May 29, 2008

MORI TRUST Co., Ltd.
Toranomon 2-chome Tower,
2-3-17 Toranomon Minato-ku,
Tokyo 105-0001 JAPANTEL +81-3-5511-2255
FAX +81-3-5511-2259

Financial Report for the Fiscal Year Ended March 2008
〜 Ordinary income increased continuously, and sets new record high.〜

The Mori Trust Group recently announced its consolidated business performance for the year ended
March 2008. The Group consists of 21 consolidated companies and five equity-method affiliates, andincludes Mori Trust Co., Ltd., MT Facility Service Co., Ltd., and Mori Kanko Trust Co., Ltd.

[Mori Trust Group Consolidated Financial Report] (April 1, 2007 – March 31, 2008)(Figures in millions of yen; figures less than one million yen rounded off; percentages in parentheses indicate year-over-year change)

FY 2006
1 Operating revenue

FY 2007

FY 2008 (projected)

157,332

160,716（2.2%）

170,000（5.8%）

Leasing

63,37365,599

（3.5%）

69,000（5.2%）

Hotel

34,527

24,572（▲28.8%）25,000（1.7%）

Sales of real estate

44,582

51,534（15.6%）

59,000（14.5%）

Other

14,84819,010（28.0%）

17,000（▲10.6%）2 Operating income

40,26457,459（42.7%）

60,000（4.4%）

3 Ordinary income

44,902

52,427（16.8%）

55,000（4.9%）

4 Net income

22,01135,079（59.4%）

36,000（2.6%）(interior construction in leased spaces, etc.)○Consolidated Companies (21companies)(*:Companies added to consolidation)

MORI TRUST Co., Ltd. / MT FACILITY SERVICE Co., Ltd. / MORI KANKO TRUST Co., Ltd. /MAMPEI HOTEL / MT&HILTON HOTEL Co., Ltd. / MT GOLF DEVELOPMENT Co., Ltd. / LAFORET
T&S Co., Ltd. / FORETSEINE Co., Ltd. / TOYO HOUSING MANAGEMENT, Inc. / *TOYO GREEN
BUILDING Co., Ltd. / URBAN LIFE Co., Ltd. / URBAN LIFE JUUTAKUHANBAI Co., Ltd. / LIZINVESTMENT Co., Ltd. / MT LABO Co., Ltd. / *MT LABO CAPITAL Co., Ltd. / *MTL FUND NO.1
INVESTMENT LIMITED PARTNERSHIP / MT GENEX Corp. / MORI TRUST ASSET MANAGEMENT
Co., Ltd. / SHIROYAMA HEATING & COOLING SUPPLY Co., Ltd. / OHONO KOGYO Co., Ltd. /AZMAX Corp.
○Equity-Method Affiliates (5 companies)
PARCO CO., LTD. / THE ROYAL HOTEL, LIMITED / YOKOHAMA GRAND INTERCONTINENTAL
HOTEL Co., Ltd. / MORI TRUST SOGO REIT, Inc. / URBAN SERVICE Co., Ltd.
(As of March 31, 2008)

1

Release of consolidated financial statements of the Mori Trust Group○In preparation for the next generation, the Mori Trust Group has set out to adopt a groupmanagement strategy capable of combining a diverse range of companies and businesses into a
conglomerate entity. Reorganizing to situate Mori Trust as a holding company for Group
entities, the Group will be better positioned to effect a more dynamic implementation of its
management strategies.
Following the reorganization of Mori Kanko Trust in October 2006, in August 2007 MT Facility
Service Co., Ltd. (until then a subsidiary of Mori Trust Holdings) was reorganized as a
subsidiary of Mori Trust, completing the corporate reorganization through which Mori Trust
became the core company in the Group.

As a result, the former reports on the consolidated business performance of Mori Trust Holdings
will be replaced by reports on Mori Trust’s consolidated business performance, beginning with thefiscal year (ended March 2008).

Overview of FY 2007 business performance○In the fiscal year ended March 2008, sales totaled approximately 160.7 billion yen while ordinary
income continued to increase, reaching a record high of 52.4 billion yen.

○Despite ongoing polarization in the office leasing market, the Group’s strategy of concentrating its
main properties in central Tokyo has paid off, allowing the portion of sales consisting of leasing
revenues to remain strong. In this fiscal year, declines in revenues due to factors such as the sale ofproperties, including the Shiroyama MT Building and the expiration of the rental contract on the
Toranomon 17 Mori Building, were more than offset by increased occupancy rates and rents inexisting rental office buildings such as Akasaka Twin Towers, Kamiyacho MT Building, andShiroyama Trust Tower, resulting in leasing revenues of approximately 65.5 billion yen.

○Hotel revenues also remained strong, as the Laforet Club resorts and the Mampei Hotel performed
well and the Conrad Tokyo saw rising occupancy rates and average daily rates. Looking at theGroup’s hotel businesses as a whole, the removal of InterContinental the Grand Yokohama fromconsolidation due to designation of the property as an equity-method affiliate (as a result of a shift
in February 2007 to a system of joint management with the Ishin Hotels Group) resulted inrevenue hotel revenues of approximately 24.5 billion yen.

2

○Factors including the sale of the Shiroyama MT Building, which had been owned by Mori Trust, as
well as revenues from sale of units in FORETSEINE’s luxury Foretseine Azabu Nagasaka ,Foretseine Ikedayama-Koen condominium project and revenues from sale of Urban Life units, led
to an increase in revenues from real-estate sales to 51.5 billion yen.

○Other revenues totaled approximately 19 billion yen, due to factors such as increased construction
subcontracting revenues at MT Facility Service, despite the negative effect on revenues of the
spinoff of MT Genex’s exterior product segment.

○The Group booked consolidated ordinary income of approximately 52.4 billion yen this fiscal year,
due to a range of factors, including an increase in the operating income ratio attributable toincreased sales and to improved efficiency and increased investment income from equity-method
affiliates. The ratio of sales to ordinary income stood at approximately 32.6 percent.

Business performance projections for FY 2008
○In an increasingly uncertain business environment, the Mori Trust Group aims to take advantageof new opportunities while also enhancing its ability to withstand risk, by reshuffling assets toimprove the quality of our portfolios.

○The company forecasts operating revenues for the year ending March 2009 at approximately 170
billion yen, which would constitute an increase of approximately 10 billion yen.

○With regard to the portion of sales consisting of leasing revenues, polarization is expected tocontinue in the office leasing market; however, the Group’s asset portfolio--with the main
properties concentrated in central Tokyo--is expected to enjoy strong leasing revenues on existing
properties. In addition, revenues from the entry of the Marunouchi Trust Tower Main Building,planned for completion in November 2008, and the operation over the entire fiscal year of Hotel
Sunroute Plaza Shinjuku (completed in August 2007), are also expected to contribute, resulting in
a forecast of approximately 69 billion yen in leasing revenues.

○As for hotel revenues, performance is projected to remain strong at the Laforet Club resorts, theMampei Hotel, and the Conrad Tokyo, leading to a forecast of approximately 25 billion yen in suchrevenues.

3

○Construction is planned to be delivered this fiscal year for a number of luxury condominium
properties, such as condominium subsidiary Foretseine’s Foretseine Akasaka Tangocho and
Urban Life’s Matsugasaki Kitayamadori Urban Life. Revenues from other sources, such as thesale of properties to be replaced in Mori Trust’s asset portfolio, are expected to remain roughly at
the average annual level. As a result, revenues from real-estate sales are projected at
approximately 59 billion yen.

○Other revenues are expected to total approximately 17 billion yen, due to factors such as the saleof MT Genex’s exterior product segment in January 2008.

○Ordinary income is expected to total approximately 55 billion yen, with the ratio of sales toordinary income remaining above 30 percent this fiscal year. The Group is aiming to enhance its
ability to withstand risk and to take advantage of new opportunities while continuing to build astrong revenue-generating structure.

4

FY 2007 key business topics○Mori Trust makes MT Facility Service a subsidiary
In August 2007, MT Facility Service, which handles building-management agency services as well
as operation, administration, design, and subcontracting, was made a wholly owned subsidiary ofMori Trust, as part of the Group’s efforts to establish a structure with Mori Trust as the centralcompany in the Group.

○Mori Trust and JTB Estate complete joint construction of Hotel Sunroute Plaza Shinjuku
In August 2007, construction was completed on the Hotel Sunroute Plaza Shinjuku, through a
joint project between Mori Trust and JTB Estate. This feature-packed hotel opened for business on
September 7, 2007, with an emphasis on accommodations: 624 guestrooms all feature broadband
Internet access, and guests can enjoy the services of restaurants, meeting rooms, bars, andrelaxation rooms.
○MT Labo and Mori Trust establish corporate investment fund
In August 2007, MT Labo and Mori Trust jointly established a 10-billion-yen corporate investment
fund known as MTL Fund I Investment LLP. This investment fund will invest in companies
working to create value through a broad range of means, including a focus on increasing corporate
value and business restructuring, with no restrictions in terms of industry or business types, while
making use of a management support tool developed by MT Labo.
○MT Genex decides on business alliances and restructuring (advancing into new businesses

and transferring existing businesses)
In May 2007, MT Genex entered into a business alliance with Toda Corp. with a view to entering
the renovation business.

In October 2007, MT Genex established Kyoei Genex to handle exterior products as a joint venturewith Kyowa Tokan and Maruei Kogyo, and transferred its exterior product segment to Kyoei
Genex in January 2008.
○Urban Life delivers construction of a top-class condominium project in the Kinki region
In June 2007, Urban Life delivered construction of a top-class condominium project in the Kinki
region, The Urban Life Okamoto, in the luxurious residential district of Okamoto, Higashinada-ku,
Kobe, Hyogo Prefecture.

5

○Conrad Tokyo’s China Blue restaurant awarded a star in Michelin Guide 2008 Tokyo
In November 2007, the Conrad Tokyo’s Chinese restaurant China Blue was awarded one star inMichelin Guide 2008 Tokyo: Restaurants & Hotels, published by Michelin Travel Publications ofFrance. The Michelin staff was particularly impressed with Chef Albert Tse’s delicate seasoning,
fresh ideas, and thoughtful service. In addition, in the hotel section the Conrad Tokyo wasawarded five red pavilions, the highest rank available.

○Mori Trust acquires St. Hakuba Wedding Chapel
In January 2008, Mori Trust acquired the St. Hakuba Wedding Chapel, a wedding facility locatedin the village of Hakuba, Kita-Azumi-gun, Nagano Prefecture. The Chapel now serves as theofficial wedding chapel of the neighboring Laforet Club Hotel Hakubahappo.

○Mori Trust begins construction on the hotel and office building of the Sendai Ichibancho
Project (tentative name)
In January 2008, Mori Trust began construction on the hotel and office building of the tentatively
named Sendai Ichibancho Project, located on the former site of the Tohoku Gakuin middle andhigh schools in central Sendai, Miyagi Prefecture.

When complete, this building will feature state-of-the-art facilities and stand as the tallest
building (180 meters) in Japan’s Tohoku region (and, for that matter, in the rest of northern
Japan). It will develop into a high-quality multipurpose complex combining offices with the latest
high-grade specs, the first luxury hotel in the Tohoku area operated by an overseas hotel group,and commercial facilities. As a new landmark in Sendai promising to develop into aninternational business and cultural center, this project aims to create a highly attractive urban
environment.

○Mori Trust acquires Toranomon Pastoral (land and building)In January 2008, Mori Trust acquired the land and building of Toranomon Pastoral from the
Mutual Aid Association of Agriculture, Forestry and Fishery Corporation Personnel, jointly with a
special-purpose corporation advised by daVinci Advisors. The site is slated for mixed-use
redevelopment by both companies.

Developing early as a locus of overseas businesses, embassies, hotels, and other facilities, theToranomon-Kamiyacho area in Tokyo’s Minato Ward is home to an international community. In

6this area, Toranomon Pastoral is located on a site approximately 16,500 square meters in areaadjacent to the Tokyo Metro’s Kamiyacho Station. Accordingly, the site is poised to evolve as alarge-scale international redevelopment project worthy to represent Japan.

Embodying the consolidated expertise built up by Mori Trust through its development of
numerous rental office buildings and luxury residential properties in this area, such as
Shiroyama Garden, this large-scale redevelopment project promises to bring added value toTokyo.

7

FY 2008 key business topics○Universal Express changes name to Laforet T&S
In April 2008, Universal Express, a subsidiary of Mori Kanko Trust handling sales of domestic
and international package tours and a variety of other travel services, changed its name to
Laforet T&S.

○Mori Trust plans construction of a residential tower adjacent to the Sendai Ichibancho
Project (tentative name) hotel and office building
In June 2008, Mori Trust plans to begin construction on a residential tower on a site adjacent to
the hotel and office building of the tentatively named Sendai Ichibancho Project in the city of
Sendai, Miyagi Prefecture.

○Mori Trust plans to complete construction of Marunouchi Trust Tower Main Building
adjacent to Tokyo Station’s Yaesu North Exit
In November 2008, construction is planned to be completed for Mori Trust’s Marunouchi Trust
Tower Main Building, a large new project on a site adjacent to Tokyo Station’s Yaesu North Exit.
In this excellent location, Tokyo’s gateway to the world, this project will serve as a base forinternational business and cultural exchange. Plans call for a combination of state-of-the-art
offices, the luxurious Shangri-La Hotel, Tokyo, and a tourist information center.

○Foretseine plans to deliver construction of Foretseine Akasaka Tangocho
In February 2009, Foretseine plans to deliver construction on the luxurious Foretseine Akasaka
Tangocho condominium project.

○Shangri-La Hotel, Tokyo plans to open for business
In March 2009, the Shangri-La Hotel, Tokyo, the first hotel in Japan from the Shangri-La groupof hotels, which has earned the trust of guests around the world for combining Western services
with warm Eastern hospitality, plans to open on the upper floors of the Marunouchi Trust Tower
Main Building. Famous around the world for its luxurious, healing spa facilities, this hotel alsoplans to feature the first of its own Chi chain of spas in Japan.

*Projections of business performance found in this document are based on judgments reflecting
information available as of the date this document was released. Actual business performance
may vary due to various unanticipated factors.

8

<Reference>
Overview of real-estate projects○ Multipurpose Redevelopment Project■ Marunouchi Trust Tower Main (Project) / North
Address
Site Area
Total floor area
Total floor area
Total floor space
available for lease
Number of floors
Maximum heightPrimary use

1-8 Marunouchi, Chiyoda-ku, Tokyo
12,026.77㎡
Approx. 180,600㎡
Main(Project)
North
Approx. 115,400㎡
65,241.59㎡
Approx. 50,500㎡
40,156.38㎡
37 stories above
ground, 4 stories
below ground178ｍ
office (3-26F)
hotel (27-37F)
retail (2F)

19 stories above
ground, 3 stories
below ground
99.6ｍ
office (3-19F)
retail (1-2F)
tourist information
center (1F)
September 2003

Building completion November 2008
(scheduled)
Hotel tenant
Shangri-La Hotel, Tokyo
Guest room
202rooms
Restaurant and
Italian Cuisine, Japanese Cuisine
bar facilities
and Lobby Lounge
Recreation facilities CHI spa, Health club, Indoor swimming poolother facilities
Wedding chapel, Shangri-La Ball Room,
Meeting facilities, Horizon Club Lounge
Starting date
March 2009 (scheduled)■ Sendai Ichibancho Project (tentative name)
Address
Site area

1-9 Ichibancho, Aoba-ku, Sendai, Miyagi
13,550.52㎡(except for the area of residence tower
approximately 3,100㎡)
Total floor area
Approx. 125,300㎡
37 stories above ground, 2 stories below groundNumber of floors
Maximum height
Approx. 180m
Primary use
Office, Hotel, Retail
Car park
Approx. 500 units
Construction started January 2008
Scheduled for completion April 2010 (scheduled)
Concept of the project A new landmark tower for the Tohoku region;
A premium urban development fusing adiverse range of urban functions
Floor structure of Office：1F Entrance
4-24F Office
office, retail, and(Rental space for standard floor for office
hotel wing
Approx. 2,200㎡. Total space available
for lease Approx. 46,300㎡）
Hotel：1-3F Entrance, Banquet hall,Chapel,
25-26F Lobby, Lounge,
Restaurant, Banquet hall, etc.
28-36F Guest rooms
37F Restaurant
Retail：1-3F
The above floor structure is based on plans asof the date this document was released.
It is subject to change.
Note: The residential project—based on the same development themes as theoffice, retail, and hotel wing -will involve a luxury condominium tower(with a total of approximately 200
residential units) matching well with the rest of the project.

9

○ Condominium Residences
Foretseine Co., Ltd.
■ Foretseine Akasaka Tangocho
Address
4-5, Akasaka, Minato-ku, Tokyo
Site area
1,343.40㎡
Total floor area
5,619.30㎡
Number of floors
4 stories above ground, 3 stories below groundNumber of units
19 units
Expected completionlate February 2009 (scheduled)■ Foretseine Akasaka Hikawacho
Address
6-9, Akasaka, Minato-ku, Tokyo
Site area
1,283.86㎡
Total floor area
7,775.29㎡
Number of floors
12 stories above ground, 2 stories below groundNumber of units
35 units
Expected completionmid-May 2009 (scheduled)

Urban Life Co., Ltd.
■ The Urban Life Okamoto
Address
Site area
Total floor area
Number of floors
Number of units
Completion

5, Okamoto Higashi Nada-ku, Kobe-city
1,378.05㎡
2,068.05㎡
3 stories above ground, 1 story below ground
10 units
June 2007■ Urban Life Kobe Sannomiya The Tower
Address
6, Kanocho, Chuo-ku, Kobe-city
Site area
4,098.49㎡
Total floor area
35,630.96㎡
Number of floors
34 stories above ground, 1 story below groundNumber of units
271 units
Expected completionDecember 2009 (scheduled）■ Matsugasaki Kitayama-dori Urban Life
Address
Kumojicho, Matsugasaki, Sakyo-ku, Kyoto-shi
Site area
1,210.58㎡
Total floor area
4,436.58㎡
Number of floors
7 stories above ground, 1 story below groundNumber of units
32 units
Expected completionlate July 2008 (scheduled)10Overview of Hotel & Resort business■The Laforet Hotels and Resorts

Name of Hotel
Laforet Shuzenji
Laforet Shuzenji & Country club
Laforet Gora
Laforet Ito
Laforet Yamanakako
Laforet Nasu
Laforet Shirakawa Golf course
Laforet Zao Resort & Spa
Laforet Club Hotel Nakakaruizawa
Laforet Club Hotel Hakubahappo
Laforet Biwako
Laforet Nankishirahama
Hotel Laforet Tokyo
Hotel Laforet Shin-Osaka
Laforet ＆ Matsuo Golf Club

Address
Izu-shi, Shizuoka

Guest Room, etc.
296 Rooms
18 Holls
34 Rooms
84 Rooms
104 Rooms
120 Rooms
18 Holls 48 Rooms
197 Rooms
84 Rooms
45 Rooms
272 Rooms
182 Rooms
248 Rooms
332 Rooms
18 Holls

Hakone-machi, Ashigarashimo-gun, Kanagawa
Ito-shi, Shizuoka

Yamanakako-mura, Minamitsuru-gun, Yamanashi

Nasu-machi, Nasu-gun, Tochigi
Izumizaki-mura, Nishi-Shirakawa-gun, Fukushima

Zao-machi, Katta-gun, Miyagi
Karuizawa-machi, Kita-Saku-gun, Nagano
Hakuba-mura, Kita-Azumi-gun, Nagano
Moriyama-shi, Shiga
Shirahama-machi, Nishi-Muro-gun, Wakayama
Shinagawa-ku, Tokyo
Yodogawa-ku, Osaka-shi, Osaka
Sammu-shi, Chiba■ Mampei Hotel■ CONRAD TOKYO■ RIHGA ROYAL HOTELS

Address
Guest Room
Restaurant
and barfacilities
Other facilities
Starting Date

Karuizawa-cho, Kitasaku-gun, Nagano
88 Rooms
Main dining room, Chinese restaurant Manzanro,
Yugyoan Tankuma Kita-mise restaurant specializing
in Kyoto cuisine, and Kappo Yugyoan, Cafe, Bar,
Function Rooms, Exthetic Salon, Shop, etc.
1894

Address
Guest Room
Restaurant
and barfacilities
Other facilities

1 Higashi-shinbashi, Minato-ku Tokyo
290 Rooms（including 68 suites）
Gordon Ramsay at Conrad Tokyo (French), Cerise by Gordon
Ramsay (Brasserie), China Blue (Chinese), Kazahana(Japanese), TwentyEight (Bar & Rouge)
Spa & Fitness, Indoor pool, Banquet rooms,
Wedding Chapel, etc.
2005

Starting Date

■RIHGA ROYAL HOTELSName of Hotel
RIHGA ROYAL HOTEL (Osaka)
RIHGA ROYAL HOTEL Tokyo
RIHGA ROYAL HOTEL Kyoto
RIHGA ROYAL HOTEL Hiroshima
RIHGA ROYAL HOTEL Kokura
RIHGA ROYAL HOTEL Niihama
RIHGA Nakanoshima Inn
RIHGA ROYAL HOTEL Sakai
Kuroyon Royal Hotel

Address
Guest RoomKita-ku, Osaka
973 Rooms
Shinjuku-ku, Tokyo
126 Rooms
Shimogyo-ku, Kyoto
484 Rooms
Naka-ku, Hiroshima
490 Rooms
Kokurakita-ku, Kitakyushu-shi, Fukuoka 295 Rooms
Niihama-shi, Ehime
94 Rooms
Nishi-ku, Osaka
340 Rooms
Sakai-shi, Osaka
241 Rooms
Omachi-shi, Nagano
73 Rooms■Associates Hotel
RIHGA Hotel Zest Takamatsu

Takamatsu-shi, Kagawa■ INTERCONTINENTAL YOKOHAMA GRAND
Address
Guest Room
Restaurant
and barfacilities
Other facilities
Starting Date

122 Rooms

Minato Mirai, Nishi-ku, Yokohama-shi, Kanagawa
600 Rooms
Chinese restaurant Karyu, Asian bistro Spicy J,
restaurant Azur, Japanese restaurant Nadaman,
Italian restaurant La Vela , Lounge & bar Marine Blue,Music lounge, Buffet dining, Pastry shop Seafood bistro
Spa, Fitness, Banquet Halls, Wedding Chapel, etc.
1991

[Latest Hotel Project]■ Shangri-La Hotel, Tokyo■ SENDAI ICHIBANCHO PROJECT : Plan of Hotel

Address

1-8 Marunouchi,
Chiyoda-ku, Tokyo
Guest Room
202 Rooms
Room Type
Deluxe room, Premiere room,
Horizon room, Executive suite,
Shangri-La suite, Presidential suite
Restaurant and Italian Cuisine, Japanese Cuisineand Lobby Lounge
bar facilities*image Perspective
Recreation
CHI spa, Health club,
facilities
Indoor swimming pool
Other facilities
Wedding chapel, Shangri-La Ball
Room, Meeting facilities, Horizon
Club Lounge
Starting Date
March 2009 (scheduled)

11

Address
Guest Room
Facilities

Starting Date*image Perspective

1-9, Ichibancho,
Aoba-ku, Sendai
Approx. 300 Rooms
Restaurants, Lounge,
Banquet Hall,
Wedding Chapel, etc.
During fiscal year 2010
(scheduled)Overview of investment operations○MTL Fund No.1 Investment Limited Partnership established
MT Labo and Mori Trust have jointly established a corporate investment fund known as MTL

Fund No.1 Investment Limited Partnership to invest in companies working to increase
corporate value and to create new value, with no restrictions on industry or business types.

The unique investment policy of this 10-billion-yen investment fund is to make use of the AXIS
management support tool developed by MT Labo to uncover the potential needs of companies thatare working aggressively to increase corporate value through restructuring efforts. Solutions will
be provided on a continuous basis, enabling such companies to grow into superior investments.

○Investment in GV-I and GV-II venture-capital funds
As part of its investment business, the Group invests in the GV-I and GV-II venture-capital funds
aimed at growing the industries of the future. Through an alliance with the consulting firm Global
Brain, these funds are characterized by the added ability to provide management consulting
services to firms in which they invest. Already the GV-I fund has seen three of the 11 firms it has
invested in go public. At present, the GV-II fund has invested in six companies.

12Mori Trust Group: Total floor area leased or managed○Leased or managed facilities (as of March 2008)○Leased buildings:

Approx. 1,300,000 ㎡ (60 buildings)○Hotel ＆ Resort facilities:
28 hotels (6,886 guest rooms)(Laforet Hotels & Resorts 13 locations; Laforet & Matsuo Golf Club;
MAMPEI HOTEL; CONRAD TOKYO; INTERCONTINENTAL
YOKOHAMA GRAND; Hotel SUNROUTE PLAZA SHINJUKU;RIHGA ROYAL HOTELS & Associates Hotels(Capital & Businesstie-up partner: 10hotels))
Total floor area

13

Approx. 2,110,000 ㎡

Mori Trust Group: summary of consolidated companies

Mori Trust Co., Ltd.

MT Facility Service Co., Ltd.

Location
President
Established
CapitalBusiness sectors

Location
President
Established
CapitalBusiness sectors

Toranomon, Minato‑ku, Tokyo
Akira Mori
June 10, 1970
10 billion yen
Urban development, hotel management andinvestment business

Mori Kanko Trust Co., Ltd.

Mampei Hotel

Location
President
Established
CapitalBusiness sectors

Location
Chair
General Manager
Established
CapitalBusiness sectors

Toranomon, Minato‑ku, Tokyo
Hiroshi Shimamoto
April 1. 2006
2 billion yen
Operation of the Laforet Hotels & Resorts

Toranomon, Minato‑ku, Tokyo
Kuniyoshi Murakami
April 1, 2002
100 million yen
Agents for building owners; Building operation
management and subcontracting on design

Toranomon, Minato‑ku, Tokyo
Yasuharu Sato
Kazuyasu Abe
1894
502.97 million yen
Ownership and operation of the Mampei Hotel

MT&Hilton Hotel Co., Ltd.

MT Golf Development Inc.

Location
President
Established
CapitalBusiness sectors

Location
President
Established
CapitalBusiness sectors

Toranomon, Minato‑ku, Tokyo
Kazuhiko Oiwa
October 22, 2004
20 million yen
Operation of the Conrad Tokyo

Toranomon, Minato‑ku, Tokyo
Toshio Komatsu
November 11, 2004
100 million yen
Ownership and management of the Laforet &Matsuo Golf Club

Laforet T&S Co., Ltd.

FORETSEINE Co., Ltd

Location
President
Established
CapitalBusiness sectors

Location
President
Established
CapitalBusiness sectors

Nihonbashihoncho, Chuo‑ku, Tokyo
Ryoji Tanaka
May 9, 1970
55 million yen
Sales and planning for domestic and overseasorganized travel and other various services
industries

Toranomon, Minato‑ku, Tokyo
Nobuo Konomi
August 7, 2001
550 million yen
Plannning, development and sales of urban residence

Toyo Housing Management Inc.

Toyo Green Building Co., Ltd.

Location
President
Established
CapitalBusiness sectors

Location
President
Established
CapitalBusiness sectors

Roppongi, Minato‑ku, Tokyo
Nobuo Konomi
November 27, 1979
10 million yen
Leasing management and operations of real estate

Toranomon, Minato‑ku, Tokyo
Nobuo Konomi
March 1, 1978
90 million yen
Condominium management service

Urban Life Co., Ltd.

Urban Life Juutakuhanbai Co., Ltd.

Location
Chair
President
Established
CapitalBusiness sectors

Location
President
Established
CapitalBusiness sectors

Minamisenba, Chuo‑ku, Osaka‑shi, Osaka
Kazuo Sase
Yoshio Ko
July 31, 1970
3 billion yen
Development, planning, and sales of condominiums,
office buildings and stores

Minamisenba, Chuo‑ku, Osaka‑shi, Osaka
Kenkichi Takatsu
July 29, 1982
300 million yen
Planning and sales of condominiums, dealing,
brokerage of leasing and operations of real estate

LIZ INVETSTMENT Co., Ltd.

MT Labo Co., Ltd.

Location
Representative
Established
CapitalBusiness sectors

Location
Chair
President
Established
CapitalBusiness sectors

Marunouchi, Chiyoda‑ku, Tokyo
Shinji Arakawa
July 28, 2005
3 million yen
Ownership and leasing of commercial buildings

MTL Fund No.1 Investment Limited Partnership
General Partner
Established

MT Labo Co., Ltd.
August 31, 2007

MT Genex Corp.
Location
Chair
President
Established
CapitalBusiness sectors

MT Labo Capital Co., Ltd.
Location
Akasaka, Minato‑ku, Tokyo
President
Hidemitsu Mori
Established
December 3, 2007
Capital50 million yen
Business sectors Management of investment fund; Consulting

MORI TRUST Asset Management Co., Ltd.
Shimbashi, Minato‑ku, Tokyo
Hirokazu Takahashi
Hitoshi Suzuki
October 1945
Approx. 1.072 billion yen
Facelift of building and housing, parking
operation management, etc.

Shiroyama Heating & Cooling Supply Co., Ltd.
Location
President
Established
CapitalBusiness sectors

Toranomon, Minato‑ku, Tokyo
Akira Mori
November 6, 1989
300 million yen
Local heating and cooling services
in the Shiroyama garden and adjacent area

Location
President
Established
CapitalBusiness sectors

Toranomon, Minato‑ku, Tokyo
Satoshi Horino
February 28, 2000
400 million yen
Operation of real estate investment trusts

Ohno Kogyo Co., Ltd.
Kyobashi, Chuo‑ku, Tokyo

Location
Chair
Established
CapitalBusiness sectors

Azmax Corp.
Location
President
Established
CapitalBusiness sectors

Akasaka, Minato‑ku, Tokyo
Akira Mori
Masaki Murata
April 3, 2006
300 million yen
Investment banking services

Kyobashi, Chuo‑ku, Tokyo
Michinobu Mizobe
August 11, 1947
499 million yen
Manufacturing and sales of steel products

14

Akira Mori
August, 1937
50 million yen
Leasing management and operation of real estate,and steel operation

Mori Trust Group: summary of equity-method affiliates

Location
Minamiikebukuro, Toshima‑ku, Tokyo
EstablishedFebruary 13, 1953
Business sectors Development, operation, consulting,and property management for shopping centers, etc.

THE ROYAL HOTEL, LIMITED
kita‑ku, Osaka‑shi, Osaka
Location
March 14, 1932
Established
Business sectors Hotel management centered on lodgment,
banquet and restaurant, and hotel
incidental business

YOKOHAMA GRAND INTERCONTINENTAL Co., Ltd.

MORI TRUST Sogo REIT, Inc.

Location
Minato Mirai, Nishi‑ku, Yokohama‑shi, Kanagawa
EstablishedMay 12, 1988
Business sectors Operation of
INTERCONTINENTAL YOKOHAMA GRAND

Location
Toranomon, Minato‑ku, Tokyo
Established
October 2, 2001
Business sectors Investment in real estate and asset‑backed
securities investing primarily in real estate

PARCO CO., LTD.

URBAN SERVICE Co., Ltd.
Location
Minamisenba, Chuo‑ku, Osaka‑shi, Osaka
Established
April 5, 1979
Business sectors General management of condominiums
and other buildings, etc.

15Consolidated Financial Statements (As of March 31, 2008)
Consolidated Balance Sheets
MORI TRUST Co., Ltd.
2008
AssetsⅠ．Current assets
1 Cash and deposits
2 Notes and accounts receivable-trade
3 Short-term investment securities
4 Real estate for sale
5 Other inventories
6 Deferred tax assets
7 Other
Allowance for doubtful accounts
Total current assets
Ⅱ．Noncurrent assets
1 Property, plant and equipment（1) Buildings and structures, net（2) Machinery, equipment and vehicles, net（3) Tools, furniture and fixtures, net（4) Land（5) Golf courses（6) Construction in progress
Total property, plant and equipment
2 Intangible assets（1) Leasehold right（2) Goodwill（3) Other
Total intangible assets
3 Ｉｎｖｅｓｔｍｅｎｔs and other assets（1) Investment securities
Investments in unconsolidated subsidiaries and（2)
affiliates（3) Long-term loans receivable（4) Deferred tax assets（5) Guarantee deposits（6) Other
Allowance for doubtful accounts
Total iｎｖｅｓｔｍｅｎｔs and other assets
Total noncurrent assets
Total assets

16(¥ millions)2007

16,376
4,344
3,697
91,947
2,290
1,267
9,573
△ 49
129,448

23,6385,395
3,879
86,543
2,180
1,499
5,330
△ 68
128,398

130,999
1,762
1,530
539,122
3,248
20,788697,452

137,306
1,772
1,752
428,807
3,244
9,151
582,034

6,366
1,509
1,613
9,490

6,366
2,003
484
8,855

20,34922,18152,52551,563

1,496
374
11,0942,086△ 142
87,785
794,728
924,177

1,586
1,027
11,6082,805△ 988
89,784680,674
809,073MORI TRUST Co., Ltd.
2008
Liabilities
Ⅰ．Current liabilities
1 Notes and accounts payable-trade
2 Short-term loans payable
3 Current portion of long-term loans payable
4 Accounts payable-other
5 Income taxes payable
6 Accrued expenses
7 Advances received
8 Deposits received
9 Provision for bonuses
10 Provision for directors' bonuses
11 Other
Total current liabilities
Ⅱ．Noncurrent liabilities
1 Long-term loans payable
2 Long-term lease deposited
3 Long-term guarantee deposited
4 Long-term deposits received
5 Deferred tax liabilities
6 Provision for retirement benefits
7 Other
Total noncurrent liabilities
Total liabilities
Net assets
Ⅰ．Shareholders' equity
1 Capital stock
2 Capital surplus
3 Retained earnings
4 Treasury stock
Total shareholders' equity
Ⅱ．Valuation and translation adjustments
1 Valuation difference on available-for-sale securities
2 Deferred gains or losses on hedges
3 Foreign currency translation adjustment
Total valuation and translation adjustments
Ⅲ．Minority interests
Total net assets
Total liabilities and net assets

17(¥ millions)
2007

9,224
196,310
122,474
3,199
6,829
1,836
9,507
917
446
19
302
351,067

10,338106,480
112,781
2,795
14,357
1,533
7,439
2,840
316
12
1,648
260,542

264,784
62,66564,945
1,359
8,614
2,759
430
405,558
756,626

286,057
56,361
65,167
1,491
2,055
2,714
694
414,542675,085

10,000
6,643
166,781△ 21,096
162,328

10,0006,383
132,854△ 21,135
128,103

△ 672
△ 101
36
△ 737
5,960
167,551
924,177

1,256
△ 31
△ 99
1,125
4,758
133,987
809,073

Consolidated Statements of Income
MORI TRUST Co., Ltd.
Ⅰ．Operating revenue
Ⅱ．Operating cost
Operating gross profit
Ⅲ．Selling, general and administrative expenses
Operating income
Ⅳ．Non-operating income
1 Interest and dividends income
2 Gain on sales of securities
3 Equity in earnings of affiliates
4 Ｆinancial income-other
5 Other
Total non-operating income
Ⅴ．Non-operating expenses
1 Interest expenses
2 Loss on valuation of securities
3 Other
Total non-operating expenses
Ordinary income
Ⅵ．Extraordinary income
1 Gain on sales of noncurrent assets
2 Gain on sales of investment securities
3 Other
Total extraordinary income
Ⅶ．Extraordinary loss
1 Loss on sales of noncurrent assets
2 Loss on retirement of noncurrent assets
3 Impairment loss
4 Loss on valuation of investment securities
5 Other
Total extraordinary losses
Income before income taxes
and minority interests in income
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income
Net income

18

2008
160,716
90,18370,533
13,07357,459(¥ millions)2007
157,332
106,032
51,29911,03540,264

767
1,905
395
476
3,545

923
6,515
1,645
999
1,311
11,394

7,224
1,058
295
8,577
52,427

5,801
−
953
6,755
44,902

12,870273
13,143

1,500
479
1,979

766
2,306
1,142
177
4,392

350
2,258
859
3,468

61,17743,413

16,417
8,636
25,053
1,044
35,07921,881△ 1,236
20,645757
22,011