Integrated Report 2025

Integrated Report

TOKYO TATEMONO GROUP

2025

‌Trust beyond the era

Founded in 1896

The value we provide to society is based on the founder Zenjiro Yasuda's principle of "The customer always comes first" and the trust backed by the credibility we have cultivated in over 125 years of business since then.

Tokyo Tatemono Group Long-term Vision for 2030:

Becoming a Next-Generation Developer

The Group's aim is to be a good company for stakeholders by leveraging its businesses to help resolve social issues and achieve higher levels of growth as a company.

We aim to grow the Company and to create a prosperous society, taking pride in the level of trust placed in us for more than a century.

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

Key Points

1

Medium-Term Business Plan (FY2025-FY2027) Message from the CEO

Message from the CFO

In their messages, the CEO and CFO delve into the medium-term business plan launched in fiscal 2025, offering insight into the management's thinking behind it.

2

3

4

Value Creation Process

A section that explains Tokyo Tatemono's business model and provides a detailed overview of its capital and outcomes.

Enhancing Human Capital

The human resource strategy section highlights the linkage between issues and business strategies. It explores the correlation between our measures and the effects of our initiatives, and specifically and clearly presents the value provided.

Advancement of Governance

The report includes the opinions of the Chairman of the Board and external directors about enhancing the functions of the Board of Directors and improving its effectiveness under the new medium-term business plan.

Contents

2

Contents

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

3

Editorial Policy

Foreword

Thank you for taking the time to review Tokyo Tatemono Group Integrated Report 2025. I engage in regular dialogue with shareholders, investors, and a broad range of other stakeholders. With these interactions in mind, we strive each year to improve the content of this report. I hope it serves as a tool that deepens understanding of our company and enhances the quality of our dialogue. Integrated Report 2025 focuses on Medium-Term Business Plan (FY2025-FY2027), announced in January 2025, and provides specific details on Tokyo Tatemono's basic policies for medium-to-long-term growth, key strategies, and business portfolio strategies.

To more clearly convey our management vision and long-term aspirations, we will continue enhancing the content of our disclosures and improving information transparency.

We hope you will read the report through to the end and share your candid feedback and impressions. Your continued support is sincerely appreciated.

June 2025

Yutaka Onuma

Managing Executive Officer

Disclosure Framework

Narrative

Financial Information

Integrated Report

Non-Financial Information

• Annual Securities Report*

• Quarterly and annual summaries of consolidated financial results*

• Medium-term business plan

• Presentation material for consolidated financial results

• Notice of the Ordinary General Meeting of Shareholders*

• Quarterly reports to shareholders (Japanese only)

• Sustainability Report

• Sustainability section of the corporate website

• Corporate Governance Report*

Coverage

* Statutory disclosure and timely disclosure documents

Financial Section of the Corporate Website Non-Financial Section of the Corporate Website

Reporting Period

This report primarily covers fiscal 2024, the fiscal year ended December 31, 2024. However, some information on activities before or after this period and forward-looking forecasts is also included.

Scope of Reporting

Tokyo Tatemono Co., Ltd. and Tokyo Tatemono Group companies

Referenced Frameworks

In preparing this report, we referenced the Guidance for Collaborative Value Creation 2.0 released by the Ministry of Economy, Trade and Industry and the IFRS Foundation's International Integrated Reporting Framework.

Disclaimer Regarding Forward-Looking Statements

The forward-looking statements contained in this integrated report are based on the Company's judgments using information available at the time of publication. Actual results may differ significantly from these forecasts due to changes in economic conditions, market trends, demand, foreign exchange rates, and other factors.

Investor Relations Information

https://tatemono.com/english/ir/

IR Library

https://tatemono.com/english/ir/library/

Sustainability

https://tatemono.com/english/sustainability/

Sustainability Report 2025

https://tatemono.com/english/sustainability/reports.html

4

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

Section

Initiatives to Enhance Corporate Value

5 Message from the CEO

1. Value Creation Process

2. Accumulated Capital and Outcomes

3. The Tokyo Tatemono Story: Our Journey and Strengths

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

5

Message from the CEO

Aiming to Become a Next-Generation Developer through Stable Growth over the Course of

the New Medium-Term Business Plan

Representative Director, President and Chief Executive Officer

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

6

Message from the CEO

Introduction

I joined Tokyo Tatemono 38 years ago, and have since experienced dramatic social and economic changes while working in a variety of departments. Navigating change during such turbulent times has been instrumental in shaping who I am as a businessperson. In the early 1990s, as Japan's bubble economy was bursting, I was working in residential development. Amid a rapidly collapsing market, I had to respond quickly and decisively to major changes in the direction of projects for which I was responsible. I subsequently gained experience in the Personnel Department, and in the 2000s, I was involved in the real estate securitization business, an area where the Tokyo Tatemono Group was an industry pioneer. During the formative years of the J-REIT market, I helped establish Japan Prime Realty Investment Corporation (JPR) and contributed to its management. I returned to the Company in 2007, but was seconded to a Group asset management company in 2009 to help revitalize JPR, whose financial position had deteriorated in the wake of the global financial crisis in 2008. This work in real estate finance exposed me to the dynamism of capital markets and deepened my appreciation for the importance of building trust through direct interaction with financial institutions and investors. In 2012, I became the general manager of what is now the Corporate Planning Department, where I led revitalization, structural reform, and organizational restructuring of the Group, following a significant loss recognized in 2011. I was appointed CFO in 2017, taking charge of financial strategies and leading the formulation of Medium-Term Business Plan (2020-2024), the predecessor to our new plan. This experience renewed my appreciation for the importance of balancing profit growth with financial discipline. Since, 2021, I have served as Division Director of the Commercial Properties Division, where I worked to lay the foundation for Tokyo Tatemono's growth through a focus on large-scale redevelopment projects and asset-turnover businesses. This was during a time when the road ahead was extremely difficult to predict due to the COVID-19 pandemic, emerging geopolitical risks, and the rapid deterioration of markets for offices, hotels, and other properties. Now, as CEO,

I will fully leverage the experience I have gained through overcoming challenges and growing in step with the Company. I remain committed to further enhancing corporate value through active engagement with stakeholders.

The Origins of Tokyo Tatemono's Identity

Zenjiro Yasuda founded Tokyo Tatemono 129 years ago with the aim of modernizing real estate transactions and promoting urban development. At the heart of the Group's beginnings was Mr.

Yasuda's conviction that buildings are what give real estate its value. This belief continues to underpin our principle of "The customer always comes first" and our enterprising spirit that remains attuned to the changing times. The Group has also developed three strengths since its founding in 1896.

The first strength is urban development with 'continuity and change' that will draw out new regional attractions. This core strength lies in the Group's ability to bring new value to local communities while respecting tradition and culture. During the Edo period, the Yaesu-Nihonbashi-Kyobashi (YNK) area of Tokyo was a thriving center of merchant and artisan culture. Through urban development with continuity and change, the Tokyo Tatemono Group has helped to make this district a timeless, fashionable neighborhood that connects ideas and nurtures the new. Our aim is to carry forward the cultural heritage and spirit of Edo while creating a richly diverse neighborhood in the heart of Tokyo that enhances people's wellbeing and reflects the character of an international city. TOFROM YAESU, a development project scheduled to open in 2026, is the perfect symbol of this neighborhood and our aspirations for it.

Our second strength is an enterprising spirit that strives for innovation and pioneers the future. We have nurtured and carried forward the spirit of our founder over the course of nearly 130 years. Tokyo Tatemono places great importance on the independence and initiative of its employees, and we take pride in having pioneered initiatives for society and the industry. These include securitizing real estate for the first time in Japan using the Act on Securitization of Assets; participating in the

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

7

Message from the CEO

Kasumigaseki Common Gate project (the first private finance initiative with an agency of Japan's central government) and THE OTEMACHI TOWER, which features both urban and natural regeneration. The Group's willingness to take on new challenges reflects a corporate culture that quickly senses emerging trends and acts on them-an embodiment of our second core strength.

Our third strength is flexible and agile adaptability in step with the changing times. This strength has been shaped by our corporate culture, where the close relationship between management and the front line allows frontline ideas to be readily reflected in decision-making. Our flat organizational structure facilitates smooth communication, gives the organization the flexibility to embrace change, and enables rapid decision-making. During the previous medium-term business plan, this flexible and agile organizational structure and corporate culture enabled us to respond swiftly to environmental changes. We diversified our traditionally office- and residential-centered business portfolio by adding new asset types such as retail facilities, hotels, and logistics properties, allowing us to expand the scope of our business within a short timeframe.

Our Long-Term Vision: Becoming a Next-Generation Developer

In these times of rapid change and international volatility, we believe that only enterprises able to take innovative approaches to solving social issues while growing as a company will be able to achieve sustainable growth. This was the thinking behind our long-term vision of becoming a next-generation developer, which we announced in 2020. All members of the new management team, including myself, are determined to forge ahead in pursuit of our long-term vision, while maintaining continuity with the approach taken by the previous management team.

The word "developer" in our long-term vision embodies our deep commitment. We do not simply develop properties such as office buildings and residences. Rather, we aim to create places where people can live, work, relax, and access services. By improving the functionality of neighborhoods and cities from a long-term perspective and helping to foster culture, we hope to increase Group revenue as well. I therefore want all Tokyo Tatemono Group employees, from the management team to the people involved in real estate development, sales, operations, and property management, to work together in a spirit of co-creation, generating synergies and creating added value by developing neighborhoods and society.

On our journey to realizing our long-term vision, in June 2021 we identified 14 material issues from the perspective of both creating social value and the infrastructure needed to create such value with an awareness of the shared value with society that we will realize through our business.

By addressing the material issues we have identified for social value creation through our business activities, we aim to generate shared value in three areas: the value of place, the value of experience, and coexistence with the earth and the environment. In addition, the value creation platform that underpins our material issues will generate shared value from value-creating talent and the realization of sustainability management. Our initiatives in the YNK area, where Tokyo Tatemono has been headquartered since its establishment, exemplify how our business generates shared value with society. We are cooperating with local residents and land rights holders in urban development projects that help make Tokyo more competitive as an international city, and the TOFROM YAESU project I mentioned earlier will enhance people's well-being and help promote a decarbonized, recycling-oriented society.

Realizing our long-term vision for 2030 will require well-balanced management that integrates both financial and non-financial perspectives. Through our business activities, we will address the material issues we have identified, aiming to maximize opportunities for positive social impact while minimizing the risk of negative effects. In doing so, we will continue to grow as a company and contribute to the realization of a sustainable society.

In addition, we have positioned the medium-term business plan as a milestone toward achieving our long-term vision. With that goal firmly in mind, we have adopted a three-year plan focused on building the foundation for growth. Looking even further ahead, we will carefully examine our track record and progress toward achieving the goals of our long-term vision, and incorporate a detailed action plan for its realization into our next medium-term business plan. The triple jump in track and field is a fitting analogy for our approach to realizing our long-term vision through a progressive value creation story. The previous medium-term business plan was our hop, the new plan is our step, and the next will be our jump.

Building the Foundation for Growth through the New Medium-Term Business Plan

Japan is reacclimating to a world with interest rates as it transitions away from unprecedented monetary easing policies. In addition, the sudden rise in construction costs due to factors such as inflation and labor shortages is currently a major issue. Moreover, we must remain attentive to the potential impact of U.S. tariff policies on the outlook for each Group business.

Meanwhile, in our core real estate markets, the buying and selling of income-producing properties continues to perform well. In the for-sale housing market, prices are still rising, supported by solid demand for properties in highly convenient urban locations-particularly

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

8

Message from the CEO

from high-income dual-earner households and affluent families. Furthermore, despite the temporary downturn in the office leasing market during the COVID-19 pandemic, occupancy rates have remained high, supported by the overall recovery of Japan's economy and growing demand from companies that view talent acquisition as an investment. We are increasingly confident in the outlook for growth in rental income.

Despite an increasingly uncertain business environment and the accelerating pace of change, the Group has leveraged its strong product planning and development capabilities to steadily build a portfolio of high-quality real estate. Our initiatives during the previous medium-term business plan enabled us to take advantage of favorable market conditions, including low interest rates. Good performance in the for-sale condominium business and property sales to investors enabled us to achieve our targets for earnings, capital efficiency, finances and all other KPIs.

As I mentioned earlier, the new three-year medium-term business plan launched in 2025 is positioned as the "step" in our triple jump toward achieving our long-term vision. The basic policy of the new three-year medium-term business plan is to build a robust portfolio that is resilient to change for accelerated growth and greater capital efficiency. It enables us to focus on building the foundation for growth over the next three years. Guided by this policy,

we will leverage a strong, stable and long-term revenue base to flexibly accelerate and expand highly capital-efficient asset-turnover businesses as opportunities arise. We will recycle the capital we generate into asset-turnover businesses and large-scale redevelopment projects, thus further enhancing the stability of our revenue base. In addition, we will aggressively expand our service business to build a well-balanced business portfolio and establish a structure capable of generating sustainable growth.

Aligned with our basic policy, the following specific initiatives will ensure accelerated growth and enhanced capital efficiency during the new medium-term business plan period.

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

9

Message from the CEO

In addition to our growth strategy, the new medium-term business plan emphasizes the evolution of management infrastructure, positioning sustainability (environmental, social and governance), human capital, and digital transformation (DX) as pillars of growth.

"Coexistence with the earth and the environment" is one descriptor for sustainability in our material issues framework. "Regeneration" has become a popular buzzword. We are beginning to move beyond the conventional approach of simply reducing environmental impact and maintaining the current state, toward a new phase focused on restoring and enhancing value. We feel this mindset is key to our initiatives to achieve our long-term vision of becoming a next-generation developer.

Building a talent portfolio and promoting diversity in our workforce are our two strategies for enhancing our human capital. In structuring our talent portfolio, we will focus on recruiting and developing a broad range of individuals-including new graduates, mid-career professionals, and specialists-while reallocating human resources to growth and focus areas such as asset-turnover businesses. Our aim is to optimize talent deployment from an organization-wide perspective. To promote workforce diversity, we will focus on maximizing the potential of diverse and competent individuals such as women and international talent, and on enhancing the power of teams. Furthermore, our corporate culture is a core strength that fosters employees with strong personal integrity and character, who approach fundamental tasks with discipline and act with autonomy. As our business expands, we continue to implement a variety of initiatives to ensure that our high-quality corporate climate, culture, and organizational values are not diluted.

Stepping up digital transformation will not only enhance Group management, but also be vital for understanding evolving societal and customer needs, addressing issues through digital technology, and enabling data-driven decision-making in our businesses. In addition, we believe that leveraging digital transformation to improve operational efficiency and concentrate human resources in focus areas will help strengthen the interconnections among the three areas supporting the evolution of our management infrastructure. Looking beyond the period of the new medium-term business plan toward 2030-the target year for our long-term vision-and further into the future, we will take a broad perspective and evolve our management infrastructure through flexible and agile adaptability in step with the changing times.

To Our Stakeholders

"A company is its people" and "human resources are the most important asset" are common catchphrases. Through my experience in Tokyo Tatemono's Personnel Department, I have come to appreciate the limitless potential and importance of human resources. From 1996,

I spent four years involved in recruitment, training, and personnel system planning, and employees I hired during that time have congratulated me on my appointment as President and Chief Executive Officer. They joined the Company during the Asian Financial Crisis and Japan's own period of economic turmoil, and went on to experience hardships such as the global financial crisis of 2008, the Great East Japan Earthquake, and the COVID-19 pandemic. It was therefore meaningful to see that they had become core members of the Tokyo Tatemono Group. I believe my most important mission in management is to foster a culture in which all officers and employees take pride in their work and bring out their full potential, and to harness the power of our people to achieve sustainable growth and enhance the Group's value.

The Group philosophy, "Trust beyond the era," reflects our pride in the level of trust placed in us for more than a century and affirms our commitment to growing our businesses and creating a prosperous society. As I mentioned earlier, Tokyo Tatemono has set a long-term vision of becoming a next-generation developer by the end of 2030. The Group's aim is to be a good company for stakeholders by leveraging its businesses to solve social issues and achieve higher levels of growth as a company. In 2025, we launched a new three-year medium-term business plan with the aim of realizing our Group philosophy and long-term vision. Given our current price-earnings and price-book ratios, however, I sense that capital markets have yet to fully recognize our corporate value and medium-to-long-term story of sustainable growth. The new plan clearly highlights our emphasis on capital efficiency, with a strong focus on enhancing corporate value through growth investments aimed at increasing earnings and strengthening shareholder returns. As President and Chief Executive Officer,

I will lead the Company in steadily executing our plans and will do everything in my power to meet the expectations and earn the trust of capital markets with regard to our growth.

With a 129-year history, the Tokyo Tatemono Group has an exceptional corporate culture and a shared sense of purpose. While upholding the spirit of our founder, we will continue to demonstrate an enterprising spirit and provide new added value through our real estate businesses. Under the leadership of a newly rejuvenated management team, all officers and employees will work together as one in our ongoing pursuit of being a good company for all stakeholders. We look forward to your continued understanding and support.

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

Value Creation Process

Tokyo Tatemono Group Long-Term Vision for 2030

10

Becoming a Next-Generation Developer

Group Philosophy

▶ P. 1

Key External Considerations (Recognized Risks)

Inputs (Six Types of Capital)

Strengths

Outputs

Outcomes

Material Issues-Resolving Material Issues through Our Businesses

Financial Capital

Business Capital

• Increased geopolitical and • Decrease in the total

  natural disaster risks population and working-age

• Diversification of customer population in Japan values and behaviors • Rising inflation

• Rising interest rates due to • Advances in digital

  changes in interest rate policy technology and acceleration

  of globalization

  • Increased awareness of ESG

Trust beyond the era

We aim to grow the Company and to create a prosperous society, taking pride in the level of trust placed in us for more than a century.

Urban development with continuity and change

that will draw out new regional attractions

Business Model

Basic Profit Growth Policy

Based on stable rental profits, aim for a well -balanced profit structure with an awareness of capital efficiency

Strategy

Maximizing the Value of Place and Value

of Experience

Working

Become a good company in the eyes of stakeholders

Help resolve social issues and grow as a company

Basic Policy

Medium-Term Business Plan (FY2025-FY2027)

Social and Relationship Capital

Enterprising spirit

Disciplined control of balance sheet

Accelerating and expanding asset-turnover business

Strengthening the stable revenue base

Building a robust portfolio that is resilient to change for accelerated growth and greater capital efficiency

Living

that strives for innovation and pioneers the future

Business Portfolio Strategy

Intellectual Capital

Natural Capital

Human Capital

Flexible and agile adaptability

Services

• Real estate management

  (Brokerage, parking, funds, and building management and construction)

• Operation of experience-related facilities

Property Sales

• For-sale condominium business

• Property sales to investors

• Overseas business

Leasing

• Office buildings

• Hotels

• Logistics properties

• Rental condominiums

Practical Use

in step with the changing times

Evolution of Management Infrastructure to Support Growth

Sustainability

▶ P. 41 DX

▶ P. 32 Human Capital

(Environment, Social, Governance)

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

Outputs

Business Model

11

Accumulated Capital and Outcomes

Inputs

Outcomes

(Strengths and Unique Features)

A sound financial foundation that supports our business activities

• Total assets: 2,081.2 billion yen

• Debt-to-equity ratio: 2.3 times

(FY2024 results)

(Strengths and Unique Features)

Know-how in large-scale redevelopment and reconstruction projects A powerful brand that leverages the Group's integrated strengths

• Urban development with continuity and change that will draw out

  Customers

  Building tenants, home buyers, users of various services, and others

  Outcome Examples

• Enhanced quality of life • Provision of safe, secure and comfortable neighborhoods

• Provision of new spaces that accommodate diverse needs

• Delivery of emotionally enriching experiences-excitement, pleasure, and healing

  -to meet the growing shift toward consumption of services

  • Interest-bearing debt/EBITDA multiple: 11.2 times

    We will maintain meticulous control over our balance sheet, guided by

    a benchmark debt-to-equity ratio of approximately 2.4 times and an interest-bearing debt/EBITDA multiple of approximately 12 times. To prevent cash flow concerns arising from investment in large-scale redevelopment projects, we will take steps such as making effective use of capital recovered through asset-turnover businesses and the sale of non-current assets, while also considering strategic share-outs.

    new regional attractions

• Revitalization and utilization of real estate stock, and promotion of community formation through redevelopment and reconstruction

  We work to maintain a sustainable competitive advantage by building up and passing on know-how in development and reconstruction projects, which are complex and time-consuming due to the large number of stakeholders involved. Furthermore, we continue to deliver highly marketable real estate that customers prefer by leveraging the experience cultivated through our comprehensive residential brand Brillia, which has secured a strong market presence based on the Group's integrated strengths.

  Suppliers

  Businesses involved in property planning, development, management, service provision, and others

  Related Capital Business capital, social and relationship capital

  • Enhanced business sustainability through transparent, stable transactions

    Outcome Examples • Mutual growth with partners

  • Establishment of sound partnerships based on trust

    Related Capital Social and relationship capital

    Business Capital

(Strengths and Unique Features)

A well-balanced portfolio of long-term assets that generate stable income and diverse, capital-efficient assets with short-term cash-to-cash cycles

• Property, plant and equipment and intangible assets: 1,111.8 billion yen

  Natural Capital

(Strengths and Unique Features)

A wide range of environmentally conscious business activities

• • ZEB and ZEH development and shift to renewable energy

  • Various initiatives to help realize a recycling-oriented society

  • Development that helps preserve biodiversity

    Local communities

    Local communities where properties are located, residents and property

    rights holders, governments, NGOs, NPOs, educational institutions, and others

    Outcome Examples

• Support for the revitalization of local communities

• Development of mutually supportive communities

• Preservation of traditional culture and rich natural environments in local communities

• Promotion of tourism that fosters cultural vitality

• Creation of spaces that serve as innovation hubs • Creation of jobs

• Unrealized gains on rental properties: 555.5 billion yen

• Balance of real estate for sale: 567.9 billion yen

  Related Capital Social and relationship capital, natural capital

  We will undertake large-scale redevelopment projects with the goal of strengthening our stable revenue base through high-value-added urban development that contributes to increasing our global competitiveness.

  In addition, we will respond flexibly and swiftly to the changing times by proactively investing in a wide range of asset types both in Japan and overseas. We will assiduously manage costs and schedules to counter rising construction costs and longer construction timelines resulting from workstyle reforms in the

  We have identified promoting a decarbonized society and promoting a recycling-oriented society as environmental material issues and, by working to resolve these issues through our business, aim to realize

  coexistence with the earth's environment, a value we share with society. We contribute to the development of a sustainable society through our business by continuing to develop ZEB and ZEH, and by advancing initiatives at Otemachi Tower such as Otemachi Forest and the promotion

  Shareholders and investors

  Providers of capital that supports the Group's business, stakeholders who participate in management through mechanisms including voting rights,

  Outcome Examples

• Enhancement of long-term corporate value • Transparent disclosure

• Enhanced shareholder returns • Greater capital efficiency

• Improved profitability • Appropriate cash allocation

  construction industry, and will also optimize our portfolio of non-current assets by making strategic dispositions to recognize unrealized gains.

  of a zero-waste office environment.

  and others

  Related Capital Financial capital

  Social and Relationship Capital

(Strengths and Unique Features)

A broad range of customer and tenant relationships across the Group and channels for accessing a wealth of project information

(Strengths and Unique Features)

A diverse, highly specialized workforce that earns trust with its enterprising spirit and principle of "The customer always comes first."

• • Number of Group employees: 4,925

    Employees (including officers)

    All employees and other personnel working across the Group

    Outcome Examples

• Workforce diversity • Enhanced job satisfaction and working conditions

• Stronger motivation and sense of purpose

• Skill acquisition (Access to growth opportunities)

• Implementation of health management and promotion of wellbeing

• A workplace culture that provides a high level of psychological safety

• Systematic acquisition of know-how in redevelopment

  • Cumulative number of brokerage deals: 1,128

  • Number of condominium units under management: 100,260

    *Includes commercial tenants in office buildings

    By maximizing asset value through brokerage, building management and other real estate management businesses, we help promote a society in which properties are used across generations. We aim to maximize the value we provide to customers by leveraging Group synergies, while expanding our customer base by building trust through initiatives such as the creation of innovation ecosystems.

    • Number of Real Estate Appraisers: 20

    • Number of First-Class Architects: 101

    • Ratio of mid-career hires among full-time employees: 47.5%

    • Percentage of management positions held by women: 12.1%

      Guided by our Human Resource Philosophy, "The Company's growth is linked to its employees' growth; therefore, we are responsive to their contributions," we formulate and implement personnel systems and related measures that support employee success and growth, while appropriately recognizing their contributions. The expansion of our business over the past several years has led us to realize that clarifying our organizational culture is a priority. We are therefore creating an environment in which diverse employees are motivated to pursue self-development and take on the challenge of creating new value by maximizing their abilities.

      Schools and research institutes

      Universities, graduate schools, research institutes, and other academic institutions in Japan and overseas

      Related Capital Intellectual capital, human capital

      • Innovation generated by industry-government-academia collaboration

        Outcome Examples • A virtuous cycle of advanced technology development and economic growth

      • Development of entrepreneurial companies • Creation of innovation ecosystems

      Related Capital Social and relationship capital, human capital

      Introduction

      Initiatives to Enhance Corporate Value

      Value Creation Strategy Enhancing Profit Stability and

      Fostering Growth Expectations

      Business Strategies

      Data Section

      TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

      hs

      The Tokyo Tatemono Story: Our Journey and Strengt

      12

      Tokyo Tatemono has built its three core strengths by taking on a variety of pioneering challenges over more than 125 years of value creation.

      Founded in1896

    • Zenjiro Yasuda, founder of the former Yasuda Conglomerate, established Tokyo Tatemono Co., Ltd. with the desire to modernize the real estate trade and promote urban development.

    • Japan's oldest comprehensive real estate company.

      From 1946

      The Expansion of Commercial Properties and Residential Businesses

      The Company's first headquarters Zenjiro Yasuda

      amid Post-War Rebuilding Efforts and Rapid Economic Growth

      Business performance benefitted from reconstruction demand after World War II. During Japan's period of rapid economic growth, we responded to a serious urban housing shortage and rising demand for residences near workplaces by making a full-fledged entry into the condominium business. We earned customer support by supplying high-quality, reasonably priced condominiums. At the same time, we focused on developing office buildings to meet rising demand resulting from the consolidation of urban functions in city centers.

      Tokyo Tatemono's first for-sale condominium property

      Condominium building in Fujisawa City

      Contributed greatly to Tokyo Tatemono's public profile and business expansion

      Shinjuku Center Building

      1990s

      2010s

      Differentiation through the Group's Comprehensive Strengths

      After the collapse of Japan's economic bubble, we deftly adapted to changes in the business environment by planning seismically isolated and fixed-term lease condominiums and proactively participating in redevelopment projects, among other initiatives. In 1998, we also proactively expanded into the real estate investment market, conducting the first securitization of real estate in Japan under the Act on Securitization of Assets. In 2003, we unified our condominium operations under the Brillia brand, and in 2004 we began giving tours of construction sites, the first initiative of its kind in the industry. In the Commercial Properties Business, we achieved rapid growth as a comprehensive real estate developer by successfully delivering a series of highly difficult mixed-use complex redevelopment and private finance initiative (PFI) projects.

      Urban Development Leading to a Future of Added Value Creation

      Drawing on its accumulated know-how, Tokyo Tatemono aggressively took on ever-larger and more value-added redevelopment projects in response to growing market expectations. Although we recorded a loss in the aftermath of the global financial crisis, we strengthened our financial position through measures such as the sale of select assets. We decided to continue participating in multiple large-scale redevelopment projects, and expanded our portfolio of diverse, high-quality real estate through acquisitions including logistics facilities, retail facilities

      and hotels.

      The first condominium units sold under the Brillia brand

      Brillia Chofu Kokuryo

      A state-of-the-art, environmentally conscious complex

      TOKYO SQUARE GARDEN

      A pioneering public-private, large-scale redevelopment project executed using a private finance initiative (PFI) structure

      KASUMIGASEKI COMMON GATE

      Japan's first high-rise condominium project integrated with a municipal office building

      Brillia Tower Ikebukuro

      2020s Aiming to Maximize the Value of Place and the Value of Experience

      Since 2020, guided by our long-term vision of becoming a next-generation developer by around 2030, we have been aiming to achieve both social issue resolution and corporate growth at a higher level. We are advancing sustainability management and promoting sustainable, high-value-added urban development grounded in the Group's material issues.

      Japan's first high-rise private residences integrated with

      a Four Seasons Hotel

      Brillia Tower Dojima

      Large-scale redevelopment project including the site of our former head office building

      TOFROM YAESU

      Photo: Nacása & Partners Inc.

      
      
      

      Introduction

      Initiatives to Enhance Corporate Value

      Value Creation Strategy Enhancing Profit Stability and

      Fostering Growth Expectations

      Business Strategies

      Data Section

      TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

      13

      1Urban development with continuity and change that will draw out new regional attractions

      Three Strengths

      The three strengths driving the Tokyo Tatemono Group's 128 years of value creation

      Redevelopment of multi-use office-residential-recreational complexes that redefined perceptions of the neighborhood

      olinas (Kinshicho)

      Urban development integrated with a park: Proposing new workstyles in green spaces

      NAKANO CENTRAL PARK

      From a city at risk of decline to a sustainable urban center: Leveraging local cultural assets to help resolve social issues through urban development

      Brillia Tower Ikebukuro Hareza Ikebukuro

      Involvement in multiple large-scale redevelopment projects in the Yaesu-Nihonbashi-Kyobashi (YNK) area, our home neighborhood

      TOFROM YAESU Gofukubashi Project Kyobashi 3-Chome Project

      Enterprising spirit

      that strives for innovation and pioneers the future

      Flexible and agile adaptability

      in step with the changing times

      2 3

      Japan's first real estate securitization under the Act on Securitization of Assets

      KASUMIGASEKI COMMON GATE

      First PFI project for Japan's central government agencies

      THE OTEMACHI TOWER

      Balancing urban and natural regeneration

      Responding to changes in the operating environment through rapid business expansion and diversification beyond a traditional office- and residential-focused portfolio, adding asset types such as retail facilities, hotels, and logistics centers

      Leverage 128 years of trust, track record and expertise to maximize the value of place and the value of experience.

      
      
      

      14

      TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

      Section

      
      
      

      Value Creation Strategy

      1. Tokyo Tatemono Group Long-Term Vision for 2030

      2. Evolution of the Medium-Term Business Plan

      3. Overview of Medium-Term Business Plan (FY2025-FY2027)

      4. Medium-Term Business Plan:

         Key Strategies and Business Portfolio Strategies

      5. Message from the CFO

      1. Material Issues

      2. Material Issue KPIs and Targets

      3. Key Strategies

      30 Feature: TOFROM YAESU

      
      
      

      Introduction

      Initiatives to Enhance Corporate Value

      Value Creation Strategy Enhancing Profit Stability and

      Fostering Growth Expectations

      Business Strategies

      Data Section

      TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

      15

      Tokyo Tatemono Group Long-Term Vision for 2030

      We live in a time of profound change. We are experiencing shifting demographics, growing diversity among personal values, ever-accelerating technological development, and more. Amidst these uncertainties, a broad range of challenges to achieving social sustainability have emerged. The Tokyo Tatemono Group understands that the role of developers must also change in fundamental ways. We are committed to using our business to offer better solutions to society's problems and bring our own growth as an enterprise to a higher level. By doing so, we aim to be a good company for all our stakeholders.

      ▶ P. 24

Material Issues (Creation of Social Value)

Addressing the diverse needs of customers and society

Social implementation of technology

Revitalizing and utilizing real estate stock

Key External Considerations

• Increased geopolitical and natural disaster risks

• Diversification of customer values and behaviors

• Rising interest rates due to changes in interest rate policy

• Decrease in the total population and working-age population

  Strengthening Tokyo's competitiveness as an international city

  Wellbeing

  Contributing to a safe and secure society

  Medium-Term Business Plan

  Community building and revitalization

  Long-Term Vision for 2030

  Becoming

  Promoting

  Promoting a recycling-oriented society

  a decarbonized society

  Value co-creation and innovation

  Solve a Variety of Social Issues

  in Japan

• Rising inflation

• Advances in digital technology and acceleration of globalization

• Increased awareness of ESG

Diversity & Inclusion

Improve employee growth and job satisfaction

a Next-Generation

Developer

Steady Profit Growth

Business profit* target for 2030

120.0 billion yen

Material Issues (Value Creation Platform)

* We have redefined business profit in the current medium-term business plan (FY2025-FY2027) to allow for the flexible sale of non-current assets and diversification of investment schemes in overseas businesses.

Strengthen risk management framework

Advancement of governance

Before change: Business profit = Operating profit + Share of profit (loss) of entities accounted for using equity method

After change: Business profit = Operating profit + Share of profit (loss) of entities accounted for using equity method, etc. + Gain (loss) on sale of non-current assets Note: "Share of profit (loss) of entities accounted for using equity method, etc." includes interest and dividend income, and loss (gain) on sale of investment equity in investment vehicles for overseas businesses.

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

16

Evolution of the Medium-Term Business Plan

Basic Policy

Focus on three key strategies to strengthen our earning power by building a business portfolio with high growth potential

Key Strategies

1. Strengthen services to be the continued leading choice

2. Investments leveraging our uniqueness and strengths

3. Exercise Group synergies to deliver amazing value

Results and Issues to Address in the Future

We planned and promoted efforts to strengthen our earning power and build a business portfolio with high growth potential by providing high-quality services with a focus on improving customer satisfaction; emphasizing markets and business domains in which the Group could leverage its unique expertise and competitive advantages; and enhancing our value chain and fostering organic collaboration among diverse businesses to create new value.

These efforts led to earnings growth exceeding initial targets and disciplined financial management. In addition to achieving steady growth in each of our businesses, we implemented various initiatives for future growth, including investments in new asset types, such as hotels and logistics facilities, and expanding our stock of high-quality real estate.

While we achieved both higher earning power and maintained a sound financial position, changes in the business environment- including intensifying international competition among cities, diversifying lifestyles, advances in digital technology, and the increasing importance of ESG management-highlighted the growing need for initiatives to ensure sustainable growth.

Basic Policy

Positioning the plan as a milestone toward realizing the long-term vision, aim to achieve plan targets by implementing five key strategies and advancing ESG management

Key Strategies

(1) Promotion of large-scale redevelopment (2) Further strengthening of for-sale condominium business (3) Expansion of property sales to investors (4) Strengthening of brokerage, fund, and parking businesses (5) Growth in overseas business

Results and Issues to Address in the Future

Immediately after the plan was formulated, the COVID-19 pandemic triggered changes in the business environment, including a reassessment of workstyles at companies and a sharp decline in the movement of people. The office leasing business struggled more than initially anticipated. However, the for-sale condominium business and the property sales to investors business performed well, enabling us to achieve our overall performance targets. A favorable real estate market featuring low interest rates, combined with our accumulated real estate stock and strong product planning capabilities, drove the achievement of all targets and KPIs, including those for profit, capital efficiency, and other financial indicators.

On the other hand, large-scale redevelopment projects were delayed due to rising construction costs, and the overseas, fund, and parking businesses fell short of plan due to changes in the external environment. Going forward, we needed to reassess our investment plans and steadily implement key strategies to build a robust and resilient portfolio, with the aim of accelerating growth and improving capital efficiency.

Medium-Term Business Plan FY2020-FY2024

Building a robust portfolio that is resilient to change for accelerated growth and greater capital efficiency

• Accelerating and expanding asset-turnover businesses

• Strengthening the stable revenue base

• Disciplined control of balance sheet

Key Strategies

Medium-Term Business Plan FY2025-FY2027

STEP

1. Before change: Business profit = Operating profit + Share of profit (loss) of entities accounted for using equity method

   Basic Policy

2. Reference indicator

3. After change: Business profit = Operating profit + Share of profit (loss) of entities accounted for using equity method, etc. + Gain (loss) on sale of non-current assets

Note: "Share of profit (loss) of entities accounted for using equity method, etc." includes interest and dividend income, and loss (gain) on sale of investment equity in investment vehicles for overseas businesses

Tokyo Tatemono Group Long-Term Vision

for 2030

Becoming

a Next-Generation Developer

JUMP

(Million yen)

100,000

75,000

Business Profit

Medium-Term Business Plan FY2015-FY2019

HOP

50,000

25,000

2015

2016

2017

2018

2019 2020

2021

2022

2023

2024 2027

2030

0

(FY)

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

17

Overview of Medium-Term Business Plan (FY2025-FY2027)

Medium-Term Business Plan (FY2025-FY2027) is positioned as a milestone following the previous plan in our pursuit of the

long-term vision. Firmly committed to realizing that vision, we have formulated a three-year plan focused on building the foundation for growth. We intend to improve corporate value under the current medium-term business plan by further clarifying our emphasis on capital efficiency, while also increasing investments to drive profit growth and enhance shareholder returns.

Basic Policy

Building a robustportfolio that is resilientto change for accelerated growth and greater capital efficiency

Robust: Businesses with a strong, stable earnings base that are resistant to changes in the business environment, providing long-term strength and stability

Resilient: Businesses that combine flexibility and agility to swiftly adapt to changes in the operating environment, providing ongoing responsiveness

Accelerating and expanding asset-turnover business

Acceleration of the property sales to investors business

Expansion of overseas business

Further growth in the for-sale condominium business

Strengthening the stable revenue base

Accelerated growth and greater capital efficiency

Disciplined control of balance sheet

Steady promotion of large-scale redevelopment projects

Diversification of rental asset portfolio

Reduction of cross-shareholdings

Strategic sales of non-current assets

Quantitative Targets

Profit indicator

Business profit1 (FY2027)

95.0

billion yen

Capital efficiency indicator

ROE (Current medium-term plan period)

10%

Shareholder return policy

Payout ratio2 (FY2027)

40%

Balance Sheet Control Reference Indicators

Financial indicators (FY2027)

Cross-shareholdings to

Non-current asset sales

Profit attributable to

ROA

EPS

Debt-to-equity ratio3

Approx. 2.4 times

Interest-bearing debt/ EBITDA multiple4

Approx. 12 times

consolidated net assets

(As of December 31, 2027)

10% or less

Cross-shareholdings sales

(New medium-term plan period)

130.0 billion yen or more

(Based on sale price)

owners of parent

(FY2027)

60.0 billion yen

(Current medium-term plan period, based on business profit)

Approx. 4%

(FY2027)

Approx. ¥ 290

1. We have redefined business profit in the Medium-Term Business Plan (FY2025-FY2027) to allow for the flexible sale of non-current assets and diversification of investment schemes in overseas businesses. Before change: Business profit = Operating profit + Share of profit (loss) of entities accounted for using equity method

   After change: Business profit = Operating profit + Share of profit (loss) of entities accounted for using equity method, etc. + Gain (loss) on sale of non-current assets

   Note: "Share of profit (loss) of entities accounted for using equity method, etc." includes interest and dividend income, and loss (gain) on sale of investment equity in investment vehicles for overseas businesses.

2. We will flexibly repurchase Company shares, comprehensively taking into account the stock price level, business environment and financial situation, among other factors.

3. Interest-bearing debt ÷ Equity capital

4. Interest-bearing debt ÷ (Operating profit + Interest and dividend income + Share of profit (loss) of entities accounted for using equity method + Depreciation expense + Goodwill amortization expense)

Evolution of management infrastructure to support growth

Sustainability

(Envir

onmental, Social, Governance)

Human capital

DX

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

18

Medium-Term Business Plan: Key Strategies and Business Portfolio Strategies

Key Strategies

Action Policies

Classification by Principal

Profit

Business Segment Classification

Since the previous medium-term business plan, we have been managing our business portfolio under the categories of leasing, property sales, and services. We are continuing this approach under the new plan, applying our BASE (foundation for growth) concept to further strengthen each business.

We have also added "Establishment of new businesses" as a sixth strategy, complementing the five carried over from the previous plan. While strengthening our existing business, we aim to establish new business models for sustainable Groupwide growth.

Leasing

• Highly stable profit

• Requires significant investment

Diversified asset types

Key Strategies and Business Portfolio Management Classification

• Strengthen the stable revenue base

• Steadily advance TOFROM YAESU (scheduled for completion in 2026) and other large-scale redevelopment projects

• Strengthen rent increase negotiations in light of inflation and market trends

• Diversify asset types for long-term holdings (e.g., hotels, logistics

properties, and rental condominiums, in addition to office buildings)

Rental condominiums (Brillia ist)

Key Strategies

to enhance risk tolerance and increase yields on rental assets

Hotel buildings

Property Sales

Approach to the Business Portfolio Strategy

• Highly volatile profit

  
  
  

  Characteristics

• High capital efficiency

  Action policies

• Accelerate recovery of investments

• Scale business operations

  Action in the medium-term business plan

• Accelerate the cycle of investment recovery for existing asset types

• Expand investments in developed countries overseas as a medium-to-long-term profit growth driver

  Property Images

  
  
  
  
  
  

  Logistics properties (T-LOGI)

  Under the current medium-term business plan, we aim to maintain the same profit composition ratios

  Projected Shift in Business Profit* Composition

  Services 120.0 billion yen

• Explore new investment menu

Leased residential properties in the U.S.

as in the previous plan to ensure ongoing cash

generation for growth investments and continued improvements in capital efficiency. In our long-term vision for 2030, we have revised the target profit

Property Sales Leasing

10%

95.0 billion yen

• Relatively high profit stability

Services

Property Images

composition to reduce the share of leasing, reflecting delays in some large-scale redevelopment projects caused by rising construction costs and labor shortages. Conversely, we plan to increase the share of property sales, supported by a favorable real estate market and the high-quality real estate stock we have built up. We will also continue to expand our service business by adapting to changes in the business

51.6 billion yen

30%

10%

60%

79.3 billion yen

60%

10%

(1)

Maintain same composition

30%

30%

30%

(2)

10-

20%

Revised projections

• Does not involve large investments

  Action policies

• Scale business operations

  Action in the medium-term business plan

• Strengthen real estate management through brokerage, parking, funds, and building management and construction

• Expand portfolio of properties that address

Parking (NPC)

Ofuro no Ousama

environment and working to achieve strong capital efficiency and earnings growth.

2019 (Results) 2024 (Results) 2027 (Forecast) 2030

(Projection after revision)

Around 2030

(Projection before revision)

growing consumer demand for experiences

Regina Resort with DOGS

Note: Business profit is shown before change for 2019, and after change from 2024

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

19

Message from the CFO

Targeting Stable, Sustained Growth and Enhanced Capital Efficiency Becoming a Next-Generation Developer

Yutaka Onuma

Managing Executive Officer

Review of the Previous Medium-Term Business Plan and Overview of the New Plan

We significantly exceeded our targets for the previous medium-term business plan, which ran through fiscal 2024, ending on December 31, 2024. We achieved our highest ever operating revenue, operating profit, business profit, and ordinary profit, and profit attributable to owners of parent increased for the ninth consecutive year.

Over the five-year term of the previous medium-term business plan, we experienced the COVID-19 pandemic, increases in the number and intensity of geopolitical risks, and the end of the Bank of Japan's negative interest rate policy. In addition, there was a sharp increase in construction costs due to rising material prices and labor shortages. Nonetheless, we successfully deployed our strong product planning capabilities and solid market insights, capitalizing on favorable conditions in the real estate market to achieve our targets for earnings, capital efficiency, finances and all other KPIs. At the same time, challenges remain in particular businesses.

Rising construction costs delayed large-scale redevelopment projects, and the overseas, fund, and parking businesses fell short of plan due to changes in the external environment.

Business Profit1 and Profit Attributable to Owners of Parent

Business profit Profit attributable to owners of parent

(Million yen)

74,428

66,304 65,882

46,440

47,174

51,668 49,847

47,979

45,084

35,281

38,206

43,062

31,795

34,965

22,599

27,277

29,796

16,359

19,742

80,489

2015

2016 2017 2018 2019

2020 2021 2022 2023

2024

(FY)

1. Business profit before the change in definition

   Introduction

   Initiatives to Enhance Corporate Value

   Value Creation Strategy Enhancing Profit Stability and

   Fostering Growth Expectations

   Business Strategies

   Data Section

   TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

   20

   Message from the CFO

   Similar to the previous medium-term business plan, the new plan is positioned as a milestone in our journey toward 2030. While several issues remained under the previous medium-term business plan, solid performance laid the groundwork for further growth toward 2030. Under the new plan, our basic policy is "Building a robust portfolio that is resilient to changes for accelerated growth and greater capital efficiency." We intend to achieve our operating profit target of 95 billion yen by leveraging our strong business portfolio to capitalize on Japan's active real estate market and rising rents resulting from inflation. Furthermore, under the new plan we have set a target of 10% for ROE, which we will achieve by growing earnings while enhancing capital efficiency. Amid increasing uncertainty, we are steadily implementing our strategies to achieve the goals set out in our new medium-term business plan and long-term vision.

   Building a Robust Business Portfolio That Is Resilient to Change

   
   
   

   We manage our diverse businesses under the three categories of Leasing, Property Sales, and Services, based on the distinct characteristics of each. Under the new medium-term business plan, we intend to maintain the proportion of profit from each category at the level of fiscal 2024, the final year of the previous plan, while generating cash for growth investments and increasing capital efficiency. We have revised our targets for profit by category in our long-term vision for 2030, increasing the proportion of property sales and reducing that for leasing. This reflects factors such as delays in some large-scale redevelopment projects caused by rising construction costs and longer project timelines, a robust real estate market, and the continued accumulation of high-quality assets in our portfolio.

   Projected Shift in Business Profit by Category2

   
   
   

   Services

   120.0 billion yen

   Property sales

   Leasing

   79.3 billion yen

   10%

   95.0 billion yen

   10%

   51.6 billion yen

   10%

   30%

   (1)

   Proportion maintained at the same level

   (2)

   Revised projections

   60%

   30%

   30%

   30%

   60%

   60%

2019 (Actual) 2024 (Actual) 2027 (Forecast) 2030

(Revised projections)

1. Business profit before the change in definition

   Around 2030

   (Projections before revision)

   During the new medium-term business plan period, we intend to pursue a range of initiatives designed to shape the kind of business portfolio Tokyo Tatemono will need to achieve sustainable growth through 2030 and beyond. First, in leasing, we will focus on steady promotion of large-scale redevelopment projects to strengthen the stable revenue base. We

   Introduction

   Initiatives to Enhance Corporate Value

   Value Creation Strategy Enhancing Profit Stability and

   Fostering Growth Expectations

   Business Strategies

   Data Section

   TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

   21

   Message from the CFO

   will also capitalize on inflationary trends to expand stable earnings by increasing rents for office buildings, which currently account for the majority of our rental asset portfolio. In addition, we will work to enhance risk tolerance and increase yields on our rental asset portfolio by diversifying long-term holdings beyond office properties to include asset types such as hotels, logistics properties, and rental condominiums.

   Property sales are crucial for achieving our long-term vision. Conditions in Japan's for-sale condominium market and real estate trading market are favorable. We therefore intend to steadily achieve the earnings targets for property sales in the new medium-term business plan by appropriately selling inventory accumulated during the previous medium-term business plan. Moreover, a key issue during the new plan will be how to effectively invest for growth in 2028 and beyond. To that end, we will place even greater focus on our overseas business in addition to the for-sale condominium business and property sales to investors. Furthermore, as property sales will continue to account for a significant share of earnings and are strongly dependent on the real estate trading market, managing profit volatility will be essential. The Risk Management Committee should prove effective in managing this volatility. Tokyo Tatemono has identified the risk of fluctuations in real estate prices as a priority risk to be addressed, and is building a Group-wide risk management structure that includes monitoring early indicators of market shifts. To detect signs of change in the business environment, we need to get information from the front line as quickly as possible. We will strengthen our risk management framework by using a system that fully leverages our smooth internal communication channels-an area where the Company excels-to quickly detect signs of risk.

   The new medium-term business plan divides services into real estate management and

   Balance Sheet Control for Financial Soundness and Growth

   
   
   

   We are executing multiple large-scale redevelopment projects in parallel, while also proactively increasing investments in our asset turnover businesses for further growth. All of the initiatives under the new medium-term business plan are strategic steps toward further growth. While growth will necessarily involve a certain degree of balance sheet expansion, we will maintain a sound financial position through disciplined balance sheet control in line with the financial guidelines established under the previous plan-namely a debt-to-equity ratio of approximately

   2.4 times and an interest-bearing debt/EBITDA multiple of approximately 12 times.

   Furthermore, it goes without saying that we will remain committed to improving capital efficiency even during a period of balance sheet expansion. We have therefore set a goal of selling non-current assets and cross-shareholdings totaling 130 billion yen or more on a sales price basis over the course of the new plan. Through these initiatives, we aim to maintain and improve capital efficiency while also securing the funds needed for growth investments.

   With regard to financing, we will staunchly adhere to our financial guidelines in procuring funds, primarily through borrowing. Following the Bank of Japan's policy change in March 2024, interest rates in Japan have been trending upward and are once again a material factor. The impact of rising interest rates on our borrowings and business operations is currently limited, but we must continue to closely monitor future developments. To mitigate risk, we will use typical hedges such as extending borrowing maturities and locking in interest rates, while also working to maintain and improve our credit ratings with major rating agencies.

   experience-based facility operation. We will work to strengthen these two areas over the long term. We recognize that expanding our brokerage business will be particularly important for growth. Addressing corporate real estate needs is one of Tokyo Tatemono's strengths, and during the previous medium-term business plan period, we enhanced our capabilities in this area, enabling us to acquire new customers and deepen relationships with existing ones. We plan to build on this foundation to further expand our brokerage business. We also expect continued growth in our fund business. In addition to property sales to investors, we will actively sell non-current assets to the Group's REITs and funds as a means of expanding Group assets under management (AUM). We will continue to target stable, sustained growth

   Long-Term vs. Short-

   Term Borrowings

   (As of December 31, 2024)

   Short-term

   5.4%

   Long-term

   94.6%

   Fixed-Rate vs. Variable-

   Rate Borrowings

   (As of December 31, 2024)

   Variable rate

   1.8%

   Fixed rate

   98.2%

   Average Interest Rate4

   (%)

   0.82

   0.78

   0.72

   0.71

   0.69

   0.70

   0.63

   by building a robust portfolio that is resilient to change for accelerated growth and greater capital efficiency.

   Average remaining maturity:3 6.1 years

2. Excluding hybrid corporate bonds and commercial paper

   2018 2019

   2020 2021 2022 2023 2024 (FY)

3. Average interest rate = Interest expenses ÷ Average balance of interest-bearing debt at beginning and end of year

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

22

Message from the CFO

Three-Year Cash Allocation

Sources of Cash Uses of Cash

Reinvestment

Shareholder returns

Approx. 65.0 billion yen

1. Net procurement: Amount borrowed - Amount repaid - Interest expenses

2. Adjusted operating cash flow: Excludes invested and recycled capital, interest expenses, and income taxes associated with real estate for sale

3. Net investment: Total investment - Total recycled capital (both investment and recycled capital include real estate for sale)

Total recycled capital Total investment

Approx.1,140.0 billion yen Approx. 1,280.0 billion yen

Approx. 2.0 times the annual average in the previous medium-term business plan

Approx. 1.8 times the annual average in the previous medium-term business plan

In May 2025, Japan Credit Rating Agency (JCR) affirmed our A rating and upgraded our outlook to Positive from Stable, in recognition of our track record of sustained profit growth and the expected enhancement of stable earnings sources when TOFROM YAESU becomes operational. We will continue to consider our optimal capital structure as circumstances evolve, taking various perspectives into account, with the aim of achieving sustainable profit growth and higher capital efficiency.

A Cash Allocation Plan Designed to Accelerate Asset Turnover for Higher Capital Efficiency and Increase Shareholder Returns through Sustainable Profit Growth

Our basic policy for cash allocation under the new medium-term business plan is to accelerate asset turnover for higher capital efficiency and increase shareholder returns through sustainable profit growth. For the first time, Tokyo Tatemono has addressed investor interest by presenting a clear and effective overview of cash inflows and outflows in its medium-term business plan.

During the new plan period, we expect to generate 1,140.0 billion yen primarily from capital recycling, which is 2.0 times the annual average we anticipated in the previous plan. We also expect to invest a total of 1,280.0 billion yen, which is 1.8 times the annual average we anticipated in the previous medium-term business plan. Steady capital recycling and reinvestment are crucial for the Group's sustainable growth, and we have strong confidence in the success of our recycling strategy. During the previous medium-term business plan period, favorable conditions in the real estate transaction market enabled us to build a diverse inventory of properties for sale to investors, as well as other high-quality assets that are responsive to changes in the market environment. While there are concerns about rising interest rates and changes in the business environment, we will steadily execute our plan by selling high-demand real estate as market conditions evolve.

Furthermore, our planned total investment of 1,280.0 billion yen, when averaged annually, is roughly on par with the investment level in fiscal 2024, the final year of the previous medium-term business plan. We are confident we can achieve this target by leveraging our track record and the know-how we gained during the previous plan. A key factor in doing so will be our ability to obtain high-quality information through the relationships we have built with various business partners. Rather than engaging in price competition with peers, we have consistently and efficiently secured land through a unique acquisition strategy centered on negotiated transactions. In addition, our organizational structure enables us to seamlessly

Breakdown of total recycled capital (Sales price basis)

Asset-turnover businesses 1,010.0 billion yen Non-current asset sales Cross-shareholding sales 130.0 billion yen

Breakdown of total investment Large-scale redevelopment 200.0 billion yen Asset-turnover businesses 970.0 billion yen Other businesses 110.0 billion yen

For-sale condominium business 340.0 billion yen Property sales to investors business 520.0 billion yen Overseas business 110.0 billion yen

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

23

Message from the CFO

handle every asset type, contributing to our strong product planning capabilities. Building on these strengths, we will accelerate investment by pursuing selective opportunities while maintaining price competitiveness.

Another first in the new medium-term business plan is strategic funding that is not designated for specific purposes. We intend to flexibly deploy this strategic funding, totaling 50 billion yen over three years, in executing strategic developments, including new businesses and M&A. While remaining mindful of maintaining an optimal capital structure in light of evolving business conditions and other factors, we will take a flexible approach to reviewing the use and allocation of funds. We have positioned both total investment and strategic funding as capital for investments during the new medium-term management plan period and beyond. By steadily building a track record of results, we intend to translate these investments into sustainable growth.

Finally, we are committed to further enhancing shareholder returns, and have therefore decided to increase our dividend payout ratio to 40% by fiscal 2027, while maintaining a balanced approach with growth investment. In addition, while we position dividends as the primary component of shareholder returns, we also intend to flexibly conduct share buybacks, taking into account factors such as our share price, business environment, and financial position. Since fiscal 2013, we have increased dividends for more than 10 consecutive fiscal years and we aim to continue doing so through sustainable profit growth.

Our Commitment to Corporate Value and Stakeholders

My conversations with investors since becoming CFO in 2025 have given me a renewed insight into how markets evaluate the Tokyo Tatemono Group, the challenges we face, and the issues that matter most to investors. My primary mission is to steadily achieve the targets of the new medium-term business plan and maximize our corporate value. I believe Tokyo Tatemono's shares are still undervalued, likely because we have not made investors fully aware of our growth potential and earnings stability.

To foster stronger expectations for continued growth, I see dialogue with investors as key. We will use appropriate disclosure and dialogue to deepen understanding of the Group and demonstrate, through our track record and strategies, the high likelihood of growth in earnings and shareholder returns. To further reinforce long-term earnings stability, the new medium-term business plan positions sustainability, human capital, and digital transformation as core management infrastructure supporting growth and serving as the foundation of the basic

policy. By incorporating the opinions and suggestions gained through investor dialogue into our management practices, we aim to further enhance the quality of our disclosure and engagement, thereby fostering greater confidence in our long-term growth potential.

Coinciding with the launch of the new medium-term business plan, Tokyo Tatemono has revitalized its management team, including the appointment of a new President and Chief Executive Officer. One of our core strengths is the openness among management team members, which is reflected in the lively exchange of opinions at management meetings and other forums-a distinctive feature of the Group. Under the new management structure, we are committed to consistently delivering solid results and enhancing corporate value. We will devote our efforts to deepening understanding, building investor trust, and increasing corporate value through a range of initiatives, including the successful implementation of the new medium-term business plan, outlining a clear path toward our long-term vision for 2030, and enhancing both disclosure and dialogue.

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

24

Material Issues

As we work toward realizing our long-term vision, we have identified 14 key issues (material issues) from the perspectives of social value creation and the platform needed to create such value, with a focus on generating shared value with society through our business. By working to solve critical issues through our business and maximizing the positive impact we have on society while minimizing negative impact, we will contribute to the realization of a sustainable society as well as to our growth as a company.

Sustainability Promotion Framework

▶ P. 33

Sustainability Promotion Framework

Process for Identifying Material Issues

2018

Aiming to approach social issues connected to our business from a broad perspective, we

reviewed the SDGs and other social issues, and selected 35 issues that the Tokyo Tatemono Group should consider.

2019

We identified our material issues by assessing the importance of the 35 social issues in

terms of the magnitude of the impact of those social needs and alignment with our business.

2021

We conducted studies for revising our material issues based on recent social trends, advice from external experts, participation in various initiatives, and communication with stakeholders. The material issues were approved upon validation and discussion by the

Sustainability Committee and the Board of Directors.

Board of Directors

Deliberate and report

President and Chief Executive Officer

Supervise

Sustainability Committee

PDCA

cycle

Set targets Execute and promote

Monitor and evaluate Review actions

Sustainability Promotion Committee

Activities include sharing matters decided on by the Sustainability Committee, conducting preliminary discussions on matters under consideration, and reporting on the progress of sustainability initiatives.

Human Rights Subcommittee

Activities include acting on decisions made by the Sustainability Committee regarding human rights and reporting on the status of initiatives.

Corporate departments, business divisions, and Group companies

Material Issues

Main Meetings: Number and Matters Discussed (FY2024)

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

25

Material Issue KPIs and Targets The KPIs and targets we have established are listed below. We are accelerating initiatives to promote a decarbonized

Material Issues Scope KPIs and Targets

society, including raising some of the targets.

1. Applies to the Tokyo Tatemono Group

2. Applies to Categories 11 and 13

3. In addition to "ZEB" and "ZEH(-M),", includes Nearly ZEB, ZEB Ready, ZEB Oriented, Nearly ZEH(-M), ZEH(-M) Ready, and ZEH(-M) Oriented

4. Applies to new buildings for which design work began in January 2023 or later. Excludes certain properties such as joint venture properties or properties with special uses

5. Applies to new buildings for which design work began in June 2021 or later. Excludes certain properties such as joint venture properties or properties with special uses

6. Mainly refers to, but is not limited to, DBJ Green Building certification, CASBEE building and Building Energy Saving Performance Labeling System (BELS) certification

7. Applies to new buildings for which design work began in January 2023 or later. Excludes certain properties such as joint venture properties or properties with special uses

8. Applies to main office buildings and retail facilities in Tokyo Tatemono's long-term portfolio for which it has substantial energy management authority and for which waste reduction and recycling plans have been submitted

9. Applies to main office buildings and retail facilities in Tokyo Tatemono's long-term portfolio for which it has substantial energy management authority

10. Recycled water derived from rainwater and miscellaneous wastewater generated in buildings (including wastewater from cooling towers and tenants' kitchens). It is reused for non-potable purposes such as toilet flushing and watering plants

11. Based on data compiled from April each year through March of the following year

12. At a specific point in time between April each year and March of the following year

13. As of June 1 of each year

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

Key Strategies

(1) Steady Promotion of Large-Scale Redevelopment Projects

26

We are currently executing large-scale redevelopment projects centered on the priority Yaesu-Nihonbashi-Kyobashi (YNK) area. All of these projects are in prime locations in central Tokyo. Our goal is to enhance our stable revenue base through high-value-added urban development that helps strengthen Tokyo's competitiveness as an international city.

TOFROM YAESU Significance of Large-Scale Redevelopment Initiatives

Urban Redevelopment Project for Yaesu 1-Chome East Area in Front of Tokyo Station (District A and District B)

Location: Chuo Ward, Tokyo

Start of new construction: THE FRONT: 2024, TOWER: 2021 Completion of construction: Scheduled for FY2026

Total floor area: THE FRONT: approx. 12,000 m2, TOWER: approx. 225,000 m2

Building size: THE FRONT: 10 floors above ground, 2 floors below ground TOWER: 51 floors above ground, 4 floors below ground

Main uses: THE FRONT: Offices, retail space, and clinics, etc.

Tower: Offices, medical facilities, theater and conference venues, a bus terminal, retail space, and residential units, etc.

District A building name: TOFROM YAESU THE FRONT (right) District B building name: TOFROM YAESU TOWER (left)

Gofukubashi Project Kyobashi 3-Chome Project

Redevelopment know-how is essential for successfully completing large-scale developments in scarce prime urban locations, something we believe is key to maintaining our competitive advantage. By leveraging our strengths, such as product planning capabilities that enhance local appeal, we aim to unlock the potential of urban areas and deliver flagship, large-scale redevelopment projects in highly visible locations. Through these efforts, we seek to further enhance our presence as a comprehensive real estate developer, building further trust and broadening business opportunities.

At the same time, rising construction costs and longer construction timelines have become more pronounced. To secure higher leasing revenue, we are rigorously managing expenses and schedules in response to cost increases and longer timelines resulting from workstyle reforms in the construction industry, while appropriately addressing issues including coordination among property rights holders, such as urban redevelopment committees.

We are also committed to maintaining and improving overall capital efficiency while ensuring financial soundness. We expect investments related to large-scale redevelopment during the

three-year term of the new medium-term business plan to total 200 billion yen. While this

Urban Redevelopment Project for Yaesu 1-Chome North Area

Kyobashi 3-Chome Higashi District Urban Redevelopment Project

amount is not particularly large, we will carefully control our balance sheet going forward, keeping in mind the potential use of external capital, including strategic share-outs, for future redevelopment projects

Advancing large-scale redevelopment projects to realize a highly competitive office portfolio

Enhancing Portfolio Competitiveness

Location: Chuo Ward, Tokyo Start of new construction: 2024

Completion of construction: South Block: Scheduled for FY2029

North Block: Scheduled for FY2032

Total floor area

South Block: approx. 185,500 m2 North Block: approx. 1,000 m2 South Block: 44 floors above ground, 3 floors below ground

Location: Chuo Ward, Tokyo

Start of new construction: Scheduled for FY2026 Completion of construction: Scheduled for FY2030 Total floor area: Approx. 164,900 m²

Building size: 35 floors above ground, 4 below ground Main uses: Offices, hotel, and retail space, etc.

1. Leasable office floor area (owned by Tokyo Tatemono)

2. Ratio of properties less than 10 years old (by leasable floor area)

3. Ratio of properties in Tokyo central five wards

   As of December 31, 2024

Approx. 530,000 m2

Approx. 11%

North Block: 2 floors above ground

Main uses: Offices, retail space, lodging facilities, and support facilities for highly skilled financial professionals, etc.

(by leasable floor area) Approx. 49%

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

Key Strategies

(2) Further Growth in the For-Sale Condominium Business

27

The Company's for-sale condominium business has continued to evolve, centered on the Brillia condominium brand. It is a core business, and we will continue to strengthen it.

Under the new medium-term business plan, we are implementing initiatives to provide products and services that meet the needs of affluent customers in addition to ongoing provision of high-added-value housing in anticipation of social change, with a focus on reconstruction and redevelopment projects.

In terms of volume, we plan to increase the average annual number of condominium units for which revenue is recognized to over 1,400 units, significantly exceeding the levels of the previous medium-term business plan. In addition, we will leverage Brillia's growing brand power to step up the acquisition of new projects with the objective of establishing a supply structure capable of delivering 2,000 units annually going forward.

Providing High-Value-Added Residences in Anticipation of Social Change Focus on Reconstruction and Redevelopment Projects

Under the new medium-term business plan, we intend to provide products that cater to a variety of values and lifestyles. We will also create social value in the residential sector, closest to people's lives, by leveraging advanced technologies to deliver safe and secure housing that is environmentally conscious and resilient to natural disasters.

Photo: Nacása & Partners Inc.

Brillia Tower Dojima Brillia Tower Seiseki Sakuragaoka BLOOMING RESIDENCE

Reconstruction and redevelopment projects involve numerous stakeholders, making consensus-building difficult and time-consuming. Nevertheless, Tokyo Tatemono has worked on numerous such projects, building trust through sincere dialogue with property rights holders. Leveraging the reconstruction and redevelopment know-how we have accumulated over time, we continue to pursue business opportunities, even in real estate markets where competition to acquire land is intense, especially the Tokyo metropolitan area.

Furthermore, the large-scale apartment complexes built to support Japan's rapid post-war economic growth are aging, and many of them have serious issues, including concerns about earthquake resistance and crime prevention, the absence of elevators, and community decline. Having identified revitalizing and utilizing real estate stock as a material issue, we aim to

SHIROKANE The SKY

Brillia Tower Minoh-Senba TOP OF THE HILL

(Total units: 397; Tokyo Tatemono units: 202)

Brillia Seiseki Sakuragaoka BLOOMING TERRACE

(Total units: 254; Tokyo Tatemono units: 203)

Brillia Tower Chiba

(Total units: 499; Tokyo Tatemono units: 200)

Minoo Minoh Sunplaza No. 1 Redevelopment Project

(Total units: 116; Tokyo Tatemono units: 58)

improve living environments by upgrading existing stock and promoting the development of safer, more secure neighborhoods for our customers and local residents. At

2025 2026 2027

the same time, we seek to create new value that meets contemporary needs and contributes to the revitalization of local communities. Drawing on our extensive track record, we will continue to work closely with property rights holders to promote future-oriented urban development that meets their expectations and earns their trust.

Brillia City Shakujii Koen ATLAS

Brillia Meguro Ohashi

(Total units: 114; Tokyo Tatemono units: 97)

Grand City Tower Tsukishima

(Total units: 1,310; Tokyo Tatemono units: 192)

Brillia Nibancho

(Ko-jimachi Sanno Condominium Reconstruction Project)

(Total units: 104; Tokyo Tatemono units: 51)

THE TOYOMI TOWER MARINE & SKY

(Toyomi Area Type 1 Urban Redevelopment Project)

(Total units: 2,046; Tokyo Tatemono units: 340)

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

Key Strategies

(3) Acceleration of the Property Sales to Investors Business

28

Our objectives in this business are to identify investor needs, offer diverse asset types, and actively pursue business opportunities. Under the new medium-term business plan, we will accelerate the sale of inventory accumulated during the previous plan while expanding new investments to add assets that will generate future gains on sale.

During the previous plan, we successfully built up a diverse portfolio of assets, including offices, hotels, logistics properties, rental condominiums, and retail facilities. We also broadened our investment scope under the new plan to include new asset types such as R&D/office complexes (research facilities) and data centers. Additionally, we will accelerate

Inventory under Development and in Operation

(Total Investment Amount* Basis) (As of December 31, 2024)

Message from a Managing Executive Officer

Highlights of Key Strategies

Under the new medium-term business plan, we will accelerate sales of inventory assets to generate profit and improve asset turnover. Concerns about rising interest rates have raised questions about the impact on the transaction market, but investor appetite for real estate both in and outside Japan remains strong, and property sales to investors have been steady. We will leverage our high-quality and diverse portfolio of asset types to steadily contribute to earnings

asset turnover by strategically selling non-current assets to generate gains on sale and optimize our asset portfolio.

* Total amount invested = Post-acquisition costs + Book value at acquisition

Hiroshi Takahashi Managing Executive Officer Responsible for Leisure Business Division, Retail Properties Development & Management Department, Logistics Properties Development & Management Department, and Hotel Development & Management Department

through property sales that meet investor needs.

Inventory for future gains on sale (estimated total gross profit on sales of properties selected for investment)

Previous medium-term New medium-term

business plan period business plan period

Approx. 110.0 billion yen Approx. 110.0 billion yen

Gains on sale recognized

Approx. 20.0 billion yen/year

Strategically adjusted the balance between property sales and additions to inventory during the previous plan period

Gains on sale recognized

Approx. 110.0 billion yen

Approx. 36.7 billion yen/year

Value of new properties selected for investment

Approx. 540.0 billion yen1

(40% more per year vs. previous plan)

While accelerating sales, continue to acquire inventory of over 100 billion yen in gains on sale

September 30, 2024

December 31, 2027

Non-current asset sales Cross-shareholding sales

(Cumulative for the new medium-term plan period)

Recycle capital generated from asset sales into growth investments and shareholder returns

Expand the Group's AUM to Ensure Sustainable Profit Growth and Accelerate Asset Turnover for Greater Capital Efficiency

Regarding our exit strategy for logistics properties, we continue to consider listing a new REIT, while broadly exploring options including private funds and property sales to external parties.

Unrealized gains on rental properties2

(As of December 31, 2024)

Fair value at end of period 1,583.3 billion yen

Carrying value on balance sheet 1,027.7 billion yen Difference (unrealized gain) 555.5 billion yen

Although we have significantly raised our investment targets compared with the previous medium-term business plan, we are highly confident that we can achieve them. Tokyo Tatemono has a flat organizational structure, with strong alignment between management and the front line. I personally speak directly with relevant managers on a daily basis to discuss investment policies, market conditions, and other factors necessary for making sound investment decisions. Speed is often important in land acquisition, as the time from obtaining fresh information to making an investment decision can be short. Our ability to make quick decisions-enabled by the close relationship between management and the front line-is one

of our competitive advantages. In addition, our departments collaborate closely on all aspects of a project, allowing us to rapidly apply insights gained from development, leasing, and property management to land acquisition. This organizational structure enables us to continually enhance the marketability of each asset while also accurately assessing risk factors such as trends in construction costs. Tenant relationships are another Tokyo Tatemono strength. For example, in logistics properties, we achieve high occupancy rates by building strong relationships with tenants through direct sales efforts, often resulting in multiple leases across different properties. Further, in the hotel business, we develop various types of hotels tailored to the surrounding area and property characteristics, enabling us to build relationships of trust with a wide range of operators.

While land acquisition remains challenging, we will fully leverage our organizational capabilities to secure business opportunities that serve as a foundation for growth.

Office buildings Hotels Logistics properties

Rental condominiums

Retail facilities

1. Based on total investment amount, including portions scheduled for disbursement beyond the new medium-term business plan period

2. Scope of calculation: Properties included in non-current assets that the Company and its subsidiaries are currently leasing to third parties or properties under development that the Company and its subsidiaries plan to lease to third parties upon completion (including properties where a portion is or will be used by the Company and its subsidiaries).

Method of calculation: For properties newly acquired during the fiscal year or properties under development at the end of the fiscal year, the carrying value at the end of the fiscal year is used as the fair value.

T-PLUS Sendai

J-6 Building CANDEO HOTELS TOKYO ROPPONGI

T-LOGI

Fukuoka Island City

Brillia ist Oimachi

FUNDES

Kamata

minanoba Sagamihara

Introduction

Initiatives to Enhance Corporate Value

Value Creation Strategy Enhancing Profit Stability and

Fostering Growth Expectations

Business Strategies

Data Section

TOKYO TATEMONO GROUP INTEGRATED REPORT 2025

Key Strategies

(4) Expansion of Overseas Business (5) Expansion of Service Business (6) Establishment of New Businesses

29

1. Expansion of Overseas Business (5) Expansion of Service Business

Project Name

Location

Main Uses

Size

Year of Construction Completion

Status

We have expanded our business both in Japan and overseas by developing high-quality projects together with trusted partners, thereby contributing to society. In our overseas business, we will continue to leverage the strengths and know-how we have cultivated to deepen relationships with existing partners, while also developing new partnerships and adding new assets. We intend to continue strengthening our overseas business with the goal of increasing its share of business profit to around 10% by 2030.

Herndon Project (United States) Laem Chabang Project (Thailand)

In our service business, we will roll out a diverse array of offerings, including real estate management for asset owners and investors, and operation of experience-based facilities for general consumers. We expect our real estate management services to generate additional synergies with our other businesses. We also see growth opportunities for experience-based facility operation resulting from the growing trend toward consumption of services among consumers. By expanding our non-asset and asset-light businesses, we aim to increase the capital efficiency of our overall business portfolio.

Overview

Brokerage and consulting

Brokerage

Sales and purchase collaboration

Parking lot operation and effective use of land

Parking business

Parking lot operation and interim use of land reserves

Asset management

entrustment Property replacement

Fund

Property and building management

Building management and construction

Property and building management

Real Estate Management Experience-Based Facility Management

(6) Establishment of New Businesses

During the previous medium-term business plan, Tokyo Tatemono executed projects in areas such as sports, entertainment, wellness, and wellbeing. Currently, we are also studying and promoting multiple projects in the infrastructure and industrial sectors. Under the new plan, we will steadily advance ongoing projects while building a track record and accumulating know-how. At the same time, we aim to establish business models that will serve as future earnings pillars.