Sumitomo Realty & Development : Quarterly Earning Document

Consolidated Financial Results for the Third Quarter of Fiscal 2022 (April 1, 2022 - December 31, 2022)

Fiscal 2022 (Year ending March 31, 2023)

February 9, 2023

SUMITOMO REALTY & DEVELOPMENT CO., LTD.

Stock Exchange Listings	TSE Prime Market
Securities Code	8830
Location of Head Office	Tokyo, Japan
URL	https://www.sumitomo-rd.co.jp/english/

1. Results for Third Quarter (April 1, 2022 - December 31, 2022)

(1) Consolidated financial results (Amounts less than one million yen, except for per share amounts, are omitted.)

		Revenue from operations	Operating income			Ordinary profit		Profit attributable to
					owners of parent
		Millions of yen	%	Millions of yen	%		Millions of yen	%	Millions of yen	%
Nine months ended Dec 31, 2022		698,885	(2.0)	196,919	1.6		196,615	3.3	135,605	5.1
Nine months ended Dec 31, 2021		713,412	1.1	193,768	8.0		190,293	8.8	129,002	0.5
(Reference) Fiscal 2021		939,430	2.4	233,882	6.7		225,115	7.2	150,452	6.4
Notes 1: Comprehensive Income
		Fiscal 2022, 3rd quarter : 151,539 millions of yen, 12.1%; Fiscal 2021, 3rd quarter : 135,142 millions of yen,	(27.7%)
	2: Percentages represent changes compared with the 3rd quarter of the previous year.
		Earnings per share	Diluted earnings per
			share
		Yen		Yen
Nine months ended Dec 31, 2022	286.12		－
Nine months ended Dec 31, 2021	272.19		－
(Reference) Fiscal 2021	317.45		－

Note: Average number of shares issued and outstanding (consolidated)

Fiscal 2022, 3rd quarter : 473,938,754 shares; Fiscal 2021, 3rd quarter : 473,939,031 shares

(2) Consolidated financial position (Amounts less than one million yen, except for per share amounts, are omitted.)

	Total assets	Shareholders' equity	Shareholders' equity ratio
	Millions of yen	Millions of yen	%
As of Dec 31, 2022	5,958,933	1,763,290	29.6
As of Dec 31, 2021	5,704,088	1,617,783	28.4
(Reference) Fiscal 2021	5,806,040	1,634,049	28.1

Note: Number of shares issued and outstanding (consolidated)

As of Dec 31, 2022: 473,938,643 shares; As of Dec 31, 2021 : 473,938,976 shares

2. Dividend Position

		Dividend per share
	Interim		Year end		Annual
	Yen		Yen		Yen
Fiscal 2021	22.00		23.00		45.00
Forecast for Fiscal 2022	24.00		28.00		52.00

3. Consolidated Business Forecasts for Fiscal 2022 (Year ending March 31, 2023)

	Revenue from operations	Operating income	Ordinary profit	Profit attributable to
	owners of parent
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
Fiscal 2022	950,000	240,000	235,000	160,000
Consolidated business forecasts announced	on May 12, 2022 have not been revised.
Note:	The foregoing estimates were based on information available as of the date this data was released, and actual results may differ from estimates due to
	various arising in the future.

4. Results of main segments

(1) Revenue from operations
		Nine months ended	Nine months ended	Increase
		Dec 31, 2021	Dec 31, 2022	(Decrease)
	Leasing	318,720	315,439	(3,281)
	Sales	202,548	190,255	(12,293)
	Construction	134,777	135,741	+964
	Brokerage	55,428	54,856	(571)
	Other and Elimination/Corporate	1,937	2,590	+653
Total	713,412	698,885	(14,527)
(2) Operating income
		Nine months ended	Nine months ended	Increase
		Dec 31, 2021	Dec 31, 2022	(Decrease)
	Leasing	132,263	132,309	+45
	Sales	46,770	53,005	+6,235
	Construction	11,327	10,459	(867)
	Brokerage	14,917	15,020	+102
	Other and Elimination/Corporate	(11,510)	(13,874)	(2,364)
Total	193,768	196,919	+3,151

	(Millions of yen)
Forecast for	Achieved
Fiscal 2022	(%)
430,000	73
220,000	86
220,000	62
78,000	70
－	－
950,000	74
	(Millions of yen)
Forecast for	Achieved
Fiscal 2022	(%)
165,000	80
50,000	106
21,000	50
20,000	75
(16,000)	－
240,000	82

Consolidated Balance Sheets

Sumitomo Realty & Development Co., Ltd. and its consolidated subsidiaries

Millions of yen

Assets

December 31,	March 31,
2022	2022

Current assets:

Cash and deposits		161,176		151,392
Accounts receivable―trade		17,028			23,285
Real estate for sale		277,643			308,155
Real estate for sale in process		424,621			394,921
Costs on uncompleted construction contracts		16,667			8,210
Other inventories		1,687			1,163
Other current assets		61,796			54,447
Allowance for doubtful accounts		(43)			(43)
Total current assets		960,577			941,534
Fixed assets:
Property and equipment
Buildings and structures, net		1,103,862			1,114,725
Land		2,921,053			2,847,702
Construction in progress		175,015			139,859
Other property and equipment, net		11,205			12,028
Total property and equipment		4,211,136			4,114,316
Intangibles
Leasehold rights		62,199			61,802
Other intangibles		2,245			2,191
Total intangibles		64,445			63,994
Investment and other assets
Investment securities		597,163			573,503
Guarantee and lease deposits		67,028			66,993
Net defined benefit asset		387			257
Deferred income taxes		11,717			11,456
Other investments		47,135			34,641
Allowance for doubtful accounts		(658)			(658)
Total investment and other assets		722,774			686,194
Total fixed assets		4,998,355			4,864,505
Total assets		5,958,933		5,806,040

Millions of yen

Liabilities and Net Assets

December 31,	March 31,
2022	2022

Current liabilities:

Notes and accounts payable―trade		19,273		42,307
Short-term debt		33,895			28,610
Long-term debt due within one year		236,413			237,385
Long-termnon-recourse debt due within one year		4,670			4,786
Commercial paper		80,000			40,000
Corporate bonds due within one year		30,000			－
Accrued income taxes		23,799			40,144
Deposits received		30,592			55,155
Provision for bonuses		992			5,803
Other current liabilities		159,014			185,836
Total current liabilities		618,651			640,029
Long-term liabilities:
Corporate bonds		260,000			290,000
Non-recourse bonds		35,600			35,600
Long-term debt		2,748,237			2,667,324
Long-termnon-recourse debt		252,804			256,287
Net defined benefit liability		5,710			5,796
Guarantee and lease deposits received		251,264			249,275
Long-term deposits received		2,336			8,764
Other long-term liabilities		21,038			18,912
Total long-term liabilities		3,576,992			3,531,960
Total liabilities		4,195,643			4,171,990
Net assets:
Shareholders' equity
Capital		122,805			122,805
Capital surplus		104,153			104,153
Retained earnings		1,370,049			1,256,742
Treasury stock		(4,476)			(4,475)
Total shareholders' equity		1,592,532			1,479,226
Accumulated other comprehensive income (loss)
Net unrealized holding gains on securities		153,844			155,863
Net deferred gains (losses) on hedges		11,517			704
Foreign currency translation adjustments		5,468			(1,449)
Remeasurements of defined benefit plans		(72)			(294)
Total accumulated other comprehensive income		170,757			154,823
Total net assets		1,763,290			1,634,049
Total liabilities and net assets		5,958,933		5,806,040

Consolidated Statements of Income

Sumitomo Realty & Development Co., Ltd. and its consolidated subsidiaries

Millions of yen

Fiscal year ended December 31,

		2022			2021
Revenue from operations		698,885		713,412
Cost of revenue from operations		450,996			470,344
Gross profit		247,888			243,068
Selling, general and administrative expenses		50,969			49,300
Operating income		196,919			193,768
Non-operating income
Interest and dividend income		15,212			12,149
Other non-operating income		225			781
Total non-operating income		15,437			12,931
Non-operating expenses
Interest expenses		13,224			13,642
Other non-operating expenses		2,518			2,763
Total non-operating expenses		15,742			16,406
Ordinary profit		196,615			190,293
Extraordinary income
Gain on sale of property and equipment		1			82
Gain on sale of investment securities		152			586
Total extraordinary income		154			669
Extraordinary loss
Loss on impairment of fixed assets		－			3,053
Loss on disposal of property and equipment		1,319			2,490
Loss on devaluation of investment securities		156			1,075
Loss on sale of investment securities		6			0
Other extraordinary loss		48			56
Total extraordinary loss		1,530			6,677
Income before income taxes		195,238			184,285
Income taxes		59,633			55,283
Profit		135,605			129,002
Profit attributable to non-controlling interests		－			－
Profit attributable to owners of parent		135,605		129,002

Consolidated Statements of Comprehensive Income

Sumitomo Realty & Development Co., Ltd. and its consolidated subsidiaries

Millions of yen

Fiscal year ended December 31,

		2022			2021
Profit		135,605		129,002
Other comprehensive income (loss)

Net unrealized holding gains (losses) on securities

Net deferred gains (losses) on hedges

Foreign currency translation adjustments

Remeasurements of defined benefit plans

Total other comprehensive income (loss)

Comprehensive income

Comprehensive income attributable to:

Owners of the parent

Non-controlling interests

	(2,018)	3,978
	10,812	603
	6,918	2,067
	222	(509)
	15,934	6,139
	151,539	135,142
	151,539	135,142
	－	－