Sumitomo Realty & Development : Quarterly Earning Document

Consolidated Financial Results for Fiscal 2022 (Year ended March 31, 2023)

May 11, 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 of Fiscal 2022 (Year ended March 31, 2023)

(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	%
Fiscal 2022	939,904	0.1	241,274	3.2	236,651	5.1	161,925	7.6
Fiscal 2021	939,430	2.4	233,882	6.7	225,115	7.2	150,452	6.4
Notes 1:	Comprehensive Income

FY 2022: 187,599 millions of yen, 23.9%; FY 2021 : 151,408 millions of yen, (32.8%)

2: Percentages represent changes compared with the previous year.

		Return on average	Ratio of ordinary	Operating income
	Earnings per share	profit to average
	equity	margin
		assets
	Yen	%	%	%
Fiscal 2022	341.66	9.4	3.9	25.7
Fiscal 2021	317.45	9.6	3.9	24.9

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

FY 2022 : 473,938,725 shares; FY 2021 : 473,939,017 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	Shareholders' equity
		per share
		Millions of yen	Millions of yen	%	Yen
Fiscal 2022		6,365,436	1,799,372	28.3	3,796.64
Fiscal 2021		5,806,040	1,634,049	28.1	3,447.81
	Note: Number of shares issued and outstanding (consolidated)
		As of Mar 31, 2023 : 473,938,547 shares; As of Mar 31, 2022 : 473,938,956 shares

2. Dividend Position

		Dividend per share		Amount of dividend	Dividend payout ratio	Dividend on equity ratio
	Interim		Year end		Annual	(Annual)	(Consolidated)	(Consolidated)
	Yen		Yen		Yen	Millions of yen	%	%
Fiscal 2022	24.00		28.00		52.00	24,644	15.2	1.4
Fiscal 2021	22.00		23.00		45.00	21,327	14.2	1.4
Forecast for Fiscal 2023	29.00		30.00		59.00		16.0

3. Forecast for Fiscal 2023 (Year ending March 31, 2024)

	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 2023	970,000	255,000	250,000	175,000

Note: The foregoing estimates are 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
		Fiscal 2021	Fiscal 2022	Increase
		(Decrease)
	Leasing	425,081	425,368	+286
	Sales	233,788	222,077	(11,711)
	Construction	204,361	213,584	+9,222
	Brokerage	73,484	75,107	+1,623
	Other and Elimination/Corporate	2,714	3,767	+1,052
Total	939,430	939,904	+473
(2) Operating income
		Fiscal 2021	Fiscal 2022	Increase
		(Decrease)
	Leasing	162,649	165,693	+3,043
	Sales	50,485	53,928	+3,442
	Construction	18,523	21,421	+2,898
	Brokerage	18,025	20,030	+2,005
	Other and Elimination/Corporate	(15,801)	(19,799)	(3,998)
Total	233,882	241,274	+7,391

	(Millions of yen)
Forecast for	Increase
Fiscal 2023	(Decrease)
445,000	+19,631
225,000	+2,922
220,000	+6,415
77,000	+1,892
3,000	―
970,000	+30,095
	(Millions of yen)
Forecast for	Increase
Fiscal 2023	(Decrease)
172,000	+6,306
54,000	+71
23,000	+1,578
22,000	+1,969
(16,000)	―
255,000	+13,725

Consolidated Balance Sheets

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

Millions of yen

Assets

March 31,	March 31,
2023	2022

Current assets:

Cash and deposits		185,119		151,392
Accounts receivable―trade		38,047			23,285
Real estate for sale		399,244			308,155
Real estate for sale in process		381,753			394,921
Costs on uncompleted construction contracts		8,002			8,210
Other inventories		1,070			1,163
Other current assets		73,659			54,447
Allowance for doubtful accounts		(24)			(43)
Total current assets		1,086,872			941,534
Fixed assets:
Property and equipment
Buildings and structures, net		1,265,357			1,114,725
Land		3,057,436			2,847,702
Construction in progress		126,591			139,859
Other property and equipment, net		15,078			12,028
Total property and equipment		4,464,465			4,114,316
Intangibles
Leasehold rights		60,846			61,802
Other intangibles		2,446			2,191
Total intangibles		63,292			63,994
Investments and other assets
Investment securities		628,396			573,503
Guarantee and lease deposits		67,043			66,993
Net defined benefit asset		292			257
Deferred income taxes		13,249			11,456
Other investments and other assets		42,728			34,641
Allowance for doubtful accounts		(905)			(658)
Total investments and other assets		750,805			686,194
Total fixed assets		5,278,563			4,864,505
Total assets		6,365,436		5,806,040

Millions of yen

Liabilities and Net Assets

March 31,	March 31,
2023	2022

Current liabilities:

Notes and accounts payable―trade		29,066		42,307
Short-term debt		28,610			28,610
Long-term debt due within one year		219,472			237,385
Long-termnon-recourse debt due within one year		4,640			4,786
Commercial paper		180,000			40,000
Corporate bonds due within one year		70,000			－
Accrued income taxes		30,827			40,144
Deposits received		75,117			55,155
Provision for bonuses		4,924			5,803
Other current liabilities		198,870			185,836
Total current liabilities		841,527			640,029
Long-term liabilities:
Corporate bonds		250,000			290,000
Non-recourse bonds		35,600			35,600
Long-term debt		2,898,052			2,667,324
Long-termnon-recourse debt		251,647			256,287
Net defined benefit liability		5,534			5,796
Guarantee and lease deposits received		254,008			249,275
Long-term deposits received		2,324			8,764
Other long-term liabilities		27,368			18,912
Total long-term liabilities		3,724,536			3,531,960
Total liabilities		4,566,064			4,171,990
Net assets:
Shareholders' equity
Capital		122,805			122,805
Capital surplus		104,153			104,153
Retained earnings		1,396,392			1,256,742
Treasury stock		(4,476)			(4,475)
Total shareholders' equity		1,618,875			1,479,226
Accumulated other comprehensive income (loss)
Net unrealized holding gains on securities		171,827			155,863
Net deferred gains (losses) on hedges		5,979			704
Foreign currency translation adjustments		2,659			(1,449)
Remeasurements of defined benefit plans		30			(294)
Total accumulated other comprehensive income		180,497			154,823
Total net assets		1,799,372			1,634,049
Total liabilities and net assets		6,365,436		5,806,040

Consolidated Statements of Income

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

Millions of yen

Fiscal year ended March 31,

		2023			2022
Revenue from operations		939,904		939,430
Cost of revenue from operations		625,452			636,987
Gross profit		314,452			302,442
Selling, general and administrative expenses		73,178			68,560
Operating income		241,274			233,882
Non-operating income
Interest and dividend income		16,079			12,792
Other non-operating income		565			1,463
Total non-operating income		16,645			14,255
Non-operating expenses
Interest expenses		17,576			18,033
Other non-operating expenses		3,691			4,989
Total non-operating expenses		21,268			23,023
Ordinary profit		236,651			225,115
Extraordinary income
Gain on sale of property and equipment		14			97
Gain on sale of investment securities		4,712			2,426
Total extraordinary income		4,727			2,524
Extraordinary loss
Loss on impairment of fixed assets		8,099			3,453
Loss on sale of property and equipment		－			0
Loss on disposal of property and equipment		1,742			4,014
Loss on devaluation of investment securities		213			1,160
Loss on sale of investment securities		7			1
Other extraordinary loss		979			355
Total extraordinary loss		11,042			8,986
Income before income taxes		230,336			218,653
Income taxes		68,410			68,201
Profit		161,925			150,452
Profit attributable to non-controlling interests		－			－
Profit attributable to owners of parent		161,925		150,452

Consolidated Statements of Comprehensive Income

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

Millions of yen

Fiscal year ended March 31,

		2023			2022
Profit		161,925		150,452
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

15,964	(4,577)
5,274	3,693
4,109	2,815

325(976)

25,673956

187,599151,408

187,599151,408

－ －

Fair Value of Investment and Rental Properties

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

					Millions of yen
		As of March 31, 2023			As of March 31, 2022
		Carrying	Fair value			Carrying	Fair value
		amount					amount
Investment and rental properties		4,310,628	8,047,339				3,945,067	7,440,041