Message from the President

Investor RelationsManagement Strategy

Message from the President

WE ARE GREEN
For a vibrantly shining future

Review of Interim Results of the 11th Fiscal Period

In the first half of the 11th fiscal period, the Japanese economy saw an ongoing trend toward recovery on the back of progress in the normalization of socio-economic activities, constant growth in the number of tourists from foreign countries, and other positive factors. However, monetary tightening undertaken by major countries around the world, as well as surges in prices of resources and other goods, have caused the pace of such recovery to remain modest. Against this backdrop, the Tokyo Fudosan Holdings Group recorded increases in both revenues and profit, as presented in the chart below, thanks mainly to robust results of asset sales and the strong performance of the real estate sales agent business backed by solid demand in the real estate market, in addition to the progressing recovery in domestic and inbound tourist demand, which, in turn, supported the hotel business.

Outlook on Full-Year Operating Results

With regard to full-year operating results forecasts for the fiscal year ending March 31, 2024, the Group has upwardly revised its previous forecasts announced in May 2023. This move takes into account the robustness of domestic and inbound tourist demand, which benefits our hotel business, as well as the strong results of our real estate sales agent business buoyed by vigorous real estate market conditions. We anticipate that these factors will enable us to overcome challenges in the present business environment, which is becoming murkier due to the risk of economic downturns that may possibly arise from the continuation of monetary tightening policies enforced by major countries around the globe, along with ongoing inflation, fluctuations in financial and capital market conditions, and other factors.

The Tokyu Fudosan Holdings Group boasts many unique and diverse wings to give lift to its business. Looking ahead, we will continue striving to update these assets into a portfolio that is a genuine powerhouse and, to this end, pursue the restructuring of our value chain within the Group. In these ways, we will secure even higher profit and seize a broader range of business opportunities, with the aim of achieving performance targets specified under our full-year forecasts.

From the second half of the fiscal year ending March 31, 2024 onward, we will see openings of one large property after another in the Greater Shibuya area. These properties, currently under construction, include "Shibuya Sakura Stage." Going forward, we will focus on making this area even more appealing through the operation of these properties. To this end, we will work to establish a virtuous cycle of "creation," "communication" and "attraction" within the Greater Shibuya area. With our community development endeavors encompassing a broad range of the Greater Shibuya area, we will thus strive to raise the value this area affords from a long-term perspective and help strengthen Shibuya's competitiveness against other urban districts in Tokyo.

To Our Shareholders

Based on the Medium-Term Management Plan, Tokyu Fudosan Holdings Corporation's present policy for shareholder returns is to aim for a dividend payout ratio of 30% or more and maintain a stable stream of dividends. In line with this policy, we are focused on returning profit to shareholders and have decided to pay an interim dividend of \14 per share. Moreover, we forecast a year-end dividend of \14 per share. This will bring the annual dividend to \28 per share.

Under the slogan "WE ARE GREEN," the Tokyu Fudosan Holdings Group is endeavoring to create a variety of appealing lifestyles. To this end, we respect all values, embrace diversity, and accept different ideas and ways of thinking. At the same time, we will foster a sense of unity among all Group members while empowering every member of our workforce to realize their individual strengths. By doing so, we will work together with our stakeholders to create a sustainable society and achieve mutual growth, aiming to realize a future where everyone can be themselves and shine brightly.

Lastly, in October 2023 the Tokyu Fudosan Holdings Group celebrated the 10th anniversary of its inauguration. We hereby express deepest gratitude to our shareholders who have supported our operations to this day and ask for their ongoing patronage and cooperation.

December 2023
Hironori Nishikawa, President & CEO