demand for more affluent
lifestyles, we have been able to stably supply around
1,000 to 1,500 units annually and achieve a high grossmargin exceeding 20%. Although there are concerns
about the impact on customer purchasing sentiment
due to expected rising interest rates, demand, includingfrom the growing number of wealthy individuals, is firm
and will continue to be strong in fiscal 2024. The landacquisition environment remains intensely competitive,
but we are proactively engaging in reconstruction andredevelopment projects and steadily building up our landbank. Regarding for-rent condominiums, we haverecorded a decent level of gain on sales from fiscal 2021
against a backdrop of robust investment needs.

Carefully selecting
and supplying competitive properties,
mainly in central
Tokyo

Addressing the diverse needs of customers and society

The Tokyo Tatemono Group’s
Value Creation and VisionFor-sale condominiums businessCondominium Sales Posted and Ratio of Sales
by Region (January 2020–March 2023)

Related Material Issues

7.8%* Listed for the total number of dwelling units
for the acquired development site

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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SECTION

03
Residential Business: Progress on Key Strategies under the Medium-Term Business Plan
Key Strategy 3

Initiatives to Acquire Business Opportunities for the For-Sale
Condominium Business

Major Properties Slated to Open

Expansion of property sales to investors

Initiatives for For-Lease Condominiums
We are expanding the Brillia ist series of for-rent condominiums in city centers as an asset for property sales toinvestors in the Residential Business. We help enhance capital efficiency and stably create profit through dynamic
sales against a backdrop of robust investment needs and product planning that meets customer needs.
Brillia ist is in harmony with urban living and offers residences with comfortable environments that efficiently create relaxation, based on the concepts of practicality and ever more radiant refinement along with thorough safety.
“ist” in the brand name represents the vision of tenants as people who are focused on living life their own way.
We are working to enhance the competitive advantages of properties in tangible and intangible ways, using suchtools as customer satisfaction surveys to ascertain residential needs and setting up lounge spaces where people
can telework.
In addition, to help realize a low-carbon society, we are proactively working to acquire green building certification and promoting the shift to ZEH. Recently, we have also focused efforts on enhancing the emergency
resilience of properties, to this end installing both solar panels and storage batteries.

Brillia Tower Dojima
Total units: 451(Tokyo Tatemono units: 451)
*Completed

Brillia Tower Minoh Senba
TOP OF THE HILL

Brillia Seiseki Sakuragaoka
BLOOMING TERRACE

Total units: 397 (Tokyo Tatemono units: 202)

Total units: 254 (Tokyo Tatemono units: 203)43.3 42.2 41.7 42.6

Brillia Tower Chiba
Total units: 497(Tokyo Tatemono units: 199)

As of December 31, 2023

29.1

Asset type

In operation

2024

2025

2026

Brillia Tower Hamarikyu

HARUMI FLAG

Brillia Meguro Ohashi

Grand City Tower Tsukishima

Total units: 421(Tokyo Tatemono units: 144)
*Completed

Total units: 4,151(Tokyo Tatemono units: 490)
*Partially completed

Total units: 114(Tokyo Tatemono units: 97)

Total units: 1,310(Tokyo Tatemono units: 189)

For-rent
condominiums

8

Asset Scale (billion yen)

Balance of real
Total
Under
development estate for sale investment*
25

42.6

Approx. 75.0

*Total invested = construction and other costs incurred after acquisition + bookvalue of each property at time of acquisition

The Tokyo Tatemono Group’s
Value Creation Foundations

Alreadybuilt

FY2019 FY2020 FY2021 FY2022 FY2023

Data Section

Highlights

Number of Properties(buildings)

The Tokyo Tatemono Group’s
Value Creation Initiatives

Balance of Real Estate Used for Selling For-rent Condominiums(Billion yen)

The Tokyo Tatemono Group’s
Value Creation and Vision

The Company’s For-Sale Condominium Business has accumulated a great deal of experience and expertisethrough its dual focus on human resources capable of building relationships of trust with customers and thegrowth of the Brillia brand. We will continue to closely monitor changes in the external environment, such as theimpact on customer purchasing sentiment due to expected rising interest rates and construction costs. Along withadvancing land acquisition through selective investment by leveraging the strong value chain based on the Brillia
brand, we will seek to acquire high value-added business opportunities that can be realized only through theCompany’s strength in building relationships of trust and its diverse expertise in areas such as reconstruction,
redevelopment, and fixed-term leasing.

Introduction

Further strengthening of for-sale condominium business

Key Strategy 2

Brillia’s first “ZEH-M”: Brillia Fukasawa Hatchome

Brillia Fukasawa Hatchome, scheduled for completion in 2025, will be the first Brillia building tomeet the “ZEH-M” standard, the highest rank in the ZEH-M series. ZEH-M (Net Zero Energy
House Mansion) has been highly evaluated by buyers in a number of perspectives, including
enhanced living environment and reduced water and utility costs. Going forward, we will continue
to strive to both reduce the burden on the environment and provide comfortable living spaces.

Brillia ist Bunkyo Rikugien

Brillia ist Ueno InarichoTOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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SECTION

03
Asset Service Business
Introduction

Capitalizing on the range of services it is able to offer for the effective use ofproperty and land, the Tokyo Tatemono Group provides comprehensive
solutions through its real estate brokerage, asset solution, management
service, parking, and other businesses.

Business Fields

Related Material Issues

Brokerage and corporate real estate operations

Property sales to investors(Asset Solution Business)

Office buildings, condominiums for sale or rent, retailbuildings, and hotels

Parking business

Parking lots

Key Strategy 4

Strengthening of brokerage, fund,and parking businessesA

Creation of fractional realestate products forindividual investors

Operating Revenue(Billion yen)

46.6

44.1

5.8

2.6

Business Profit

63.8

Brokerage Transaction Volume

Parking Spaces under Operation(Billion yen)

(Individual spaces)

50.2

173.5

42.6

4.3

144.5

7.3

69,401FY2019 FY2020 FY2021 FY2022 FY2023

Real Estate Transaction and Asset Solution Businesses
External Environment / Social Issues

The Company’s Advantages

Increased real estate transactions dueto the shift toward a society in which
Opportunities properties are used across generations
Growth in real estate investment
demand due to low interest rates• S olid relationships with customers and financial
institutions and expertise in judging the value ofreal estate acquired over many years of experience

Risks

163.1

133.8

82,542
76,173 75,254 80,057

12.9

FY2019 FY2020 FY2021 FY2022 FY2023

Drop in customer purchasing sentiment
regarding real estate and economic
recession due in part to higher interest
rates

176.2

Parking Business
External Environment / Social Issues

Opportunities• A bility to offer one-stop solution services that draw
on the resources of the Group• Accumulated know-how and unique purchasing
and sales channels through our efforts to revitalize
and add value to various types of real estateSpecific Initiatives under the Medium-Term Business Plan•C apitalize on information sources to actively identify customer needs• Use expertise in judging the value of real estate to acquire properties with value-adding potential and sellproperties quickly in response to market conditions

FY2019 FY2020 FY2021 FY2022 FY2023

Risks

Demand is growing for large private parking lots aswell as municipal and other public parking lots inconjunction with redevelopment projects
Development of new parking services in response to
the wave of change in the automobile industry represented by CASE*
Accelerated sale and repurposing of parking lots bylandowners due to rising land prices

The Company’s Advantages• Track record and expertise indeveloping and operating large
self-park parking lots
• Investment and development
capabilities for parking facilities andsystems leveraging scale as Japan’s
third-largest pay-by-the-hour parking
business operator

Specific Initiatives under the Medium-Term Business Plan

Data Section

Tokyo Tatemono Real Estate Sales and Mizuho
Trust & Banking have jointly planned, developed,
created, and sold fractional real estate products
for individuals. Going forward, we will continue toprovide investment opportunities to individuals
through the supply of these products andthereby contribute to the smooth transfer ofassets in this rapidly aging society.

Operating Revenue / Business Profit

The Tokyo Tatemono Group’s
Value Creation Foundations

Highlights

Revitalizing and utilizing real estate stock

The Tokyo Tatemono Group’s
Value Creation Initiatives

s for the brokerage and asset solution
businesses, their performances remained
strong against the backdrop of an active realestate transaction market, enabling us tostably record profit.
In the parking business, despite the impact of the
spread of the COVID-19 pandemic, a recovery in theflow of people from the second half of fiscal 2022
ensured that occupancy and profits remained strong infiscal 2023. We will continue to work on strengthening
our profitability and competitiveness while steadily
expanding our business.

The Tokyo Tatemono Group’s
Value Creation and Vision

Real estate transaction business• A ggressive expansion of large parking lot development through the diversification of contract types andproposals of cutting-edge systems• Boost competitiveness by developing and rolling out systems that contribute to improved operational efficiency
and customer service*CASE: Connected, Automated/Autonomous, Shared & Service, and Electrification

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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Other Businesses

Related Material Issues

Addressing the diverse needs of customers and society

Fund Business

Overseas Business

Strengthening of brokerage, fund,and parking businesses

Key Strategy 4

Key Strategies 5

Opportunities

Risks

External Environment / Social Issues
Growing needs for real estate investment
Expanding asset types available for investment
Impacts of rising interest rates on asset value
Shifts in the financing environment

Advantages

Specific Initiatives in the Medium-Term Business Plan
• S upport the growth of J-REITs, private REITs, and private funds by increasing property sales toinvestors• Increase profit opportunities by expanding the Group’s assets under management

Status of Priority Policy Initiatives

FY2019

64.7

85.7

97.5

96.0

467.5

484.8

488.7

497.0

FY2020

FY2021

FY2022 FY2023

Specific Initiatives in the Medium-Term Business Plan
• Collaborate with prominent local developers knowledgeable about business practices andmarkets in their countries• Expand the business chiefly in China and other countries where we have an existing
footprint. In addition, the Company explores business opportunities in developed
countries (the United States).
• Invest in short-term turnover projects, which feature relatively short business cycles and offer
little risk of change in the business environment

Risks

Our Advantages• Regina Resort (8 facilities in total): All rooms and areas are dog-friendly, and the resort’s facilities and services are comparable to those of luxury accommodations. Relationships with over
80,000 repeat customers.
• Ofuro no Ousama (10 facilities in total): High level of expertise in the operation ofbathhouses accumulated through over 20 years of operation and the handling ofapproximately 4.2 million visitors annually.
• G olf courses (12 facilities in total): Access-oriented and capable of meeting a wide
range of user needs, located in national parks, equipped with hot springs and lodging
facilities, accessible via membership or open to the public.
Specific Initiatives in the Medium-Term Business Plan
• Expand profitability and improve service quality by setting prices that accurately meet needs,
pursuing comfort in facility operation, and reviewing the membership organization.

Status of Priority Policy Initiatives
Strengthening Cooperation with Local Partners
Tokyo Tatemono has, in its Overseas Businesses, decided to re-enter the
U.S. market following the examples of its operations in China andSoutheast Asia. The Company, Sumitomo Forestry Co., Ltd. and one
other Japanese company, along with Fairfield Residential Holdings LLC, amajor U.S. developer, have jointly develHerndon Project, United States
oped a large-scale rental housing complex in the suburbs of Washington, D.C.
that is both economical and environmentally friendly. The project is expected tocapture rising demand for housing inareas along a subway line where largescale redevelopment is under way. We
will continue to make selective investTotal Project Cost:
ments to acquire business opportunities
21.3 billion yen
in growth markets, giving full consideration to the market environment andcountry risk for each location.

Regina Resort KyuKaruizawa

Highlights

Ofuro no Osama
Wako

KawaguchikoCountry Club

The first TOTOPA opens
in municipal Meiji Park

In 2024, the Company launched TOTOPA,an urban spa facility serving mainly central
Tokyo that has been developed to operate
as a compact and unique relaxation experience, utilizing the know-how we havecultivated through the management of the
Ofuro no Osama public bathing facilities.

Data Section

62.6
439.5

Our Advantages• Strong development track record (a total of about 25,000 units delivered to date) and a
relationship built up over more than 15 years with major Chinese developer China Vanke• Wealth of real estate development expertise and high-quality condominium
development experience gained in Japan

Opportunities

The Tokyo Tatemono Group’s
Value Creation Foundations

We will strive to expand our asset portfolio by capitalizing on the Group’s
expertise in judging the value of real estate to acquire promising properties while enhancing the quality of the portfolio through strategic asset
replacement. At the same time, we will help capture profit opportunities
for the Group in asset and property management and other areas,
increasing the sale of properties to J-REITs, private REITs, and private
funds in order to grow the Group’s assets under management (AUM).
In April 2023, Tokyo Realty Investment Management, Inc. (TRIM), a
J-REIT investment management company, became a wholly owned subsidiary.
Changes in Group AUM
Additionally, in
Private funds, etc.
Tokyo Tatemono Private REIT, Inc.
April 2024, theJapan Prime Realty Investment Corporation
Company’s trade(Billion yen)
1,413.4
name was
1,326.8 1,344.2
1,211.9 1,311.0
changed toTokyo Tatemono
757.8
820.2
756.2
709.7
778.7
RealtyRisks

External Environment / Social Issues
Rise in middle-income and wealthy individuals due to strong economic growthin Asian countries
Growing number of local companies seeking tie-ups with Japanese partners andlocal governments taking stronger measures to attract foreign capital
Changes in economic and political conditions and tightening of real estate
regulations
Increased geopolitical and country risks

External Environment / Social Issues
Increase in hotel room rates and occupancy rates due to factors that
include increased demand from inbound tourism
Acquisition of new customers for bathhouses and golf facilities due to lifestylechanges in the wake of the COVID-19 pandemic
Higher operating costs due to rising energy, labor, and other costs
Difficulty in securing human resources

The Tokyo Tatemono Group’s
Value Creation Initiatives

Our Advantages• Able to draw on the real estate expertise of Tokyo Tatemono to gain opportunities to acquire
real estate and maximize asset value

Investment
Management,
Inc. further
strengthening its
fund business.

The Tokyo Tatemono Group is partnering with local companies to engage
in development projects in China and emerging ASEAN countries thatoffer substantial growth potential while at the same time striving tocapture business opportunities in the United States and other developed
countries.

Leisure BusinessAs lifestyles diversify and consumption shifts from goods to services, our
Leisure Business aims to offer authentic experiences and highly hospitable services that provide customers with maximum relaxation andcomfort.

The Tokyo Tatemono Group’s
Value Creation and Vision

Through Japan Prime Realty Investment Corporation (a listed J-REIT) andTokyo Tatemono Private REIT, Inc., as well as through private funds,
Tokyo Tatemono provides a variety of real estate investment products toa broad range of investors, from institutional investors and pension funds
to individual investors.

Growth in overseas business

Leisure and Child Care Business

Introduction

Revitalizing and utilizing real estate stock

The TOTOPA
Meiji Park branchTOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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A History of Value Creation

A pioneer of the modern real estate industry and driven by ideals inherited from Zenjiro Yasuda, the founder not onlyof the Company but of the former Yasuda conglomerate, Tokyo Tatemono has been a trailblazer since its founding.
With a solid over 125-year track record of value creation, we have established three distinct pillars of strength.

1945

The Expansion of Commercial Properties and Residential Businesses
amid Post-War Rebuilding Efforts and Rapid Economic Growth
The post-World War II era saw high demand for reconstruction-related demand driving fastpaced growth for Tokyo Tatemono as a company as well as throughout our industry. During
Japan’s period of rapid economic growth, we responded to a serious urban housing shortage
and rising demand for residences near workplaces by making a full-fledged entry into thecondominium business. Supplying high-quality yet budget-friendly condominiums, we garneredcustomer support. At the same time, we focused efforts on developing office buildings to meetrising demand as urban functions came to be increasingly consolidated in city centers.

Zenjiro Yasuda

The Company’s first
headquarters
Shinjuku Center Building
has become a west
Shinjuku landmark andcontributed greatly toraising Tokyo Tatemono’s
profile and subsequentbusiness expansion. (Built
in 1979)

Corporate Culture Able to Read the Times and Take on New Challenges
Striving to Differentiate Ourselves by Leveraging the Comprehensive
Strength of the Group

Data Section

After the collapse of Japan’s economic bubble, we deftly adapted to the changing businessenvironment by, in part, planning seismically isolated and fixed-term lease condominiums andproactively participating in redevelopment projects. In 1998, we also proactively expanded into
the real estate investment market, conducting the first securitization of real estate in Japan
under the Special Purpose Company Act. In 2003, we unified our condominium operations
under the Brillia brand and, in 2004, began giving tours of construction sites, the first initiative ofits kind in the industry.
In the Commercial Properties Business, we rapidly grew as a comprehensive real estatedeveloper with repeated successes in highly difficult complex redevelopment projects as well asprivate finance initiative (PFI) projects.

The Tokyo Tatemono Group’s
Value Creation Foundations

1990

Circa

Urbanization progressed as infrastructure and other improvements were made and demand forreal estate was on the rise. Unfortunately, the real estate trade of the time was highly inefficientand rife with fraud. It was amid this business environment that Zenjiro Yasuda founded Tokyo
Tatemono in 1896 with the aim of modernizing the industry and promoting urban development
while selling and contracting the construction of buildings using real estate financing and loans.

The Tokyo Tatemono Group’s
Value Creation Initiatives

Strength 2Japan’s Oldest Comprehensive Real Estate Company, Created with the
Aim of Modernizing the Real Estate Trade
The Tokyo Tatemono Group’s
Value Creation and Vision

1896

Ingenuity and Problem-solving Ability to Meet the Needs of Customers and Society

Introduction

Strength 1

Olinas is Tokyo’s first complex redevelopment
project in which three aspects of urban planningwere determined simultaneously. (Built in 2006)

KASUMIGASEKI COMMON GATE is apioneering public-private, large-scale
redevelopment project executed using a
private finance initiative (PFI) structure.
(Built in 2007)

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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Strength 3

2010

Urban Development Leading to a Future of Added Value Creation
Drawing on its accumulated expertise, Tokyo Tatemono aggressively
undertakes ever larger redevelopment projects expected to create added value.
Although we recorded a loss following the global financial crisis, we
strengthened our financial standing in part through the sale of some assets.

We continue to participate in multiple large-scale redevelopment projects andexpand our portfolio of diverse and high-quality real estate in part through theacquisition of logistics facilities, retail facilities, hotels and other properties.

Becoming a Next-Generation Developer
Since 2020, in line with our long-term
vision of becoming a next-generation
developer by around 2030, we havestriven to offer better solutions to society’s
problems and raise our own growth as anenterprise to a higher level.
We are working to enhance ESG management as set out in the medium-termbusiness plan spanning fiscal 2020 to2024 and are pursuing sustainable, highvalue-added urban development basedon the Group’s material issues.

In 2023, we celebrated
the 20th anniversary of
Brillia, the Group’s total
brand for residences.
Going forward, we aim
to realize a condominium brand that is wholeheartedly recommended
by residents for therefinement and comfort
it provides in line with
our efforts to be the top
brand among customers.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

The entire Brillia Tower Dojima / Photo by Akira Ito (aifoto)

Urban Redevelopment
Project for Yaesu
1-Chome East Area in
Front of Tokyo Station
is a large-scale
redevelopment projectthat includes theCompany’s former
headquarters.
(Construction slated tofinish in fiscal 2025)
We are currently
working hard on the
consolidation ofadvanced urban
functions that help
strengthen Tokyo’s
competitiveness on theinternational stage whilepursuing high valueadded urban
development thatconnects local history
and culture to the
future.

The Tokyo Tatemono Group’s
Value Creation Foundations

We Aim to Provide Value of Placeand Maximize Value of Experience

The Tokyo Tatemono Group’s
Value Creation Initiatives

Brillia Tama New Town is Japan’s largest apartment complex reconstruction project.
(Built in 2013)

Brillia Tower Ikebukuro
is Japan’s first high-rise
condominium that
integrates the mainbuilding of a municipal
office. The property
features a low-rise
section that serves as
the main Toshima Ward
office building, alongwith retail facilities andoffices. The high-rise
tower section houses
432 residential units.
(Built in 2015)

The Tokyo Tatemono Group’s
Value Creation and Vision

NAKANO CENTRAL PARK enables an efficient officelayout through the use of a mega plate (for an
uninterrupted single floor) measuring 1,500 tsubo(nearly 5,000 m2) while offering a new style ofworking in an open, green environment. (Built in2012).

2020

Introduction

Circa

Accumulated Trust, Track Record of Accomplishments, and Expertise33

SECTION

The Tokyo Tatemono Group aims to realize its long-term vision of becoming a next-generation developer bycontinuing to implement a cycle of maximizing the value of place and value of experience by demonstrating thestrengths we have cultivated through more than 125 years of business.

03
Target for 2030 and Long-Term Vision

The Tokyo Tatemono Group’s aim is to be a goodcompany for stakeholders by leveraging

We listen to the needs of our customers,society, and local communities in order tosincerely address their problems and refine
our proposals.

its business to solve social issues
and achieve higher levels of
growth as a company.

The Tokyo Tatemono Group’s
Value Creation and Vision

Ingenuity and Problemsolving Ability to Meetthe Needs ofCustomers and Society

Introduction

Becoming a NextGeneration Developer

Strength 1

Strength 2

Solving Social
Issues

Maintaining an enterprising spirit that stays
ahead of the times is one of our guiding
principles. Reflecting this principle, wehave successfully promoted various
industry firsts.

Accumulated Trust,
Track Record ofAccomplishments,
and Expertise

Data Section

We work in collaboration with local residents
and governments to carry out many
redevelopment and reconstruction projects
and leverage our accumulated trust, trackrecord of accomplishments, andexpertise to tackle new projects.

The Tokyo Tatemono Group’s
Value Creation Foundations

Strength 3

Growth as a
Company

Maximizing the Value ofPlace and Value ofExperience

The Tokyo Tatemono Group’s
Value Creation Initiatives

Corporate Culture
Able to Read theTimes and Take on
New Challenges

34

SECTION

03
Value Creation Processservices) comes from business activities enabled by the Group’s strengths. The outcome (results and value) further strengthens our capital.

Target for 2030 and Long-Term Vision

Input

Introduction

The value creation process of the Tokyo Tatemono Group is a cycle based on the corporate philosophy of “Trust beyond the era.” As input, we use various types of capital. Our output (real estate andOutput / Outcome

Becoming a Next-Generation Developer
A sound financial foundation supporting
business activities

Medium-Term Business Plan (2020-2024)

Maximizing the Value of Place andValue of Experience

Total assets 1,905.3 billion yen
Debt-equity ratio 2.2 times
Interest-bearing debt/EBITDA multiple 10.9 times

Consolidated business profit of
75 billion yen

Business activities

Business Capital

E

uat
val

ion by stakehol

Five Key Strategiesders

An Evolved Approach to ESG Management

Property and equipment/intangible assets 975.1 billion yen
Balance of real estate for sale 498.9 billion yen
Social and Relationship Capital

Relationships with a broad range of customers
and tenants as well as a wealth of information
sources for new projects

ServicesIntellectual Capital

Shared Values with Society
Value created by undertaking identified
material issues• Property sales to investorseedsLong-Term Vision and Materiality p. 7

gnLeasing

i

tif
s

en

ut

on

yin

• Building Development and Leasing

Id

Realizing sustainability management

Data Section

Highly specialized, diverse human resources
who have gained the trust of customers

Note: T he above amounts and figures are as of December
31, 2023(However, only includes the figures for certified people,
figures for the Company alone are as of March 31, 2024)

Coexistence with the earth and theenvironment
Value-creating talent

Human Capital

Number of Group employees: 4,661
Real Estate Brokers: 715
Real Estate Appraisers: 19
First-Class Architects: 95

Creating the value of place and value ofexperience

The Tokyo Tatemono Group’s
Value Creation Foundations• Overseas business• Leisure and Child Care
BusinessolMeasures to promote the development of ZEB and ZEH
Shift to renewable energy
Various measures aimed at realizing a circular economy• Real Estate Fund Businessgs

Various eco-friendly business activities• Sales of condominiums

idin

Natural Capital•R eal Estate Transactions andParking Business

Prov

Expertise in large-scale redevelopment projects
and residential reconstruction underpinned byour track record
Management and operation drawing on theGroup’s integrated strengths

Property sales

The Tokyo Tatemono Group’s
Value Creation Initiatives

A portfolio with a good balance between longterm assets generating stable income and shortterm turnover assets with high capital efficiency

The Tokyo Tatemono Group’s
Value Creation and Vision

Offering solutions to society’s problems
and achieving growth as an enterprise

Financial CapitalStrengths developed through more than 125 years of businessCorporate Philosophy “Trust beyond the era.”
TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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A Sophisticated Approach to ESG Management

ESG Management Framework

Highlights of Participation in Initiatives and External Evaluation
The major initiatives in which the Tokyo Tatemono Group participates are listed below. In addition,

Committee, chaired by the President and Chief Executive Officer, and the Sustainability Promotion

the Group has been selected and evaluated by the ESG indexes and benchmarks listed.

Committee, a subordinate body responsible for preliminary discussions on matters to be deliberated.
Evaluation Organizations and Initiatives/Indexes

In addition, a Human Rights Subcommittee was established in January 2023 to further promote
initiatives based on the Tokyo Tatemono Group’s Human Rights Policy.
The Sustainability Committee, which reports directly to the President, meets at least twice a year inprinciple to deliberate and discuss matters related to the formulation of the Group’s sustainability
policy, establishment of a system, setting of indicators and targets, and monitoring and evaluation of
up for discussion or reported to the Board of Directors, which makes decisions on importantsustainability-related matters, monitors the status of actions taken, and supervises them.

Board of Directors

Risk Management
Committee

Sustainability Committee

Sustainability Promotion Committee

Participation
A5 StarWhite 500
Selection
Selection

Certification

Internal Control
Committee

Human Rights Subcommittee

Highlights

ESG Finance

We have developed multiple financing frameworks that conform to the four principles (use of proceeds,
project evaluation and selection process, management of proceeds, and reporting) of the Green Bond
Principles, the Social Bond Principles, the Green Loan Principles, and the Social Loan Principles referenced by the International Capital Markets Association (ICMA) and others, and we continue to issue green
bonds and sustainability bonds in accordance with these principles.

Balance of green bonds and sustainability
bonds issued**As of December 31, 2023

Data Section

Committee Chair: President and CEO
Committee Members:  Directors (excluding external directors), seniorand managing executive officers, generalmanager of the Corporate Planning
Department, general manager of the
Sustainability Management Department,
general manager of the Corporate
Communications Department, general managerof the Personnel Department, general managerof the General Affairs Department, generalmanager of the Building Engineering
Department, and other persons designated by
the President
Secretariat: Sustainability Management Department
Assisted by: Corporate Planning Department(Re-certified at 1.5°C level in February 2024)

The Tokyo Tatemono Group’s
Value Creation Foundations

President & Chief Executive Officer

SBTi
RE100
CDP
GRESB Standing Investment Benchmark
Health & Productivity Management Outstanding Organizations Recognition Program
Eruboshi
Kurumin
FTSE4Good Index Series
FTSE Blossom Japan Index
FTSE Blossom Japan Sector Relative Index
Morningstar Japan ex-REIT Gender Diversity Tilt Index (GenDi J)
MSCI Nihonkabu ESG Select Leaders Index
MSCI Japan Women’s Activity Index (WIN)S&P/JPX Carbon Efficient Index

The Tokyo Tatemono Group’s
Value Creation Initiatives

progress. Important matters discussed and deliberated by the Sustainability Committee are brought

Participatory Status, Evaluation, etc.
Participation
Approval
Certification

U.N. Global Compact
TCFD

The Tokyo Tatemono Group’s
Value Creation and Vision

In order to promote Group-wide sustainability measures, we have established the Sustainability

Executive
Committee

Introduction

Based on its long-term vision of becoming a next-generation developer, the Tokyo Tatemono Group is promoting advanced ESG management and actively implementing
sustainability measures on a Group-wide basis in order to solve social issues and grow as a company at a higher level through its business.

160 billion yen(including 90 billion yen in hybrid corporate bonds)

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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Material Issue KPIs and Targets(Sustainability Report 2024) Material Issue KPIs and Targets pp. 10-11

Material Issues

Item

Scope

Reduction in greenhouse gas emissions All business activities*1
Promotion of development of ZEB andZEH*3
Shift to renewable energy

Promoting adecarbonized society
Promoting a recyclingoriented society

46.2% reduction in CO2 emissions compared to FY2019 by FY2030
40% reduction in CO2 emissions compared to FY2019 by FY2030

Commercial Properties Business

Develop ZEB for, in principle, all new office buildings and logistics properties*4

Residential Business

Develop ZEH for, in principle, all new sale of condominiums and rent condominiums*5

All business activities*1

Procure 100% of electricity consumed in business activities from renewable energy sources by FY2050

Commercial Properties Business

Procure 100% of electricity consumed at owned properties from renewable energy sources by FY2030
Procure at least 50% of electricity consumed at owned properties from renewable energy sources by FY2024

Commercial Properties BusinessResidential Business

Acquire Green Building Certification for, in principle, all new office buildings, logistics properties, condominiums for rent.*7

Reduction of waste emissions

Long-term buildings*8

20% reduction in the rate of waste emissions per unit by FY2030 compared with FY2019

Waste recycling promotion

Long-term buildings*8

Achieve a waste recycling rate of 90% by FY2030

Reduction of water consumption

Long-term buildings*9

Reduction of water consumption per unit compared with previous fiscal year

Promotion of use of recycled water

Office buildings with total floor area exceeding 30,000m2 Install gray water*10 treatment facilities at, in principle, all new office buildings with a total floor area of more than 30,000 m² by FY2030

Promotion of use of wood materials

Long-term buildings
Condominiums for sale or rentLong-term buildings

Work-life balanceCommunicate with tenants about sustainability at least 4 times a year
Communicate with residents and plan and implement sustainability measures

Tokyo Tatemono

Average training time per employee: 15 hours or more each fiscal year

Tokyo Tatemono

Career training participation rate: 100% each fiscal year
Health checkup rate and follow-up test rate*12: 100% each fiscal year
Re-examination rate*12: 100% each fiscal year

Tokyo Tatemono

Smoking rate*13: 12% or less each fiscal year

Tokyo Tatemono

Ratio of people maintaining appropriate body weight*12: 75% or higher by FY2028

Tokyo Tatemono Group

Dissemination of the Human Rights Policy: Deployment to and compliance by group companies

Tokyo Tatemono

Average annual paid leave utilization rate: 70% or more each fiscal year

Tokyo Tatemono

Ratio of male employees taking parental leave*12: 30% or more by FY2025

Tokyo Tatemono

Ratio of women in management positions: 10% or more by FY2030

Tokyo Tatemono

Employment rate of people with disabilities*14: Over the legally mandated employment rate each fiscal year
*At least 2.3% until March 2024, at least 2.5% from April 2024 to June 2026, and at least 2.7% after July 2026.

*1 Applies to the Tokyo Tatemono Group.
*2 Scope 3 applies to categories 11 and 13.
*3 In addition to “ZEB” and “ZEH(-M)”, includes Nearly ZEB, ZEB Ready, ZEB Oriented, Nearly ZEH(-M), ZEH(-M) Ready, and ZEH(-M) Oriented.
*4 Applies to new buildings for which design work began in January 2023 or later. Excludes certain properties such as joint venture properties or properties with special uses.
*5 Applies to new buildings for which design work began in June 2021 or later. Excludes certain properties such as joint venture properties or properties with special uses.
*6 Mainly refers to, but is not limited to, DBJ Green Building certification, CASBEE building and BELS (Building Energy Saving Performance Labeling System) certification.
*7 Applies to new buildings for which design work began in January 2023 or later. Excludes certain properties such as joint venture properties or properties with special uses.
*8 A pplies to the main long-term buildings and commercial facilities for which we have substantial energy management rights and for which we have submitted plans for thereuse and reduction of waste materials.

*9 Applies to the main long-term buildings and commercial facilities for which we have substantial energy management rights.
*10 Recycled water derived from rainwater and miscellaneous wastewater generated in buildings (e.g., wastewater from cooling towers and tenants’ kitchens). It is reused for
non-potable purposes such as toilet flushing and watering plants.
*11 Target not reached as of the end of FY2023. Regardless of the method used, efforts shall continue to promote the use of wood in the development of condominiums forsale and leasing apartments.
*12 Totaled from April of each year to March of the following year.
*13 At a specific point in time between April of each year and the following March*14 As of June 1 of each year.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

Promotion of diversity in our workforce

Develop for-sale and for-rent condominiums that use CLT for major structural components by FY2023.*11

Condominiums for sale or rentTokyo Tatemono

Respect for human rights

Use domestic timber and certified timber in the interior and furniture of common areas of all new office buildings,
for-sale and for-rent condominiums, by FY2030.

The Tokyo Tatemono Group’s
Value Creation Foundations

Promotion of skills development

Promotion of health management

Diversity & Inclusion

Scopes 1, 2:
Scope 3*2:

Acquisition of Green Building
Certification*6

Collaboration and co-creation
with customers
Improve employee
growth and job
satisfaction

Net zero CO2 emissions by FY2050

The Tokyo Tatemono Group’s
Value Creation Initiatives

Promoting a recyclingoriented society

KPIs and Targets

Scopes 1, 2, 3:

The Tokyo Tatemono Group’s
Value Creation and Vision

Promoting adecarbonized society

Introduction

Below are the KPIs and targets we have established. Regarding our initial targets for items related to the promotion of a decarbonized society, we moved up some of the achievement dates and strengthened the process targets
in February 2023. In October 2023, we lifted the fiscal 2030 target related to greenhouse gas (GHG) emission reductions to the 1.5°C level. In these and other ways, we are further accelerating our initiatives.

37

SECTION

03
Environment(Sustainability Report 2024) Environmental Management pp. 17-21

Group Environmental Policy

The Tokyo Tatemono Group has identified the promotion of a decarbonized society as a material issue
and is working to minimize climate change risks through its business. At the same time, the Group
views the situation as an opportunity and is working to solve the challenges involved. To promote a
decarbonized society, we have established medium- and long-term targets for reducing GHG
emissions and, to achieve these targets, we are taking measures such as shifting to renewable energy
and promoting the development of ZEB/ZEH and green buildings. We are also focusing on urban
development and real estate development that take into account resilience to damage from storms,
floods, and other natural disasters which are becoming more frequent with climate change.

Medium- to Long-Term Targets for Reducing Greenhouse Gas Emissions

We will help build a sustainable society through environmentally friendly business activities based on thefollowing Group Environmental Policy.
We will create a rich and comfortable environment for earth and people by utilizing the strengthof greenery as much as possible with consideration given to biodiversity.

Climate change prevention
that leads the community

We will actively incorporate environmentally friendly technologies and ideas into our products
and services to lead the community in building a low-carbon city.

Resource-saving activities thatare kind to the earth

We will strive to reduce the use of resources and environmental impact at all available
opportunities and contribute to creating a recycling-oriented society.

Developing employees withhigh environmental awarenessWe will comply with laws related to the environment and educate and raise the awareness of
our employees about the environment.

CO2 emissions
Scopes 1, 2, 3

Net zero CO2 emissions by FY2050

Scopes 1, 2

46.2% reduction in CO2 emissions by FY2030 compared to FY2019*October 2023 Target raised to 46.2% reduction = 1.5°C level

Scope 3*40% reduction in CO2 emissions by FY2030 compared to FY2019

The Tokyo Tatemono Group’s
Value Creation Initiatives

Creating a pleasant city andliving with greenery(SBT certification has been obtained for the FY2030 target)*1 Applies to Category 11 and 13.

The Tokyo Tatemono Group’s
Value Creation Foundations

Established January 2011

Road Map to Greenhouse Gas Emission Reduction

Promotion System
Under the Sustainability Committee, which is chaired by our president and CEO, and its subordinate
Sustainability Promotion Committee, environmental measures are promoted across the entire Group.
We have established environmental management systems aligned to the characteristics of each of ourbusinesses. Within these systems, we have established PDCA cycles.

• Establishment of the Environmental Measures Promotion Group as a specialized department within
this business division’s planning Department•H olding of Environmental Committee meetings, attended by all business division departments

Residential Business•E stablishment of a cross-functional Environmental Measures Project Team within the businessdivision

Other businesses andGroup companies•E stablishment of environmental guidelines in line with the Group Environmental Policy for eachbusiness and company and while adhering to them•M
 anagement of data related to Tokyo Tatemono Group company energy usage, andimplementation of sustainability measures under the Sustainability Promotion Committee

Assumed CO2 emissions to increase withbusiness expansion

1 Energy saving and shift torenewable energy

Actual CO2 emissions after implementationof various reduction measures

2 ZEB/ ZEH development
Approx.
700,000 tons

3 Improvement of CO2 emission coefficient
Base emissions

4 Additional reduction
measuresApprox.
410,000 tons

0

FY2030 emission reduction targets(compared with FY2019)• Scopes 1, 2 emissions: 46.2% reduction• Scope 3 emissions: 40% reduction

FY2019 FY2022

Promotion of ZEB and ZEH
Development p. 40

FY2030FY2050net zero emission
reduction target

FY2050

Data Section

Commercial Properties
Business

The Tokyo Tatemono Group’s
Value Creation and Vision

Under the Tokyo Tatemono Group Environmental Policy, we contribute to the development of a sustainable society through environmentally conscious business activities. We have identified promoting
both a decarbonized society and a recycling-oriented society as environmental material issues and, by
working to resolve these issues through our business, aim to realize coexistence with the earth’s
environment, a value we share with society.

Roadmap to Reducing Greenhouse Gas (GHG) Emissions

Introduction

Tokyo Tatemono Group’s Environmental Strategy

Shift to Renewable Energy p. 41

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

38

SECTION

03

Environment

Major Environmental KPIs, Targets, and Results
For detailed information and notes on each item, please refer to the Data section of the Sustainability Report.
Material issue KPIs and targets p. 37

Scope of Collection: Tokyo Tatemono Group(Sustainability Report 2024) Data (Environment) pp. 87-90

Scope of Collection: Tokyo Tatemono

Targets: Scope 1, 2, 3
Scope 1, 2
Scope 3 (Categories 11 and 13)

Target: Procurement ratio of electricity consumed in the business activities of the Commercial Properties
Business from renewable energy sources 50% or more by FY2024, 100% by FY2030

Net zero CO emissions by FY2050
46.2% reduction in CO2 emissions compared to FY2019 by FY2030
40% reduction in CO2 emissions compared to FY2019 by FY2030

Scope 2 (Market-based)

Scope 3 (Categories 11 and 13)(Thousand tons of CO2)

(Thousand tons of CO2)

898

86
74

68

71

59

72

56

Scope 3 (Excluding Categories 11 and 13)

963
847

290

35.2

334

347

318

596

622

17

15

16

18

14

FY2019FY2020

FY2021

FY2022

FY2023

FY2019513

FY2020

FY2021

FY2022

FY2023

No
data

No
data

FY2019FY20206.9
3,675
FY2021

FY2022

Scope of Collection: Tokyo Tatemono

Scope of Collection: Tokyo Tatemono

Obtaining Green Building Certification

Reduction of Waste Emissions and Promotion of
Recycling

Reduction of Water Consumption

Targets: 20% reduction in emissions per unit of production compared to FY2019 by FY2030
Achieve a waste recycling rate of 90% by FY2030(Reference data) Acquisition rate of certifications forproperties owned and managed by Tokyo Tatemono (%)*

71.1

Recycling rate (%)

Waste emissions per unit load of
production (ton/thousand m2)

Target: Reduction of water consumption per unit compared with previous fiscal year

Usage of water per unit load (m3/m2)

The Tokyo Tatemono Group’s
Value Creation Foundations

Scope of Collection: Tokyo Tatemono

Target: In principle, obtain Green Building Certification for 100% of properties

FY202322,735

762
608

30

60,77341.9

Adoption ratio (%)

940

943
201

44

54

Amount produced (Thousand kWh)The Tokyo Tatemono Group’s
Value Creation Initiatives

Introduction of Renewable Energy (electricity)

2

The Tokyo Tatemono Group’s
Value Creation and Vision

Reduction in Greenhouse Gas Emissions

Scope 1 (Fuel-derived)

Introduction

Please refer to material issue KPIs and targets (p. 37) for detailed notes and information on the KPIs and targets established.

7.4

62.5

0.95

56.4

5.1

5.2
65.7

60.9

0.67

0.68

FY2020

FY20210.76

0.79

FY2022

FY2023

Data Section

61.9

68.4

5.3

5.3

58.4

36.6
38.3
FY2019FY2020

FY2021

FY2022

FY2023

FY2019FY2020

FY2021

FY2022* This target applies to new buildings for which design work began in January 2023 or later, and no completed properties are subject to this target as of the end of2023. The acquisition rate of certifications for properties owned and managed by Tokyo Tatemono is provided for reference.

FY2023

FY2019TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

39

SECTION

03

Environment

Promotion of ZEB and ZEH Development
atmosphere while consuming no primary energy on an annual basis. According to the amount of energy creation and conservation, the highest ranks of “ZEB” and “ZEH-M” fall into the following four
categories and the overarching intention is for the Group to improve both of these metrics.

Promotion of ZEB Development
ZEB Oriented
Types of ZEBs
Basic building

Energy saving only

40% or more

Hospitals, retailfacilities, etc.

Offices, factories,
etc.

Nearly ZEB

11 logistics properties, including T-LOGI Ichinomiya (Completed in 2023)

Energy saving+ Energy saving+
Energy saving only energy creation energy creation

50% or more

75% or more

100%

ZEH-M Oriented-certified Properties

ZEH-M Oriented

Types of ZEH-M

Energy saving only

Basic building

20% or more

ZEH-M
Ready

NearlyZEH-M

The Tokyo Tatemono Group’s
Value Creation Foundations

Promotion of ZEH Development”ZEH-M”

Energy saving+ Energy saving+ Energy saving+energy creationenergy creationenergy creation

50% or more

75% or more

100%

Data Section

The Company is actively working to build
ZEH condominiums (ZEH-M). Efforts are being
made to increase energy-saving performance, including by improving the insulation
performance of outside walls, adopting highly
insulated window sashes, and opting for highefficiency hot water supply equipment. All
condominium properties designed in June
2021 or later are being developed as ZEH-M
in principle. In addition, Brillia Fukasawa
Hatchome (to be completed in 2025) was
selected in September 2023 for the Ministry ofLand, Infrastructure, Transport and Tourism’s
2023 Sustainable Building Leadership Project(Leadership in CO2 Reduction), becoming thefirst Brillia property to reach “ZEH-M” status.

Hareza Tower(Completed in 2020)”ZEB”

The Tokyo Tatemono Group’s
Value Creation Initiatives

30% or more

ZEB Ready“ZEB”-certified Properties

The Tokyo Tatemono Group’s
Value Creation and Vision

The Company aims to actively promote thedevelopment of ZEBs and contribute to theirwidespread adoption.
In 2019, Hareza Tower became the first toreceive ZEB certification in the partial assessment of mixed-use high-rise buildings.
As of the end of December 2023, two of ouroffice buildings were certified ZEB Ready and
11 T-LOGI series logistics properties werecertified “ZEB”.

ZEB Ready-certified Properties

Introduction

The Tokyo Tatemono Group is working to create Net Zero Energy Buildings (ZEB) and Net Zero Energy Houses (ZEH). Buildings designated ZEB and ZEH are designed to provide a comfortable indoor

Brillia Tower Seiseki Sakuragaoka BLOOMING RESIDENCE(Completed in 2022)

Brillia ist Oimachi(completed in 2024)

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

40

SECTION

Environment

03

Shift to Renewable Energy

Acquisition of Green Building Certification(Sustainability Report 2024)
Shift to Renewable Energy pp. 27-28

In principle, the T-LOGI series of logistics facilities have acquired “ZEB” certification through thepromotion of energy conservation and the use of renewable energy, with solar power panels
installed on the rooftop of each facility generating surplus power beyond that consumed by thefacility itself. The resulting surplus of renewable energy electricity generated is self-consigned tocommercial facilities and office buildings owned by Tokyo Tatemono, ensuring that renewableenergy goes unwasted.

(Sustainability Report 2024) External Evaluation and Certification for Green Building p. 40

Acquisition Rate of Green Building Certification (as of December 31, 2023)•Acquisition Rate of Certification for All Properties
Owned and Managed by Tokyo Tatemono•9 properties in total received DBJ
Green Building certification in 2023

The Tokyo Tatemono Group’s
Value Creation and Vision

Generation and Use of Renewable Energy

As of December 31, 2023, 71.1% of the office buildings, retail buildings, and for-rentcondominiums owned and managed by Tokyo Tatemono have obtained DBJ Green Building
Certification and other external evaluations and certifications related to green buildings. We willcontinue to aggressively develop real estate with consideration for environmental and social
impacts, aiming to realize a decarbonized society and improve comfort for our tenants.

Introduction

Tokyo Tatemono works to lower the CO2 emissions of every facility by generating and consuming its own renewable energy, self-transmitting surplus electricity derived from renewable energy(“renewable energy electricity”) to other buildings, and utilizing non-fossil certificates and othermeans.

Certification Acquired

Received the FY2023 Climate Change Action Environment Minister Award

Our T-LOGI series’ self-consignment initiative was presented with the 2023 Achievement Award for theReal Estate Institute of Japan, organized by the Real Estate Institute of Japan in June 2023. This wasfollowed by a Minister of the Environment Award for Climate Action 2023 Environmental Minister Award(advanced introduction and proactive implementation category). The project was highly evaluated as apilot case for directly supplying electricity to urban centers, where it is difficult to generate renewableelectricity, through self-consignment, utilizing solar panels installed on the vast roofs of logistics facilities togenerate more renewable electricity than the facilities consume without the need for deforestation or othernew development.

71.1%
Brillia ist Shinonome Canal Court(completed in 2005)

Promoting a Recycling-oriented Society

The Tokyo Tatemono Group’s
Value Creation Foundations

The Tokyo Tatemono Group is aware that a building’s entire life cycle, from planning and design
through construction, operation and management, and demolition, should take environmental
protection and resource efficiency into consideration. In order to create environmentally friendly
buildings, we take environmental assessment into account during the planning and design
stages. We also aim to reduce air and soil pollution by decreasing the generation of waste andhazardous materials and managing them effectively. Also, in all aspects of its businessactivities, the Group is committed to reducing its environmental impact through waste
reduction, recycling, and the effective use of resources.

The Tokyo Tatemono Group’s
Value Creation Initiatives

Highlights(Sustainability Report 2024) Promoting a Recycling-oriented Society pp. 37-39

Switching to Renewable Electric Energy
Highlights

Initiatives to Realize a Recycling Society

Held a Clothing Reuse Week & Sustainable Fashion Festival
We held Clothing Reuse Week, where we collected clothing that office workers and building visitors nolonger need in a specialized box. The collected clothing was variously used in the Sustainable Fashion
Festival and upcycled into ornaments for the iconic Christmas tree in the winter illumination event at
TOKYO SQUARE GARDEN.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

In our commercial properties and facilities as well as for-rent condominiums, we are working toswitch to renewable energy. As part of this effort, we use power that has Non-fossil Fuel Certificateswith Tracking. Provided by power companies, these certificates verify the environmental value ofelectricity generated from solar power, biomass, or the like. (In our Commercial Properties Business,about 60,773,000 kWh of renewable energy was installed in fiscal 2023; for an installation rate ofaround 41.9%.)41

SECTION

03

Environment

Disclosure Based on TCFD Recommendations

To tackle climate change and accelerate the realization of a decarbonized society, the Tokyo TatemonoGroup has set a medium- to long-term goal for decreasing GHG emissions: 46.2% reduction in Scope 1
and 2 CO2 emissions and 40% for Scope 3 compared to fiscal 2019 by fiscal 2030 and reach net zero
emissions by fiscal 2050. In addition, we monitor GHG emissions on a quantitative basis and report ourfindings.
Roadmap to Reducing Greenhouse Gas
Emissions (GHG) p. 38

Governance
The identified risks/opportunities and their importance in relation to climate change are as follows. Priority
will be given to opportunities and risks that have the greatest potential for impact, and initiatives andmeasures to reduce risks and maximize opportunities will be supported.

Category

Strategy (scenario analysis)

Policies

Adoption of carbon pricing

Regulations

Stricter standards for GHG
emissions and energy saving

Physical
risk

Acute

Technology

Opportunity
Consumer
behavior

Markets

1.5°C
/2°C

Imposition of carbon tax on own emissions (Scopes 1 and 2)

Medium-term—

MediumPrice hikes for construction materials, construction costs, etc.

Medium-term—

MediumHigher costs of converting new buildings to ZEB/ZEH

Medium-term

Low

Low

Higher costs of introducing decarbonized building materials

Medium-term Medium Medium
Low

Low

Higher utility costs due to change in energy mix

Short-tomedium-term—

Low

Higher utility costs due to higher demand for fossil fuels

Short-tomedium-term

Low—

Higher renewable energy procurement costs

Short-tomedium-term

Low

Low

Higher costs of ensuring disaster preparedness and resilience

Short-term

Low

Low

Increased costs due to construction schedule delays
caused by supply chain paralysis or disruption

Short-term——

Increased costs due to measures to address the decrease inconstruction work efficiency caused by frequent heat waves
and high temperatures, etc. and construction delays

Short-term——

Decreased rental income in the event of flooding
due to torrential rains or river overflow

Short-term

Low

Low

Increased restoration costs due to building
damage from wind and flood damage

Short-term

Low

Low

Higher insurance premiums

Short-term

Low

Low

Rise in average temperature

Higher utility costs

Short-term

Low

Low

Efficiency improvements with
ZEB and ZEH development

Reduction of utility costs

Short-term

Low

Low

Procurement of renewableenergy through self-consignment

Reduction in utility costs and renewable energy procurement costs

Short-term

Low

Low

Improved earnings from highenvironmental performance
properties

Higher sales due to higher evaluation of ZEB/ZEH

Short-tomedium-term—

Medium

Improvement of energy-saving
effects

Addition of energy-saving effects to rental income

Short-tomedium-term—

Low

Expansion of ESG Finance

Reduction in financing costs

Short-term—

Low

Ensuring disaster preparedness
and resilience

Frequent and intense extreme
weather caused by extratropicaland tropical cyclones, etc.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

The Company has established a Risk Management Committee (p. 59), chaired by the President, tooversee risk management for the Group. With regard to sustainability-related risks, the Sustainability
Committee, as the risk response organization (risk owner), works with relevant departments and offices toprevent and manage such risks, and reports important matters on the status of implementation to the Risk
Management Committee. In addition, important deliberation matters of the Risk Management Committee
are reported to or added to the agenda of the Board of Directors. The effectiveness of the Group’s risk
management, including for risks related to sustainability, is monitored by the Board of Directors.

4°C

Medium-term

Risk Management
Chronic

Period of
ImpactIncrease in cost of energy-saving renovation of existing buildings

Technology Higher unit cost of grid electricity
andmarkets
Burden from renewable energy
procurement
Reputation

Materiality

Impact on the Group business

The Tokyo Tatemono Group’s
Value Creation Foundations

The Group conducts scenario analysis using established scenarios to identify risks and opportunities related
to climate change, assess their significance, and estimate their impact on the Group’s business interests.
Furthermore, the analysis is based on the current scenario (the “4°C scenario,” in which the average temperature rises 4°C or more above pre-industrial levels by 2100) and a transition scenario (the “2°C scenario,”in which the average temperature rise is kept below 2°C, and the “1.5°C scenario,” in which the averagetemperature rise is further reduced to 1.5°C). The scope of the analysis was to identify the main risks andopportunities—primarily for the Group’s core businesses of the Commercial Properties Business andResidential Business—and to assess their materiality in terms of their expected degree of impact on theGroup’s finances. The Group organized the analysis into three impact periods: short term (1–5 years),
medium term (5–10 years), and long term (more than 10 years).

Transition
risk

Item

The Tokyo Tatemono Group’s
Value Creation Initiatives

The Group’s Sustainability Committee, chaired by the Company’s president, deliberates, discusses, andreports on important matters such as the identification of climate change-related risks and opportunities,
GHG emissions reduction targets and policies, and the status of initiatives to address climate change.
Significant issues raised by the Committee are either placed on the agenda or reported to the overseeing
Board of Directors. In addition, the Sustainability Promotion Committee, a subordinate organization,
conducts preliminary discussions on matters to be brought before the Sustainability Committee andexamines specific measures to achieve the goals determined through discussion.

The Tokyo Tatemono Group’s
Value Creation and Vision(Sustainability Report 2024)
Disclosure Based on TCFD Recommendations pp. 23-26

Indicators and Targets

Introduction

In June 2020, the Group announced its support for Task Force on Climate Related Financial
Disclosures (TCFD) recommendations. The societal issue of climate change necessitatesinternational cooperation. As a result, Tokyo Tatemono must also deal with it as a top priority.
We acknowledge the value of disclosing data related to climate change and will seek toincrease such disclosure as suggested by the TCFD. Please also refer to our Sustainability
Report for a full description of our Disclosure Based on TCFD Recommendations.

42

SECTION

04

Human Capital
Human Resource Philosophy

The Company has established the Human Resource Philosophy, which serves as thefoundation for our human resource initiatives with the aim of achieving growth for both theCompany and its employees. Based on the Human Resource Philosophy, we are striving tomaintain and further develop an environment and corporate culture in which employees are
motivated to grow and take on the challenge of creating new value by maximizing theirabilities and encouraging their growth through the formulation and operation of humanresource systems and various measures that encourage and respond to their contributions.

The Company has identified diversity
and inclusion as a material issue. By
promoting the activities of diverse personnel and strengthening organizational
capabilities, we encourage the provisionof products and services that meetincreasingly advanced and diverse
customer needs, the enhancementof productivity, and the creation of
innovation. In this manner, we intend
to realize growth as a company.

Aiming to improve employee growth and job satisfaction, the Company regularly conducts
employee engagement surveys and introduces
various programs that enable flexible workstyles
in an ongoing effort to foster rewarding workplaces that serve as fertile ground for the growthof human resources.

Creation of a
Rewarding
Workplacep. 46

Human Resource Development• We want trustworthy people and people who forge their own paths•W e seek to create a rewarding workplace in which employees can experience growth

Human Resource Policy

Diversity on
Display

Various measures to maximize
human resource value

Communication
Revitalization

HealthManagement

Communication Revitalization
The Company is working hard to revitalize

Employees

Human Resource
Philosophy•Trustworthy people•People who forge their own paths

Creating a rewarding workplacein which employees canexperience growthcommunication in-house with the aim of maintaining
the organizational culture even as the number of personnel expands. Through such measures as lunch
meetings between management and employees, theCompany is also striving to promote a sense of unity

The Company is concentrating on encouraging
a culture of self-directed learning among employees throughthe creation of a rank-based training system as well
as a system that enables them to consider and selectthe knowledge and skills they need through aself-development support system, various qualificationacquisition support systems, and external
dispatch-based training programs.

Health Management

p. 46

To enable our executives and employees to work vigorously and remain physically and mentally healthy, theTokyo Tatemono Group is taking various measures tomaintain and improve the health of each of its executives and employees in accordance with the Group
Health Management Declaration. To this end, theCompany has established indicators and targets for theratio of employees who undergo a health check-ups, thehealth check reexamination rate, the smoking rate, andthe ratio of employees maintaining an appropriate bodyweight.

while maintaining its signature openness.

Data Section

Desired Human Resources

Organization

Human
Resource
Development

The Tokyo Tatemono Group’s
Value Creation Foundations

To put its corporate philosophy of “Trust beyond the era” into practice, Tokyo Tatemono
established its Human Resource Policy, which outlines both its desired human resources
and its ideal workplace. Based on this policy, we constantly strive to improve the work environment. We formulate and implement various human resource measures related to hiring,training, and workstyles. We also conduct employee engagement surveys and 360-degree
surveys to identify potential workplace issues. Through these efforts, we have established avirtuous cycle that yields a workplace in which employees can reach their full potential aswell as realize further growth through their own endeavors and activities. Our overarching
aim is to parlay this cycle into higher corporate value.

Enhancement ofCorporate Values

p. 45

The Tokyo Tatemono Group’s
Value Creation Initiatives

Human Resource Policy

Creation of a Rewarding
Workplace

The Tokyo Tatemono Group’s
Value Creation and Vision

The Company’s growth is tied to its employees’ growth, therefore, weare responsive to their contributions.

p. 45

Diversity on Display

Introduction

Tokyo Tatemono sees human resources both as the source of corporate value creation and the realization of sustainable growth and as an indispensable foundation for management. In our material issues, wetarget improving employee growth and job satisfaction as well as diversity and inclusion. With these issues in mind, we aim to increase corporate value by maximizing the value of human resources.

The Company’s growth is tied to its employees’
growth, therefore, we are responsive totheir contributions.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

43

SECTION

Human Capital

04

Human Resource System and Structure

The following shows the relationship between KPIs based on material issues and measures aimed at
maximizing human resource value. We annually measure KPIs and consider additions and changes ifnecessary.

Promotion of Skills
Development

Human
Resource
Development

General Manager,
Personnel Department

Average training time(in hours)

100

FY2019

100

100

15.8

100
15.2

12.2

FY2020

Health check-up
Reexamination rate
Percentage
rateof smokers
Percentage of employees maintaining an appropriate weight

Career training participation
rate (%)

18.3
14.4

Target: Health check-up rate and reexamination rate:
100% each fiscal year
Smoking rates: 12% or less each fiscal year
Percentage of employees maintaining an appropriate
weight: 75% or higher by FY2028

(%)

100
71.4

FY2022 FY2023

83.7

100
98.0

100
81.5

70.4

72.0

72.9

21.0

17.2

16.0

12.1

13.1

FY2019FY2020

FY2021

FY2022 FY2023

Promotion of Diversity
in Our Workforce

Diversity on
Display

Target: Average annual paid leave utilization rate: 70% or moreeach fiscal year
Ratio of male employees taking parental leave: 30% ormore by FY2025

Target: R atio of women in management positions: 10% or more
by FY2030
Employment rate of people with disabilities: Over thelegally mandated employment rate each fiscal year*

Average annual percentage(%) of paid leave taken

Ratio of women(%) in management
positions

51.2

57.5

18.2

13.0

FY2020

FY2021

67.8

78.1
72.2

50.0
4.8
FY2019FY2022 FY2023

Employment rate ofpeople with disabilities

9.4

7.2

7.2

2.21

2.33

FY2021

FY2022 FY2023

6.0
5.0

1.81

1.75

FY2019FY20202.53

Data Section

57.7

Percentage of childcare
leave taken (men)

The Tokyo Tatemono Group’s
Value Creation Foundations

Creation of a
Rewarding
WorkplaceWork-life Balance

98.3

100

72.8

63.0

FY2021

100

The Tokyo Tatemono Group’s
Value Creation Initiatives

Mitsuo Kawata

The Company is striving to achieve human resource
development and internal working environment
improvement as laid out in its Human Resource Policy,
which itself is in line with its Human Resource
Philosophy, namely, “The Company’s growth is tied toits employees’ growth, therefore, we are responsive totheir contributions.”
To achieve this, the Personnel Department promotes
employee and organizational growth by establishing andoperating various relevant systems, etc., and confirms
the current status of said growth through personnel
interviews, a range of surveys, and other means. We
then work to maximize human resource value byidentifying issues based on changes in the external
environment and the condition of employees and theorganization, when revising the human resource systemand taking various measures.
Over the course of the current Medium-Term Business
Plan, we have focused on strengthening recruitment andoptimizing our human resource portfolio in order toimplement the business strategies set forth in the plan.
We have also focused on employee development andmaintaining and fostering our organizational culture.
On the other hand, we believe that there is still room
to work on KPIs and targets related to human resources
measures based on our material issues.
Under the next Medium-Term Business Plan, we will
formulate human resource strategies more closelyaligned with our business strategies and work hard tobuild a base that enables sustainable growth from ahuman capital perspective.

HealthManagement

The Tokyo Tatemono Group’s
Value Creation and Vision

Target: Average training time per employee:
15 hours or more each fiscal year
Career training participation rate: 100% each fiscal year

Promotion of HealthManagement

Introduction

The Company’s Human Resource (HR) system is the pillar from which its HR measures based on the
HR Philosophy spring. Our HR management system consists mainly of three components: a role
rating system, a management by objectives system, and a behavioral assessment system. We havealso implemented a 360-degree feedback survey for some levels of management to give managers achance to take stock of their own performance as well as put in place measures that facilitate
opportunities for employee growth. Although Tokyo Tatemono’s organizational structure is based on
business divisions, we manage personnel functions on a Group-wide basis and have in place asystem to flexibly allocate the right people to the right jobs.

KPIs and Goals related to HR Measures*At least 2.3% until March 2024, at least 2.5% from April 2024 to June 2026, and at least 2.7% after July 2026.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

44

SECTION

04

Human Capital

Diversity & Inclusion

Employee Engagement Survey

Policy and Approach

Identified
Issue

Need to improve vertical communication
within the Company• Held lunch meetings between management and employees• Covered expenses for employee parties• Created a visualization of employee
data on the in-house social media
platformThrough the actions above, we saw somerevitalization and improvement in communication and a boost in the sense ofcommunity.

MeasuresMovingForwardRecognizing that this is an ongoing issue,
we will continue working to improve communication among ranks. In FY2024, weare aiming to solve the issue by, among
other measures, providing general andsenior managers with training focused on
solving organizational issues and taking
steps to strengthen the bonds between
ranks.

Tokyo Tatemono conducts engagement
surveys with an eye to creating a rewarding workplace that improves on an
ongoing basis. We are striving to enhance
employee motivation and improve thework environment by identifying issues atthe department and branch level, formulating plans, and measuring results.
Regarding Company-wide issues, after
they are reported to management, wework with relevant departments as appropriate to create measures aimed atorganizational improvement.
We have been able to maintain a highscore for the engagement survey andbelieve the state of trust within the organization is strong. However, we are aware of
the issues listed to the left and will continue sharing specific ideas about our visionand taking measures aimed at creating abetter workplace.

Structure
The Group established the Health Management & Diversity Promotion Group within the Company’s
Personnel Department and promotes various diversity- and inclusion-related measures across theentire Group in collaboration with the departments in charge of labor of each Group company.

Specific Initiatives
Recruitment Activities• Recruiting without regard to race or
nationality•E mploying human resources of various nationalities at the local subsidiaries of overseas businesses

Ayako Yunoki
Legal & ComplianceDepartment

Creating a Workplace Where Diverse Human Resources
Can Thrive• Established leave systems that all employees, regardless of gender, can utilize for longterm care, childbirth, pregnancy, and childcare, and established a re-employment
system for former employees.
•E stablished a system to permit employees whose spouses have been sent abroad totake a leave of absence of up to three years.
 romotion of senior human resources to allow them to make use of the experience and•Pknowledge gained in their careers thus far.
•F ostering the success of individuals with disabilities by allowing them to work inaccordance with their skills and traits.
•C onducting training aimed at encouraging understanding of diversity, equity,and inclusion.

Because I gave birth to my first child in 2023, I used the childbirth and childcare
leave systems. During my leave, I was able to spend my time very happily,
watching my child grow and deepening bonds with my family.
In addition, the atmosphere in the workplace was very accepting of my
choice to take leave. It is, of course, important to have systems in place forchildbirth and childcare leave but it is also vital to have a culture that makes it
easy to use those systems. While I was on my childcare leave, I felt there wasan increase in other people, including male employees, taking childcare leave,
and I think we are making good strides toward establishing a work environment
in which it is easy to take childcare leave regardless of sex.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

Results(Sustainability Report 2024)
Diversity & Inclusion pp. 70-72

The Tokyo Tatemono Group’s
Value Creation Foundations

Actions

Personnel
Department

The Tokyo Tatemono Group’s
Value Creation Initiatives

Principal Issue Identified and Actions Taken

Takahiro Ishi

To realize a sustainable society in the face of diversifying values and an era of rapid change, it ismore important than ever to achieve work-life balance and empower diverse human resources,
including women and senior workers. The Group believes that ensuring that no one in the workplace feels hindered and all thrive will support continued corporate growth by facilitating innovation,
the provision of services rooted in a customer perspective, and enhanced productivity.

The Tokyo Tatemono Group’s
Value Creation and VisionTokyo Tatemono has been engaging an outsideorganization to conduct Company-wide
employee engagement surveys every year since2021. The survey findings are shared with management and staff along with explanations of
the rationale behind each question and how tointerpret the results so that they can be used tofacilitate future improvements.
Division and branch managers create solutions for problems within their specific areas
with the help of specialists as required. They
then communicate and execute these solutions
to relevant personnel, creating a problemsolving cycle.

Introduction

Creation of a Rewarding Workplace

45

SECTION

04

Human Capital

Health Management / Occupational Safety and HealthTraining System and Encouragement to Earn Qualifications

Health Management Policy and Approach

Level-Specific Training
Executives
General Managers
Group Leaders
Managers
Assistant Managers

Mandatory training for
newly-appointed
employees during
which skills andconduct expected by
the Company are
reiterated.

Other training and support
Selective training incoaching, leadership,
design thinking,breakthroughs, andother skills development
required for different
management levels.

Training that is designed to aid in the acquisition ofbasic knowledge of management strategies andfinance and strengthening of output capabilities, etc.

Other Employees

Acquisition of basic knowledge of real estate and theCompany
Training that is designed to aid in the acquisition oflogical thinking, etc.

Holders of major certification types*
Real Estate Broker:
715
Real Estate Appraiser:
19
First-Class Architect:95
Urban Renewal Planner:
98
Association for Real Estate Securitization (ARES)
70
Certified Master:* Figures for the Company alone as of March 31,
2024 include employees seconded from Tokyo
Tatemono to outside positions

Goal setting, monitoring, evaluation of achievements, etc.

Personnel Department
Health Management and Diversity
Promotion Group

Sustainability Committee

Health Committee

Health insurance association

Tokyo Tatemono Labor Union

Industrial physicians /Consultant psychiatrist

Tokyo Tatemono Group companies

Third-party organizations

Coordinate

Major Health Management-related
Initiatives

Third-party Evaluation of
Health Management• Seminars and programs run by external experts to lead to good

In March 2024, Tokyo Tatemono and sevengroup companies were certified as Excellent
Health Management Corporations 2024,
marking the seventh time in four consecutive
years that Tokyo Tatemono has been recognized as one of the “White 500” (the top 500
corporations in the health management
survey results).

conditionsof lifestyle diseases

Amount of Investment in Human Resources*（Thousand yen）

77,50575,46175,04963,894 60,904

Supervise•T raining aimed at enhancing healthliteracy and promoting understandingof health issues (FY2023 theme:
preconception care)

Occupational Health and Safety Initiatives
We are supporting a variety of activities aimed at enhancing the occupational safety of our employees in order tofulfill the objective of guaranteeing the comfortable working environment mandated by the Tokyo Tatemono Group
Compliance Manual. Also, management and labor are collaborating to enhance the workplace. In order to createa suitable working environment and working conditions, labor and management engage in extensive discussions
based on the shared understanding that employee health and safety are crucial.

Data Section

Initiatives for the Supply Chain
FY2019 FY2020 FY2021 FY2022 FY2023* Total of expenses related to training conducted by theCompany’s Personnel Department as well as to supporting
the Company’s employees in acquiring qualifications andself-edification

The Tokyo Tatemono Group’s
Value Creation Foundations

Business
Development
Department

Report/ Submit
for discussion

Supervisemeasurement devices and online consultations for people at risk

Tokyo Tatemono provides and continually expands the scope of essential training programs that are designed tofoster the development of an environment in which each employee is able to learn necessary skills and fully
express their unique abilities.
By continually tracking how our investment in human resources helps increase productivity, we are able to create
ever more effective measures.

Satoshi
KurodaBoard of Directors

Chief Health Officer (CHO)
and Chairperson of the Sustainability Committee•S pecific health guidance using an app synchronized with

Investment in Human Resources

Utilizing the Company’s support
system, I took a course at a businessschool three years ago. Balancing
work and school was very difficult,but I had the backing of people at myworkplace and was able to complete
my studies without a problem.
Leveraging my experience from theschool, I challenged myself in new
areas in the Business Development
Department, for example, joining theprivate finance initiative (PFI) projectat Meiji Metropolitan Park.

Health Management Promotion System

The Tokyo Tatemono Group’s
Value Creation Initiatives

Senior Employees• Global Training• Business schools, cross-industry training, etc.
Externally, there are self-edification initiatives
accompanied by review• Support for the acquisition of various
certifications to strengthen expertise

To enable our executives and employees to work vigorously and remain physically and mentally healthy, the Tokyo
Tatemono Group has designated the president as the Chief Health Officer (CHO) and strives to ensure that each of
its executives and employees are able to maintain their health and improve it if necessary in accordance with theGroup Health Management Declaration.
The Tokyo Tatemono Group’s
Value Creation and VisionTokyo Tatemono has designed a rank-based training system with the goal of identifying responsibilities and honing
abilities in line with each employee’s stage of development. We also rotate our employees between three departments during the course of their first ten years with the Company in order to provide them a broad perspective
and experience. In addition, we are concentrating on encouraging a culture of self-directed learning through thecreation of a system that enables people to consider and select the knowledge and skills they need through aself-development support system, various qualification acquisition support systems, and external dispatch-based
training programs.

Introduction

Human Resource Development Initiatives

Regarding the supply chain, based on the Sustainable Procurement Standards, we will continue promoting
initiatives to maintain and improve health, including for suppliers, through healthy labor practices and labor
environments.
(Sustainability Report 2024) Health Management /Occupational Safety and Health pp. 65-69

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

46

SECTION

04

Social Initiatives

Introduction

Respect for Human Rights
Policy and Approach

Human Rights Due Diligence
The Group conducts human due diligence based on the Tokyo Tatemono Group Human Rights

Guiding Principles on Business and Human Rights. Accordingly, we promote initiatives related to

Policy. As a part of its diligence efforts, the Group uncovers human rights issues and then identi-

the human rights of all stakeholders related to the Group’s businesses, such as the prohibition offies those that should be prioritized. If we anticipate negative effects on human rights, we takeforced labor and child labor as well as the prohibition of harassment and discrimination due toprevention and mitigation measures, monitor the effectiveness of the measures, and improve thesuch factors as race, nationality, beliefs (including religion), sex, sexual orientation, age, social

measures as necessary.

standing, or background.
We are keenly aware of the importance of respecting the human rights of all our stakeholders
related to our businesses. By releasing the policy on the Company’s website, we clearly commuhuman rights.

Human Rights Priority Issues• Forced labor and child labor• Discrimination and harassment• Impact on local communities• Employee working conditions
and working environment• Health and safety• Supplier working conditions
and working environment• Rights to privacy(Sustainability Report 2024) Respect for Human Rights pp. 45-49

SystemThe Group pursues initiatives that promote human rights in tandem with relevant departments andInitiatives for Human Rights
Participation in initiatives undertaken by the construction andreal estate industries

headed by the Sustainability Committee and its subordinate Human Rights Subcommittee.

The Group proactively engages in dialogue
with stakeholders based on the advice of
external experts on human rights.

In its initiatives promoting respect forhuman rights, the Group recognizes
that it is important to improve humanrights related awareness among management and employees and tocontinuously conduct human rights
training to this end.
Furthermore, in the real estateindustry, there are human rights issues
specific to the industry, including thoserelated to land, such as discrimination
targeting historically marginalized
communities. We continuously conduct
training to gain a proper understandingof the issues and ensure appropriate
responses in an effort to prevent situations that might lead to human rights
violations.

We are participating in a human rights
due diligence promotion committee
involving nine construction and realestate companies.
This committee conducts researchand studies aimed at identifying andaddressing industry-specific humanrights impacts. Its aim is to ensure thatits members fulfill their responsibility
to avoid violating the human rights ofothers and put in place measures toprevent, mitigate, and remediate negative impacts on human rights asoutlined in the United Nations Guiding
Principles on Business and Human
Rights.

The Sustainability Committee formulates human rights and other policies, establishes systems,
sets indicators and targets related to human rights, and deliberates and discusses specific initiatives while monitoring and evaluating the status of initiatives, the level of progress, and achievementof targets. The Human Rights Subcommittee holds discussions to promote initiatives based on
the Human Rights Policy and human rights due diligence and shares the level of progress.
Important matters deliberated and discussed at the committees are reported to the Board of
Directors or added to its agenda, and initiatives related to human rights are supervised by the
Board of Directors.
Structure p. 36•Company employees: Engage indialogue in the form of compliancesurveys and regular interviews with
the Personnel Department•Suppliers, including construction
companies and building management companies: Engage in dialogue in the form of surveys andresponse to resulting feedback•Local communities and surrounding residents: Engage in dialogue inthe form of briefings on real estatedevelopment and social gatherings
related to operations

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

Initiatives to make policy known
Company-wide

The Tokyo Tatemono Group’s
Value Creation Foundations

Dialogues with stakeholders

Group companies and with the continuous support of external experts. These efforts are spear-

The Tokyo Tatemono Group’s
Value Creation Initiatives

nicate to said stakeholders that they can expect us to pursue initiatives that promote respect for

The Tokyo Tatemono Group’s
Value Creation and Vision

We created the Tokyo Tatemono Group Human Rights Policy based on the United Nations

47

SECTION

Social Initiatives

04

Supply Chain Management(Sustainability Report 2024) Supply Chain Management pp. 50–51

SystemRisk Assessment when Entering New Overseas Businesses

Supply Chain Management PDCA

Plan

Do

Formulate and revise the Sustainable
Procurement Standards

Disclose and ingrain the Sustainable
Procurement Standards

Prior to undertaking any new project overseas, the Company employs a check sheet to determine
human rights and other risks at the time of entering into business in the specified country. We also
work to ensure the Sustainable Procurement Standards are included in agreements concluded withjoint venture partners.

The Tokyo Tatemono Group’s
Value Creation Foundations

Structure p. 36

The Tokyo Tatemono Group’s
Value Creation Initiatives

The Group promotes initiatives related to supply chain management with efforts spearheaded by
the Sustainability Committee. We continually formulate and revise the Sustainable Procurement
Standards, identify important suppliers, deliberate and discuss important policies related to supply
chain management, and monitor and evaluate the status of initiatives based on these policies.
Important matters deliberated and discussed by the committee are reported to the Board of
Directors or added to its agenda as the Board oversees overall supply chain management.
Moreover, with the support of external experts, we hold dialogues with major Group suppliers andexchange information with industry peers regarding these initiatives. We also promote these
initiatives in collaboration with relevant departments and Group companies.

In May 2021, the Group formulated the Group-wide Sustainable Procurement Standards for all suppliers
working with the Group. These standards promote initiatives across the entire supply chain to ensure compliance with laws and regulations, respect for human rights, and labor safety and health while also ensuring
the prevention of corruption and realization of sustainable procurement that is mindful of environmental
conservation. In 2023, we formulated and posted on our website our Sustainable Procurement Standards
Guidelines. Furthermore, to determine the status of awareness and compliance of the procurement
standards among our suppliers, we conducted a survey of construction companies and building management companies.
Regarding the application of the procurement standards, we identify major suppliers based on suchfactors as the amount of trade measured in monetary terms, the level of impact they would have on the
Company’s reputation if they were to violate the procurement standards, and their ability to ensure
continuity of trade with the Company. In particular, when selecting a construction company as a major supplier, we avoid supply chain risks by requiring the signing of a construction subcontractor agreement stipulating compliance with the procurement standards and consent to a credit survey before any orders
are submitted.
The Company holds dialogues with these suppliers on an ongoing basis through surveys, feedback,interviews, and hearings. When an issue is found in the supply chain, the Company strives to address it.
We continuously monitor the status of improvement and take further improvement measures when needed.

The Tokyo Tatemono Group’s
Value Creation and Vision

The Tokyo Tatemono Group collaborates with construction companies, building management companies, and many other suppliers to promote its business. There are calls to realize sustainableprocurement by, for example, exercising environmental awareness and respect for human rights,
not only at the individual company level but also for the entire supply chain. To this end, we areworking to establish a sustainable supply chain based on the impact of suppliers on the environment and society.

Application of Sustainable Procurement Standards

Introduction

Policy and Approach

The Tokyo TatemonoGroup’s Supply Chain
Management

Check• Take improvement measures for issues• Monitor the status of improvement• Undertake further improvement measures• Assess the status of action taken by
suppliers

Data Section

Action• Identify issues in the supply chain

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

48

SECTION

04

Messages from External Directors

Shuichi Hattori

Yoshimitsu Onji

External Director

External Director

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

extent to which President & CEO Nomura
has demonstrated his commitment to thepersonal strengths he has trumpeted.
The other issue is the need for meticulous
business portfolio analysis. When thinking
about the direction Tokyo Tatemono will takeover the next five to ten years, what is the
structure of the business portfolio theCompany will leverage to grow and compete,including the composition of new pillars ofbusiness? For example, I think the management meetings and Board of Directors needto examine the businesses currently lumped
together as “other businesses” and takesuch steps as developing separate categories despite low net sales, spinning somebusinesses off, or entering new businessareas. Some existing businesses, like hotels,
may have room for expansion while others
may provide opportunities for new ventures.
It is my firm belief that as Japan’s oldest realestate company, Tokyo Tatemono has finallyreached a position that allows it to reallyleverage the expertise and management
resources it has accumulated over a periodof more than a century as well as theexperience and knowledge it has gainedin overcoming a plethora of economic
upheavals.

The Tokyo Tatemono Group’s
Value Creation Foundations

Unlike the boisterous, combative sessions
involving entire boards that I observed in myprevious appointments at The Daiei, Inc. andRECOF Corporation, the discussions thatTokyo Tatemono’s Board of Directors engage
in are characterized by the members’ ability
to talk with each other with mutual respect.
Moreover, since the previous fiscal year, there
have been opportunities, including at Board
meetings, to freely discuss overallmanagement as well as specific medium- tolong-term management issues, leading toactive sessions. As someone who has been
employed as an outside director for six years,
I offer high praise for this rapid progress.
As for management issues, I can think of
two. The first is human capital management.
The development of personnel, specificallythe nurturing of managers, is indispensable
to the Company’s ability to deal with the turbulent changes that could upset the realestate industry going forward. The
Company’s existing development methods
are a part of that, but, in my experience, itwill be necessary to think about how much
top management, including the presidents ofaffiliates, has grown operating results and thenumber and effectiveness of management
decisions. This may be measured against the

The Tokyo Tatemono Group’s
Value Creation Initiatives

this regard, each of the Company’s external
directors boasts a high level of expertise. In
addition, internal directors have a wide range
of interests outside of their areas of responsibility and are open to considering and utilizing
the opinions of external directors. We recognize that this competence and flexibility contribute to the vigorous discussions of theBoard of Directors.
Although I myself specialize in corporate
legal affairs, I am particularly conscious of
speaking from a multifaceted perspective,
and strive to utilize not only my knowledge ofthe law but also the knowledge I have gained
from my experience as a member of audit
and supervisory type boards at a numberof companies.
Keeping in mind the role of external directors in supervising management, I willcontinue to make use of my expertise as an
attorney to address the legality of corporate
activities and risk avoidance, while keeping akeen eye on trends in stock markets, interest
rates, and exchange rates as well as making
proposals from the perspective ofcorporate management.

The Tokyo Tatemono Group’s
Value Creation and Vision

Nurturing managers andmeticulously analyzing thebusiness portfolio will be key
to the next Medium-TermBusiness Plan

Introduction

With the exception of reports on quarterly
financial results and other issues, I believethat the primary role of the Company’s Boardof Directors when I became an external Audit& Supervisory Board member in 2015 wasthat of a decision-making body for significant
company activities.
In June of that same year, the enactmentof the Corporate Governance Code triggereda trend toward stronger governance and theCompany responded by establishing theNomination and Remuneration Advisory
Committee in 2016. The Board of Directors
has steadily strengthened its functions sincethen with the introduction of a board benefit
trust scheme in 2018 and the establishmentof the Management Discussion Board
in 2023.
As a result, the current Board of Directors
now engages in substantive discussions froma medium- to long-term perspective on the
direction the Company should take, including
its management policy, SDGs, capitalefficiency, and shareholder returns.
Personnel with expertise and multifaceted
opinions are indispensable to ensuring productive medium- to long-term discussions. In

Aiming to contribute to thesupervisory function withregard to management from amultifaceted perspective thatis not limited to legal affairs.

49

SECTION

Messages from External Directors

The Human Resources Strategy
requires a bold shift in thinking
and an emphasis on whatmakes the Company unique

Takeo Nakano

Yumiko Kinoshita

External Director

External Director

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

From the perspective of nurturing humanresources, rather than, for example, focusing
exclusively on the common issue of there notbeing enough women in management positions, it may be better to consider the fostering
approach, i.e., creating an environment inwhich women in management positions canbe nurtured and their numbers can increase.
In terms of human resource allocation, we
need to think not only from a business perspective, such as considering ways of
improving efficiency or expanding business,but also from a perspective that takes into
consideration generational variations invalues and the impact of recent lifestylechanges, as well as how the Company canhelp individual employees achieve the work
style they desire.
As with the business strategy, we believethat nurturing the characteristics that makethe Company unique is key to theCompany’s Human Resources Strategy.
Having worked with a variety of humanresources across multiple industries, I would
like to proactively suggest changes to theBoard of Directors.

The Tokyo Tatemono Group’s
Value Creation Foundations

We believe that the Human Resources
Strategy is an area of future corporate management that should be addressed with thesame emphasis, flexibility, and forward thinking as information and technology. Therefore,
the discussion of the next medium-termbusiness plan, along with the Company’sbusiness strategy, will focus on how tosecure the human resources needed to realizethat strategy. It is important to be aware of
the importance of digging deeper into thefundamental questions when it comes tosecuring human resources, such as “Whatkind of human resources do we need?”“How necessary are they?” and “Do we hirepeople who already have the skills we needor nurture such skills in house?”
I believe the Company’s current hiring
process emphasizes candidates’ suitability
vis-à-vis the Tokyo Tatemono culture.
However, it is important to create an environment that enables each and every employee
to understand the Company’s unique corporate culture in terms of its mission andvalues. I believe that the Company should
also consider hiring new employees from theviewpoint of incorporating diverse ideas.

The Tokyo Tatemono Group’s
Value Creation Initiatives

developing future plans can also be foundthrough this process. I would like toencourage everyone to take a fresh look at
the issues.
Finally, we believe that to strengthen ourability to respond to management issues,
including sustainability and risk management,
the right people must be allocated to theright jobs within administrative divisions. The
Company has grown rapidly over the past
few years and has devoted a large number of
its personnel to its Business Department.
While it is commendable that the current
structure has been established with staff in
administrative divisions limited to the minimum needed, we believe that in order toenhance function, it may be necessary toallocate more personnel, i.e., the right people
to the right jobs.
This year is important in terms of concluding the current medium-term business planand formulating the next one, a task that willfurther test the effectiveness of the Board of
Directors. I will continue to maintain myindependence and objectivity, speak as arepresentative of the stakeholders, andcontribute to improving the effectiveness of
the Board of Directors.

The Tokyo Tatemono Group’s
Value Creation and Vision

Aiming to further enhance theeffectiveness of the Board of
Directors as it formulates thenext medium-term business plan

Introduction

Since 2021, when I took on the role of an
external director, a lot of effort has been
made to enhance effectiveness, for example,
the follow-up system has been improved andexternal directors are provided with priorexplanations in advance of meetings even
earlier than before. In addition, the criteria forboard meeting agenda items has beenrevised, shifting to focus on medium- to longterm agenda items. Moreover, in 2023, theCompany established the Management
Discussion Board, which is beginning tofunction effectively as a forum in whichinternal and external directors can exchange
views in an interactive manner.
On the other hand, we expect further
enhancement in the following three areas andhave made recommendations for such to theBoard of Directors.
First, the Board of Directors should further
enhance discussions on investment policy
and business portfolio construction, sustainability and risk management, and medium- tolong-term prospects.
Next, when reviewing strategies and measures, there should be an organization anddiscussion of not only positive outcomes, butalso shortcomings. Issue identification is abasic part of business and many hints for

04

50

SECTION

04

Corporate Governance

Policy and Concept

Corporate Governance StructureInternal
Officers

External
Officers
Appoint/
Dismiss

General Meeting of Shareholders
Appoint/Dismiss

ReportInternal Officers: 3 (all male)External Officers: 4(3 male and 1 female)
Chair: Representative Director President &Chief Executive Officer

Financial
Statement
Audit

Cooperation

ReportNomination and Remuneration
Advisory Committee: 7

Financial Statement
AuditorAppoint/
Dismiss

Dismiss

Board of Directors (Directors): 12

Audit & Supervisory Board

Internal Officers: 8 (all male)External Officers: 4(3 male and 1 female)
Chair: Representative Director andChairman of the Board(Audit & Supervisory Board
members): 4

Audit
Cooperation

PresidentInternal Audit Department

The Tokyo Tatemono Group’s
Value Creation Foundations

Appoint/
Dismiss

AdviseInternal Officers: 2 (all male)External Officers: 2(1 male and 1 female)
Chair: Board member (full-time)

The Tokyo Tatemono Group’s
Value Creation Initiatives

Tokyo Tatemono has selected a Company with Audit& Supervisory Board format as its corporate management system. In addition, we have established a
Board of Directors, an Audit & Supervisory Board,and a Nomination and Remuneration Advisory
Committee, which acts as an advisory body to theBoard of Directors. Our executive officer systemclarifies the separation of functions between management and business execution. Furthermore, we
appoint external directors and external Audit &Supervisory Board members who help us operate
under stronger management supervision and ensuretransparency. This system ensures effective supervision and supervisory functions with regard to
management and also to business execution bydirectors of the Company.
Regarding Group governance, to heighten the efficiency of Group management and achieve synergies
among all members, we also make a contractual
agreement with each Group company based on theGroup Business Management Standards. By settingout and informing each company of conditions suchas items subject to prior approval and items to bereported to the Company, we are working to reinforce Group headquarters functions and clarifying our
engagement guidelines with each Group company.

Corporate Governance Structure

The Tokyo Tatemono Group’s
Value Creation and Vision

Based on our corporate philosophy of “Trust beyond
the era,” Tokyo Tatemono is striving to build optimal
corporate governance, with the primary aim ofenhancing efficiency while ensuring the soundness
and transparency of management, in order toachieve sustainable growth and increase corporate
value over the longer term. In addition, we actively
and appropriately disclose information to ensure thatshareholders and other stakeholders are able to gain
an accurate understanding of the Company’sbusiness activities.
We have also identified the advancement ofgovernance as a material issue to achieve theGroup’s long-term vision. We are promoting
measures to improve profitability and the objectivityof management, such as further enhancing thegovernance framework, in order to achieve the vision.

Structure

Introduction

The Tokyo Tatemono Group’s Corporate Governance

Characteristics
The characteristics of corporate governance at Tokyo Tatemono are as follows.

Executive Committee• The Chair of the Board of Directors is a non-executive officer• It has a Nomination and Remuneration Advisory Committee

Sustainability Committee

Business Divisions/Departments

Tokyo TatemonoInternal Control
Committee

Audit

Data Section• It is a Company with Audit & Supervisory Board

Risk Management
Committee• Four of its 12 directors are independent external directors• It has an Internal Control Committee, a Risk Management Committee, and a Sustainability Committee

Tokyo Tatemono Group

Group Companies

Audit

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

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Corporate Governance04

Main Organizational Structures and Roles

Sustainability Committee (Number of Meetings in FY2023: 5)
The Sustainability Committee is chaired by the Representative Director
President, and Chief Executive Officer, comprises mainly executive
officers concurrently serving as directors, and promotes sustainability
measures all across the Group. Moreover, matters deliberated by thecommittee are reported to the Board of Directors, who act as asupervising body.
A Sophisticated Approach to ESG Management p. 36

Criteria for the Independence ofIndependent External Directors
Tokyo Tatemono deems external directors to be independent when, in
addition to meeting the criteria for independence stipulated by Tokyo
Stock Exchange,* they do not fall under any of the categories shown below:
1. A business partner of Tokyo Tatemono that accounts for 2% or moreof the Company’s consolidated net sales in the most recent fiscal year
or a person executing business on behalf of such partner
2. A shareholder of the Company that holds more than 10% of the total
number of voting rights of the Company or a person executing
business on behalf of such shareholder
3. A representative, member, or employee of an auditing firm employed
as the financial statement auditor for the Company
4. A consultant, accounting professional, or legal professional who hasreceived remuneration (excluding director remuneration) of more than
10 million yen from the Company in the most recent fiscal year

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section* From Tokyo Stock Exchange standards: Guidelines III 5, (3) 2 relating to the listing
management, etc. Rule 436-2: Examination to ensure effectiveness.

The Tokyo Tatemono Group’s
Value Creation Foundations

Executive Committee (Number of Meetings in FY2023: 43)
The Executive Committee is chaired by the Representative Director,
President and Chief Executive Officer, comprises mainly executive officers
concurrently serving as directors, and deliberates key matters related tothe management of the Company, subsidiaries, and associates. In addition, full-time Audit & Supervisory Board members attend committee
meetings and offer opinions as needed.

Risk Management p. 59

The Company comprehensively assesses candidates’ character, abilities,
expertise, experience, and other factors and then nominates people who
possess qualities that help enhance the Group’s medium- to long-term
corporate value as candidates for directors and Audit & Supervisory
Board members. The lengths of the terms directors and Audit &Supervisory Board members serve have been set in the Articles ofIncorporation at two years for directors and four years for Audit &Supervisory Board members.
With regard to nominations, to ensure an appropriate level of engagement with external directors, the Board of Directors reaches its
resolutions regarding nominations once it has received the results ofdeliberations by the Nomination and Remuneration Advisory Committee,
a majority of which comprises external directors.

The Tokyo Tatemono Group’s
Value Creation Initiatives

Nomination and Remuneration Advisory Committee (Number of
Meetings in FY2023: 4)
The Nomination and Remuneration Advisory Committee was established
as an advisory body for the Board of Directors to deliberate such mattersas the remuneration of directors and the selection and dismissal of
director candidates and the representative director. Committee members
are selected from among directors, and the Representative Director,
President and Chief Executive Officer serves as chair. In addition, thecommittee utilizes the expertise and advice of external directors. To
ensure the objectivity and transparency of proceedings, the total numberof members is limited to seven and the majority must be external
directors.

Risk Management Committee (Number of Meetings in FY2023: 3)
The Risk Management Committee controls risk management and compliance for the Group. The committee is chaired by the Representative
Director, President and Chief Executive Officer and comprises mainly the
Chairman of the Board, division directors, vice division directors, officersof the Corporate Planning Department, and general managers of thecorporate departments. In addition, full-time Audit & Supervisory Board
members attend committee meetings and offer opinions as needed.
Matters deliberated by and reported to the committee are reported to theBoard of Directors, and matters corresponding to agenda items for Boardof Directors meetings are added to the agenda as needed.

Policies and Term Periods

The Tokyo Tatemono Group’s
Value Creation and Vision

Audit & Supervisory Board (Number of Meetings in FY2023: 16)
The Audit & Supervisory Board comprises four Audit & Supervisory Board
members, two of whom are external Audit & Supervisory Board members. A full-time Audit & Supervisory Board member chairs the board,and the board receives reports on key matters related to audits, hold discussions, and makes resolutions. Audit & Supervisory Board members
attend Board of Directors meetings and Executive Committee meetings,
offer opinions as needed, regularly receive reports from financial
statement auditors, departments, and other bodies, and occasionallyexchange opinions and information with various parties. In addition, there
are no particular conflicts of interest between the Company and external
Audit & Supervisory Board members.

Internal Control Committee (Number of Meetings in FY2023: 2)
The Internal Control Committee strives to evaluate, improve, and enhance
the internal control systems of the Group. The Committee is chaired by
the Representative Director, President and Chief Executive Officer andcomprises mainly the Chairman of the Board and officers of the
Corporate Planning Department. In addition, full-time Audit & Supervisory
Board members attend committee meetings and offer opinions as needed.

Introduction

Board of Directors (Number of Meetings in FY2023: 14)
The Board of Directors is chaired by the Representative Director andChairman of the Board who is not a managing officer and comprises 12
directors, four of whom are external directors. The board resolves key
matters related to business execution, namely, management policies andthe policy on acquiring large-scale investment projects, and supervises
the business execution of directors. As a general rule, the Board of
Directors holds ordinary meetings once a month and extraordinary
meetings as needed.
In addition, Audit & Supervisory Board members attend Board of
Directors meetings and offer opinions as needed.

Selection and Nomination of Audit& Supervisory Board Members

52

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Corporate Governance04

Status of External Officers (As of March 31, 2024)

Title
Director

Shuichi Hattori

Yoshimitsu Onji

Director

Takeo Nakano

Director

Yumiko Kinoshita

Board member

Hattori General Law Firm

LawyerCEONIHON CHOUZAI Co., Ltd.

External Director

United Foods International Co., Ltd.

External Audit & Supervisory Board Member

Sotetsu Holdings Co., Ltd.

External Director

Sanyu Appraisal Corporation

External Director

FUJIYA CO., LTD.

External Director

Shouohkai Foundation

Chairman——

OMOTESANDO SOGO LAW OFFICE

LawyerInstitution for a Global Society Corporation

External Audit & Supervisory Board Member

Sayaka Hieda

Koa Audit Corporation
Board member

Reasons for Appointment
Mr. Shuichi Hattori was appointed as an external director with the expectation that he will leverage his expertise and experience to help strengthen
the governance system, including overseeing the execution of the duties of directors from an independent point of view.

OZ Corporation

Chikada Certified Public Accountant Office

Audit & Supervisory

Concurrent Title

Naohiro Chikada

Mr. Yoshimitsu Onji was appointed as an external director with the expectation that he will leverage his wealth of experience and wide-ranging
insight as a management to help strengthen the governance system, including overseeing the execution of the duties of directors from an independent point of view.

Mr. Takeo Nakano was appointed as an external director with the expectation that he will leverage his wealth of experience and wide-ranging
insight as a management to help strengthen the governance system, including overseeing the execution of the duties of directors from an independent point of view.
Ms. Yumiko Kinoshita was appointed as an external director with the expectation that she will leverage the international experience she developed
working overseas and her diverse business experience in public-trust corporations to help strengthen the governance system, including overseeing
the execution of the duties of directors from an independent point of view.
Ms. Sayaka Hieda was appointed as an external Audit & Supervisory Board member because her expertise and experience as a lawyer are
expected to help strengthen the Company’s audit operations from an independent point of view.

Head·Certified Public Accountant (CPA)·Tax Accountant
Representative PartnerCEOSKIYAKI Inc.

External Director (Audit & Supervisory Committee Member)

Mitsubishi Research Institute DCS Co., Ltd.

External Audit & Supervisory Board Member

FEED ONE CO., LTD.

External Audit & Supervisory Board Member

SKIYAKI LIVE PRODUCTION Inc.

External Audit & Supervisory Board Member

Mr. Naohiro Chikada was appointed as an external Audit & Supervisory Board member with the expectation that he will help strengthen the
Company’s audit operations from an independent point of view by leveraging his expertise and experience as a CPA and tax accountant.

The Tokyo Tatemono Group’s
Value Creation Foundations

Chiyoda Accounting Corporation

Support System for External Directors and External Audit & Supervisory Board Members
Highlights

Establishment of the New Management Discussion Board

To enhance the effectiveness of the Board of Directors by increasing the number of substantive discussions andexchanges of opinions, the Company established the new Management Discussion Board in 2023 as a place
separate from board meetings to hold a broad range of discussions on key management issues and medium- tolong-term themes. The Management Discussion Board comprises 12 directors, four of whom are external
directors, and four Audit & Supervisory Board members, two of whom are external. Board members andemployees in other departments relevant to the themes to be discussed may also attend as necessary. In 2023,
after holding several discussions on the theme of taking action to realize management that is mindful of capitalcosts and share price, the Board of Directors passed a resolution to establish the meeting, and disclose it as an
initiative aimed at enhancing corporate value.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

The Corporate Planning Department provides explanations and information as necessary tosupport external directors. The Department also serves as secretariat for the Board of Directors.
For the purpose of ensuring smooth proceedings and lively debate at Board Meetings, we conduct
pre-meeting briefings for all external directors and external Audit & Supervisory Board members
regarding Board Meeting agenda items. In addition, we strive to promote greater understandingof our business in part by regularly conducting property tours.
At the request of the Audit & Supervisory Board, we assign personnel to serve as staff for externalboard members to encourage the smooth execution of audit procedures. To enable full-time Audit &Supervisory Board members to acquire information needed to perform their duties, we have established a system that ensures they can attend Board of Directors and Executive Committee meetings,
receive regular reports from financial statement auditors and various departments, and exchange
opinions with these parties whenever necessary.

The Tokyo Tatemono Group’s
Value Creation Initiatives

Audit & Supervisory

Concurrent Workplace

The Tokyo Tatemono Group’s
Value Creation and Vision

Director

Name

Introduction

Significant Concurrent Positions Outside the Company and Reasons for Selection

53

SECTION

Corporate Governance04

Status of Board of Directors
Introduction

Timeline of Strengthening Functions at Board Meetings

Board of Directors and Its Composition

Tokyo Tatemono has incrementally upgraded its

The Board of Directors comprises 12 directors and held 14 meetings in 2023.

governance structure to strengthen corporate(Average Board Meeting Attendance Rate: 99%)

governance functions. Going forward, we willcontinue promoting initiatives aimed at building

2022
2021

2018
2016

Percentage of External Directors

Percentage of Director Positions Held by Women

External directors

Female41• Established the Risk Management Committee• Revised the monetary standards of the agenda
items for Board of Directors meetings• Established the Sustainability Committee

4/12

1/12

33%

8%

The Tokyo Tatemono Group’s
Value Creation Initiatives

2020• Established the Management Discussion Board• Introduced a stock-based remuneration system• Established the Nomination andRemuneration Advisory Committee• Began evaluating the effectiveness of theBoard of Directors

Internal directors

Male

8

11

The Tokyo Tatemono Group’s
Value Creation and Vision2023

optimal corporate governance.

Expertise and Experience of Directors (Skill Matrix)

Position in the Company

GenderRepresentative director

Male

Representative directorMaleness execution and needs to oversee the execution of duties of directors.

Katsuhito Ozawa

Representative director

Male

With regard to the composition of the Board of Directors, we strive to

Akira Izumi

Representative director

Malemaintain a balance of diversity in terms of knowledge, experience, skills,

Hideshi Akita

DirectorMaleand other factors to ensure that discussions held at board meetings are

Takeshi Jinbo

Director

Male

Shinjiro Kobayashi

Director

Male

Fumio Tajima

DirectorMale

the long-term vision and Medium-Term Business Plan, the Company has

Shuichi Hattori

Independent external director

Male

compiled a skill matrix in which a set of skills (expertise and experience)

Yoshimitsu Onji

Independent external director

Malethat directors should possess to ensure that the Board of Directors func-

Takeo Nakano

Independent external director

Maletions more effectively are set out.

Yumiko Kinoshita

Independent external director

FemaleBoard of Directors passes resolutions on key matters related to its busi-

useful and multifaceted. Also, to ensure its effective and efficient
functioning, we maintain the Board of Directors at an appropriate level interms of size. To facilitate the realization of materiality initiatives as well as

Finance andAccounting

Legal,
Complianceand RiskManagement

Sustainability

Real estateBusiness and
Urban
Development

Overseas
Business

ICT
andDigitalHuman Resourcesand Human
Resource
Development

Data Section

Makio Tanehashi
Hitoshi Nomura

Regarding the implementation of management strategies, the Company’s

Corporate
Management

The Tokyo Tatemono Group’s
Value Creation Foundations

Policy on Skills of Directors

NameTOKYO TATEMONO GROUP INTEGRATED REPORT 2024

54

SECTION

Corporate Governance04

Management Structure (As of March 31, 2024)
Makio Tanehashi

Katsuhito Ozawaof Board of Directors meetings
Hideshi Akita Number
attended in FY2023: 14/14

Representative Director and Chairman of the Board

Representative Director
Senior Managing Executive Officer

Senior Managing Executive Officer and Director

Number of Board of Directors meetings attended in FY2023: 14/14
Number of Nomination and Remuneration Advisory Committee
meetings attended in FY2023: 4/4

Number of Board of Directors meetings attended in FY2023: 14/14

April
1987 Joined the Company
March 2007 General Manager of Residential Management Business Department of the Company
2009 Director and General Manager of Finance Department of Tokyo Realty Investment Management, Inc.
July
March 2015 Managing Officer and General Manager of Corporate Planning Department of the Company
January 2017	Managing Executive Officer; Division Director of International Business Division and Leisure Business Division;
General Manager of Finance Department and International Business Department of the Company
March 2017	Managing Executive Officer and Director; Division Director of International Business Division and LeisureBusiness Division; General Manager of Finance Department and International Business Department of
the Company
August 2017	Managing Executive Officer and Director; Division Director of International Business Division and LeisureBusiness Division; General Manager of International Business Department of the Company
January 2019	Managing Executive Officer and Director; Division Director of International Business Division; General Manager
of International Business Department of the Company
January 2021	Senior Managing Executive Officer and Director; Division Director of International Business Division; Division
Director of Commercial Properties Division of the Company
April
2021	Senior Managing Executive Officer and Director; Division Director of Commercial Properties Division of
the Company
January 2023	Senior Managing Executive Officer and Representative Director; Division Director of Commercial Properties
Division of the Company (to present)of Board of Directors meetings
Takeshi Jinbo Number
attended in FY2023: 13/14

Managing Executive Officer and Director

April1988 Joined the Company
January 2015 General Manager of Acquisitions Department of the Company
January 2018 Managing Officer and General Manager of Acquisitions Department of the Company
January 2019	Managing Officer; Vice Division Director of Residential Development Division; General Manager of Acquisitions
Department of the Company
January 2021 Managing Executive Officer; Vice Division Director of Residential Development Division of the Company
March 2021	Managing Executive Officer and Director; Vice Division Director of Residential Development Division of
the Company
January 2022 M
 anaging Executive Officer and Director; Vice Division Director of Residential Development Business Division*1of the Company (to present)

The Tokyo Tatemono Group’s
Value Creation Initiatives

1979 Joined The Fuji Bank, Limited
2006 Executive Officer; General Manager of Internal Audit Division of Mizuho Corporate Bank, Ltd.
2008 Managing Executive Officer; Officer in charge of Sales of Mizuho Corporate Bank, Ltd.
2011 Deputy President & Executive Officer; Officer in charge of Branches Department of Mizuho Bank, Ltd.
2011	Representative Director, Deputy President & Executive Officer; Officer in charge of Branches Department ofMizuho Bank, Ltd.
March 2013 President & Chief Executive Officer of Tokyo Tatemono Real Estate Sales Co., Ltd.
July
2015	Senior Managing Executive Officer and Division Director of Real Estate Solution Service Division of
the Company
March 2016	Senior Managing Executive Officer, Director; Division Director of Real Estate Solution Service Division; Division
Director of International Business Division of the Company
January 2017	Representative Director, Chairman of the Board and Executive Officer of the Company; Director and Chairmanof Tokyo Tatemono Real Estate Sales Co., Ltd.
March 2019	Representative Director and Chairman of the Board of the Company (to present)
January 2021 Director of Tokyo Tatemono Real Estate Sales Co., Ltd. (to present)
March 2023 External Director of Sapporo Holdings Limited. (to present)

April
1987 Joined the Company
March 2006 General Manager of Residential Management Department of the Company
January 2016 Managing Officer and General Manager of Personnel Department of the Company
January 2017 Managing Officer and Vice Division Director of Residential Development Division of the Company
January 2019 Managing Executive Officer and Division Director of Residential Development Division of the Company
March 2019	Managing Executive Officer and Director; Division Director of Residential Development Division of
the Company
January 2023	Senior Managing Executive Officer and Director; Division Director of Residential Development Division; Division
Director of Real Estate Solution Service Business Division of the Company (to present)

The Tokyo Tatemono Group’s
Value Creation and Vision

April
March
April
June
June

Introduction

Directorsof Board of Directors meetings
Shinjiro Kobayashi Number
attended in FY2023: 11/11*
2

Akira Izumi

Representative Director
President and Chief Executive Officer

Representative Director
Senior Managing Executive Officer

Number of Board of Directors meetings attended in FY2023: 14/14
Number of Nomination and Remuneration Advisory
Committee meetings attended in FY2023: 4/4

Number of Board of Directors meetings attended in FY2023: 14/14
Number of Nomination and Remuneration Advisory Committee meetings
attended in FY2023: 4/4

April
1988 Joined the Company
March 2015 General Manager of Business Planning Department of Commercial Properties Division of the Company
January 2018 Managing Officer and General Manager of Urban Development Department of the Company
January 2022	Managing Officer; General Manager of Urban Development Department (1) of the Company
January 2023	Managing Executive Officer; Vice Division Director of Commercial Properties Division; General Manager ofUrban Development Department (1) of the Company
March 2023	Managing Executive Officer and Director; Vice Division Director of Commercial Properties Division; General
Manager of Urban Development Department (1) of the Company (to present)

Fumio Tajima

The Tokyo Tatemono Group’s
Value Creation Foundations

Hitoshi Nomura

Managing Executive Officer and Director

Number of Board of Directors meetings
attended in FY2023: 11/11*2

Managing Executive Officer and Director
April1987 Joined the Company
March 2009 General Manager of Retail Management Department of the Company
March 2015 Managing Officer and General Manager of Urban Development Department of the Company
January 2017 Managing Executive Officer; General Manager of Corporate Planning Department of the Company
March 2017 Managing Executive Officer and Director; General Manager of Corporate Planning Department of the Company
January 2020 Managing Executive Officer and Director of the Company
January 2021 Senior Managing Executive Officer and Director of the Company
January 2023 Senior Managing Executive Officer and Representative Director of the Company (to present)*1 The title was changed to Vice Director of Residential Development Business Division on January 1, 2023
*2 Appointed at the 205th Ordinary General Meeting of Shareholders held on March 29, 2023; attendance at Board of Directors meetings held after the date of the appointment is shown.

April1990 Joined The Fuji Bank, Limited
April2014 General Manager of Sales Department No. 17 of Mizuho Bank, Ltd.
April
2014 General Manager of Corporate Coverage Department VII of Mizuho Securities Co., Ltd. (retired in April 2019)
April
2018 Executive Officer; General Manager of Sales Department No. 17 of Mizuho Bank, Ltd.
April
2019 Executive Officer; General Manager of Global Products Coordination Department of Mizuho Financial Group, Inc.
April
2019 Executive Officer; General Manager of Global Products Coordination Department of Mizuho Bank, Ltd.
April
2021 Managing Officer; Division Director of Overseas Business Division of the Company
January 2023 Managing Executive Officer; Division Director of Overseas Business Division of the Company
March 2023	Managing Executive Officer and Director; Division Director of Overseas Business Division of the Company(to present)

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

April1981 Joined the Company
March 2005 General Manager of Property Management Department of the Company
March 2008 Director; General Manager of Property Planning Department of the Company
March 2011 Managing Director; Division Director of Commercial Properties Division of the Company
March 2013 Managing Executive Officer and Director; Division Director of Commercial Properties Division of the Company
March 2015 Senior Managing Executive Officer and Director of the Company
January 2017 Representative Director, President and Chief Executive Officer of the Company (to present)

55

SECTION

Corporate Governance04
External Audit and Supervisory Board Members

External Directorsof Board of Directors meetings
Shuichi Hattori Number
attended in FY2023: 13/14
Number of Nomination and Remuneration Advisory
Committee meetings attended in FY2023: 3/4

April
July
June
April

of Board of Directors meetings
Yoshimitsu Onji Number
attended in FY2023: 14/14

External Director

Number of Nomination and Remuneration Advisory
Committee meetings attended in FY2023: 4/4

External Director

Number of Nomination and Remuneration Advisory
Committee meetings attended in FY2023: 4/4

Naohiro Chikada

Number of Audit & Supervisory Board meetings
attended in FY2023: -/-*2

External Audit & Supervisory Board Member

Audit and Supervisory Board Members (full-time)of Audit & Supervisory Board meetings
Takashi Yoshino Number
attended in FY2023: 16/16

Audit and Supervisory Board Member (full-time)

April
April
October

1983 Joined The Yasuda Fire and Marine Insurance Co., Ltd.
2009 General Manager of Marine Insurance Office of Sompo Japan Insurance Inc.
2011	President and Director of Sompo Japan Nipponkoa Insurance Company of Europe Limited (retired in
March 2016)2014	Executive Officer and General Manager of Europe Division of Sompo Japan Insurance Inc.; Executive Officer
April
and General Manager of Europe Division of NIPPONKOA Insurance Co., Ltd.
September 2014	Executive Officer and General Manager of Europe Division of Sompo Japan Nipponkoa Insurance Inc.;
Executive Officer and General Manager of Europe Division of Sompo Japan Nipponkoa Holdings, Inc. (retired
in March 2016)2016 Managing Executive Officer of Sompo Japan Nipponkoa Insurance Inc.
April
April
2018	Managing Executive Officer and General Manager of Enterprise Market Promotion Division of Sompo Japan
Nipponkoa Insurance Inc. (retired in March 2019)2019 Audit and Supervisory Board Member (full-time) of the Company (to present)
March

April
1992 Joined Chuo Shinko Audit Corporation
April
1995 Registered as a certified public accountant
2004 Employee of Chuo Aoyama Audit Corporation (resigned in July 2006)
July
August2006 Founded Chikada Certified Public Accountant Office as Head (to present)
September 2006 Registered as a certified tax accountant
July
2008 Representative Director of Chiyoda Accounting Corporation (to present)June2009 Representative Partner of Koa Audit Corporation (to present)June2016 External Director (Audit & Supervisory Board Member) of RIZAP Group, Inc. (resigned in March 2020)
April
2018 External Director (Audit & Supervisory Board Member) of SKIYAKI Inc. (resign in March 2024)
December 2020 External auditor of Mitsubishi Research Institute DCS Co., Ltd. (to present)June2022 External auditor of FEED ONE CO., LTD. (to present)July2022 External auditor of SKIYAKI LIVE PRODUCTION Inc. (planning to resign in July 2024)
March
2024 External Audit & Supervisory Board Member of the Company (to present)

Executive Officers
Position

Isao Jinno

Number of Audit & Supervisory Board meetings
attended in FY2023: 11/11*1

Audit and Supervisory Board Member (full-time)April
1988 Joined Yasuda Trust & Banking Co., Ltd.
October 2010 General Manager of the Kawagoe Branch of Mizuho Trust & Banking Co., Ltd.
January 2013 General Manager of the Real Estate Sales Department (3) of Mizuho Trust & Banking Co., Ltd.
April
2016	Executive Officer; General Manager of Trust and Total Sales Department (8) of Mizuho Trust & Banking
Co., Ltd.
April
2018 Senior Managing Executive Officer and Director of Heisei Building Co., Ltd.
April
2018 Representative Director and President of Nihonbashi Building Services Inc. (retired in March 2023)
April
2020 Senior Managing Executive Officer of Heisei Building Inc. (retired in March 2023)
March 2023 Audit & Supervisory Board Member (full-time) of the Company (to present)

Name

President andChief Executive
Officer

Hitoshi Nomura

Senior Managing
Executive
Officers

Katsuhito Ozawa Akira Izumi Hideshi Akita

Managing
Executive
Officers

Takeshi Jinbo Shinjiro Kobayashi Fumio Tajima Hiroshi Takahashi

Hisayoshi Kato

Masayuki Okubo Kazuki Sugise Yusuke Mishima Katsuhiko Tamai
Managing
Officers

Shigeru Sabayashi Hiroto Fukui Kenji Sugaya Yuichi Kawazoe
Yutaka Onuma Yuji Araki

Satoru Kondo Takashi Endo

Keijiro Ochi

Data Section

April 1980 Joined The Fuji Bank, Limited
April 2007 Executive Officer and General Manager of Kobunacho Branch of Mizuho Bank, Ltd.
April 2009 Managing Executive Officer of Mizuho Financial Group, Inc.
April 2010 President and Representative Director of Mizuho Financial Strategy Co., Ltd. (retired in April 2012)
June 2010 Managing Director of Mizuho Financial Group, Inc.
April 2012	Member of the Board of Directors of Mizuho Financial Group, Inc. (retired in June 2012); Deputy President andRepresentative Director of Mizuho Bank, Ltd. (retired in April 2013)
April 2013 President & CEO and Representative Director of Mizuho Trust & Banking Co., Ltd.
April 2017 Director and Chairman of Mizuho Trust & Banking Co., Ltd.
June 2018	External Audit & Supervisory Board Member of Sompo Japan Nipponkoa Insurance Inc. (currently Sompo Japan
Insurance Inc.) (retired in June 2022)
March 2019 External Director of FUJIYA CO., LTD. (to present)
April 2019 Senior Adviser of Mizuho Trust & Banking Co., Ltd. (retired in March 2023)
June 2020 Chairman of Shouohkai Foundation (to present)
March 2021 External Director of the Company (to present)
April 2023 Advisor of Mizuho Financial Group, Inc. (to present)

September 2007 Registered as a lawyer
September 2007 Joined HANZOMON SOGO LAW OFFICE (resigned in December 2009)
January 2010 Joined OMOTESANDO SOGO LAW OFFICE (to present)
2019 External Audit and Supervisory Board Member of the Company (to present)
March2021	External Audit & Supervisory Board Member, Institution for a Global Society Corporation (to present)
March

The Tokyo Tatemono Group’s
Value Creation Foundationsof Board of Directors meetings
Takeo Nakano Number
attended in FY2023: 14/14

April
1984 Joined Bank of Japan
September 1991 Joined McKinsey & Company
2004 Joined The National Museum of Emerging Science and Innovation of Japan Science and Technology Agency
April
June
2011 General Manager, Corporate Planning Department of KCJ GROUP INC.
February 2016 Chairperson of JAPAN PROFESSIONAL FOOTBALL LEAGUE (retired in March 2018)
March2018	Chairperson responsible for extraordinary diplomacy of JAPAN PROFESSIONAL FOOTBALL LEAGUE (retired
in March 2020)
July
2020 Chairperson of Tokyo Football Association (to present)
2021 External Director of the Company (to present)
March
April
2022 Member of Hitotsubashi University Business Council (to present)

External Audit and Supervisory Board Member

The Tokyo Tatemono Group’s
Value Creation Initiatives

April
1977 Joined The Daiei, Inc.
April
1994 General Manager of Corporate Planning Division of The Daiei, Inc.
September 1998 Director and Vice President of R.E. Partners, Co., Ltd. (retired in April 2000)
December 1999 CEO of OZ Corporation (to present)
March2000 Managing Executive Officer of RECOF Office (currently RECOF Corporation)
June
2007 Director and Chief Corporate Officer of RECOF CorporationJune
2010 President and Chief Executive Officer of RECOF Corporation
October 2016 Chairman and Representative Director of RECOF Corporation (retired in September 2017)
December 2016 Director of M&A Capital Partners Co., Ltd. (retired in September 2017)
March2018 External Director of the Company (to present)
April
2018 Chairman and Director of Hongo Tsuji Business Consulting Co., Ltd. (retired in
November 2018)
June
2018 External Director of NIHON CHOUZAI Co., Ltd. (to present)
December 2019 External Audit and Supervisory Board Member of United Foods International Co., Ltd. (to present)June2020 External Director of Sotetsu Holdings Co., Ltd. (to present)
December 2021 External Director of Sanyu Appraisal Corporation (to present)

Number of Nomination and Remuneration
Advisory Committee meetings
attended in FY2023: 4/4

The Tokyo Tatemono Group’s
Value Creation and Vision

1984 Registered as a lawyer
1988 Established Hattori Law Firm (currently Hattori General Law Firm) (to present)
2004 External Audit and Supervisory Board Member of USHIO INC. (retired in June 2016)2007	Lecturer (in charge of Financial Instruments and Exchange Act) at Keio University Law School (retired in
March 2023)
March 2009	External Audit and Supervisory Board Member of LOOK INCORPORATED (currently LOOK HOLDINGSINCORPORATED) (retired in March 2019)
January 2013	External Audit and Supervisory Board Member of POKKA SAPPORO Food & Beverage Ltd. (retired in
March 2016)
March 2015 External Audit and Supervisory Board Member of the Company (retired in March 2019)
June 2016 External Director of USHIO INC. (retired in June 2018)
March 2019 External Director of the Company (to present)

External Directorof Audit & Supervisory Board meetings
Sayaka Hieda Number
attended in FY2023: 16/16

Introduction

External Directorof Board of Directors meetings
Yumiko Kinoshita Number
attended in FY2023: 14/14*1 Appointed at the 205th Ordinary General Meeting of Shareholders held on March 29, 2023; attendance at Board of Directors meetings held after the date of the appointment is shown.
*2 Appointed at the 206th Annual General Meeting of Shareholders held on March 27, 2024.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

56

SECTION

Corporate Governance04

Working to Enhance the Effectiveness of the Board of Directors

The main matters deliberated by the Board of Directors in fiscal 2023 were as follows. The Board discussed
governance matters, such as enhancing risk management, from a medium- to long-term perspective.

We conduct an annual survey of all directors and Audit & Supervisory Board Members on the structure,
agenda items, and operation of the Board of Directors with the support of a third-party organization.
Below is an overview of the effectiveness evaluation for fiscal 2023.

Evaluation process(1) Administer questionnaire survey to all directors and Audit & Supervisory Board
members(2) Aggregate, analyze, and share results with the Board of Directors(3) Discuss future issues and measures

TopicsMatters
related to
management
strategy

ESG
E: Environment
S: Society
G: Governance

Other

Stock-related matters• Approval of annual accounts and budget, funding plans and funding procurement policy• Approval of business plans for the fiscal year
• Approval of rolling over medium-term business plans
E: Approval of revisions to targets to reduce greenhouse gas emissions
S: Identification of priority issues related to human rights
S: Consideration of policies to conduct human rights due diligence
G: Approval of priority risk identification
G: Establishment of Management Discussion Board
G: C onfirmation of action policies related to cross-shareholdings and report on acquisitionand disposal situation• Sharing of IR activity reports and feedback•Convocation of general meetings of shareholders and determination of proposals
to be submitted• Approval of appropriation of surplus and dividend policy

Results of evaluation
As a result of our evaluation, we confirmed that the effectiveness of the Board of Directors has been adequately
ensured. In fiscal 2023, the Management Discussion Board was established to further expand discussions on
medium- and long-term management issues and to invigorate those discussions. The evaluation results andongoing issues are as follows.

Other matters• R eports on the progress of large projects and changes in business policies•D ecision related to a share transfer involving consolidated subsidiaries (Tokyo Tatemono
Kids Co., Ltd. and Tokyo Tatemono Staffing Co., Ltd.)

Main Evaluation Items

Evaluation

Composition

The number of directors and the ratio of internal
to external directors are generally appropriate.

Improvement is desirable with respect to ensuring
diversity of board members.

Agenda items

The number of agenda items is generally
appropriate.

The content of agenda items should be improved witha view to further expanding discussions, including
those related to medium- to long-term issues.

The frequency and the length of meetings are
generally appropriate.
The timing of the sharing of pre-meeting materials
improved from the previous fiscal year.

Further enhancement of the support systems forexternal officers is expected, such as holding local
briefings on major projects.

We acquire and hold shares of other companies for noninvestment purposes (cross-shareholdings)
when we determine that holding such shares is likely to contribute to maintaining and increasing the
medium- and long-term corporate value of the Group by maintaining and strengthening business relationships with business partners. We verify the appropriateness of our individual cross-shareholdings
with a view to whether holding them will continue to contribute to maintaining and increasing the corporate value of the Group. Verification is performed based on the transaction results and prospects ofreal estate transactions, joint ventures, construction and equipment transactions, and financial transactions in addition to dividend results. In addition, we report verification and disposal results to theBoard of Directors at least once every year, and, if we determine that such a cross-shareholding is nolonger significant, we seek to reduce the cross-shareholding while considering the impact on thestock market and other factors.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

Management

Ongoing Issues

The Tokyo Tatemono Group’s
Value Creation Foundations

Cross-shareholdings

The Tokyo Tatemono Group’s
Value Creation Initiatives

Structure: Ratio, number, specialization, and diversity of external directors
Agenda: Number, content, and monetary standards in agenda items
Operation: Number of meetings, length of meetings, provision of explanations prior
to meetings, explanatory materials used, time taken for discussion, andreported content
Other: Support system for external directors and the state of training

Business &finance

Main Agenda Items

The Tokyo Tatemono Group’s
Value Creation and Vision

Evaluation Process and Topics

Classification

Introduction

Evaluation of the Effectiveness of the Board of Directors

Major Agenda Items for the Board of Directors

57

SECTION

Corporate Governance04

Remuneration of Directors
longer term. To this end, we have adopted a system that links a certain percentage of remuneration to business and stock price performance.

Basic policy

Introduction

Regarding the remuneration of directors (excluding external directors), our aim is to instill awareness of each officer’s responsibility to contribute to building corporate value not only in the short term but also over theRemuneration structure

Policy on Payment Breakdown by Remuneration Type
Performance-based Remuneration

Stock-based Remuneration

Positioning

Basic remuneration

Short-term incentive

Medium- and long-term
incentives

Variability—

Performance linked to single
fiscal year

Stock-based

Proportion of
total remuneration (approx.)

50%-60%30%-40%5%-10%

System for decision making
Having been designated by the Board of Directors, the Representative Director, President and Chief
Executive Officer creates proposals for fixed and performance-linked remuneration for each individual
director in line with their rank and responsibilities in the fiscal year under review. Then, after receiving the

Total Amount by Type of Remuneration

Executive Class

Number of
Eligible
Individuals

Directors(Excluding External Directors)

10

322

240

42

604

Audit and Supervisory Board Members(Excluding External Members*)

3

55

—

—

55

External Officers

6

58

—

—

58

Total

19

435

240

42

718

Fixed
Remuneration(Million Yen)

Performance-Linked
Remuneration(Million Yen)

Stock-BasedRemuneration(Million Yen)

Total
Remuneration(Million Yen)

* Two External Members

Data Section

advice of the Nomination and Remuneration Advisory Committee, the designated person determines the

Total Amount of Remuneration, Total Amount by Type of Remuneration, and Number of Eligible Individuals(as of the fiscal year ended December 31, 2023)

The Tokyo Tatemono Group’s
Value Creation Foundations

By resolution, the Board of Directors designates responsibility for determining the remuneration of eachindividual director to the individual serving as the Representative Director, President & Chief Executive
Officer, who is best qualified to comprehensively evaluate the Company’s performance and the duties andresponsibilities of the directors, after receiving the advice of the Nomination and Remuneration Advisory
Committee.

*1 Based on a resolution of the 190th Ordinary General Meeting of Shareholders held on March 28, 2008
*2 Based on a resolution of the 195th Ordinary General Meeting of Shareholders held on March 28, 2013
*3 Based on a resolution of the 200th Ordinary General Meeting of Shareholders held on March 28, 2018

The Tokyo Tatemono Group’s
Value Creation Initiatives

Fixed Remuneration

Fixed remuneration (for Directors): Up to 35 million yen per month (420 million yen per year)*1
Performance-based remuneration (for directors excluding external directors): Capped at 1% ofconsolidated ordinary profit and 2% of profit attributable to owners of parent for the year prior to the fiscal
year in question*2
Stock-based remuneration (for directors excluding external directors): Based on the stock-based
remuneration system determined by a board benefit trust scheme, directors will be awarded a maximumof 40,000 points per fiscal year (equivalent to 40,000 shares). At the time of retirement, the director will be
paid an amount equivalent to the amount of company stock held calculated at market value.*3
Audit and Supervisory Board member remuneration: Remuneration of Audit and Supervisory Board
members is limited to fixed remuneration according to whether the member serves in a full-time or parttime position, capped at 8 million yen per month (equivalent to 96 million yen per year).*1

The Tokyo Tatemono Group’s
Value Creation and Vision

The remuneration of directors (excluding external directors) comprises three elements: fixed remuneration,
performance-based remuneration, and stock-based remuneration. The ratio of these elements is set
appropriately based on the policy regarding the determination of payment ratios by type of compensation
for Directors. The amount of remuneration for each director is decided by the Board of Directors after consulting with the Nomination and Remuneration Advisory Committee. The remuneration of external directors
and Audit and Supervisory Board members is limited to fixed remuneration in consideration of their duties.

specific amount of remuneration for each director.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

58

SECTION

04

Risk Management

Introduction

The Tokyo Tatemono Group has identified the need to strengthen the risk management framework as a material issue related to governance. The Group seeks to appropriately manage risks that could affect its
business to achieve stable improvement in corporate value. To this end, we established relevant regulations and created a risk management framework to continuously monitor and control risks.
(Sustainability Report 2024) Risk Management pp. 79-81

Board of Directors

Audit

Deliberate
and report

Audit & Supervisory Board

Supervise and approve
ReportPresident

ReportCoordination

Internal Audit
Department
Monitor, support,
and guide
Executive
Committee

Sustainability
Committee

Risk Management Committee
DirectReportCompliance
Subcommittee

BCM
Subcommittee

Each Group companies
Prevention and management of risks,
including sustainability-related risks, as a
Risk Action Organization (Risk Owner)

Monitor, support,
and guide

Monitor, support,
and guide

Business
divisions
Planning
department

Each department

First Line

Third Line

Audit, verify,
advise, etc.

SecondLine

Corporate
departments

Monitoring, guidanceand support for risk
management, etc.

The Tokyo Tatemono Group’s
Value Creation Foundations*1 ERM (Enterprise Risk Management) released by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

Risk Management Structure

The Tokyo Tatemono Group’s
Value Creation Initiatives

Regarding the promotion of risk management, the Company comprehensively manages theGroup’s risks based on the risk management regulations. The Company designated thePresident as the Chief Risk Management Officer and has established the Risk Management
Committee with the President as the chair.
The committee formulates an annual risk management plan, evaluates and analyzes theGroup’s material management risks (priority risks), formulates preventive measures and countermeasures, regularly monitors the situation, and regularly submits relevant agenda items orreports to the Board of Directors.
In addition, the general managers of each business division and office who act as risk
management officers, as defined in the risk management regulations, each committee appropriately prevents and manages non-priority risks (department management risks).
Furthermore, in order to maintain and improve the effectiveness of risk management activities, corporate departments and the planning departments of each business division monitor,
support, and offer guidance regarding the risk management of each department. The Internal
Audit Department audits and offers advice on actions taken by the planning departments ofeach business division regarding the risk management of each department. In developing ourrisk management framework, we referenced ISO 31000 (an international standard for risk
management), Enterprise Risk Management (ERM),*1 and the three-line model policy.*2

The Tokyo Tatemono Group’s
Value Creation and Vision

Promotion Structure*2 T hree-line model released by The Institute of Internal Auditors (IIA).

Major Risks, Including Priority Risks
Details

Major Risks

Risks related to real estatedevelopment

The risk of cost increases, delays in business schedules, and other negative outcomes due to theeffects of such unpredictable phenomena as inclement weather, natural disasters, delays in receiving
permissions, soil pollution, and the discovery of significant buried objects

Details

Risk that, in the event of a natural or man-made disaster, employees will suffer damage resulting in
Risks related to natural disasters andbusiness activities being affected, and the value of assets owned, managed, or operated by the Tokyo
man-made disasters
Tatemono Group will decrease

Risks related to trends in the realestate market

Risk of rapid or drastic fluctuations in economic or market conditions resulting in a decline in officeneeds due to deteriorating corporate performance in the rental office market, a decline in customers’
willingness to purchase condominiums in the residential condominium market, or a decline ininvestment demand in the real estate investment market

Risks related to interest rate
fluctuations

Risk that a rise in interest rates will result in an increase in interest payments on interest-bearing debt
or a decline in the value of assets held by the GroupCountry risks related to the Group’s
overseas operations

Risk of, when doing business overseas, a project being halted, a schedule being delayed, or costs
increasing due to the deterioration of political or economic conditions, any change of laws andregulations, worsening security, etc., in the countries where we have a footprint

Risks related to environmental
problems and climate change

Risk that intensifying climate change may result in changes in social and economic environments, thetightening of laws and regulations related to environmental problems, or other negative outcomesTOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

Major Risks

59

SECTION

Compliance04(Sustainability Report 2024) Compliance pp. 82-86

Compliance Training

Group Compliance Charter
Program for FY2023 Compliance Training(e-Learning)

As we engage in corporate activities, we observe the Compliance Charter below:• We adhere to laws, regulations, and other rules and engage in fair, sound corporate activities.
• We act faithfully by thinking from the customers’ standpoint.
• We contribute to making society better through corporate activities.

Promotion Structure

Compliance Structure
Board of Directors

ReportDirectors

Audit & Supervisory
Board
Audit & Supervisory
Board Members
ReportInternal
Audit
Department

Risk Management Committee
Chair: President & Chief
Executive Officer

ReportCompliance Subcommittee
Chair: Officer Responsible forthe Legal & ComplianceDepartment

Audit

Secretariat
Legal & Compliance Department

Receive Reports
and Synchronize
Data

Cooperation and Compliance
Awareness Activities

Business Divisions

Group Companies

Training completion rate: Non-consolidated (%)
Training completion rate: Group (%)

99.8

100

99.9

100

98.0

97.9

3,746

100
98.9

97.6

4,550

3,963

4,375

1,024

873

884

937

965

FY2019FY2020

FY2021

FY2022

FY2023*Scope of Collection: Tokyo Tatemono Group

Number of Reports andConsultations Handled by the
Helpline (FY2023)

Establishment of a Helpline
The Group has established the Tokyo Tatemono Group Helpline(an external helpline), which can be used by all Group companies,in addition to maintaining internal helplines in place at each company. This external helpline is intended to prevent and quickly
resolve compliance violations, including legal violations, bribery,fraud, human rights infringements, work-related problems, andharassment, by handling whistleblowing complaints, reports, andconsultations. The privacy of anyone who uses the helpline is protected. If the investigation or fact check that is carried out by the
responsible department identifies a compliance violation, we act
quickly to rectify it and prevent recurrence. The Risk Management
Committee (and Compliance Subcommittee) monitors allwhistleblowing, reporting, and consultation.

Other humanrights violations

Sexualharassment

0

5

Other

Work-related
problems

14

10

Other
harassment

Data Section

Corporate Planning Department

Number of training participants: Group (persons)

The Tokyo Tatemono Group’s
Value Creation Foundations

The Company established the Risk
Management Committee to supervise theGroup’s risk management and compliance.
Under this committee, we also established
the Compliance Subcommittee to deliberatecompliance topics. This subcommittee
deliberates compliance measures, monitors
progress, and addresses compliance risks.
In addition, the Company supports andguides Group companies’ compliancerelated operations, acts as a mediator tofacilitate cooperation between Group
companies, and aims to enhancecompliance functions across the Group.

Established June 2009

Number of training participants: Non-consolidated (persons)

The Tokyo Tatemono Group’s
Value Creation Initiatives• We respect the personalities and values of each other and maintain a
comfortable working environment.

• Group Compliance (prevention of corruption,
Compliance Codes of Conduct, respect for humanrights, prohibition of discrimination andharassment, and mental safety)• Personal Information, My Number• Confidential Information Management, Insider
Trading Prevention• Compliance with Laws and Regulations, etc.
Group-wide
Courses• Compliance with the Anti-Monopoly Act andSubcontract Act• Act against Unjustifiable Premiums andMisleading Representations and the Fair
Competition Code• Whistleblower Protection System• Real Estate Brokerage Act and Criminal Proceeds
Transfer Prevention Act (anti-money laundering)
Separate modules • Information Security• Elimination of Antisocial Forces
implemented
depending on• Notes about Transactions with Parties that Have
nature of each
Conflicts of Interest
company• Compliance Management Training

Compliance Training*(e-learning: Group compliance)

The Tokyo Tatemono Group’s
Value Creation and Vision

Every year, the Tokyo Tatemono Group conducts compliance training via e-learning. In fiscal 2023, approximately 4,300 managers and employees across the entire Group participated in the training (a completion
rate of 98.9%).
Regarding training content, by establishing Group-wide Courses and Separate modules implemented
depending on nature of each company, we strive to ensure that employees constantly maintain a highawareness of compliance.

Introduction

Based on the Group Compliance Charter, the Group of course complies with laws and regulations
and promotes initiatives to ensure compliance with social norms and corporate ethics. Thisapproach builds a long-lasting relationship of trust with society and allows continued soundcorporate activities.
In addition, by formulating the Compliance Action Guidelines and the Tokyo Tatemono Group
Compliance Manual and conducting compliance-related education and training, we are working toconstruct organizations and education systems that ensure a consistent high-compliance mindset
is shared by its employees.

Compliance Initiatives

31

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

60

SECTION

04

Disclosure

Policies Related to Dialogues with Shareholders• Progress on the key strategies outlined in the Medium-Term Business Plan
and deviations from assumptions

Overseas

Japan

49%

51%

• Trends in the business environment and the Company’s perceptionof conditions   ∙ Trends in rents for office buildings and logistics properties,
condominiums, and real estate markets   ∙ Competitive environment for acquiring land (the Company’s strength)• Risks and countermeasures in businesses   ∙ Construction costs and interest rates• Shareholder returns and capital strategies (including our policy on sharebuybacks)

Note: The percentage of investors in Japan andoverseas who attended conferences, small
meetings, and individual meetings(out of a total of 312 companies)• ESG-related topics   ∙ Initiatives to reduce environmental burdens, personnel strategies, andcross-shareholding policies

Feedback to top management
Frequency

Analyst reports

Quarterly

IR activity status

Quarterly and annual summaries

Share-related indicators and share price data

Quarterly and annual summaries

Content of dialogues with shareholders and investors

Quarterly and annual summaries

FY2023 Activity Results
Type

Main Performers

Results briefings

2 timesPresident & Chief Executive Officer
Senior Managing Executive Officer & Chief Financial Officer
General Manager of the Corporate Communications Department

Telephone briefings

4 times

General Manager of the Corporate Communications Department

Conferences

5 times / 25 companies

President & Chief Executive Officer
Senior Managing Executive Officer & Chief Financial Officer

Small meetings

3 times / 38 companies

President & Chief Executive Officer
Senior Managing Executive Officer & Chief Financial Officer

Individual meetings(including overseas IR)

249 companies

President & Chief Executive Officer
Senior Managing Executive Officer & Chief Financial Officer
General Manager and Manager of the Corporate Communications Department

Project tours

5 times

Officers in charge of IR and project controlling departments and branches

Briefings for individual investors

1 timeSenior Managing Executive Officer & Chief Financial Officer

Main Responses Based on Dialogues with Shareholders and Investors
Demands

Responses

Disclose issues related to share price (market valuation of corporate value) as perceived by the Company and measures toimprove said issues

Disclosed the Company’s assessment of the current state ofcorporate value and initiatives to enhance corporate value inresults briefing materials

Strengthen shareholder returns

Continuously raised the dividend payout ratio under thecurrent Medium-Term Business Plan

Hold small meetings with the CEO

Held small meetings with the CEO and CFO

Disclose specific measures to achieve medium- to long-termtargets for reducing GHG emissions

Formulated a roadmap (initiative plan) and disclosed it in the
integrated report and sustainability report

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

Number of Times and Companies

The Tokyo Tatemono Group’s
Value Creation Foundations

Type

The Tokyo Tatemono Group’s
Value Creation Initiatives

Believing that proactively and appropriately disclosing financial information and management
status, such as progress on the Medium-Term Business Plan, helps it fulfill its corporate
reporting responsibility, the Company proactively engages in dialogues with shareholders
and investors.
The Company has placed the Corporate Communications Department in control of disclosureand dialogues with shareholders and investors, with a specific officer from the department
assigned to oversee these areas. We strive to take advantage of opportunities to disclose information and hold constructive dialogues with shareholders and investors, such as the General
Meeting of Shareholders, results briefings, and individual meetings, and, when necessary, do soin collaboration with other officers and departments.

• Specific ideas about the long-term vision

The Tokyo Tatemono Group’s
Value Creation and VisionTokyo Tatemono strives to ensure accurate and swift disclosure while considering fairness,transparency, and continuity regarding information related to, for example, management strategies and financial standing with the purpose of earning appropriate appreciation from andbuilding long-term relationships of trust with shareholders, investors, and other stakeholders.
In addition, the Company provides disclosures in line with laws and regulations related to the
Financial Instruments Exchange Act, the timely disclosure rules established by the Tokyo Stock
Exchange, and other restrictions. Furthermore, regarding information not subject to the timely
disclosure or other rules, we will continue to proactively and fairly disclose it to the fullest extent
if it is deemed useful to shareholders and investors in assessing investments.

Main Themes and Matters of Interest to Investors

Introduction

Disclosure Standards and Basic Rules Related to Disclosure

Percentage of Meetings in Japanand Overseas

61

SECTION

05

Key Financial and Non-Financial Data
Unit

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023Operating revenue

Million yen

220,026

237,049

260,012254,498

266,983

273,302

323,036

334,980

340,477

349,940

375,946

Operating profit

Million yen

29,361

30,55934,43936,36344,757

46,76552,41049,63158,78464,47870,508Business profit*1

Million yen——

35,281

38,20646,44047,174

51,66849,84747,97966,30474,428

Ordinary profit

Million yen

21,95917,317

24,79630,63539,41642,03644,61147,072

46,27063,531

69,471Million yen

10,121

82,944

16,35919,742

22,59927,277

29,796

31,79534,96543,06245,084

1,905,309

Introduction

Financial Data
Operating Results

Financial Position
Total assets

Million yen

938,161

1,319,465

1,297,112

1,314,558

1,441,050

1,450,091*2

1,564,049

1,624,640

1,650,770

1,720,134

Net assets

Million yen

262,276

305,808

312,530

325,593353,419

356,578

384,211399,129427,661456,838

508,035

Interest-bearing debt

Million yen

434,763748,273

707,356

727,302814,032

857,117924,891

976,896

956,836

989,798

1,089,006 Cash flows from operating
activities

Million yen

22,135(4,790)21,76238,783(14,196)

19,74824,096

43,52465,889(3,332)

20,588 Cash flows from investing
activities

Million yen

37,083

257,798(21,250)(53,024)(64,508)(63,577)(64,082)(66,724)(1,642)(21,204)(54,069) Cash flows from financing
activities

Million yen(47,119)(277,787)(40,177)

9,005

77,99834,43848,00038,307(32,187)

18,421

77,908 Net increase (decrease) incash and cash equivalents

Million yen

12,804(24,744)(39,689)(5,164)(825)(9,513)7,794

15,14832,362(4,569)44,864 Cash and cash equivalents
at end of period

Million yen

52,27186,90747,21742,053

41,22731,70239,49754,64587,00882,439127,303

The Tokyo Tatemono Group’s
Value Creation and Vision Profit attributable to ownersof parent

Cash Flow

%

4.4

33.2

5.6

6.4

6.8

7.9

8.2

8.3

8.7

10.0

9.6

ROA

%

3.3

2.3

2.7*3

2.9*3

3.4*3

3.3*3

3.4*3

3.1*3

2.9*3

3.9*3

4.1*3

Equity ratio

%

26.7

21.7

23.2

24.2

23.9

24.0

24.0

24.0

25.3

25.9

26.1

Debt-equity ratio

Times

1.7

2.6

2.3

2.3

2.4

2.5

2.5

2.5

2.3

2.2

2.2

 Interest-bearing debt/
EBITDA multiple

Times

10.9

15.9

13.4

13.0

12.5

12.7

12.6

13.4

13.3

11.1

10.9

The Tokyo Tatemono Group’s
Value Creation Foundations

ROE

The Tokyo Tatemono Group’s
Value Creation Initiatives

Financial Indicators

Stock price information
Yen

47.10*4

386.24*475.91*4

91.00

104.17125.79141.59152.12167.35206.15215.82

Net assets per share

Yen

1,166.22*4

1,331.02*4

1,390.07*4

1,465.30

1,589.98

1,605.70

1,794.15

1,862.81

1,996.52

2,135.08

2,378.61

Annual dividend per share

Yen

10*4

12*4

20*4

26

30

35

41

46

51

65

73

Payout ratio

%

21.2

3.1

26.3

28.6

28.8

27.8

29.0

30.2

30.5

31.5

33.8

Data Section

Profit per share*1 Business profit = operating profit + share of profit (loss) of entities accounted for using equity method. This is a profit indicator set in our medium-term business plan (FY2020–FY2024) reflecting overseas business growth. For comparative purposes, we have disclosed figures from the fiscal year
ended December 2015.
*2 We have applied the Partial Amendments to Accounting Standard for Tax Effect Accounting, etc., from the fiscal year ended December 2019. Figures for the fiscal year ended December 2018 reflect the retroactive application of this accounting standard.
*3 From the fiscal year ended December 2015, ROA = Business profit ÷ total assets (average at start and end of fiscal year).
*4 We implemented a one-for-two common share reverse stock split on July 1, 2015. The annual dividend per share for the fiscal year ended December 2015 is calculated assuming the reverse stock split occurred at the beginning of the fiscal year ended December 2015.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

62

SECTION

05

Key Financial and Non-Financial Data
*1*1

Non-Financial Data (Environmental)

Non-Financial Data (Social)

2019

2020

2021

2022

2023

(Tokyo Tatemono, Non-Consolidated)

983,845†921,029†

1,034,699†

1,015,172†

984,407†

Full-time (FT) employees

Scope 1 (Fuel-derived)t-CO2

17,429†14,950†15,802†

18,234†

14,456†

Ratio of female FT employees

Scope 2 (Market-based)

t-CO2

68,441†

58,671†

55,610†53,979†29,827†

Scope 3t-CO2

897,975

847,408

963,287

942,959

940,124†

%

—

6.9

35.2

41.9

Renewable energy (electricity)
installation rate*4

†

†

†

—

%

36.6

38.3

56.4

Waste emissions*

t

8,282

t/Thousand m3

Recycling rate
Total water used*9

71.1

62.5

6,277

6,351

†

6,429

6,531†

7.4

5.1

5.2*8

5.3

5.3

%

61.9

68.4

65.7†

60.9†

58.4†

Thousand m3

853

659

667*8

761*8

674

Potable water used

Thousand m3

724

564

567†

657†

575†

Recycled water used

Thousand m3

129

95

100†

104†

99†

m3/m2

0.95

0.67

0.68*80.76*80.79

6, 7

Unit load

Unit load†(Sustainability Report 2024 ) Data (Environment) pp. 87-90

Material Issue KPIs and Targets p. 37

2022

805

840

879

%

24.8

25.5

26.1

26.2

27.5

Persons

360

367

376

377

384

%

5.0

6.0

7.2

7.2

9.4

Persons

21

20

33

30

32

Ratio of women among new graduate hires

%

33.3

25.0

30.3

33.3

43.8

Employment rate of people with disabilities*2

%

1.81†

1.75†

2.21†

2.33†

2.53†

Voluntary turnover rate

%

2.1†

2.2†

1.5†

3.3†

3.5†

Number of Managers
New hires

Average annual training time per employee

2023

Hours

14.4

12.2

18.3

15.8

15.2

Career training participation rate

%

—

100

100

100

100

Health checkup rate*3

%

100†

100†

100†

100†

100†

Reexamination rate*3

%

63.0

98.3

83.7

98.0

81.5

Smoking rate*4

%

21.0

17.2

16.0

12.1

13.1

Percentage of employees maintaining anappropriate weight*3

%

71.4

70.4

72.8

72.0

72.9

Average number of paid leave days taken per
year*5

Days

10.6†

9.3†

10.2†

11.8†

12.5†

Average annual percentage of paid leave
taken*3

%

57.7†

51.2†

57.5†

67.8†

72.2†
78.1

Percentage of childcare leave taken (men)*6

%

4.8*7

18.2

13.0*750.0

Number of lost time injuries*3, 8

Unit

0†

0†

1†

1†

2†

Total days lost due to absence*3

Days

122†

7†

386†

646†

322†

Ratio of absenteeism*3

%

0.06†

0†

0.18†

0.28†

0.13†

Employee Engagement Survey Rating

—

—

—

A

A

AA

Employee Engagement Survey Rating Score*9

—

—

—

59.1

59.4

62.1

*1 For detailed information and notes on each item, please refer to the Data section of the Sustainability Report.

Non-Financial Data (Governance)*(Sustainability Report 2024 ) Data (Social) pp. 91-94

Unit

2019

2020

2021

2022

2023

Unit

56

41

61

52

60

Number of incidents related tobribery

Unit

0

0

0

0

0

Number of incidents related toantitrust or anti-competitive
behavior

Unit

0

0

0

0

0

Number of incidents related toother compliance violations

Unit

0

0

0

0

0

Data Section(Tokyo Tatemono, Non-Consolidated)

Number of reports andconsultations to the helpline*2 As of June 1 of each year
*3 Period: April to March of the following year
*4 At a specific point in time between April of each year and the following March*5 Days granted under other leave systems, such as summer leave and the founding anniversary, are not included in the above figures.
*6 Percentage of male employees taking childcare leave = total number of male employees who took childcare leave in the relevant year/total
number of male employees who had a child born in the relevant year.
*7 We revised the figures after conducting a detailed analysis.
*8 Number of lost time injuries: Accidents that occur during work that result in one or more days absence.
*9 The results of scores independently calculated by the survey company are ranked on an 11-point rating scale. Rating: DD (score less than33), DDD (33-39), C (39-42), CC (42-45), CCC (45-48), B (48-52), BB (52-55), BBB (55-58), A (58-61), AA (61-67), AAA (67+)† Indicates item verified by a third party

The Tokyo Tatemono Group’s
Value Creation Foundations*2 Scope of Collection: Tokyo Tatemono Group*3 Due to a change in the calculation method for CO2 emissions, CO2 emissions for previous years are also calculated based on the new method.
*4 Scope of Collection: Long-term buildings and commercial facilities over which Tokyo Tatemono has substantial energy management authority*5 Scope of Collection: Properties owned and managed by Tokyo Tatemono’s building and housing businesses*6 Scope of Collection: M ain long-term buildings and commercial facilities for which Tokyo Tatemono has substantial energy management
rights and for which we have submitted plans for the reuse and reduction of waste materials*7 Data Collection Period: From April to March of the following year
*8 We revised the figures after conducting a detailed analysis.
*9 Scope of Collection: Long-term buildings and commercial facilities over which Tokyo Tatemono has substantial energy management authority† Indicates item verified by a third party

2021

772

The Tokyo Tatemono Group’s
Value Creation Initiatives*1 For detailed information and notes on each item, please refer to the Data section of the Sustainability Report.

2020

749

Ratio of women in management positions

Unit

The Tokyo Tatemono Group’s
Value Creation and Vision

Green building certificationacquisition ratio*5

†

2019

Persons

Introduction

Unit

t-CO2

CO2 emissions*2, 3* For detailed information and notes on each item, please refer to the Data section of the Sustainability Report.

(Sustainability Report 2024) Data (Governance) pp. 95-96

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

63

SECTION

05

Financial Statements
Assets(Million yen)

(Million yen)

End of FY2022
End of FY2023(December 31, 2022) (December 31, 2023)

End of FY2022
End of FY2023(December 31, 2022) (December 31, 2023)

Current assets
Cash and deposits Trade notes, accounts receivable and contract assets

82,440127,305
13,887

173,836

232,478

Real estate for sale in process

160,009

166,181

Real estate for development

81,069100,339

Other

40,93452,296

Allowance for doubtful accounts
Total current assets

(93)

(23)

552,531

692,464

Non-current assets
Property, plant and equipment
396,529

397,020   Accumulated depreciation(174,775)(183,025)    Buildings and structures, net

221,754

213,994  Land537,397529,506   Construction in progress

44,90389,428  Other

31,19831,920   Accumulated depreciation(20,291)(21,284)

10,907

10,635   Total property, plant and equipment

814,963

843,535

130,042

127,628

1,716

1,486

Intangible assets   Leasehold interests in land  Goodwill  Other   Total intangible assets

887

2,509

132,646

131,624

128,701

153,814

3,638

2,598

458

4,025

Investments and other assets  Investment securities   Investments in silent partnerships   Long-term loans receivable

2,001

2,327

   Leasehold and guarantee deposits

21,46920,671   Retirement benefit asset

1,151

1,561

  Other

62,67352,711   Allowance for doubtful accounts   Total investments and other assets
Total non-current assets
Total assets

(100)

(55)

219,993

237,655

1,167,603

1,212,845

1,720,134

1,905,309

245,000
630,520
17,64727,274259
98
78,08813,023
21,68430,236
1,063,834
1,263,296

255,000
715,223
23,99927,274282
97
77,764
14,104
10,44733,022
1,157,216
1,397,274

92,451
66,539189,501(443)
348,048

92,451
66,262
219,528(421)
377,82150,332
43,187
4,604(179)
97,945
10,843465,838
1,720,134

71,52643,1875,011(647)
119,078
11,135508,035
1,905,309

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section   Deferred tax assets

56,75450,00010,00017,343
17,44981,001
2—11,30076,198240,057

The Tokyo Tatemono Group’s
Value Creation Foundations   Other, net

52,04750,00010,00013,781
4,811
11
950
2
0
—
67,856
199,461

The Tokyo Tatemono Group’s
Value Creation Initiatives   Buildings and structures

Current liabilities
Short-term borrowings
Commercial paper
Current portion of bonds payable
Accounts payable—other
Income taxes payable
Provision for warranties for completed construction
Provision for bonuses
Provision for bonuses for directors (and other officers)
Provision for environmental measures
Deposits received under real estate specified joint enterprise law
OtherTotal current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for share-based remunerations for directors (and other officers)
Provision for retirement benefits for directors (and other officers)
Leasehold and guarantee deposits received
Retirement benefit liability
Deposits received under real estate specified joint enterprise law
OtherTotal non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

The Tokyo Tatemono Group’s
Value Creation and Vision

14,334

Real estate for sale

Liabilities

Introduction

Consolidated Balance Sheet

64

SECTION

Financial Statements

05

Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Million yen)

251
4,556
3,920
481
9,209

6,094
862
—
—
94
202
7,254
63,531

7,262
974
105
1,250
87
565
10,24669,471

726
50
—

241
—
498

—
870
12
1,659

2,265
—
—
3,004

9
139
462
1,772
50
—
6
—
2,440
62,75015,5803,086
18,66644,084
1,021
43,062

—
150
157
—
—
43
—
3,712
4,064
68,411
26,202(3,634)22,56845,843758
45,08444,08445,843(4,021)
118(924)

21,728
2,196
(465)

2,359
(2,467)
41,616(1,790)21,66867,511

40,680935

66,2171,294

Data Section

28
3,621
1,825
830
6,307

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax Share of other comprehensive income of entities accounted for using
equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toowners of parent
non-controlling interests

The Tokyo Tatemono Group’s
Value Creation Foundations

375,946
266,829
109,116
38,60870,508The Tokyo Tatemono Group’s
Value Creation Initiatives

349,940
248,452
101,488
37,00964,478The Tokyo Tatemono Group’s
Value Creation and Vision

Operating revenue
Operating costs
Operating gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing fee
Bond issuance costs
Foreign exchange losses
Dividends paid on real estate specified joint enterprise law
OtherTotal non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on sale of shares of subsidiaries and associates Gain on liquidation and sale of investments in capital of subsidiaries
and associates
Gain on bargain purchase
Gain on step acquisitions
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Impairment losses
Loss on building reconstruction
Loss on valuation of investment securities
Loss on sale of shares of subsidiaries and associates
Loss on liquidation of subsidiaries and associates
Loss on termination of joint venture agreement
Total extraordinary losses
Profit before income taxes
Income taxes—current
Income taxes—deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent(Million yen)
End of FY2022
End of FY2023(December 31, 2022) (December 31, 2023)

Consolidated statement of comprehensive income

Introduction

Consolidated statement of income

End of FY2022
End of FY2023(December 31, 2022) (December 31, 2023)

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

65

SECTION

Financial Statements

05

Consolidated Statement of Cash Flows(Million yen)
End of FY2022
End of FY2023(December 31, 2022) (December 31, 2023)

Cash flows from operating activities

Cash flows from investing activities

Profit before income taxes

62,75068,411

Proceeds from sale and redemption of investment securities

2,188

7,641

Depreciation

18,796

20,457Purchase of investment securities(5,604)(3,330)654—

Impairment losses—

Amortization of goodwill

317

229

Gain on bargain purchase

(870)

—

Loss (gain) on step acquisitions

(12)

—

(1,825)(3,920)

Increase (decrease) in allowance for doubtful accounts

36

(107)

Increase (decrease) in provision for bonuses

5104 Increase (decrease) in provision for bonuses for directors(and other officers)(0)— Increase (decrease) in provision for shareawards for directors(and other officers)69

22 Increase (decrease) in provision for retirement benefits for directors(and other officers)

4(1)

Share of loss (profit) of entities accounted for using equity method Proceeds from purchase of shares of subsidiaries resulting in change inscope of consolidation Proceeds from sale of shares of subsidiaries resulting in change inscope of consolidation
Proceeds from withdrawal of investments in silent partnerships
Payments for investments in silent partnerships
Proceeds from sale of non-current assets
Purchase of non-current assets
Loan advances Increase (decrease) in deposits received under real estate specified joint
enterprise law

—

1,229

4,460

1,085

—

(16)

4,244

703

(22,495)(44,796)(433)(17,669)(1,892)63

Other, net(2,326)

1,019

Net cash provided by (used in) investing activities(21,204)(54,069)(0)(0)

Cash flows from financing activities

(30)

—

Net increase (decrease) in short-term borrowings

Increase (decrease) in provision for environmental measures

(26)

(0)

Increase (decrease) in commercial paper

10,000—

Increase (decrease) in retirement benefit liability

(198)

(34)

Proceeds from long-term borrowings

135,500

137,400

Interest and dividend income(3,650)(4,807)

Repayments of long-term borrowings(112,534)(52,127)

Interest expenses

6,094

7,262

Repayments of long-term accounts payable—other

Loss (gain) on valuation of investment securities

50—

Loss (gain) on sale of investment securities

(50)

—

Loss (gain) on sale of shares of subsidiaries and associates

—

(454)

 Loss (gain) on sale of investments in capital of subsidiaries andassociates Purchase of shares of subsidiaries not resulting in change in scope of
consolidation—(2,265) Purchase of equity in silent partnerships of subsidiaries and associates
not resulting in change in scope of consolidation

Loss (gain) on liquidation of subsidiaries and associates

6—

Loss on termination of joint venture agreement

—

3,712

(577)

(90)

Loss (gain) on sale and retirement of non-current assets
Decrease (increase) in trade receivables

(202)

(202)

Proceeds from issuance of bonds—

20,000

Redemption of bonds—(10,000)

—

(722)

(648)

—

Proceeds from sale of treasury shares

00

Purchase of treasury shares

(4)

(3)

(11,700)(15,047)

(708)

(636)

Dividends paid

(292)

9

Decrease (increase) in inventories(65,006)(73,779)

Increase (decrease) in leasehold and guarantee deposits received(1,885)(673)

Proceeds from share issuance to non-controlling shareholders

813

809

Increase (decrease) in trade payables

Dividends paid to non-controlling interests

34

40

Other, net(1,312)(789)

Net cash provided by (used in) financing activities

18,421

77,908(849)

589

Increase (decrease) in deposits received

3,839(1,593)

Effect of exchange rate change on cash and cash equivalents

1,545

435

—

5,079

Net increase (decrease) in cash and cash equivalents(4,569)44,864

Other, net(1,094)

14,713

Cash and cash equivalents at beginning of period

87,00882,439Subtotal

18,64833,830Cash and cash equivalents at end of period

82,439127,303

Compensation income

Interest and dividends received

6,203

7,491

Interest paid

(6,101)(7,035)

Income taxes refund (paid)(22,083)(13,697)

Net cash provided by (used in) operating activities(3,332)

20,588TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

Data Section

Decrease (increase) in leasehold and guarantee deposits

The Tokyo Tatemono Group’s
Value Creation Foundations

Increase (decrease) in provision for loss on guarantees

The Tokyo Tatemono Group’s
Value Creation Initiatives

157

The Tokyo Tatemono Group’s
Value Creation and Vision

462
1,772

Loss on building reconstruction

Introduction(Million yen)
End of FY2022
End of FY2023(December 31, 2022) (December 31, 2023)

66

SECTION

05

Corporate Data

Established

October 1, 1896

Capital92.4 billion yen (As of December 31, 2023)

Representative

Hitoshi Nomura
Representative Director
President and Chief Executive Officer

Head Office

Tokyo Tatemono Yaesu Building
1-4-16 Yaesu, Chuo-ku, Tokyo 103-8285
Phone: 03-3274-0111

Stock Listing

Prime Market of Tokyo Stock Exchange

Listing Date

September 1907

Securities Code8804

Trading Unit

100 shares

Number of Shares
Authorized

400,000,000 shares

Number of Shares Issued
and Outstanding

209,167,674 shares(As of December 31, 2023)

Investor Relations Information

Residential BusinessTokyo Tatemono Amenity Support Co., Ltd.
E-State Online Co., Ltd.

https://tatemono.com/english/ir/

IR Libraryhttps://tatemono.com/english/ir/library/

Asset Service BusinessTokyo Tatemono Real Estate Sales Co., Ltd.
Japan Rental Guaranty Co., Ltd.
Nihon Parking Corporation
Parking Support Center Corporation
Overseas BusinessTokyo Tatemono (Shanghai) Real Estate Consulting Co., Ltd.
Tokyo Tatemono Asia Pte. Ltd.
Fund BusinessTokyo Tatemono Investment Advisors Co., Ltd.
Tokyo Tatemono Realty Investment Management, Inc.
Leisure BusinessTokyo Tatemono Resort Co., Ltd.
Non-Financial Information
Sustainability
https://tatemono.com/english/sustainability/

Stock Price(Yen)

The Tokyo Tatemono Group’s
Value Creation Foundations

4,661(As of December 31, 2023)

Commercial Properties BusinessTokyo Fudosan Kanri Co., Ltd.
Tokyo Building Service Co., Ltd.
Shinjuku Center Building Management Co., Ltd.
Seishin Service Co., Ltd.
PRIME PLACE Co., Ltd.
EXPERT OFFICE Co., Ltd.

The Tokyo Tatemono Group’s
Value Creation Initiatives

Number of Consolidated
Employees

Financial Information

The Tokyo Tatemono Group’s
Value Creation and VisionTokyo Tatemono Co., Ltd.

Major Group Companies

Introduction

Company Name

Please refer to the following for more information.

2,500

Sustainability Report 2024

2,000

https://tatemono.com/english/sustainability/reports.html

1,500

Data Section

1,000
500
0

2021

2022

2023

Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

TOKYO TATEMONO GROUP INTEGRATED REPORT 2024

67