Investor Relations

Leasing

No.1 in Tokyo Office Building Owner with More Than 220 Buildings

History
Sumitomo Realty made its full-scale entry into the leasing business in the latter half of the 1970s. We demonstrated our strong business development capabilities by being the first company in the industry to restart construction work on office buildings following the collapse of Japan´s economic bubble in the 1990s. Our competitive strengths and focus on large-scale redevelopment projects have enabled us to build our current leading position in the domestic real estate industry.

Basic Growth Strategy

Continuing new investment to build a platform for growth, by further increasing the portfolio´s portion of prime properties that are "central, new and large"

Overview of the Fiscal Year

The Tokyo office building market, where more than 90% of our leasing portfolio is concentrated, experienced continued strong new demand from relocations and floor space expansions while vacancy rates remained low and rents for renewed leases continued on an upward trend.
Reflecting such an environment, the segment recorded revenue and profit growth for the March 2018 fiscal year based on higher rents from existing buildings and full-year contribution from new buildings completed during the previous fiscal year, including Sumitomo Fudosan Roppongi Grand Tower and Sumitomo Fudosan Azabujuban Building. The segment´s revenue from operations and operating income both reached record-high levels for the third consecutive year.
The vacancy rate for existing buildings remained low at 4.9% (4.5% at the end of the previous fiscal year), and tenant acquisition for new buildings is on a good track, including Sumitomo Fudosan Osaki Garden Tower, which was completed during the fiscal year under review.

Outlook

We are aiming for record-high revenue from operations and operating income in the March 2019 fiscal year, based on improved earnings from existing buildings and full-year contribution from the buildings completed during the fiscal year under review, such as Sumitomo Fudosan Osaki Garden Tower.
As a result, we are projecting a 3.1% increase in revenue from operations, to ¥365.0 billion, with a 4.0% rise in operating income, to ¥145.0 billion.