Investor Relations

Sales

Principal Condominium Development Projects (2012–2013)

NameLocationNo. of units for saleScheduled delivery*1
City Terrace Narimasu Itabashi Ward, Tokyo 243 2012
City House Tsukishima-ekimae Baybreeze Court / Capital Court Chuo Ward, Tokyo 133 2012
City House Tokyo Morishita Koto Ward, Tokyo 116 2012
City Terrace Yokohama Tsuzuki no Oka Yokohama shi, Kanagawa 190 2012
City House Tamagawa Terrace Kawasaki shi, Kanagawa 115*2 2012
City House Fuchu Keyaki-dori Fuchu shi, Tokyo 140 2012
City Terrace Otakanomori Station-Court Nagareyama shi, Chiba 328 2012
City Terrace Itabashi Hasune Itabashi Ward, Tokyo 350 2013
THE ITABASHI Terrace Itabashi Ward, Tokyo 193 2013
City Tower Ueno-Ikenohata Taito Ward, Tokyo 135 2013
City Terrace Oi Sendaizaka Hill Top Garden Shinagawa Ward, Tokyo 130 2013
City Tower Saitama Shintoshin Saitama shi, Saitama 405 2013
City Tower Tennoji Sanadayama Osaka shi, Osaka 216 2013
City Tower Nagoya Hisaya-odori koen Nagoya shi, Aichi 225 2013
City Tower Kobe Sannomiya Kobe shi, Hyogo 594 2013
Takadanobaba Project Shinjuku Ward, Tokyo 359 2013

*1 Fiscal year ending March 31
*2 Number of units includes the units of business partners.

Sumitomo Realty’s Strengths

Sumitomo Realty’s condominium operations are centered on the Tokyo Metropolitan area, which accounts for 70% of our units, and are conducted in other large urban areas such as Osaka / Kobe, Sapporo, Sendai, Nagoya, and Fukuoka. The Company develops and sells about 5,000 units a year.
  Over the past decade, we have been one of the leading suppliers of condominium units nationwide. This strong position is the result of our central urban strategy, which we implemented ahead of competitors, and our aggressive approach to large-scale and high-rise condominiums. Our landmark exterior designs, the rich array of common facilities that is made possible by the scale of the buildings and elegant entrances make our condominiums sought after by a wide range of consumers with diverse lifestyles. As a result, our high operating margin is at the top of the industry.
  The risk of market fluctuations is a critical factor in the condominium business.
  Consequently, the Company’s policy is to offer a stable supply of condominiums and to enhance the Sumitomo Realty brand through the ongoing sale of high-quality units. In the years ahead, the Company will continue striving to maintain its strong position.


Overview of the Fiscal Year

In the condominium market, which accounts for more than 90% of our sales in this segment, the sales environment remained favorable in the year under review, with support from low mortgage interest rates and government measures, such as tax reductions.

In the Tokyo Metropolitan area, the number of new condominium units supplied increased for the first time in six years, and the number of units sold was firm. Sales prices also increased, centered on condominiums in favorable locations.
  In this environment, the number of condominium units sold was 4,741, a small decline from the previous year, despite the fact that we curtailed our sales activities following the Great East Japan Earthquake, which occurred in March. In addition, the number of condominium units unsold at the end of the fiscal year was 878, a decline of 320 from a year earlier. The number of condominium units, detached houses and land lots delivered-such as those at City Towers Toyosu and Southern Sky Tower Residence-increased by 619 from the previous year, to 4,841. Profitability improved due to a decline in loss on devaluation. As a result, we recorded substantial gains in revenue from operations and operating income. Revenue from operations was up 9.1%, to a new record high of ¥239.7 billion, and operating income rose 70.6%, to ¥33.4 billion.


Outlook

In the March 2012 fiscal year, we plan to deliver a total of 4,600 condominium units, detached houses and land lots, a decrease of 241 year on year, and we will strive to maintain operating income at about the same level as in the March 2011 fiscal year. Of the 4,500 condominium units and detached houses that we expect to deliver in the March 2012 fiscal year, approximately 30% had already been sold at the end of March 2011, the same as in the previous year. As a result, we are forecasting revenue from operations of ¥220.0 billion, down 8.2%, and operating income of ¥33.0 billion, down 1.3%.

Sales