Tokyo Tatemono : 〔Delayed〕Outline of Consolidated Financial Statements for the 2nd Quarter of FY2021

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.

August 10, 2021

Outline of Consolidated Financial Statements for the First Two Quarters of the Fiscal

Year Ending December 2021

Name of Company Listed:	Tokyo Tatemono Co., Ltd.	Exchange:	First Section of Tokyo Stock Exchange
Code Number:	8804	URL:	https://www.tatemono.com/english/
Representative:	Hitoshi Nomura, President & Chief Executive Officer
Contact:	Yoshio Goto, General Manager of the Corporate Communications Department
	TEL: [phone]

Scheduled date for submission of quarterly report:	August 12, 2021
Scheduled date for commencement of dividend payment:	September 2, 2021
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 Two Quarters of Fiscal 2021 (January 1, 2021 to June 30, 2021)

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	%
	FY2021 2Q	162,590		6.7	30,314	63.1	28,159			65.2	20,185	86.3
	FY2020 2Q	152,434		(18.2)	18,590	(42.6)	17,044			(41.2)	10,834	(45.9)
Note 1: The percentage figures indicate the percentage increase/decrease compared with the previous fiscal year.
Note 2: Comprehensive income	FY2021 2Q:	¥29,126 million (−%)
		FY2020 2Q:	-¥8,993 million (−%)
		Profit per share		Profit per share after adjusting
				for dilution
					Yen			Yen
	FY2021 2Q				96.59
	FY2020 2Q				51.84

1. Consolidated financial status

			Total assets	Net assets	Equity capital ratio	Net assets per share
			Million yen	Million yen	%	Yen
	FY2021 2Q		1,648,691	422,659	25.0	1,975.40
	FY2020		1,624,640	399,129	24.0	1,862.81
Reference: Reference: Equity capital	As of June 30, 2021: ¥412,648 million
			As of December 31, 2020: ¥389,364 million

2. Dividend Status

					Dividend per share
	End of first quarter		End of second	End of third		Year-end	Annual
		quarter	quarter
	Yen		Yen	Yen		Yen	Yen
FY2020			22.00			24.00	46.00
FY2021			24.00
FY2021 (Forecast)							24.00	48.00

Note: Note:Revisions to dividend forecasts published most recently: None

3. Forecast of Consolidated Results of Operations for Fiscal 2021 (January 1, 2021 to December 31, 2021)

	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	355,000	6.0	54,000	8.8	48,000		2.0	33,000	3.8	157.94

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

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

* Notes

1. Significant changes in subsidiaries accompanied by a change in the scope of consolidation during the period: None
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.:	None
(ii)	Changes in the accounting principles other than (i):	None
(iii)	Changes in the accounting estimates:	None
(iv)	Restatement:	None

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

As of June 30, 2021:	209,167,674 shares	As of December 31, 2020:	209,167,674 shares
(ii) Number of shares of treasury shares at the end of the period
As of June 30, 2021:	274,315 shares	As of December 31, 2020:	148,159 shares
(iii) Average number of shares during the period (cumulative consolidated quarterly periods)
FY2021 2Q:	208,980,189 shares	FY2020 2Q:	209,020,928 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
	(Additional information)......................................................................................................................................................	9
	(Major subsequent events) ...................................................................................................................................................	9

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

1. Description of Operating Results

In the six months ended June 30, 2021 (first two quarters of the fiscal year ending December 31, 2021 (FY2021)), the Japanese economy remained in a severe situation under restraints on economic activities due to the impact of the third state of emergency, etc. associated with the re-spread of COVID-19. Although economic recovery is expected following the vaccination rollout which began in February 2021, the situation still remains unpredictable and the outlook is uncertain.

Amid this business environment, as to the consolidated results for the first two quarters of FY2021, with factors such as increase in property sales to investors in the Residential business, operating revenue was ¥162,590 million (up 6.7% from ¥152,434 million for the same period of the previous fiscal year), operating profit was ¥30,314 million (up 63.1% from ¥18,590 million for the same period of the previous fiscal year), business profit was ¥30,210 million (up 59.6% from ¥18,931 million for the same period of the previous fiscal year), ordinary profit was ¥28,159 million (up 65.2% from ¥17,044 million for the same period of the previous fiscal year), and profit attributable to owners of parent was ¥20,185 million (up 86.3% from ¥10,834 million for the same period of the previous fiscal year).

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

1. Commercial Properties Business

In the first two quarters of FY2021, building leasing revenue was impacted by the spread of COVID-19 at some commercial facilities and hotels, but remained strong in comparison with the same period of the previous fiscal year due to the full-year operation of "Hareza Tower" (Toshima-ku, Tokyo). In addition, sales of real estate from property sales to investors increased.

Consequently, operating revenue was ¥59,869 million (up 2.3% from ¥ 58,519 million for the same period of the previous fiscal year), operating profit was ¥18,690 million (up 12.2% from ¥16,658 million for the same period of the previous fiscal year), and business profit was ¥18,837 million (up 11.6% from ¥16,877 million for the same period of the previous fiscal year).

	First two quarters of FY2020	First two quarters of FY2021
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.			825,899 m2	36,960			875,033 m2	37,047
(Of which, subleased area	(Of which, subleased area
			97,737 m2)				81,909 m2)
Sales of real estate			2 properties	4,275		2 properties	4,965
Building management service, etc.				17,283				17,857
Total operating revenue				58,519				59,869
Operating profit				16,658				18,690
Business profit				16,877				18,837

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1. Residential Business

In the first two quarters of FY2021, residential sales were posted, including sales of "Brillia Tower Nishijin" (Sawara-ku, Fukuoka- shi) and "SHINTO CITY (Block I)" (Omiya-ku,Saitama-shi), and sales of real estate were posted, including sales of rental apartments such as "Brillia ist Sendagaya" (Shinjuku-ku, Tokyo) and "Brillia ist Yotsuya Honshiocho" (Shinjuku-ku, Tokyo) as property sales to investors.

Consequently, operating revenue was ¥71,987 million (up 17.2% from ¥61,412 million for the same period of the previous fiscal year), and operating profit and business profit were both ¥13,709 million (up 114.7% from ¥6,386 million for the same period of the previous fiscal year).

Item	First two quarters of FY2020	First two quarters of FY2021
				Operating				Operating
	Quantity, etc.	revenue	Quantity, etc.	revenue
				(million yen)				(million yen)
Residential sales			872 units	46,628			634 units	41,664
Sales of real estate				2,017				16,350
Residence leasing	Leased area of buildings	2,662	Leased area of buildings	2,931
		155,230 m2			155,312 m2
Condominium management	Number of managed units	6,079	Number of managed units	6,611
service			95,958 units			97,738 units
Other				4,024				4,429
Total operating revenue				61,412				71,987
Operating profit				6,386				13,709
Business profit				6,386				13,709

(iii) Asset Service Business

In the first two quarters of FY2021, while sales of real estate decreased from property sales to investors in the asset solution business, the volume in brokerage increased and the occupancy rate in parking lot operations, which had decreased due to the impact of the spread of COVID-19 and such, has shown an improving trend. These and other factors resulted in an increase in profit compared with the same period of the previous fiscal year.

Consequently, operating revenue was ¥21,100 million (down 2.8% from ¥ 21,705 million for the same period of the previous fiscal year), and operating profit and business profit were both ¥1,723 million (up 269.8% from ¥466 million for the same period of the previous fiscal year).

	First two quarters of FY2020	First two quarters of FY2021
Item				Operating				Operating
Quantity, etc.	revenue	Quantity, etc.	revenue
				(million yen)				(million yen)
Brokerage	458 properties	1,360		540 properties	1,938
Asset solution (Note)				9,292				7,434
Management service, etc.				2,189				2,254
Parking lot operations	Number of parking spaces	8,862	Number of parking spaces	9,473
	74,176 spaces		74,706 spaces
Total operating revenue				21,705				21,100
Operating profit				466				1,723
Business profit				466				1,723

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

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