financial results for the fiscal year ended nov. 30, 2014 · restyling : sold 58 units in 10...

Copyright © 2015 TOSEI CORPORATION, All Rights Reserved. 1

表紙

Financial Results

For the Fiscal Year

Ended Nov. 30, 2014

Tosei Corporation

Securities Code:

8923 Tokyo Stock Exchange, First Section

S2D Singapore Exchange, Mainboard


ＩＮＤＥＸ

Ⅰ. Overview of Results for the Fiscal Year

Ended November 30, 2014 －P3(Noboru Hirano, Senior Executive Officer and CFO)

Ⅱ. Tosei’s View of the Operating Environment and

Business Development for the Fiscal Year Ending

November 30, 2015 －P19

(Seiichiro Yamaguchi, President and CEO)


I. Overview of Results for the Fiscal Year

Ended Nov. 2014

Copyright © 2015 TOSEI CORPORATION, All Rights Reserved.

-1,207 -1,388 -1,233

82 73 213 123 227 181669 174

1,340

1,5902,414

2,197

1,447 432

273

1,398

3,330

2,856

3,914

5,560

-1,000

1,000

3,000

5,000

7,000

2012.11月期 2013.11月期 2014.11月期

-698 -481 -582844 440 1,078

3,500 3,541 3,459799 1,419 958

2,510 2,703 4,210

11,259

16,347

6,112

5,980

11,098

34,743

24,195

35,070

49,981

-10,000

0

10,000

20,000

30,000

40,000

50,000

2012.11月期 2013.11月期 2014.11月期

不動産流動化事業

不動産開発事業

不動産賃貸事業

不動産ファンド事業

不動産管理事業

ｵﾙﾀﾅﾃｨﾌﾞｲﾝﾍﾞｽﾄﾒﾝﾄ事業

内部取引

Operating Performance of FY Ended Nov. 30, 2014 - Highlights

4

◆Achieved a large earning growth: Revenue ¥49.9 billion (up 43% yr/yr)

Operating profit ¥5.5 billion (up 42% yr/yr)

Profit for the year ¥2.8 billion (up 43% yr/yr)

736 1,616 1,600

-17

1,137 873

526

859 1,101

1,610

300

1,986

2,856

3,914

5,560

-100

900

1,900

2,900

3,900

4,900

5,900

2012.11月期 2013.11月期 2014.11月期

273

867 872

-52

595 415

226

461 544

1,017

82

1,041

1,465

2,006

2,874

5.7%

7.1%

9.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

-100

400

900

1,400

1,900

2,400

2,900

3,400

2012.11月期 2013.11月期 2014.11月期

ROE

569 1,408 1,427

-169

978 672

377

688 879

1,441

146

1,683

2,218

3,222

4,663

-100

900

1,900

2,900

3,900

4,900

5,900

2012.11月期 2013.11月期 2014.11月期

5,026

15,501 11,339

5,121

7,589 9,118

4,618

6,006 6,633

9,430

5,973

22,889

24,195

35,070

49,981

0

10,000

20,000

30,000

40,000

50,000

2012.11月期 2013.11月期 2014.11月期

1Q 2Q 3Q 4Q

＜ Segment Revenue＞

【Revenue】【Operating profit】【Profit before Tax】(¥ million) (¥ million)(¥ million)

【Profit for the period】(¥ million)

FY2012 FY2013 FY2014 FY2012 FY2013 FY2014

FY2012 FY2013 FY2014

Revitalization

Development

Rental

Fund and Consulting

Property Management

Alternative Investment

Internal Transactions

FY2012 FY2013 FY2014

FY2012 FY2013 FY2014FY2012 FY2013 FY2014

(¥ million)(¥ million)

＜ Segment Operating Profit＞


Overview of Consolidated Financial Results

for FY ended Nov. 30, 2014

5

※The sales expenses relating to the Revitalization and Development Businesses which used to be included in cost of revenue are charged to

SG&A expenses since Nov, 2014.For comparison, the figures only for previous fiscal year ending Nov, 2013 are restatements in line with the

partial changes in accounting policies. (The amounts of each project segments are same as above.)

(¥ million)

% % %

Revenue 35,070 100.0 49,981 100.0 14,911 42.5

Cost of revenue 26,392 75.3 40,018 80.1 13,626 51.6

Gross profit 8,678 24.7 9,962 19.9 1,284 14.8

Selling, general and administrative expenses, etc. 4,763 13.6 4,402 8.8 -361 -7.6

Operating profit 3,914 11.2 5,560 11.1 1,646 42.1

Finance income/costs (net) -692 - -897 - -204 1.4

Profit before tax 3,222 9.2 4,663 9.3 1,441 44.7

Income tax expense 1,215 - 1,789 - 573 47.2

Profit for the period 2,006 5.7 2,874 5.8 867 43.2

2,011 5.7 3,021 6.0 1,009 50.2

EPS (￥) 43.05 59.53 16.48 38.3

ROE (%) 7.1 9.2 2.1P

ROA (%) 2.9 3.8 0.8P

yr/yr change

Comprehensive income for the period

FY2013 FY2014


Revitalization Business

6

Tama Centre Tosei Building Nihonbashi Hamacho Building

Nihonbashi Ningyocho Building Gekkocho Apartment

2,046

8,010

32,705

3,933

3,087

2,037

5,980

11,098

34,743

10.4%

19.0%

12.2%

0%

6%

12%

18%

24%

30%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

12.11期 13.11期 14.11期

百万円

売上高（1棟販売）売上高（Restyling) 売上総利益率

4Ｑ

4Ｑ

4Ｑ4Ｑ

4Ｑ

Revenues/Gross Profit Margin Major Properties Sold

◆Whole buildings :Sold 31 buildings including income-generating offices and apartments such as

“Tama Centre building” or “Nihonbashi Hamacho building” and 4 pieces of lands.

◆Restyling : Sold 58 units in 10 properties including “Hilltop Yokohamanegishi” and “Hilltop

Yokohama Higashi Terao” etc.

*The gross profit is net of Cost of Revenues including the following write-down amounts under LCM:FY 2012 : -364 millions FY2013: -284 millions FY2014 : -260 millions

Revenue (Whole buildings) Revenue (Restyling) Gross profit margin

(¥ million)

FY2012 FY2013 FY2014

(￥million) FY2012 FY2013 FY2014

Full year Full year Full year

Revenue 5,980 11,098 34,743

Gross profit 624 2,112 4,226

Operating profit 273 1,398 3,330


Development Business

Ｔhe Palms

Nihonbashikodennmasho

(Sold out)

THE Palms court Setagaya Okamoto (leftover 1 unit)

7

Condominiums Detached Houses

THE Palms Nishidai (Completed Sept 2014)

Income-generating apartments1,712

5,331

0

7,307

5,874

1,629

2,239

5,141

4,483

11,259

16,347

6,112

21.5%17.0%

19.5%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

0

5000

10000

15000

12.11期 13.11期 14.11期

戸建・宅地分譲ﾏﾝｼｮﾝオフィス売上総利益率

◆Completed the sale of “THE Palms Nihonbashikodenmacho” (33 units) and 80 detached houses at “THE Palms court Setagaya Okamoto” etc (in 11 projects)

◆Continue in development of commercial facilities and income-generating apt buildings along with sale of condominiums and detached houses

*The gross profit m is net of Cost of Revenues including the following write-down amounts under LCM:FY 2012 : -46 millions FY2014 : -24.8 millions

*The revenues include internal transactions.

Revenue/Gross Profit Margin Major Properties Sold/Being Sold

(¥ million)

FY2012 FY2013 FY2014



Revenue 11,259 16,347 6,112

Gross profit 2,422 2,779 1,192

Operating profit 2,197 1,447 432

Detached house / Land lots

Condominiums Offices Gross profit margin


1,122

6,8178,578

24,848

4,356

9,576

9,093

1,300

4,424

5,460

520

3,663

3,562

253

3,629

4,992

9,851

6,966

2,410

3,723

13,875

20,263

31,969

49,054

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2011.11 2012.11 2013.11 2014.11

As of the

end of

FY 2012

As of the

end of

FY 2013

As of the

end of

FY 2014

Office buildings 18,595 18,497 27,185

Condo/Apt buildings 23,476 22,709 13,881

Detached houses 7,701 13,225 15,247

Others 354 393 4,243

TOTAL 50,127 54,825 60,557

Revitalization

Deveplopment

R

R R

RR

R

R

D

DD

D

D

D

D

R

8

(¥ million)

(¥ million)

D

R

R

R

D

R

Shinjuku 6-chome Building Toyocho Tosei Building

(leased land)

Including non-

current assets

(about ¥1.4 billion)

D2Ｑ 4Ｑ

Acquisitions in Revitalization and Development Businesses -Acquisition Amount and Inventories

◆Revitalization : 31 properties (15 office properties*, 11 income-generating apt buildings, 4 land lots and others)*including 1 non-current asset

◆Development Business : 10 properties (1 commercial facility, 9 detached house projects)

Trends in Annual Acquisition Amounts

（delivery basis and expected disposition values ）

Breakdown of Inventories

（Trends in Expected Disposition Values）

To acquisition high-yield properties and development lands close to the

station in suburb considering features or yieldability in that area due to non-

competitive market.

To make best use of Tosei’s own solutions (value up and leasing etc).

FY2011 FY2012 FY2013 FY2014

Detached

houses

Detached

houses

Detached

houses

Detached

houses

Commercial facilitiesOffices

Commercial

facilities

Office

Condos

Apartments

Other

Income-generating offices

Income-generating offices

Income-

generating

offices

Income-

generating

offices

Restyling

Restyling

Condos

Income-

generating

Apt buildings

Income-

generating

Apt buildings

Income-

generating

Apt buildings

Other


（棟）

929 9491,171

494 390278

1,086

1,364

2,7602,510

2,703

4,210

59.0%61.8%

60.0%

40.0%

45.0%

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

12.11期 13.11期 14.11期

売上高(流動資産) 売上高(Restyling)

売上高(固定資産) 売上総利益率

14 14 14 14 14 14 14 15 16 16 16 16

12 11 11 11 11 11 12 12 12 12 12 10

9 8 13 18 15 2027

33 36 36 342535 33

3843 40

4553

6064 64 62

51

0

10

20

30

40

50

60

70

12.1Q 12.2Q 12.3Q 12.4Q 13.1Q 13.2Q 13.3Q 13.4Q 14.1Q 14.2Q 14.3Q 14.4Q

合計流動資産 Restyling 固定資産

Rental Business

Revenue / Gross Profit Margin Breakdown of Properties Held by Tosei

※1 Includes income-generating properties only

* The revenue includes internal transactions

◆Although sold 30 properties of current assets, newly acquired 23 income-generating offices and

apt buildings and focused on the leasing.

(¥ million)

FY2012 FY2013 FY2014



Revenue 2,510 2,703 4,210

Gross profit 1,481 1,671 2,526

Operating profit 1,340 1,590 2,414

Revenue (Current assets) Revenue (Restyling)

Revenue (Non-current assets) Gross profit margin

(No. of buildings)Current assets*1 Non-current assets,

etc.Restyling

Office and commercial

buildings: 27

Apartments: 20

Others: 4


※2

450381

266

1951

116

63 173 199

267

814

376

799

1,419

958

92.3%88.0%

92.8%

0%

20%

40%

60%

80%

100%

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

12.11期 13.11期 14.11期

百万円

AMフィーアクイジションフィー

ディスポジションフィーインセンティブフィー

仲介手数料･その他売上総利益率

192,525

241,005216,796 225,564

149,349

113,057

17,434

16,618

23,130 69,108

85,771

98,679

170,114 209,143

264,135

285,904

311,335

248,028

300,607

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

09 /11 10/11 11/11 12/11 13/11 14/11

私募ファンドAM REIT AM CRE

（百万円）

Fund and Consulting Business

◆AUM increased due to new AM & CRE contracts (+¥130.8 billion), but decreased due to property dispositions (-¥78.3 billion).

◆Brokerage fees, etc. related to property dispositions contributed to growth in revenue.

*2

Revenue / Gross Profit Margin Balance of Assets Under Management *2

※1 Out of additional ¥130.8 billion, ¥84.2 billion which was part of a former CRE contract

added on as we obtained the asset evaluation of a subject property this year.

Hence, the actual amount of increase by new contracts was ¥46.6 billion. Further, there is no

effort on the revenue due to the increase of the balance of CRE contract.

なお、のCRE受託残高増加による収益への影響ありません。※2 The purple portion indicates the assets under consulting agreements of CRE. CRE is

methods of investing in and managing corporate real estate efficiently to maximize long-

term enterprise value. By undertaking CRE, Tosei conducts comprehensive consulting

services from the views of real estate professional. * The revenue includes internal transactions.

(¥ million)

AM fee

Disposition fee

Brokerage fee / Other

Acquisition fee

Incentive fee

Gross profit margin (¥ million)

FY2012 FY2013 FY2014



Revenue 799 1,419 958

Gross profit 738 1,248 889

Operating profit 181 669 174

Private Funds AM

Nov. 2009 Nov. 2010 Nov. 2011 Nov. 2012 Nov. 2013 Nov. 2014

*1


Property Management Business/Alternative Investment Business

◆Entrusted large-size logistics warehouses for multiple tenants. In addition to service expansion, improvement in new property management contracts and profit margin contributed to the stable income of business.

3,500 3,5413,459

23.2% 24.0%

27.0%

0%

10%

20%

30%

40%

50%

0

1,000

2,000

3,000

4,000

5,000

12.11期 13.11期 14.11期

百万円

売上高売上総利益率

(¥ million) FY 2012 FY 2013 FY 2014

Revenue 1,454 1,286 865

Ordinary income 147 168 163

Net Profit 259 100 164

844

440

1,078

14.2%

23.1%26.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

0

250

500

750

1,000

12.11期 13.11期 14.11期

百万円売上高売上総利益率

Property Management Business Alternative Investment Business

Revenue / Gross Profit Margin Revenue / Gross Profit Margin

*The revenue include internal transactions. *The revenue include internal transactions.

◆Revenue and Current earning by TRI

◆Dramatically expanded sales by real estate acquired through like-kind exchanges and brokerage fees as well as acquisition of a sports club through M&A.

【The Number of Properties Under Management】

FY2012 FY2013 FY2014 FY2012 FY2013 FY2014



Revenue 3,500 3,541 3,459

Gross profit 812 850 934

Operating profit -11 123 227



Revenue 844 440 1,078

Gross profit 119 101 284

Operating profit 82 73 213

Nov. 2009 Nov. 2010 Nov. 2011 Nov. 2012 Nov. 2013 Nov. 2014

Office building management 291 312 308 306 343 351

Condo/Apt management 180 199 203 216 203 193

471 511 511 522 546 554TOTAL

Revenue Gross profit margin

Revenue Gross profit margin(¥ million) (¥ million)


Full year

Decrease Increase

Total Assets 71,283 +13,326 84,609 -3,751 80,858 +9,575

14,711 -122 14,589 1,511 16,100 +1,388

38,040 14,078 25,980 49,942 22,625 14,247 41,565 36,703 40,228

16,008 587 1,103 16,524 115 742 17,151 702 1,846

2,522 +1,031 3,553 +2,486 6,040 +3,518

End of

Nov. 2013

Cash and cash

equivalents

Inventories

(properties)

Investment

properties/PPE

Other assets

End of

Nov. 2014Decrease Increase

End of

Mar. 2014Decrease Increase

（¥ million）

12

A

B

C

Summary of Balance Sheet (Consolidated) I. - Assets -

・Cash and cash equivalents decreased by ¥1,388

million from the previous year-end.

A：Change in cash and cash equivalents

・Investment properties and PPE increased by ¥1,143

million from the previous year-end.

C：Investment properties/PPE

B：Change in inventory

Inventory increased by ¥3.5 billion from the previous year-end as purchase of properties substantially exceeded sales.

Acquisitions 34,384

Construction/value up 5,317

Others 526

Dispositions ▲ 35,731

Depreciation 0

LCM ▲ 284

Others ▲ 687

Total ▲ 36,703 40,228

（\ million） FY2014

Increase

Factor

Decrease

Factor


・As the borrowings to finance property acquisitions

Exceeded the repayment of borrowings by sales, the

debt balance increased by ¥5.3 billion from the end

of the previous fiscal year.

・¥32.2 billion of new borrowings (LTV:91%)

Incurred to finance acquisition of 41 properties

(book value ¥35.4 billion)

*including 1 non-current asset (book value, about

1 billion)

849

9,529

479

▲ 8,013

▲ 3,581

▲ 1,469

31,418

965

1,469

▲ 15,820

▲ 928

▲ 9,529

TOTAL ▲ 39,343 44,712

Non-

current

Increase

New Borrowings

Other (refinance, etc.)

Conversion to non-current borrowings

Decrease

Repayments upon Disposition

Other repayments (refin/maturity)

Non-curernt→ Current Portion

Current

Increase

New Borrowings

Non-current→ Current Portion

Other (refinance, etc.)

Decrease

Repayments upon Disposition

Other repayments (refin/maturity)

Conversion to non-current borrowings

Full year

Decrease Increase

71,283 +13,326 84,609 -3,751 80,858 +9,575

35,036 14,419 26,578 47,195 24,924 18,134 40,404 39,343 44,712

Current

borrowings7,587 5,291 5,853 8,148 7,773 5,004 5,380 13,065 10,857

Non-current

borrowings27,449 9,127 20,724 39,046 17,150 13,129 35,024 26,278 33,854

6,154 +265 6,419 +1,305 7,725 +1,571

30,092 +902 30,995 +1,732 32,727 +2,635

42.2 -5.6 36.6 3.8 40.5 -1.7

Decrease IncreaseEnd of

Nov. 2014Decrease Increase

End of

Mar. 2014

Other Liabilities

Equity

Equity Ratio (%)

End of

Nov. 2013

Total Liabilities

/Equity

Borrowings

(¥ million)

13

A

B

Summary of Balance Sheet (Consolidated) II. - Liabilities/Equity -

・Total equity increased by ¥2.6

billion from the end of the

previous fiscal year, in

consequence of the increase in

retained earnings, and dividend

payments.

B：Change in EquityA：Change in borrowings


Breakdown of Inventories

No. of

properties

No. of

properties

Office buildings 21 3 27,185

Condo/Apt buildings 18 1 13,881

Detached houses - 21 15,247

Other 4 - 4,243

TOTAL 43 25 60,55721,990

Revitalization

(incl. Alternative

Investment)

Development

30,017 11,547 38,567

15,247

3,161 - 4,243 -

- 7,940 -

6,151

11,058 369 13,290 591

15,797 3,237 21,033

60,557

Property type

Inventories Expected disposition valuesTotal expected

disposition valueRevitalization

(incl. Alternative

Investment)

Development

Balance of Inventories

As of Nov 30, 201441,565

Total Expected

Disposition Value

(¥ million)

14

(68 properties)

Inventories (Breakdown)

* The expected disposition values above are based on Tosei’s estimate of revenue corresponding to the properties currently in the inventories. These are

calculated using information available as of November 30, 2014. Actual amounts may be vary significantly from the estimates, due to various factors.

* The inventories above represent carrying amount as of November 30, 2014 and may increase due to such factors as value-up investments and construction costs.


FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Office buildings 60,487 31,264 22,251 15,206 18,595 18,497 27,185

Condo/Apt buildings 14,327 12,844 30,589 26,627 23,476 22,709 13,881

Detached houses ― ― 558 3,727 7,701 13,225 15,247

Others 1,672 479 220 1,021 354 393 4,243

TOTAL 76,487 44,588 53,620 46,581 50,127 54,825 60,557

(¥ million)

Inventories (Expected Disposition Values)

◆Inventories (expected disposition values ) totaled ¥60.5 billion as of November 30, 2014.

◆Office buildings exceeded condominiums for the first time in five years after 2009


(¥ million)

※1

※2

Summary of Cash Flow Statements (Consolidated)

Cash Flows from Operating

Activities *1

Cash flow from operating

activities was +¥300 million,

due mainly to +¥4.6 billion in

profit before tax and -¥3.3

billion increase in inventories.

Cash Flows used in Financing

Activities*2

Cash flow from financing

activities was +¥3.8 billion,

due primarily to ¥5.3 billion

net increase in borrowings

resulted from property

disposition, -¥380 million of

cash dividends paid, and

-¥1.0 billion on of interest

expenses paid.

Cash flows from/used in operating activities 2,772 344 -2,428

Profit before tax 3,222 4,663 1,441

Depreciation expense 173 188 15

Increase/Decrease in inventories -1,118 -3,378 -39

Other, net 495 -1,129 -1,624

Cash flows from/used in investing activities -940 -2,878 -1,938

Increase/Decrease in PPE -11 -19 -140

-525 -1,125 -599

Other, net -403 -1,733 -1,330

Cash flows from/used in financing activities 3,456 3,891 435

Increase/Decrease in borrowings 2,636 5,365 2,728

Proceeds from issuance of new shares 1,825 0 -1,825

Cash dividends paid -273 -384 -111

Interest expenses paid -729 -1,086 -356

Other, net -1 -2 -0

5,288 1,357 -3,930

9,410 14,711 5,301

12 31 18

14,711 16,100 1,388Cash and cash equivalent at end of period

FY2013

[A]

FY2014

[B]

yr/yr change

[B]-[A]

Cash and cash equivalent at beginning of period

Effect of exchange rate change on cash and cash equivalents

Increase/Decrease in investment properties

Increase/Decrease in cash and cash equivalents


(¥ million, %)

17

Overview of Segment Results (Consolidated)I. Revenue and Cost of Revenue

% % %

TOTAL 35,070 100.0 49,981 100.0 14,911 42.5

Revitalization 11,098 31.6 34,743 69.5 23,645 213.1

Development 16,347 46.6 6,112 12.2 -10,235 -62.6

Rental 2,703 7.7 4,210 8.4 1,506 55.7

1,419 4.0 958 1.9 -461 -32.5

Property Management 3,541 10.1 3,459 6.9 -82 -2.3

Alternative Investment 440 1.3 1,078 2.2 638 145.0

Internal Transactions -481 - -582 - -101 -

FY2013 FY2014 yr/yr change

Fund and Consulting

Revenue

% % %

TOTAL 26,392 75.3 40,018 80.1 13,626 51.6

Revitalization 8,985 81.0 30,517 87.8 21,532 239.6

Development 13,567 83.0 4,919 80.5 -8,647 -63.7

Rental 1,032 38.2 1,684 40.0 651 63.1

170 12.0 69 7.2 -101 -59.4

Property Management 2,691 76.0 2,525 73.0 -166 -6.2

Alternative Investment 338 76.9 793 73.6 455 134.5


FY2013 FY2014Cost of revenue

yr/yr change

Fund and Consulting


資料編(¥ million, %)

Overview of Segment Results (Consolidated)II. Gross Profit and Operating Profit

% % %

TOTAL 8,678 24.7 9,962 19.9 1,284 14.8

Revitalization 2,112 19.0 4,226 12.2 2,113 100.0

Development 2,779 17.0 1,192 19.5 -1,587 -57.1

Rental 1,671 61.8 2,526 60.0 855 51.2

1,248 88.0 889 92.8 -359 -28.8

Property Management 850 24.0 934 27.0 84 9.9



FY2013 FY2014Gross profit

yr/yr change

Fund and Consulting

% % %

TOTAL 3,914 11.2 5,560 11.1 1,646 42.1

Revitalization 1,398 12.6 3,330 9.6 1,932 138.1

Development 1,447 8.9 432 7.1 -1,014 -70.1

Rental 1,590 58.8 2,414 57.3 824 51.8

669 47.2 174 18.3 -495 -73.9

Property Management 123 3.5 227 6.6 103 84.1


Corporate expenses, etc. -1,388 - -1,233 - 155 -

Fund and Consulting

FY2013 FY2014Operating profit

yr/yr change


II. Tosei’s View of the Operating Environment

and Business Development for FY2015


◆Revenue ¥56.4 billion(up12.9％ yr/yr)

Operating profit ¥6.0 billion (up 7.9％yr/yr)

Profit for the year ¥3.2 billion(up 13％yr/yr)

24,195

35,070

49,981

56,425

0

10,000

20,000

30,000

40,000

50,000

60,000

2012年11月期 2013年11月期 2014年11月期 2015年11月期

(予想）

2,856

3,914

5,5606,000

-500

500

1,500

2,500

3,500

4,500

5,500

6,500

2012年11月期 2013年11月期 2014年11月期 2015年11月期

(予想）

2,218

3,222

4,6635,042

-500

500

1,500

2,500

3,500

4,500

5,500

6,500

2012年11月期 2013年11月期 2014年11月期 2015年11月期

(予想）

1,465

2,006

2,8743,258

5.7%

7.1%

9.2%9.5%

0%

2%

4%

6%

8%

10%

12%

0

1,000

2,000

3,000

4,000

5,000

2012年11月期 2013年11月期 2014年11月期 2015年11月期

(予想）

ROE

Forecast for FY2015 - Revenue/Profit Summary -

Revenue

Profit for the year

Operating Profit Profit before Tax（¥ million）

(¥ million)

(¥ million)

（¥ million）

FY2012 FY2013 FY2014 FY2015(Forecast)



FY2012 FY2013 FY2014 FY2015

(Forecast)


(¥ million)

※The orange portion shows operating profit margin

21

Forecast for FY2015 - Segment Summary -

yr/yr change [B]-[A]

% %Forecast

as of Jan. 14% %

Revenue 35,070 100.0 49,981 100.0 56,425 100.0 6,443 12.9

Revitalization 11,098 31.6 34,743 69.5 38,844 68.8 4,100 11.8

Development 16,347 46.6 6,112 12.2 8,443 15.0 2,330 38.1

Rental 2,703 7.7 4,210 8.4 3,886 6.9 -324 -7.7

1,419 4.0 958 1.9 1,251 2.2 293 30.6

Property Management 3,541 10.1 3,459 6.9 3,587 6.4 127 3.7

Alternative Investment 440 1.3 1,078 2.2 966 1.7 -111 -10.4

Internal transactions -481 - -582 - -554 - 27 -

Gross profit 8,678 24.7 9,962 19.9 11,436 20.3 1,473 14.8

Revitalization 2,112 19.0 4,226 12.2 5,416 13.9 1,190 28.2

Development 2,779 17.0 1,192 19.5 1,639 19.4 446 37.5

Rental 1,671 61.8 2,526 60.0 1,967 50.6 -558 -22.1

1,248 88.0 889 92.8 1,176 93.9 286 32.2

Property Management 850 24.0 934 27.0 972 27.1 38 4.1

Alternative Investment 101 23.1 284 26.4 333 34.5 48 17.2

Corporate expenses, etc. -86 - -90 - -69 - 21 -

Operating profit 3,914 11.2 5,560 11.1 6,000 10.6 439 7.9

Revitalization 1,398 12.6 3,330 9.6 4,167 10.7 836 25.1

Development 1,447 8.9 432 7.1 800 9.5 368 85.2

Rental 1,590 58.8 2,414 57.3 1,811 46.6 -603 -25.0

669 47.2 174 18.3 325 26.0 150 85.9

Property Management 123 3.5 227 6.6 150 4.2 -77 -33.9

Alternative Investment 73 16.6 213 19.8 261 27.1 47 22.2

Corporate expenses, etc. -1,388 - -1,233 - -1,516 - -283 -

Finance income/costs (net) -692 - -897 - -957 - -60 -

Profit before tax 3,222 9.2 4,663 9.3 5,042 8.9 379 8.1

Income tax expenses 1,215 - 1,789 - 1,784 - -4 -

Profit for the year 2,006 5.7 2,874 5.8 3,258 5.8 384 13.4

Fund and Consulting

Fund and Consulting

FY2013 FY2014　[A］ FY2015　[B]

Fund and Consulting


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

New Midterm Management Plan -Growth Vision for 2020-

Next Stage

2014

Charge Up

2011

・・・2020

Advancing Together

2017

さらなる飛躍へ

Infrastructure development/ Expansion of Infrastructure

Vision of revenue

¥100 billion yen

New growth/ Quantum leap phase

・Expansion and growth of existing 6 business segments

・Advance into global fields・Innovation of management

infrastructure

The Lehman

shock

Listed on TSE

First Section

Listed on SGX

Established

Tosei Singapore

NAI Tosei

Listed on Tosei REIT

public-private funds composition

22

Basic

policies

¥56.4 billion

2009 2010 2011 2012 2013 2014 2015

<Future vision in 2020>

・Expand corporate scale

・Strengthen business base

・Manage quality and

organization to maintain a

competitive advantage

・Expand the existing business segments and advance into peripheral businesses

・Establish optimal governance and an efficient operating structure ・Develop human resources and increase employee satisfaction.・Build Tosei’s brand recognition.


Midterm Management Plan Next Stage 2014 -Overview-

Double revenue in three-year midterm plan, quadruple current income and

expand properties for the investment market by 4 times

Priority issues

Strengthen acquisitions of condominiums and lots for detached houses Strengthen detached housing business to have a variety of choices such as the urban types

with three stories and suburban large-scale properties

Revenue (Condominium sales)FY 2012:¥13.4 billion FY2013:¥14.1 billion FY2014:¥8.1 billion

For end-users・condominiums FY2012: 154 FY2013: 114 FY2014: 33・detached houses FY2012: 24 FY2013: 78 FY2014: 80・Restyling FY2012: 106 FY2013: 195 FY2014: 58

Strengthen acquisitions of income-generating office buildings, apt buildings and medium to large sized properties.

Focus on the acquisitions of income-generating properties close to the stations in suburbs Consolidate a framework for successfully listing in REIT

Revenue (Income properties)FY2012:¥3.7 billion FY2013:¥13.3 billion FY2014:¥32.7 billion (including REIT ¥17.4

billion) Trading of income properties

【Acquisitions】 FY2012: 17 FY2013: 29 FY2014: 31【Sales】 FY2012: 5 FY2013: 12 FY2014: 35

Established Tosei Singapore （Jan,2012）/ established NAI Tosei Japan(Dec, 2012) Listed on the SGX (Mar, 2013)/ increased recognition to overseas investors/ increased

AM&PM contracts Started property investments in Malaysia(2014～）

Three-year measures and results (2012, 2013 and 2014)

Revenue(Condominium sales)

¥9.7 billion

For end-users・condominiums 65・detached house 12・Restyling 204

FY 2011

Revenue(Income properties)

¥7.5 billion

Trading of income propertiesAcquisitions 1Sales 12

Fund business promotion

Kickoff Asian research project

Plan 1

Expansion of end-user targeted products

Plan 2

Plan 3

Restart investing products for the

investment market

Overseasdevelopment

Expansion of business Charge Up 2011(at the end of 2011) Next Stage2014（at the end of 2014）

【Revenue】 ¥24.7 billion ¥49.9 billion

【Profit before tax/Net income】 ¥1.5 billion/¥740 million ¥4.6 billion/¥2.8 billion

【Total asset/Net asset】 ¥60.5 billion/¥25.3 billion ¥80.8 billion/¥32.7 billion


New Midterm Management Plan “Advancing Together 2017”- 4 Base Policies -

Gro

wth

strategy

Busin

ess base

「既存事業の拡大と周辺事業領域の検討」

Strengthen the management foundation which supports growth

Business strategy I

“Strengthen the growth drivers”

Business strategy Ⅱ

“Strengthen the three stable businesses

Business strategy Ⅲ“Business expansion to peripheral fields /monetization”

・Strengthen acquisition and sales (for investment and end-users)

・Generate revenue in rental, fund and property management businesses

・Strengthen the global business and expansion of the finance related business

1. Expand the existing business segments and advance into theperipheral businesses

2. Establish optimal governance and an efficient operating

structure

3. Develop human resources while

increasing employee satisfaction

4. Build and establish Tosei’s brand recognition

Key

strategies


Business Strategy I Strengthen the growth drivers

Key strategy Ⅰ. Strengthen acquisitions

FY 2014 FY 2017FY 2015

Revitalization

¥38.4 billion

Development

¥10.6 billion

Development

¥15 billion

【 Purchase target structure】

Strengthen acquisitions to expand further growth since the previous midterm management plan. Aim to reach acquisition targets in the first year at ¥60 billion and over ¥80 billion in the final year in

expected disposition value following the new midterm management plan.

¥49 billion

(41 properties)

In the first year

¥60 billion

In the final year

Over ¥80 billion

Development

¥20 billionIncrease

by 1.2 times

Increase

by 1.3 times

Growing acquisitions to over ¥80 billion by 1.6 times from Nov. 30, 2014 in the midterm management plan

Revitalization focus on a further increase in the ratio of large-scale projects.

Diversify land development acquisitions with office buildings and commercial facilities in addition to detached houses and condominiums.

Revitalization Development

Revitalization

¥45 billion

Revitalization

¥60 billion


3.5 2.5 6.0 9.8 10.0 15 16.0

17.1 21.9

30.0

37.4 38.0 41.5

51.7

70.0

9.414.7

16.1

10.0

10.0

26.5 30.1 32.7 35.5 40.0

32.435.0

40.4

51.0

70.0

6.46.1

7.7

6.9

10.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

60.571.2

93.5

120.0

2012 FY2015

42.2%

33.3%

38.0%

Equity Ratio

FY2014

80.840.5%

Equity Ratio

3.5 2.5 6.0 9.8 10.0 15 16.0

17.1 21.9

30.0

37.4 38.0 41.5

51.7

70.0

9.414.7

16.1

10.0

10.0

26.5 30.1 32.7 35.5 40.0

32.435.0

40.4

51.0

70.0

6.46.1

7.7

6.9

10.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

60.571.2

93.5

127.8

2012 FY2015

42.2%

32.9%

38.0%

Equity Ratio

FY2014

80.840.5%

Equity Ratio

Equity Ratio

Equity Ratio

3.5 2.5 6.0 9.8 10.0 15 16.0

17.1 21.9

30.0

37.4 38.0 41.5

51.7

70.0

9.414.7

16.1

10.0

10.0

26.5 30.1 32.7 35.5 40.0

32.435.0

40.4

51.0

70.0

6.46.1

7.7

6.9

10.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

60.571.2

93.5

127.8

2012 FY2015

42.2%

32.9%

38.0%

Equity Ratio

FY2014

80.840.5%

Equity Ratio

Equity Ratio

Equity Ratio

26

（¥ billion）

Forecast for

the end of Nov, 2015

Equity

Equity Ratio

40.5％(Stable business)

Borrowings

Short-term：¥5.3 billion

Long-term: ¥35 billion

(Healthy borrowings)

Cash and cash

equivalents

(munificent)

Inventories

(properties)

Acquisitions

¥49 billion

Investment

Properties/PPE

Other assets

Other

Liabilities

ExpectedDisposition Values:¥60.5 billion

Acquisitions

¥60 billion

Business Strategy I Strengthen the growth drivers–Balance sheet simulation-

Total assets by 1.5 times andExpected disposition values to

¥100 billion

Focus on inventory sales to achieve our acquisition target of ¥60 billion

(Expected disposition values) in the fiscal year 2015

As of Nov. 30, 2014

Total Assets ¥80.8 billion

3.5 2.5 6.0 9.8 10.0 15 16.0

17.1 21.9

30.0

37.4 38.0 41.5

51.7

70.0

9.414.7

16.1

10.0

10.0

26.5 30.1 32.7 35.5 40.0

32.435.0

40.4

51.0

70.0

6.46.1

7.7

6.9

10.0

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

60.571.2

93.5

120.0

2012 FY2015

42.2%

33.3%

38.0%

Equity Ratio

FY2014

80.840.5%

Equity Ratio

（¥ billion）（¥ billion）

ExpectedDisposition Values:¥74.3 billion

ExpectedDisposition Values:¥100 billion


Key strategy Ⅱ．Strengthen acquisitions of investmentproperties and sales

【 Market overall】

【 Task recognition】

PositiveNegative

・Acquisition costs by J-REIT declined due to a decrease in yield by real estate prices rising.

・Competition in acquisition of lands for developmentdue to a rising land and construction costs.

・Real estate transactions by listed companies etc expand to the level second to pre-crisis (¥2.1 trillion)

・Rising rents of income-generating office buildings and

apt buildings as well as occupancy rate.

・Real estate prices increased due to a decrease in NOI yield of acquisitions by J-REIT

・Upward trend of bank loans for real estate.

・Revitalization market is overwhelming market (market size in 23 wards: approx 120,000 properties and 54 million tsubo)

・To discover properties such as “suburbs, empty building, low occupancy rate and old age” etc which needmore improvements to survive fierce acquisition competition⇒Tosei’s strengths : Value up planning by our in-house senior registered architect office

Tough competition in acquisitions of income properties and lands for development

Missions in three-year midterm management plan

Diversification of purchasing method

Increase the ratio of large-scale properties in addition to small and medium assets

Tosei brand recognition

Value up(early full occupancy rate/improved design/mid to long term repair plan)

Scheduled to conduct a value up for upgrades.

Toyocho Tosei building (empty) Kannai Tosei building

Conducting various

repair works for

early leasing and

sales.

Revitalization Development



【 Market overall】

Key strategy Ⅱ．Strengthen housing supply for the end-user

Missions in three-year midterm management plan

Forecast a supply of 300 detached houses per year

Strengthen area marketing

Establish branches in major areas

【 Task recognition】

PositiveNegative

・Rising construction costs for condominiums and office buildings

・Decline of condominium and detached house supplies(backlash of tax hike/ construction costs)⇒housing construction as of Oct 31, 2014: 48,645

(down 6% on the same period last year)⇒Forecast condominiums supply in FY 2014: 43,000

(down 20% year-on-year)

・Construction cost for detached houses show a modest increase

・Although a high demand for detached houses and condominiums, a trend need to be monitored

・Government support measures to purchase housing⇒reactivate eco-point program for houses and cut

interest rates of “Flat 35”

Selection of right areas and target customers

To increase “THE Palms” brand recognition(target for upper-middle classes in Tokyo)

win the land acquisition competition, establish an agile acquisition structure

Strengthen product planning capabilities and sales structure to improve customer satisfaction

Although overall market has bottomed out, future trend need to be monitored

Tosei brand (THE Palms) recognition

【Development project of a large-scale detached house

THE Palms Court Kashiwa Hatsuishi 】

・The largest development with 95 lots in Tosei

・”Road-based” concept to contribute to the

community

・Provide 5 brand’s concept to satisfy customer

needs

(On sale in the first term)

Plantings and exterior for enjoying the changes in

the four seasons

Development



Business Strategy Ⅱ Strengthen three stable businesses

Key strategy Increase rental revenues/Improve earningcapacity of fee business

【Market overall 】

【Task recognition】

Positive Negative

・Average office building supply from 2014 to 2018expected to reach 1,060,000㎡ (Forecast to exceed 1,040,000㎡ as the historical average)

・Needs to be monitored due to overheating market

・Vacancy rate of 5 central words in Tokyo improvedsignificantly (5% level)

・Average rental increased for 10 consecutive months(¥16,000 level)

・Vacancy rate of existing buildings and rentalscontinuously improve

・J-REIT market size expanded (¥11.9 trillion)

・TSE REIT index as of the end of Nov rise to a high for the year (1,826 points)

Favorable market due to a recovery of the real estate investment market

Strengthen leasing activities by properties held by REITs

Shorten the idle period starting from acquisitions to value up or leasing

⇒ Short term lease-up

Establish an efficient operation system for stable operations that sponsor support for REITs

Build-up asset management AUM by private funds

Missions in the three-year midterm management plan

Invest in non-current assets at ¥5 billion per year

SGA and interest rates covered by the three stable business segments

Increase managed properties/ strengthen the operation system

Maintain group AUM over ¥500 billion

【Increase rental revenue】

Nishikasai Tosei building(tentatively) SEASCAPE Chibaminato Narimasu Sanritz Mitsui Seimei buillding

inventory

inventory

Non-current assets

Rental Fund Management

(Sectional ownership)


【 Private funds/CRE efforts】

Expansion of asset management AUM

Continuously expand CRE contracts from

general business companies

Effort for the composition of new funds

One of the entrusted properties

【Our largest scale entrusted property under AM contract】

◆TAA was entrusted by an asset management agreement to manage residential real estate businesses consisting of 204 properties with approx. 10,000 units totaling ¥200 billion in which Blackstone Real Estate Partners Asia will make an investment.

◆Aim at expanding AM contracts and the balance of CRE with our proprietary value up, leasing knowledge and wealth of exit strategy by Tosei Group.

Continuous effort for the composition of new funds as well as the establishment of

an efficient operation system for the expansion of the balance of private funds

(As of 19th Dec, 2014)

192,525

241,005216,796 225,564

149,349 113,057

332,385

17,434

17,434

16,618

23,130 69,10885,771

98,679 170,114

170,114

209,143

264,135285,904

311,335

248,028

300,607

519,935

0

100,000

200,000

300,000

400,000

500,000

09 /11 10/11 11/11 12/11 13/11 14/11 14/12

私募ファンドAM REIT AM CRE

（百万円）

AUM balances

Business Strategy Ⅱ Strengthen the three stable businesses

Nov. 2009 Nov. 2010 Nov. 2011 Nov. 2012 Nov. 2013 Nov. 2014 Dec. 2014 (As of 19th Dec, 2014)

(¥ million)Private Funds AM CREREIT AM


【 Entry into J-REIT】

Tosei Reit Investment Corporation listed

on November 27th, 2014

【Investments by REIT】・Target properties in a market with many stocks mainly in theTokyo economic bloc

・Diversify investments including office buildings, retailfacilities and residents

(asset management company)

(sponsor)

【Sale properties at the time of listing REIT】

Tama Centre Tosei building

Live AkabaneInagekaigan building

Support sourcing and leasing etc to expand asset size of the investment corporation

sponsor support

Strengthen value

chain for business

portfolio

Strengthen property sourcing support as a sponsor to expand asset scale of

Tosei Reit Investment Corporation

*

* Small and medium sized office buildings, retail facilities and residential in existing large scale building

stock in the Japanese real estate market position as properties in a market with many stocks.

Business Strategy Ⅱ Strengthen three stable businesses

Tosei Reit InvestmentCorporation


Business Strategy Ⅲ Business expansion to peripheral fields

【Strengthen global business】

Enhancement and utilization of existing infrastructureEstablish revenue model for inbound and outbound

【Investing in Malaysia Real Estate】

Inbound

Attract money in Asia to Japanese real estate investment⇒Introduce Japanese real estate to individual and

institutional investors in Singapore, Taipei and Korea etc. Establishment of private funds for operating activities for

investors

Enhancement and utilization of existing infrastructure

・Listed on the Singapore Stock Exchange・Tosei Singapore Pte. Ltd.・NAI/Tosei Japan, Inc.化・活用

Outbound

Next Stage2014

“Move into

overseas market”

Advancing Together 2017

Start real estate investment in Asia based in Tosei Singapore⇒Undertake investment in Malaysia⇒Utilize the advantages of being listed on the SGX

(recognition and trust etc)⇒Find local business partners

Mont Kiara Aman (Signed Agreement to Purchase a Unit)

◆Features of real estate in Malaysia1. Foreigner’s can obtain property rights2. Real estate information is relatively

high in transparency3. Aggressive in attracting foreign investment

◆Specific investment policies

Investment properties: Income-generating office buildings.apt buildings and lands for development

Investment value: 1 million RM~100 million RM (¥32 million~¥3.2 billion)

Further strengthen and utilize global infrastructure built in previous midterm management plan

Explore opportunities to invest with a focus on Malaysia, a stable economy in ASEAN, in outbound investment


Market capitalization(As of Jan 5, 2015)

¥34.2billion

Stock Price(Same as above)

¥709.00

Net Book Value(As of Nov 30, 2014)

¥32.7billion

Book Value Per Share(Same as above)

¥677.82

PBR(As of Jan 5, 2015)

1.05

Current Share Price

Trends in dividends

Annual Dividends

Per Share (¥)5.00

FY2010

[1]÷[2][1] [2]

5.00

FY2011

6.00

FY2012

8.00

FY2013

Payout ratio (%) 51.3 30.4 18.7 18.6

* * *

10.51

PER(Forecast)

14.00

FY2015

(Forecast)

20.7

12.00

FY2014

20.2

Dividends in FY 2014 are expected to be at ¥12, which increase by ¥2 from the previous forecast due to consolidated

earnings largely exceeding the previous fiscal year. Forecast in FY 2015 expected to be at ¥14.

Trends in Dividends

*The Company split its shares by 100 for 1, effective July 1, 2013. The dividends per share are restatements

in line with the stock splits from the FY2010.


＜Reference Materials＞Ⅰ．Introduction of Tosei

Tosei Group Overview


Company name TOSEI CORPORATION

Address 4-2-3 Toranomon, Minato-ku, Tokyo

Date established February 2, 1950

Paid-in capital ¥6,421,392 thousand

Representative Seiichiro Yamaguchi, President and CEO

Fiscal year-end November 30

Stock listing Tokyo Stock Exchange, First Section (8923) Singapore Exchange, Mainboard (S2D)

Share status

Employees

Main affiliated companies

Total outstanding shares 48,284,000 shares

Number of shareholders 7,911

Shareholder composition ・Individuals/Other

・Financial institutions

・Foreign companies

・Other companies

・Securities companies

131 (Non-consolidated) 243 (Consolidated)

As of Nov. 30, 2014Group Overview

Tosei Community Co., Ltd. Tosei Singapore Pte. Ltd.Tosei Revival Investment Co., Ltd. NAI Tosei Japan, Inc.Tosei Asset Advisors, Inc.

48.13% （23,238,656 shares）

19.53% （9,428,913 shares）

15.62% （7,543,600 shares）

13.39% （6,464,000 shares）

3.33% （1,608,831 shares）

Investment Trust Management Company

Tosei Reit Investment Corporation (3451) ※※ The investment corporation, whose assets are managed by Tosei Asset Advisors, Inc. , a wholly-owned subsidiary of Tosei Corporation


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

94年 95年 96年 97年 98年 99年 00年 01年 02年 03年 04年 05年 06年 07年 08年 09年 10年 11年 12年 13年 14年 15年

36

History of Tosei Corporation

1950: Established Yukari Kogyo Co., Ltd, the predecessor of Tosei Corporation

1983: Tosei Building Co., Ltd.

1994: Mr. Seiichiro Yamaguchi assumed the role of President and CEO.

Revenues

(¥ million)

分譲マンション事業開始

分譲マンション事業開始

東誠不動産㈱に商号変更

東誠不動産㈱に商号変更

不動産流動化不動産流動化

Launched

Restyling business

BeganBegan developing

condominiums

Changed its name to

“Tosei Fudosan”

BeganLaunchedRevitalization business

Began developing

detached houses

Conducted real estate M&A

through LBO

Registered for Real Estate

Investment Consulting Listed on

JASDAQ

Set up privateplacement fund

TRI１

TC2

Established TRI.*1

Acquired 100% ownership of TC.*2

Established TAA*3

Began

Began developing office and commercial buildings

Relocated its head office

to Toranomon

Listed on Tokyo Stock

Exchange Second Section

Changed its name to current

“Tosei Corporation”

Registered for

Financial Instruments Business Registration;

Type II Investment Management Business;

Investment Advisor and Agency Business

T’s BRIGHTIAIntroduced commercial building

Brand T’s BRIGHTIA

Established

Tosei

NAI Tosei *5Singapore*4

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Listed on Tokyo Stock

Exchange, First Section

Listed on Singapore

Exchange

Notes:

1. TRI: Tosei Revival Investment Co., Ltd.

2. TC: Tosei Community Co., Ltd.

3. TAA: Tosei Asset Advisors, Inc. (Name changed from Tosei REIT Advisors, Inc. in April 2008)

4. Tosei Singapore: Tosei Singapore Pte. Ltd.

5. NAI Tosei: NAI Tosei Japan, Inc.

（Forecast）

Tosei Reit Investment

Corporation Listing


6,2808,427

6,251

12,622 12,780

7,312 6,761 7,402

12,446

17,9604,791

8,86410,852

4,4452,119

5,532 8,0164,843

6,597

12,200

3,694

2,202

15,988

25,996

11,618

6,987 2,5194,992

8,401

10,694

14,765

19,493

33,091

43,064

26,518

19,832

17,297 17,237

27,445

40,854

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

05.11期 06.11期 07.11期 08.11期 09.11期 10.11期 11.11期 12.11期 13.11期 14.11期

売上高

(百万円）10億円未満 10－20億円未満 20億円以上

4.0

17.0

6.6

23.0

1.0

7.3

16.0

2.0

4.0

31.2

2.7

2.0

26.0

2.3

2.6

14.8

3.4

5.7

17.1

0.3

2.0

12.6

0.8 5.0

21.9

2.08.5

33.7

4.0

46.1 properties38.0 properties

28.9 properties

1.4

Summary of Properties Sold - Property Size / Revenue -

37

Breakdown by Property Size In FY 2014, Tosei sold large-scale properties (over ¥2

billion), in addition to the properties under ¥1 billion

whose demand was relatively firm, in the backdrop of

the recovery in the real estate market.

*Reason for fractional number of property:

The condominium buildings and detached houses are counted as each project being one property. However, for those that were sold over two or more

periods, we counted fractional unit for each period in proportion to the revenue recorded during such period.

(Written in blue : Number of Properties)

Revenues

(¥ million)

FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014

Above ¥ 2 billion¥ 1 ～ 2 billionLess than ¥ 1 billion


Summary of Properties Sold –Property Type/Sales base－

38

Breakdown by Property Type

* The condominiums, detached houses and Restyling are counted as each project being one property.

14

22

9

2218

9 84 6

14

8

4

14

17

7

15 19

18

20

28

1

3

3

3

7

10

11

2

4

63

1 4

7

7

23件

31件

26件

43件

31件

27件

31件33件

43件

60件

0件

10件

20件

30件

40件

50件

60件

70件

'05.11期 '06.11期 '07.11期 '08.11期 '09.11期 '10.11期 '11.11期 '12.11期 '13.11期 '14.11期

オフィス・商業マンション戸建その他

Residential Properties

Condominium &

detached house)

39 properties, 65％

Office/ Commercial


Others (lands etc)

7 properties, 12％

Sold mainly residential properties such as condominiums

and detached houses in FY 2014. In addition, sales ratio

of income-generating offices and commercial properties

increased along with recovery in the market.

(Properties)

70

60

50

40

30

20

10

0

23

31

26

43

31

27

3133

43

60

Office/

CommercialCondominium Detached

house

Other



5649

78

55

33 3329

45

5448

2

1

5

3

24

2

2

4

62

1

14

5

5

693

3

8

6

52

2

2

8561件

55件

91件

65件

41件43件

38件

54件

72件68件

0件

10件

20件

30件

40件

50件

60件

70件

80件

90件

100件

05.11期 06.11期 07.11期 08.11期 09.11期 10.11期 11.11期 12.11期 13.11期 14.11期

23区内都下神奈川千葉・埼玉ほか

Inventory Breakdown -Properties in Inventories as of Nov.30,2014-

39

Location Area of Inventory Properties Total number of inventories are 68 in FY 2014 and

location area is mainly in the 23 wards of Tokyo.

In Tokyo 23 wards


(Properties)

* The condominiums, detached houses and Restyling are counted as each project being one property.

Tokyo

23 wards

Outskirt

of TYOKanagawa Chiba, Saitama &

Others

61

55

91

65

4143

38

54

72

68


100

90

80

70

60

50

40

30

20

10

0


＜Reference Material＞Ⅱ．Real Estate Market Conditions


No. of Buildings: 56,149

Gross Floor Area: 33.03 million tsubo

(109.19 million ㎡）

41

Market Size for Revitalization Business (23 wards)

Office Building in Stock※1

No. of Buildings:※3 68,454

(1 million units※4)

Gross Floor Area:※5 21.18 million tsubo

(69.89 million ㎡）

Apartment Building in

Stock※2

No. of Buildings: Approx.124,600

Gross Floor Area:※5 Approx.54.20 million tsubo

(179.17 million ㎡）

Market Size for Revitalization Business

Tokyo’s 23 wards continue to be by far

the largest for revitalization business.

*1 The number of properties and the gross floor area of “Offices, shops, and department stores” included under the “Non-wooden properties” as of Jan. 1, 2011, which has

been disclosed by the Tokyo Metropolitan Government Bureau of Taxation.*2 Refers to apartments and rental condominiums located in the 23 wards of Tokyo, and does not include those for sales purposes.*3 Sourced from “Results of condominium survey” (as of Aug. 1, 2011) disclosed by the Tokyo Metropolitan Government Bureau of Urban Development in March 2012.*4 Estimated based on the “Results of condominium survey” disclosed in March 2012. *5 Estimated based on the “Results of condominium survey 2009” disclosed by the Tokyo Metropolitan Government Bureau of Urban Development.


The amount of transactions by listed companies during the first half of FY 2014 (Apr to Sep) totaled ¥ 2,148 billion,

which is recorded in the second place of the first half of FY 2007 as the pre-Lehman Crisis era due to a increase in

property acquisitions by J-REIT and foreign investors, however, the number of transactions totaled 490 which is a

decline significantly compared to 580 year-on-year.

8,782 9,255 9,4916,773 8,098

18,901 19,58622,400

10,5705,533

8,568 7,394 8,472

19,540 21,486

16,019 11,070 11,630 17,30918,181

22,32723,903

32,084

8,01511,115

11,9819,831

18113

26,457

594524

648

846 859

1,155

1,340

1,199

492 513

676 673

810

1,241

490

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

0

10,000

20,000

30,000

40,000

50,000

60,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

（件）（億円）不動産の取引件数・取引額の推移

取引額下期

取引額上期

取引件数

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013First half

in 2014

Total amount 24,801 20,325 21,121 24,082 26,279 41,228 43,489 54,484 18,585 16,648 20,549 17,225 26,585 45,997 21,486

# of Properties 594 524 648 846 859 1,155 1,340 1,199 502 513 676 673 810 1,241 490

Avg Value 41.8 38.8 32.6 28.5 30.6 35.7 32.5 45.4 37.0 32.5 30.4 25.6 32.8 37.1 43.8

Real Estate Transactions by Listed Companies

Source: Urban Research Institute Corporation

(¥ 100 million) The Number and Amount of Real Estate Transactions (No. of Transactions)

Second half

First half

No. of Transactions


Acquisition by J-REIT

The acquisition by IPOs and additional equity funding was active due to an incensement of REIT stock prices and

the improved financing environment. However, the acquisitions by J-REITs during FY2014 was ¥1,391 billion which

was down 38% from the same period of previous year at ¥2,233 billion. It seems a difficult environment to acquire

property due to a decrease in yield by rising property prices.

1,084

521

36

826

2,259

1,404

954 734

2,294

803

2,033 2,013 1,741

2,889

1,189

4,451

7,999

5,454

2,507

6,374

4,347

3,344 3,080 3,146

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2009年

1~3月 4~6月 7~9月 10~12

月

2010年

1~3月 4~6月 7~9月 10~12

月

2011年

1~3月 4~6月 7~9月 10~12

月

2012年

1~3月 4~6月 7~9月 10~12

月

2013年

1~3月 4~6月 7~9月 10~12

月

2014年

1~3月 4~6月 7~9月 10~12

月

（億円）J-REITにおける物件取得額推移

(¥ 100 million)Acquisitions by J-REITs

2009 2010 2011 2012 2013 2014

Source：ARES


135,813169,194

335,950

479,512

780,054

1,036,444

547,507

253,805

89,219137,475

247,111

496,408

1,181,308

590,147

25

9

12

27

24 21

11

9 8

14 15

44

25

0

5

10

15

20

25

30

35

40

45

50

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 3Q

J-REITにおける資金調達額と件数

調達額件数

44

Source: ARES

The total financed amount from January to September in 2014 had a strong showing, however, it did not reach a

record levels in previous year since the founding of J-REIT, and recent achievement of IPO was ¥ 152 billion (3

cases) and public offerings was ¥437 billion (22 cases).

（百万円）（件）

*Both financed amounts as well as the number of transactions include all capital increases such as annual IPO, public stock offerings and allocation of new shares etc.

Financed Amount by J-REIT

(¥ million) (No. of Transactions)Financed Amount by J-REITs

Fundraising amount No. of Transactions

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014Jan.- Sep.


Although TSE REIT index in FY 2014 temporarily-declined in March, 2014, remaining on the upward in April

onwards and reaching 1897.92 point in the end of December, 2014 which was the highest price for the year-to-date.

TSE REIT Index

Source: Tokyo Stock Exchange


The market size of private placement funds had been downward trend and its totaled ¥14.4 trillion yen as of June 30, 2014 due

to an active sale of properties by existing funds in the strong market. On the other hand, J-REIT market was on an upward

trend and totaled ¥11.9 trillion. Total of market size for real estate fund was ¥27.4 trillion as of June 30, 2014 including the J-

REIT’s ¥11.9 trillion, ¥14.4 trillion of private placement funds shown in the above chart and ¥1.1 trillion as allocated to

domestic real estate in the global funds, which slightly increased compared to ¥27.3 trillion as a market size in the previous

survey half a year ago (as of December 31, 2014).

Market Size for Real Estate Fund Business

3.4

4.5

5.4 6.1

6.8 7.4 7.4 7.5 7.6 7.8 7.8 8.0 8.3

8.7 9.0

10.4 11.2

11.9

4.4

5.5 6.1

6.7

10.0

13.7 13.6 14.0

13.8

14.9 14.7 14.7

14.8

15.8 15.3

15.0 14.9

14.4

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

2005/12 2006/6 2006/12 2007/6 2007/12 2008/6 2008/12 2009/6 2009/12 2010/6 2010/12 2011/6 2011/12 2012/6 2012/12 2013/6 2013/12 2014/6

（¥trillion）私募ファンドとJ-REITの市場規模推移

J-REIT Private funds

Source: Sumitomo Mitsui Trust Research Institute

Dec.

2005

Jun.

2006

Dec.

2006

Jun.

2007

Dec.

2007

Jun.

2008

Dec.

2008

Jun.

2009

Dec.

2009

Jun.

2010

Dec.

2010

Jun.

2011

Dec.

2011

Jun.

2012

Dec.

2012

Jun.

2013

Dec.

2013

Change in the Market Size of Private Placement Fund and J-REIT

Jun.

2014


7,199

4,609

4,013

3,281

2,355

2,038

1,636

470

8,654

Working Balance of Private Placement REIT

Source: Sumitomo Mitsui Trust Research Institute

Note1) As of October 31, 2014, target stocks including this chart should be announced officially commencement of operations.

Note2) Described the latest published assets not reflecting a track record of acquisition without any information of total assets value or acquisition fee.

Nomura Real Estate Private REIT

Domestic private placement REIT has been rising assets smoothly since November, 2010 as a commencement date of

operations. As of the end of October. 2013, total ¥460 billion (6 issues) turned over and then added 4 issues in just over year

and additional acquisition by existing investment corporation, the working balance of private placement was ¥865 billion

(10 issues) in October, 2014 and expecting further expansion of the market.

Nippon Open Ended Real Estate Investment

Mitsui Fudosan Private REIT

Japan Private REIT

DREAM Private REIT

Daiwa Residential Private Investment

Broadia Private REIT

KENEDIX Private Investment

Marubeni Private REIT

Tokio Marine Private REIT

0

2,000

4,000

6,000

8,000

10,000

(¥ 100 million)

Nov. 2010 Mar. 2011 Mar. 2012 Sep. 2012 Oct. 2012 Apr. 2013 Jul. 2013 Oct. 2013 Apr. 2014 Oct. 2014


ＣＭＢＳ新規発行額の推移

CMBS Offering

Source: Daiwa Institute of Research

The issuance of CMBS peaked at ¥1,900 billion in 2007 but fell sharply to approx. ¥720 billion in 2008, mainly due to a

withdrawal of foreign non-recourse loan lenders. The continued default and downgrading of existing loans kept investors

away from the market, and declined values in non-recourse loans lowered motivations of financial institutions to issue

CMBS. Due to these factors, the CMBS issuance has been on a decreasing trend, and in 2014, it became ¥20.8 billion, the

lowest in the past 10 years.

CMBS Issuance(¥ 100 million)

Not disclosed

Domestic general companies

Domestic non-banks

Domestic banks/securities firms

Foreign non-banks

Foreign banks/securities firms


0%

2%

4%

6%

8%

10%

12%

14%

16%

0

100

200

300

400

500

600

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014.9

（兆円）

不動産業向け貸出残高の推移

不動産業向貸出残高

総貸出

総貸出残高内における不動産業向け貸出残高比率

Domestic Bank Lending for Real Estate Firms

Year Total lending

by domestic

banks

Lending for real

estate firms

%

1997 ¥513.7 trillion ¥65.0 trillion 12.7%

2003 ¥ 409.9 trillion ¥48.2 trillion 11.8%





Sep. 2014 ¥443.8 trillion ¥62.2 trillion 14.0％

Source: Prepared by Tosei based on the report published by Bank of Japan

For the balance of lending by domestic banks, both the balance of total lending and the lending for real estate firms

slightly trended upward after 2010, and the real estate lending amounted to ¥62.2 trillion in September 2014.

While corporate capital demands in general stayed low, the lending for real estate firms remained high at 14.0% of the

total lending of ¥443.8 trillion by domestic banks.

Bank Lending for Real Estate Firms

Lending for real estate firms

Total lending by domestic banks

% of real estate lending to total lending by domestic banks(¥ trillion)


400

500

600

700

800

900

1000

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

鉄骨鉄筋コンクリート造鉄筋コンクリート造木造（千円/坪）

（平成年度）

Years 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

SRC 675.4 615.2 645.4 619.4 628.5 613.9 563.7 603.4 757.5 877.0 748.5 788.4 738.5 846.9 922.0

RC 603.8 588.1 596.8 593.6 582.4 567.0 590.5 614.5 681.5 724.1 680.8 651.2 641.3 673.7 752.6

Wood 525.7 519.8 508.0 505.1 503.0 502.4 505.5 508.0 515.9 517.8 517.6 518.4 521.3 528.7 538.5

Construction Costs per Tsubo(by Building Structures)

（¥ thousand/tsubo）

Source: Ministry of Land, Infrastructure, Transport and Tourism

The construction costs for SRC and RC structured office and condominium buildings are in increase trends since 2007,

due to yen depreciation as well as raise in labor costs attributed to the reconstruction demand after the Great East Japan

Earthquake and subsequent shortage of manpower. The construction demand is expected to continuously raise with the

acceleration in developments of public projects and building constructions supported by the effect of Abenomics policies,

as well as infrastructure improvement in preparation for the coming Olympic Games.

(¥ thousand/tsubo)Steel Reinforced Concrete (SRC) Reinforced Concrete (RC) Wooden structure

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


首都圏マンション供給戸数

0

10

20

30

40

50

60

70

80

90

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2011年

1月 4月 7月 10月

2012年

1月 4月 7月 10月

2013年

1月 4月 7月 10月

2014年

1月 4月 7月 10月

（％）（戸）首都圏分譲マンション市場動向販売戸数

販売在庫数

契約率

Condominium Market 1

Forecast as of Nov. 30, 2014

Source: Real Estate Economic Institute Co., Ltd

The number of condominium supply in Tokyo area has been lower than previous year due to a decline in reaction to the

rush demand last year as well as a price increase by rising construction cost. In 2014, it is expected to 43,000 units which is

20% down from the previous year. In addition, consumer’s willingness to buy declined and the contract rate in October

2014 was 63.3% which is below 70% as an indicator of favorable market condition.

Condominium Market in Tokyo Area(Units)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014(Forecast)

Total supply % 83,183 85,429 84,148 74,463 61,021 43,733 36,376 44,535 44,499 45,602 56,476 43,000

yr/yr change -6.0 2.7 -1.5 -11.5 -18.1 -28.3 -16.8 22.4 -0.1 2.5 23.8 -23.9

Condominium Supply in Tokyo Area

Units sold

Units in stock

Contract rate

Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct . Jan. Apr. Jul. Oct.

2011 2012 2013 2014


70

80

90

100

110

120

130

3,500

4,000

4,500

5,000

5,500

6,000

2009年

1月 4月 7月 10月2010年

1月 4月 7月 10月2011年

1月 4月 7月 10月2012年

1月 4月 7月 10月2013年

1月 4月 7月 10月2014年

1月 4月 7月

（％）（万円）首都圏新築マンションの価格推移

月別価格前年同期比

Condominium Market 2


The condominium price in Tokyo area picked up in 2010 after bottomed in 2009, however, it had been on a downward

trend after 2011 and rebounded since 2013 supported by Abenomics, especially those properties which are supersized,

super high-raise and redevelopment close to the station and a price of newly build condominium stay firm at around ¥50

million. Although land and building costs upward trend, the market likely to be stable due to a flexible price setting.

Condominium Price in Tokyo Area

Monthly average Yr/Yr Change

(¥ ten thousand)

Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul. Oct. Jan. Apr. Jul

2009 2010 2011 2012 2013 2014


Although the housing starts of detached houses in Tokyo area had been recovering since 2009, for the period

from January to October 2014 had been downward period-over-period every month effected the reduction by

last-minute demand, and fell by more than 6% compared to same period of previous year.

17,225 13,116

17,477 19,336 20,029 21,625 17,020

12,702

9,855

12,744 13,409 14,104

14,686

11,106

9,309

7,358

9,281 9,063 9,080

9,960

8,804

15,111

11,557

14,694 15,334 15,667

17,212

11,715

54,347

41,886

54,196 57,142

58,880 63,483

48,645

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2008年 2009年 2010年 2011年 2012年 2013年 2014年

1-10月

（件）首都圏戸建分譲着工の推移（年比較）

東京埼玉県千葉県神奈川県首都圏

Detached House Market

Source: Ministry of Land, Infrastructure, Transport and Tourism

Detached House Housing Starts in Tokyo Area

Tokyo Saitama Chiba Kanagawa

2008 2009 2010 2011 2012 2013 2014

Jan.- Oct.

(units)


For the pre-owned condominium transactions in Tokyo area, it has been downward trend in whole greater Tokyo area. The

number of contracted units for the period from January to October 2014 was 28,471 which was declined 6.4% from 30,411

in same period of previous year.

27,090 28,03929,378 28,498 28,744

31,183 30,34728,871

31,397

36,432

28,471

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

04年 05年 06年 07年 08年 09年 10年 11年 12年 13年 14年

1-10月

（戸）首都圏中古マンション成約戸数推移

Pre-owned Condominium Market 1

Source; Prepared by Tosei based on the date published by Real Estate Information Network System for East Japan

Number of Contracted Units in Tokyo Area(units)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Jan.-Oct.


出所：東京カンテイ

Although the price of pre-owned condominiums (adjusted to 70㎡) had been modest increase since May 2013, there was a

sign of temporarily upward trend due to a decline of demands by the consumption tax hike in the first half of 2014. After

that, it has been trending upward leading by rising prices in Tokyo.

2,8

95

2,8

70

2,8

33

2,7

55

2,7

49

2,7

05

2,6

80 2,7

39 2,7

94

2,7

67 2,8

33

2,7

94

2,8

93

2,9

00

2,9

33

2,9

24

2,9

45

3,0

83

2,9

60

2,9

69

2,9

58

2,9

96

2,9

92

3,0

05

3,0

07

3,0

09

3,0

05

3,0

00

2,9

96

2,9

75

2,9

75

2,9

69

2,9

71

2,9

62

2,9

45

2,9

56

2,9

50

2,9

41

2,9

33

2,8

93

2,8

80

2,8

46

2,8

25

2,8

18

2,8

33

2,8

14

2,8

14

2,8

21

2,8

01

2,8

01

2,7

80

2,7

70

2,7

59

2,7

70

2,7

63

2,7

89

2,7

89

2,8

21

2,8

23

2,8

31

2,8

54

2,8

95

2,8

61

2,8

42

2,8

42

2,8

31

2,8

25

2,8

14

2,8

23

2,8

48

2,400

2,500

2,600

2,700

2,800

2,900

3,000

3,100

3,200

09年1月 09年7月 10年1月 10年7月 11年1月 11年7月 12年1月 12年7月 13年1月 13年7月 14年1月 14年7月

（万円）首都圏中古マンション 70㎡換算価格

70㎡換算価格（万円）

Pre-owned Condominium Market 2

Price of Pre-owned Condominiums Adjusted to 70m2

Price adjusted to 70m2

Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. 2009 2010 2011 2012 2013 2014

(¥ ten thousand)


3.50%

4.00%

4.50%

5.00%

5.50%

6.00%

6.50%

7.00%

7.50%

2001 2003 2005 2007 2009 2011 2013

オフィスレジ

NOI Yield of Acquisition by J-REIT (Average rate in 23 wards)

Source: Prepared by Tosei based on announced presentations by J-REITs

NOI yield of acquisition by J-REIT(average rate in 23 wards) bottomed in 2008, then both office and residential increased

till 2010 and continue to be decreased after 2010. As of the end of September 2014, office was 4.88% and residential was

5.16% due to an increase of acquisition costs.

Office Residential


The supply of investment condominiums in the Tokyo area has been an upward trend again since 2011 after a downward

spiral from 2007 to 2010. The supply in the first half of 2014 (January to June) was 83 properties (up 13.7% year-on-year),

3,755 units (up 12.8%). However, it’s concerned about a fall in properties supply from now on due to a tough competition

in acquisition of lands for condominiums and a rising construction cost.

7,238

3,394

1,874 1,490

647 553

1,678 2,357

3,758

3,423

4,591

6,232

8,939

8,983 8,616

8,548 8,387

9,210

7,006

5,101 4,583 5,298

6,966

5,703

3,330

3,755

183

81

4638

16 16

45

69

105

82

108

152

199188 172

190

212

224

172

122

105 100

143

120

73

83

0

20

40

60

80

100

120

140

160

180

200

220

240

0

2,000

4,000

6,000

8,000

10,000

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013

1～6

2014

1～6

件数（件）戸数（戸）投資用マンション供給戸数の年次別推移表(1990年～2014年6月）戸数

件数

Supply of Investment Condominiums


Annual Supply of Investment Condominiums (1990-Jun. 2014)(Properties)(units)

Units

Properties

2013

Jan.-Jun.

2014

Jan.-Jun.


Apartment Market（J-REIT）

Average Occupancy Rate of Apartments Owned by J-REIT in Major 6 Cities

Source: Mizuho Trust & Banking Co., Ltd

The occupancy rates of apartments held by J-REIT in all 6 cities started to rise in March 2010, and the have been staying

above 95% since June 2012.

The Great East Japan

EarthquakeSapporo

Sendai

Tokyo23 wards

Nagoya

Osaka

Fukuoka

Trough (April 2012, Preliminary)

Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun.

2011 2012 2013 2014

Note: A survey excludes the period with the number of property date within 10 as well as master lease properties with fixed rents or rent guaranteed.


出所：森ビル

Source: Mori Building Co., Ltd

Survey: Added information in Aug, 2014 based on the survey as of Dec, 2013.Properties survey: Completion buildings after1986

(Office buildings with more than 10,000㎡of gross floor areas)

Expected Office Supply

Supply of Large-sized Office* in Tokyo’s 23 wards

<2014 -2018>

1) No. of supply: 94

2) Total supply volume: 5,280,000m2

The supply of large-sized office totaled 580,000 ㎡ in 2013. The average supplies from 2014 to 2018 will likely be

1,060,000 ㎡ which is expected to exceed 1,040,000 ㎡ as the past average.

<1986 -2013 >

1) No. of supply: 816

2) Total supply volume: 29,020,000m2

* The offices larger than 10,000 m2 of gross floor area

Completed

Not completed

(includes completed in 2014)

No. of supply

Annual average

after 2014:

1,060,000 m2

Annual average :1,040,000 m2

No. of supply

Volume of supply

(¥ ten thousand)


19,844 19,754 19,998 19,310

17,954 17,577 17,844

19,406

21,998 22,186

18,978

17,585 16,932 16,572 16,207 16,913

5.04

3.17

4.03

7.36

8.12

6.10

4.22

2.89 2.65

4.72

8.09

8.91 9.01 8.67

7.34

5.60

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

0

5,000

10,000

15,000

20,000

25,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014.10

（％）（円/坪）都心5区空室率と平均賃料の推移（年次）

平均賃料（円/坪）平均空室率(％)

Rental Office Market

Source: Prepared by Tosei based on the date published by Mitsuki Shoji Co., Ltd

The results of survey conducted by Miki Shoji Co., Ltd.(As of Oct.31, 2014)

Properties Surveyed:

Major leased office buildings in Tokyo’s 5 business wards with more than 100 tsubo (330㎡) of typical floor area

No. of Buildings in Stock: 2,632

Gross Floor Area: 12,142,707 tsubo

Leased Floor Area: 7,167,534 tsubo ①

Vacant Floor Area: 401,702 tsubo ②

Vacancy Rate: ②÷①＝5.60%

The average vacancy rate of Tokyo’s 5 business wards has been on a

gradual recovery as the large supplies of newly-built office buildings

were mostly absorbed. It recorded 5.60% as of October, 2014.

The average asking rent was at ¥16,913 and it increased slightly for the

10th month running since January 2014. With the rental increasing of

newly buildings and high demand for existing large scale office, it

showing a sign of recovery.

Vacancy Rate and Average Rent in Tokyo 5 Business Wards(¥ / tsubo*) *1 tsubo = 0.3m2

Average rent price Average vacancy rate

Oct. 2014


The nation office rent index of 2014 was 90.9 (up 2% from the previous year), which reversed a downward trend for the

first time in seven years. On the other hand, the apartment rent index was 96.8 which was slightly down at 0.1% year-on-

year and it remain unchanged in the future.

90.9

96.8

80

90

100

110

120

130

1995 2000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

オフィス賃料指数及び共同住宅賃料指数の動向【全国】

(2005年を100とする指数）

オフィス賃料指数共同住宅賃料指数

National Office and Apartment Rent Statistics

※As of September 2014

Source: Japan Real Estate Institute

National Office and Apartment Rent Indices

(2005=100)

Office rent index Apartment rent index


Souce: Deutsche Asset & Wealth Management

Tokyo

Sidney

London

Hong Kong

Manhattan

Singapore

420ｂｐ

National Yield Gap of Prime Office Markets

The yield gap of Sydney and London head for a fall due to a rising of yield of government bonds in Major nations

excluding Japan. Tokyo has been maintaining a stable and high level ratio as compared with other global cities in the

world, so it is widely watched as an attractive city.

The yield on 10-years government bonds

Australia 2.77

Japan 0.32

England 1.71

United States 2.10

Singapore 2.30

Hong Kong 1.88


Driven by China and Philippines who has been attaining the high growth rate in the Asia-pacific region, but the

growth rate varies depending on the country. The growth of China and Malaysia in 2015 expected to be slow down. On

the other hand, the Japanese GDP will continue to recover and GDP in FY 2015 is expected to exceed FY 2014.

2015 forecast2014 estimated

Source

y-o

-y(%

)

GDP Growth Rate in Asia-Pacific Region

Source: Jones Lang LaSalle


EMEA：Europe ,the Middle East and Africa

ＥＭＥＡ Asia Pacific Americas Global

US$ bn

Property Investment Trend in Asia-Pacific Region 1

Transaction Amount in Direct Investment in Commercial Properties by Region

Source: Jones Lang LaSalle

The amount for investments in the Asia-pacific accounts for approximately 20% of the total amount invested in global

markets, and it has still been increasing since 2009 after hitting the bottom.

In FY2013, the total amount invested in commercial facilities across the world is expected to total US$563 billion (up

21% year-on-year) and the annual transaction amount for FY2014 is likely to be US$700 billion.

(Forecast)


商業用不動産の国別直接投資額推移

2014 $85.2 bill

-5% y-o-y

Property Investment Trend in Asia-Pacific Region 2

Source: Jones Lang LaSalle (Real Estate Intelligence Service)

The total investment in commercial properties in the Asia-Pacific Region in 2014 amounted to US$85.2 billion, Japan

ranked at the top accounting for nearly 30% of the total amount which increased 67% compared with the previous

fiscal year (more than twice from the amount in 2012 on a yen basis). Acquisitions by both domestic and offshore

funds as well as by J-REITs have been the contribution.

2014 3Q


As of March 31, 2014, global REIT market expanded to 27 countries and territories, and market capitalization of ¥132 trillion yen

(number of issues are 783). U.S with market cap at about ¥78 trillion yen accounts for 59% of the entire world and Asia and Oceania

region totaled about ¥26 trillion yen with a 19.7% share, as well. In Asia region, Japan, Singapore and Thailand markets have

expanded, especially the size of Singapore REIT is rather small, with the market capitalization of ¥4.7 trillion yen, but it has been

stepping up its investment destinations to overseas markets every since it was first launched, and as evidenced by the IPO by S-REIT

specialized in Japanese commercial facilities in 2013, Japan has become one of their major investment destinations now.

出所：みずほ信託銀行不動産トピックス

# of different

stocksAs of Mar. 31,

2014

Japan U.S. Australia France U.K. Canada Singapore Hong

Kong

South

AfricaBrazil

44 205 50 34 30 45 36 10 28 125

Total amount of holding real estate in Japan

by Singapore REITs

米国, 779,334

オーストラリア, 90,798

フランス, 76,063

日本, 75,854

英国, 64,137

カナダ, 51,768

シンガポール,

47,576

香港, 21,794 南アフリカ, 21,306 ブラジル, 13,686

単位：億円上位10カ国2014年3月末時点

Source: Prepared by Tosei based on Real Estate Securitization Handbook 2014

2013年11月末時点公表分

For Singapore REIT, Japan

is one of major investment

destinations and investment

amount in Japanese real

estate expanded to ¥284

billion yen.

Overview of Global REITs

REIT Status in Each Country

(Market Cap)

Source: Mizuho Trust & Banking Co., Ltd.(Real Estate topics)

U.S.779,334

(¥ 100 million)

Top 10 counties

As of Mar. 31, 2014

Australia90,798

France 76,063

Japan75,854

U.K 64,137

Canada 51,768

Singapore47,576

Hong Kong21,794

South Africa21,306

Brazil 13,686

Issued on November 30, 2013

(¥ 100 million)

Acquisition amount in 2013

Asset value by 2012

Total amount of real estate in Japan by S-REIT

Note: Researched by Urban Research Institute Corporation based on

disclosures by each REITs, however, it does not guarantee to cover

all properties held by S-REIT in Japan,


Thank you

Contact:

Corporate Planning Department

Tel：+81 3-3435-2864

Fax：+81 3-3435-2866

URL : http://www.toseicorp.co.jp/english

DISCLAIMER

Except for historical facts, all plans, forecasts, strategies and other information contained herein are forward-looking statements. Forward-looking statements

include but are not limited to descriptions of future events and performance containing words such as or similar to “believe,” “expect,” “plan,” “strategy,”

“anticipate,” “forecast,” and “estimate,” and are based on judgments derived from the information available to the Company at the time of publication. Various

factors could cause results to differ materially from any projections presented herein. The Company reserves the right to maintain or change its projections

regardless of any new information, conditions or changes in performance. These materials are for informational purposes only, and should not be construed as a

recommendation to invest in the Company.

financial results for the fiscal year ended nov. 30, 2014 · restyling : sold 58 units in 10...

Documents