Tokyo Tatemono : Outline of Consolidated Financial Statements for the 1st Quarter of FY2023178KB

This document has been translated from a portion of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation, nor for direct, indirect, or any other form of damages that may arise from use of this translation.

This English version includes some explanatory notes.

May 11, 2023

Outline of Consolidated Financial Statements for the First Quarter of the Fiscal Year

Ending December 2023

Name of Company Listed:	Tokyo Tatemono Co., Ltd.	Exchange:	Prime Market of Tokyo Stock Exchange
Code Number:	8804	URL:	https://www.tatemono.com/english/
Representative:	Hitoshi Nomura, President & Chief Executive Officer
Contact:	Munetoshi Harunaga, General Manager, Corporate Communications Department
	TEL: +81-(0)3‐3274‐1984

Scheduled date for submission of quarterly report:	May 12, 2023
Scheduled date for commencement of dividend payment:	－
Supplementary documents for quarterly results:	Yes
Quarterly results briefing:	Yes (for institutional investors and analysts)
	(Amounts are rounded down to the nearest one million yen.)

1. Consolidated Results of Operations for the First Quarter of Fiscal Year Ending December 2023 (January 1, 2023 to March 31, 2023)

1. Consolidated business results (on a cumulative basis)

		Operating revenue	Operating profit	Ordinary profit	Profit attributable to
		owners of parent
		Million yen	%	Million yen	%	Million yen		%	Million yen	%
FY2023 1Q		118,393	(2.7)	27,289	7.0	27,472		9.2	17,755	3.1
FY2022 1Q		121,684	18.5	25,504	21.0	25,156		27.2	17,226	24.4
Note 1: The percentage figures indicate the percentage increase/decrease compared with the previous fiscal year.
Note 2: Comprehensive income FY2023 1Q	¥20,570 million (12.6%)
		FY2022 1Q	¥18,272 million (-25.4%)
			Profit per share		Profit per share after adjusting
					for dilution
					Yen			Yen
FY2023 1Q					85.00		−
FY2022 1Q					82.47		−
(2) Consolidated financial status
			Total assets		Net assets	Equity capital ratio	Net assets per share
				Million yen			Million yen			%		Yen
FY2023 1Q				1,812,369			469,740			25.3		2,196.12
FY2022				1,720,134			456,838			25.9		2,135.08
Reference: Equity capital	FY2023 1Q	¥458,745 million
	FY2022	¥445,994 million

2. Dividend Status

				Dividend per share
	End of first quarter	End of second		End of third		Year-end		Total
	quarter		quarter
	Yen	Yen		Yen		Yen		Yen
FY2022	－	29.00		－	36.00	65.00
FY2023	－
FY2023 (Forecast)		36.00		－	36.00	72.00

Note: Revisions to dividend forecasts published most recently: None

3. Forecast of Consolidated Results of Operations for Fiscal Year Ending December 2023 (January 1, 2023 to December 31, 2023)

	Operating revenue	Operating profit	Ordinary profit		Profit attributable to	Profit per share
		owners of parent
	Million yen	%	Million yen	%	Million yen		%	Million yen	%	Yen
Full year	413,000	18.0	66,000	2.4	67,000		5.5	44,500	3.3	213.03

Note 1: The percentage figures indicate the percentage increase/decrease compared with the previous fiscal year.

Note 2: Revisions to consolidated results forecast of operations published most recently: None

*Notes

1. Significant changes in subsidiaries accompanied by a change in the scope of consolidation during the period: No
2. Application of particular accounting practices to the preparation of quarterly consolidated financial statements: None
3. Changes in the accounting principles and changes or restatement of accounting estimates

(i)	Changes in the accounting principles due to amendment of accounting standard, etc.:	Yes
(ii)	Changes in the accounting principles other than (i):	None
(iii)	Changes in the accounting estimates:	None
(iv)	Restatement:	None

Note: Refer to page 9, "2. Quarterly Consolidated Financial Statements and Key Notes; (3) Notes on Quarterly Consolidated Financial Statements; (Changes in accounting policies)" for details.

1. Number of shares outstanding (common shares)
2. 1. Number of shares outstanding (including treasury shares) at the end of the period

As of March 31, 2023:	209,167,674 shares	As of December 31, 2022:	209,167,674 shares
(ii) Number of shares of treasury shares at the end of the period
As of March 31, 2023:	278,822 shares	As of December 31, 2022:	278,430 shares
(iii) Average number of shares during the period (cumulative consolidated quarterly periods)
FY2023 1Q:	208,889,077 shares	FY2022 1Q:	208,891,398 shares

• • The Company has introduced a stock compensation plan, "Board Benefit Trust (BBT)." The shares of the Company held by the trust are included in the number of shares of treasury shares at the end of the period and the treasury shares deducted in the calculation of the average number of shares during the period.
• Outline of Quarterly Financial Statements is not subject to quarterly review by a certified public accountant or audit corporation.
• Explanation Regarding the Appropriate Use of Business Performance Forecasts, and Other Items to Note
  The performance forecasts and other statements regarding the future in these materials are based on information currently available to the Company and on certain assumptions deemed to be rational. Actual performance may differ materially depending on various factors. Refer to page 4, "1. Qualitative Information on Consolidated Operating Results, Etc. for the Period Under Review; (3) Description of Consolidated Earnings Forecasts and Other Forward-Looking Statements" for matters regarding the performance forecasts.

Contents of Accompanying Materials
1. Qualitative Information on Consolidated Operating Results, Etc. for the Period Under Review	2
(1)	Description of Operating Results	2
(2)	Description of Financial Position	4
(3)	Description of Consolidated Earnings Forecasts and Other Forward-Looking Statements	4
2. Quarterly Consolidated Financial Statements and Key Notes	5
(1)	Quarterly Consolidated Balance Sheet	5
(2)	Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income	7
(3)	Notes on Quarterly Consolidated Financial Statements	9
	(Notes on going assumptions)	9
	(Notes on cases where there was a substantial change in the amount of shareholders' equity)	9
	(Significant changes in subsidiaries during the period under review)	9
	(Changes in accounting policies)	9

- 1 -

1. Qualitative Information on Consolidated Operating Results, Etc. for the Period Under Review

1. Description of Operating Results

In the three months ended March 31, 2023 (first quarter of the fiscal year ending December 31, 2023 (FY2023)), the Japanese economy continued to show signs of picking up, with further progress in the normalization of economic and social activities from the COVID-19 pandemic coupled with the effects of various policies. Meanwhile, it is necessary to monitor the effects of factors such as the prolonged Russia-Ukraine situation, the risk of a global economic slowdown stemming from the financial uncertainty in Europe and the US, the impact of trends in prices and interest rates in Japan, and fluctuations in currency exchange rates. Accordingly, the economic outlook remains uncertain.

Amid this business environment, during the first quarter of FY2023, while property sales to investors in the Commercial Properties business and the Asset Service business decreased, sales volume in the Residential business increased. Consequently, operating revenue was ¥118,393 million (down 2.7% from ¥121,684 million for the same period last year), operating profit was ¥27,289 million (up 7.0% from ¥25,504 million for the same period last year), business profit was ¥28,136 million (up 10.8% from ¥25,390 million for the same period last year), ordinary profit was ¥27,472 million (up 9.2% from ¥25,156 million for the same period last year), and profit attributable to owners of parent was ¥17,755 million (up 3.1% from ¥17,226 million for the same period last year).

The Tokyo Tatemono Group has set "business profit," which is the sum of operating profit and share of profit (loss) of entities accounted for using equity method, as a profit indicator.

See below for an outline of consolidated results by business segment.

1. Commercial Properties Business

In the first quarter of FY2023, while sales of real estate were recorded for "FUNDES Tenjin Nishidori" (Chuo-ku,Fukuoka-shi) and "Osaka Dojima Bldg." (Kita-ku,Osaka-shi) as property sales to investors, revenues decreased primarily due to the rebound from the sale of large-scale properties in the same period last year.

Consequently, operating revenue was ¥34,420 million (down 40.3% from ¥57,673 million for the same period last year), operating profit was ¥10,102 million (down 40.9% from ¥17,079 million for the same period last year), and business profit was ¥10,167 million (down 40.7% from ¥17,146 million for the same period last year).

	First quarter of FY2022	First quarter of FY2023
Item		Operating		Operating
Quantity, etc.	revenue	Quantity, etc.	revenue
		(million yen)		(million yen)
	Leased area of buildings		Leased area of buildings
Leasing of buildings, etc.	833,145 m2	18,898	983,086 m2	18,882
(Of which, subleased area	(Of which, subleased area
	87,516 m2)		81,207 m2)
Sales of real estate	2 properties	29,387	2 properties	5,770
Building management service, etc.	−	9,387	−	9,767
Total operating revenue	－	57,673	－	34,420
Operating profit	－	17,079	－	10,102
Business profit	－	17,146	－	10,167

- 2 -

1. Residential Business

In the first quarter of FY2023, residential sales were recorded for "SHIROKANE The SKY" (Minato-ku, Tokyo) and "Brillia Shiki Garden" (Niiza-shi, Saitama), and sales of real estate were recorded for "Brillia ist Asakusabashi" (Taito-ku, Tokyo) as property sales to investors.

Consequently, operating revenue was ¥63,842 million (up 47.3% from ¥43,350 million for the same period last year), and operating profit and business profit were both ¥17,840 million (up 133.5% from ¥7,641 million for the same period last year).

Item	First quarter of FY2022	First quarter of FY2023
		Operating		Operating
	Quantity, etc.	revenue	Quantity, etc.	revenue
		(million yen)		(million yen)
Residential sales	390 units	23,250	548 units	53,611
Sales of real estate	－	12,889	－	1,960
Residence leasing	Leased area of buildings	1,235	Leased area of buildings	1,453
107,443 m2	128,337 m2
Condominium management	Number of managed units	3,406	Number of managed units	3,989
service	96,761 units	98,159 units
Other	－	2,568	－	2,827
Total operating revenue	－	43,350	－	63,842
Operating profit	－	7,641	－	17,840
Business profit	－	7,641	－	17,840

(iii) Asset Service Business

In the first quarter of FY2023, while revenue increased due to heightened occupancy of existing facilities and new opening in parking lot operations, sales of real estate as property sales to investors decreased in the asset solution business. Consequently, operating revenue was ¥14,251 million (down 9.9% from ¥15,810 million for the same period last year), and operating profit and business profit were both ¥1,687 million (down 48.2% from ¥3,254 million for the same period last year).

	First quarter of FY2022	First quarter of FY2023
Item		Operating		Operating
Quantity, etc.	revenue	Quantity, etc.	revenue
		(million yen)		(million yen)
Brokerage	250 properties	1,305	248 properties	848
Asset solution (Note)	－	8,370	－	6,544
Management service, etc.	－	1,150	－	1,186
Parking lot operations	Number of parking spaces	4,984	Number of parking spaces	5,671
75,618 spaces	79,045 spaces
Total operating revenue	－	15,810	－	14,251
Operating profit	－	3,254	－	1,687
Business profit	－	3,254	－	1,687

Note: This business mainly improves the added value of acquired real estate for the purpose of resale.

- 3 -