Financial Results for the 2nd Quarter of FY November 8, 2016 NTT Urban Development Corporation

Transcription

1 Financial Results for the 2nd Quarter of FY 2016 November 8, 2016 NTT Urban Development Corporation

2 Financial Highlights Operating revenue and operating income both decreased. Quarterly profit increased due to reduction in loss on sales as a result of property sales in the same quarter last year. Remained mostly in line with the full-year forecasts in terms of progress. Forecasts for FY 2016 Forecasts for FY 2016 remain the same in terms of the revenue and expenditure plan The number of residential delivered is revised from 1,250 units to 1,000 units The yearly investment amount is revised from 60.0 billion to 55.0 billion 2Q FY 2016 Change year-on-year Progress compared to Forecasts for FY 2016 Forecasts For FY 2016 Operating revenue 68.5B ( 2.6B) (3.7%) 36.1% 190.0B Operating income 11.3B ( 0.9B) (7.8%) 36.5% 31.0B Profit attributable to owners of parent 6.2B ( 0.5B) +9.2% 37.0% 17.0B 1

3 Offices/Retail Business 2

4 Operating Revenue Operating Income Operating revenue 43.4 Sales of Properties 1.9 Operating revenue 41.6 (Billion yen) Despite an increase in rental income from new properties* and Shinagawa Season Terrace, operating revenue fell due to a decrease in rental and sales revenue as a result of property sales in the previous fiscal year * 3 properties in Boston, Urbannet Nihonbashi 2-Chome Building, Urbannet Ginza 1-Chome Building, etc Operating income margin 41.5 Operating income Sales of 10.4 Properties Q FY Q FY % 29.6% Operating income 12.3 Operating income increased due to improvement in rental income from the existing buildings, primarily Shinagawa Season Terrace Excluding property sales, operating revenue and operating income increased year on year. 3

5 Factors Operating revenue YoY (1.8) Operating income YoY (1.9) Q FY Q FY Offices/Retail Leasing Offices/Retail Leasing (Gross margin) Sales of revenue-generating real estate New Properties properties in Boston, Urbannet Nihonbashi 2-chome, Urbannet Ginza 1-chome, etc. Existing Properties +1.6 Contribution of Shinagawa Season terrace, Improvement of vacancy rate of existing properties, etc. Others (2.2) Decrease of rental income from sold properties, etc. Sales of revenue-generating real estate (Gross margin) +3.0 (0.8) New Properties (0.0) Existing Properties +3.1 Others (0.0) Including effect of change of depreciation method +1.1 Others Others (Including SG & A) (0.3) (Billion yen) Q FY Q FY

6 Vacancy Rate 14.7% 14.2% 10.9% 10.5% 10.8% 7.4% 8.1% 8.3% 6.7% 8.7% 9.2% 7.5% 6.3% 6.4% 6.8% 5.9% 5.7% 4.8% 4.5% Nationwide 2.9% 4.2% 3.9% 5 wards of central Tokyo Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep

7 Residential Business 6

8 Operating revenue Operating income (Billion yen) Operating revenue 22.0 Residential rentals 1.4 Operating revenue 19.2 Residential rentals 0.8 Operating revenue decreased due to decline in number of units delivered and in the average price per unit. However, expansion of sales by share-outs for the purpose to diversify the risks decelerated the rate of decrease. Residential property sales 20.6 Residential property sales 18.3 Operating income 4.0 Operating income 1.2 2Q FY Q FY 2016 Operating income margin 18.5% 6.5% Operating income margin decreased compared with the previous fiscal year where central Tokyo properties with a higher operating margin were the main force. Lease revenue of rental residential properties decreased due to loss of revenue as a result of property sales in the previous fiscal year. 7

9 Factors 22.0 Residential property sales (2.2) Residential rentals (0.5) Others ー (Billion yen) 19.2 Operating revenue YoY (2.8) Decrease number of units delivered (5.8) Drop of average price per units (1.1) Share-outs +3.5 Residential Lots Sale Q FY Q FY 2016 Operating income YoY (2.8) 4.0 Residential property sales (Gross margin) (2.4) Residential rentals (Gross margin) (0.3) Others (Including SG & A) (0) Q FY Q FY

10 Condominiums Units Sales (Units) Full-year Delivered 1, % Full-Year Contracted 1,093 Contracted 840 Plan of units to be delivered 1,000 Based on changes in the market environment, the number of planned deliveries revised from 1,250 to 1, % Delivered % 51.3% Delivered 296 Contracted 512 The number of units delivered decreased YOY (433 units 296 units). The price per unit decreased (43 million yen 39 million yen). Contract ratio at the end of 2Q was 51.3% 2Q FY Q FY 2016 Average Sales Price 43 million yen 39 million yen 9

11 Financial Conditions, etc. 10

12 Balance Sheet Total assets 1,033.5 Current assets Non-current assets Interestbearing debt Other liabilities (Billion yen) Total assets 1,012.1 Current assets ( ) Interestbearing debt Non-current assets ( ) Other liabilities Current assets decreased because of reduction in operating accounts receivable as a result of payments Net assets Net assets As of March 31, 2016 As of September 30,

13 Investments Major investments 2 properties in Boston Tremont Street - 27 School Street Otemachi 2-1 Project * Urbannet Nihonbashi 2-Chome Building Urbannet Ginza 1-Chome Building Full-Year 54.5 (Capital expenditure 47.7) (Billion yen) Full-Year forecasts 55.0 (Capital expenditure 52.0) Total planned investment amount is revised to 55.0 billion from 60.0 biliion. Progress in investments for the Otemachi 2-1 Project *, Universal City Station Project, etc. 2Q (Capital expenditure 16.0) Q ( Capital expenditure 10.0) 10.0 Major investments Otemachi 2-1 Project * Harajuku Station Project Universal City Station Project Small Luxury Hotels at Kashikojima FY 2015 FY 2016 * Otemachi 2-Chome Area 1st Class Urban Redevelopment Project Building A 12

14 Interest-bearing Debt (Billion yen) Interestbearing debt Short-term loans payable 6.5 Interestbearing debt Short-term loans payable 34.9 Decreased from March 31, 2016 Bonds payable Long-term Loans payable Net Interestbearing debt Bonds payable Long-term loans payable Net interestbearing debt Average interest rate decreased1.03% to 0.85% Weighted average tenor *2 decreased 5.07years to 5.05years *1 Net Interest-bearing Debt=Interest-bearing Debt-(Cash and Deposits + Short-term Investments of 3 months of less included in Other Current Assets) As of March 31, 2016 As of September 30, 2016 *2 Interest-bearing debt excluding short-term loans payable 13

15 Latest Achievements 14

16 Office Business/Retail Business Shinagawa Season Terrace Urbannet Nihonbashi 2- Chome Building Shimbashi 1-Chome Project Akihabara UDX Contract rate (including prospective tenants) was about 95%* * As of September 2016 The building won 2016 Good Design Award for utilizing the lighting duct on the large scale, highly praised for its creation of the sensational, undulating interwoven light The project is mixed-use building development of office and hotel Underground dismantling and new construction has began in October 2016 Hotel operator will be JR Kyushu Railway Company The Building acquired the U.S. standard of BOMA360, the qualification for the outperforming buildings in the area of operation and management 15

17 Office Business/Retail Business Nagoya Station South Area Land lease to Shiki Theatrical Company with the aim of maximizing the site use as the new cultural spot Shiki Theater in Nagoya is open from 16 th October 2016 Development of Small Luxury Hotels Shinpukan redevelopment project Project in Kashikojima, Atami and Hakone in progress in partnership with Hiramatsu Inc - Kashikojima: Opened on July 15, Atami: Opened on October 27, Hakone: Scheduled to open on December, 2016 Shinpukan redevelopment project, a mixed-use development of retail facilities and hotel, is scheduled to start construction at FY2017 toward the start of business in FY2019 Former Kiyomizu Elementary School Project Basic agreement was signed with Kyoto City. The existing building will be mainly converted to a hotel 16

18 Retail Business/Residential Business Okinawa Seragaki Project Construction of hotel started in October 2016 Scheduled to start business in summer 2018 Harajuku Station Project Mixed-use redevelopment planning is under way for rebuilding Harajuku Dai-ichi Mansions located in front of Harajuku Station Serviced Senior Housing Wellith Musashino Sekimachi as a part of Tsunagu Town Project has began its sale in June 2016 Wellith Olive Shibuya Honmachi Care Residence* has been completed in September 2016 * Care House regulated by Long Term Care Insurance Act Renovation Business IKSIKS AZABUJUBAN, as the Condominium Renovation project has been launched for sale 17

19 Global Business/ Others Scale of operation in Oversea Operating revenue for 2Q (consolidated) was 1.9 billion yen Operating income was 0.5 billion yen The total asset size of six properties in the U.S. and three properties in the U.K. is approx billion yen (based on current rate) Renewal Projects (London, New York) Renovation of 1 King William Street (London) will be completed in November 2016 Renovation of 125 West 25 th Street * (New York) will be completed in November 2016 *1 Formerly named 119 West 25 th Street Acquisition of new properties (New York) 799 Broadway (New York) was acquired in July 2016 Minami-Aoyama Project Re-development Council, composed of local volunteers has been established on 1 st of October NTTUD takes a part in this committee. 18

20 Pipeline Development Project Gross floor space FY 2021~ Office Business Otemachi 2-1 Project Shimbashi 1-chomeProject Approx.202,000 m2 (Building A total) Approx.35,900 m2 Start of Construction Completion Completion Residential Business Serviced senior housing in collaboration with the NTT Group - Renovation Business - Retail Business Universal City Station Project 20,808 m2 Completion Small luxury hotels development - Hakone Opened Okinawa Seragaki Project Approx.40,000m2 Kiyomizu Elementary School conversion Undecided Shinpukan redevelopment project Undecided Harajuku Station Project Undecided Global Business (Renovation Project) London 1 King William Street Approx.100,000sqf New York 125 West 25 th Street Approx.138,000sqf Washington D.C th Street Approx.106,000sqf Others NTT Group CRE - Minami-Aoyama Project Undecided Shimbashi Sta. West Exit Project Undecided Kanda Sta. West Exit Project Undecided Start of Construction Completion Completion Completion Start of Construction Opening Completion Undecided 未定 Undecided Undecided Undecided Opening Schedule may vary according to any changes in plan 19

21 Appendices 20

22 Statements of Income (million yen) Category (i) (ii) (ii)-(i) FY 2015 FY 2016 Change 2Q 2Q Key Factors (iii) FY 2016 Forecast (Announced in May 11, 2016) (ii)/(iii) Progress Operating revenue 71,168 68,545 (2,623) Operating revenue (2,623) 190, % Office/Retail business (1,878) Operating expenses 58,880 57,216 (1,664) Reduction in residential sales (2,878) Operating income 12,288 11,329 (958) Operating Income (958) Office/Retail Business +1,912 31, % Non-operating income 1,279 1, Reduction in residential sales (2,834) Non-operating expenses 3,045 2,935 (109) Ordinary income 10,521 9,790 (731) 28, % Extra ordinary income (382) Extraordinary income (382) Gain on sales of non-current assets (382) [382 -] Extraordinary loss (1,845) Extraordinary loss 2, (1,845) Loss on sales of assets (1,707) (1,707 -) Loss of retirement of non-current assets (138) Income before income taxes and minority interests 8,880 9, [ ] Income taxes (26) Income taxes 2,357 2,331 (26) Increase of income +241 Lowing of the corporate tax rate (211) Profit 6,522 7, Comprehensive income (5,156) Profit attributable to non-controlling interests Profit +758 [6,522 7,280] Foreign currency translation adjustment (6,480) Profit attributable to owners of parent 5,756 6, [606 5,873] Valuation difference on available-for-sale securities 17, % +550 [(797) (246)] Comprehensive income 6,300 1,143 (5,156) 21

23 Statements of Income by Segment (million yen) Category (i) (ii) (ii)-(i) FY 2015 FY 2016 * Change 2Q 2Q Key Factors (iii) FY 2016 Forecast (Announced in May 11, 2016) (ii)/(iii) Progress Offices/Retail Business Operating revenue 43,494 41,615 (1,878) Operating revenue +1,878 Existing properties +1,686, New properties +651, 109, % Others (4,215) Operating income 10,410 12,323 1,912 Operating income +1,912 29, % Gross margin +2,270 : Existing properties +3,167, New properties(67), Others (828) Operating income margin 23.9% 29.6% +5.7pt Decreased SG&A (357) 27.1% - Residential Business Operating revenue 22,093 19,215 (2,878) Operating revenue (2,878) 67, % Residential property sales (2,299) Condominiums (3,502), Residential lots, etc. +1,203 Operating income 4,092 1,258 (2,834) Residential rentals (578) 6, % Operating income (2,834) Gross Margin (2,788) : Residential property sales Operating income margin 18.5% 6.5% (12.0pt) (2,444), Residential rentals (344), Reduced SG & A (45) 9.7% - Operating revenue 8,520 10,565 +2,044 18, % Others Operating income , % Operating income margin 7.2% 8.2% +1.0pt 8.3% - * Figures for FY Q is after the new segments 22

24 Balance Sheets (million yen) Category (i)march 31, 2016 (ii) Sep 30, 2016 (ii)-(i) Change Key Factors Total assets 1,033,557 1,012,184 (21,373) Current assets 178, ,747 (9,363) Cash and deposits 14,846 15, Inventories 141, ,554 (3,863) Other currents assets 21,845 15,638 (6,206) (Restated) Operating accounts receivable 9,170 4,822 (4,347) Non-current assets 855, ,437 (12,009) Property, plant and equipment 781, ,075 (8,819) Intangible assets 25,994 25,292 (701) Investments and other assets 47,557 45,068 (2,488) Total liabilities 781, ,084 (18,567) Current liabilities 115, , ,397 Interest-bearing debt (short-term) 63,305 74, ,670 Other current liabilities 52,156 50,882 (1,273) Non-current liabilities 666, ,224 (28,965) Interest-bearing debt (long-term) 482, ,195 (15,519) Other non-current liabilities 183, ,028 (13,445) Total net assets 251, ,100 (2,805) Shareholders' equity 198, ,170 3,323 Accumulated other comprehensive income 7,187 1,050 (6,137) Non-controlling interests 45,871 45, Total liabilities and net assets 1,033,557 1,012,184 (21,373) Inventories (3,863) Residential property sales (1,232) Leasing (2,721) Property, plant and equipment (8,819) Acquisition +5,911, Amortization (8,189), Currency exchange (6,484) Interest-bearing debt (3,849) Net interest-bearing debt (4,564) Other current liabilities (1,273) Decrease of operating accounts payable-trade due to payment of construction cost (17,308) Transfer from long-term accounts payable-trade [Otemachi 2-1 Project] +14,704 Non-current liabilities (13,445) Long-term accounts payable-trade [Otemachi 2-1project] (14,704) [Transfer to current liabilities] Shareholders' equity +3,323 Profit attributable to owners of parent +6,286 Dividend (2,962) 23

25 Statements of Cash Flows (million yen) Category (i) (ii) (ii)-(i) FY 2015 FY 2016 Key Factors Change 2Q 2Q Net cash provided by (used in) operating activities (A) (12,441) 17, ,556 Income before income taxes and minority interests 8,880 9, Depreciation and amortization 11,938 9,276 (2,662) Other operating activities (33,260) (1,773) +31,486 Decrease (increase) in notes and accounts receivable-trade (4,410) 4,345 +8,756 Decrease (increase) in inventories (18,125) (1,032) +17,093 Increase (decrease) in notes and accounts payable-trade (4,345) (4,710) Cash outflow due to increase in purchases for inventories (1,032) (364) Net increase of inventory (for residential business) +668 Increase (decrease) in lease and guarantee deposits 193 1,472 [Purchase (14,020), Sales +14,689] +1,279 Income taxes paid or refunded (2,825) 1,100 Net decrease of inventory(for leasing business) (1,616) +3,925 Other (3,746) (2,948) [Purchase (1,616)] +797 Net cash provided by (used in) investing activities (B) (18,573) (14,987) +3,586 Purchases of property, plant and equipment (23,196) (15,387) +7,808 Proceeds from sales of property, plant and equipment 5,603 - Cash outflow due to acquisition of property, plant, and equipment (15,387) (5,603) Purchase of investment securities (692) Proceeds from repayment of investment securities 501 1,594 +1,092 Other investing activities (790) (1,194) (403) Free cash flow (A) + (B) (31,014) 2, ,142 Net cash provided by (used in) financing activities Increase (decrease) in interest-bearing debt Cash dividends paid Other financing activities Effect of exchange rate change on cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 32,614 (1,236) (33,851) 35,905 2,685 (33,219) (2,633) (2,961) (328) (657) (960) (303) 25 (275) (300) 20,153 16,106 (4,046) 21,779 16,722 (5,056) 24

26 New and Former Statements of Income by Segment (Full-year) Former Segment New Segment Category FY 2015 Category FY 2015 Forecast for FY 2016 (Billion yen) Change Operating revenue Operating revenue Offices/ Leasing Retail Business Residential property sales 48.8 Residential Business Other 19.6 Other (1.6) Eliminations (6.4) Eliminations (6.4) (4.0) +2.4 Operating income 37.7 Operating income (6.7) Offices/ Leasing 36.7 Retail Business (0.4) Residential property sales 5.0 Residential Business (5.3) Other 2.1 Other (0.6) Eliminations/ Corporate (6.2) Eliminations/ Corporate (6.2) (6.5) (0.2) * Approximate figure in new segment 25

27 Changes in Segment Divisions Former segments New segments Leasing Business Operating revenue : 120.9B Offices/Retail Residential/ Others 98.0B 22.9B ) Offices/Retail Leasing Sales of revenue-generating real estate Others 83.0B 21.9B 0.3B Offices/ Retail Business Operating revenue : 105.3B Residential Business Condominiums 46.9B Residential lots, etc. 1.9B ) Residential property sales 48.8B Residential rentals 2.8B Residential Business Operating revenue : 48.8B Others Others 12.7B Operating revenue : 64.4B Others Operating revenue : 19.6B - - Others Operating revenue : 19.6B * Figures are based on FY2016. Approximate figure in new segment 26

28 Major Properties 27

29 Projects Map (Tokyo Central Area) Mejiro Sta. Trad Mejiro Development Projects 14 Harajuku Sta. Shinjuku Sta. Harajuku Dai-Ichi Mansions, etc. Placeo Aoyama Harajuku Quest Shibuya Sta. Urbannet Gotanda NN bldg. Minami Aoyama bldg. Festa Azabu HIVE Tokyo Shinagawa Sta. Gotanda Sta. 3 Kanda Sta Tokyo Sta. Urbannet Nihonmashi bldg. Yurakucho Sta. UD Hibiya bldg. 5 Urbannet Tsukiji 2 2 bldg. Shimbashi Sta. Urbannet Tsukiji bldg. Hamamatucho Sta. Urbannnet Minamiazabu bldg. Tamachi Sta Hongou Center bldg. 10 Akihabara Sta. Urbannnet Iwamotocho bldg. Harumi 4-chome bldg. Ariake Center bldg. 3 1 Otemachi 2-1 Project 2 Shimbashi 1-chome Project Completed Projects 4 3 Shinagawa Season Terrace 1 4 Urbannet Nihonbashi 2-Chome Building 2 Urbannet Ginza 1-Chome building 5 Core Buildings 6 Urbannet Otemachi Building 7 Otemachi First Square 8 JA Building, Keidanren Kaikan 9 Otemachi Financial City North Tower 10 Akihabara UDX 11 Urbannet Kanda Building 12 Seavans N Building 13 Granpark Tower 14 Tokyo Opera City 28

30 1 Otemachi 2-Chome Area 1st Class Urban Redevelopment Project Building A Location Main use Land scale Gross floor space Chiyoda-ku, Tokyo Office, Retail Approx. 19,900 m2 (Building A & B total) Approx. 202,000 m2 (Building A) Approx. 35,000 m2 (our stake) Building scale 35 stories above ground and 3 below (Building A) Stake Schedule Co-owned Construction started May 2015 Completed July 2018(Schedule) JA Building, Keidanren Kaikan Otemachi Financial City North Tower Building A Building B Otemachi First Square Urbannet Otemachi Building The actual finished construction may differ due to planning going forward 29

31 Otemachi Area Map 1 st Phase JA Building Keidanren kaikan 3 rd Phase Development Project Otemachi Chain Redevelopment Chain Redevelopment started with the government complex 1 st Phase Building A Building B 2 nd Phase 3 rd Phase Tokiwabashi Park A 4 th Phase 4th Phase Otemachi 2-1 Project Properties held by NTTUD (including strata ownership) Properties held by NTT Group (including strata ownership) 30

32 2 Shimbashi 1-chome Project Location Main use Land scale Gross floor space Building scale Total rooms Completion Minato-ku, Tokyo Office, Hotel 3,071.04m2 Approx. 35,900m2 (plan) 27 stories above ground and 2 below 267 rooms (plan) 2019(schedule) Uchisaiwaicho Sta. Shimbashi 1-Chome Project Shimbashi Sta. The actual finished construction may differ due to planning going forward 31

33 Universal City Station Project Location Main use Land scale Gross floor space Building scale Total rooms Osaka-shi, Osaka Retail (Hotel and bridal) 2,639 m2 20,808 m2 17 stories above ground and 1 below 390 rooms Stake 100% Schedule Construction started October 2015 Completed June 2017 (Schedule) Universal City Sta. Universal City Station Project The actual finished construction may differ due to planning going forward 32

34 Karasuma Street Shinpukan redevelopment project Project outline Location Main use Land scale Kyoto-shi, Kyoto Hotel, Retail 6,395 m2 Stake 100% Completion Development outline 2019 (Schedule) Mixed-use development utilizing the former Kyoto telephone station, a designated Kyoto cultural landmark Karasuma Oike Sta. Shinpukan (already closing in 2016, the end of March) Shinpukan redevelopment project Kyoto telephone station era Shijo Sta. Karasuma Sta. 33

35 Kiyomizu Elementary School conversion project < Current state > Location Main use Land scale Gross floor space Development outline Kyoto-shi, Kyoto Hotel, Meeting place, etc. 7,296 m2 4,196 m2 Conversion of the Shimizu Elementary School building, which has a rich history but is now closed, to a hotel Former Kiyomizu Elementary school Kiyomizu Temple < Rendering CG > The actual finished construction may differ due to planning going forward Kyoto Sta. 34

36 Kyoto Area Map Karasuma Oike Sta. Karasuma Area イメージ図 Kiyomizu Elementary School conversion project Shijo Sta. Karasuma Sta. 旧建物写真 2016年3月閉館 Kiyomizu Area Shinpukan redevelopment project UD Kyoto Kiyomizu Building Kiyomizu Temple Urbannet Shijyo Karasuma Building (Laque Shijyo Karasuma) Properties held by NTTUD (including strata ownership) Kyoto Sta. New Project 35

37 3 Shinagawa Season Terrace Location Main use Land scale Gross floor space Building scale Stake Schedule Minato-ku, Tokyo Office, Retail 49,547m2 (in total) 202,716m2 (in total) 32 stories above ground and 1 below Co-owned Construction started February 2012 Completed February 2015 Shinagawa Season Terrace NTT Shinagawa TWINS Shinagawa Sta. 36

38 4 Urbannet Nihonbashi 2-Chome Building Location Main use Land scale Gross floor space Building scale Chuo-ku, Tokyo Office 1,687 m2 14,795 m2 10 stories above ground and 1 below Stake 100% Schedule Construction started June 2014 Completed January 2016 Urbannet nihonbashi 2-Chome building Tokyo Sta. *1 37

39 5 Urbannet Ginza 1-Chome Building Location Main use Land scale Gross floor space Building scale Chuo-ku, Tokyo Office 1,737 m2 11,720 m2 8 stories above ground and 1 below Stake 100% Schedule Construction started November 2014 Completed February 2016 Keiyō Line Urbannet ginza 1-Chome building *2 38

40 Office Properties Five wards of central Tokyo *3 *4 Name Urbannet Otemachi Building Otemachi First Square JA Building, Keidanren Kaikan Otemachi Financial City North Tower Location Chiyoda-ku, Tokyo Chiyoda-ku, Tokyo Chiyoda-ku, Tokyo Chiyoda-ku, Tokyo Main use Office Office Office Office Typical floor rentable space 3,251 m2 1,632 m2 (West) 1,626 m2 (East) 1,680 m2 (JA Building) 1,711 m2 (Keidanren Kaikan) 2,369 m2 Gross floor space 117,618 m2 54,284 m2 (Our stake) 26,517 m2 (Our stake, JA Building and Keidanren Kaikan in total) 8,949 m2 (Our stake) Building scale 22 stories above ground and 5 below Completion June stories above ground and 5 below (West) 23 stories above ground and 4 below (East) February 1992 (West) May 1997 (East) 37 stories above ground and 3 below (JA Building) 23 stories above ground and 4 below (Keidanren Kaikan) 31 stories above ground and 4 below April 2009 October

41 Office Properties Five wards of central Tokyo *1 (Retail : Akibaichi) *1 *1 *5(Retail : Amall) *5 Name Akihabara UDX Urbannet Kanda Building Seavans N Building Location Chiyoda-ku, Tokyo Chiyoda-ku, Tokyo Minato-ku, Tokyo Main use Office, Retail Office Office, Retail Typical floor rentable space Gross floor space Building scale 4,804 m2 546 m2 1,967 m2 155,629 m2 14,266 m2 78,488 m2 22 stories above ground and 3 below 19 stories above ground and 1 below 24 stories above ground and 2 below Completion January 2006 July 2012 January

42 Office Properties Five wards of central Tokyo Other Major Cities *3 *1 (Retail : Blossa) *6 *6 Name Granpark Tower Tokyo Opera City Urbannet Sapporo Building Urbannet Nagoya Building Location Minato-ku, Tokyo Shinjyuku-ku, Tokyo Sapporp-shi, Hokkaido Nagoya-shi, Aichi Main use Office Office Office Office, Retail Typical floor rentable space Gross floor space Building scale 2,059 m2 2,011 m2 2,441 m2 1,959 m2 117,659 m2 (Our stake, Tower and Heights in total) 34 stories above ground and 4 below 33,086 m2 (Our stake) 54 stories above ground and 4 below 31,255 m2 75,047 m2 10 stories above ground and 1 below 22 stories above ground and 3 below Completion August 1996 July 1996 October 2004 September

43 Office Properties Other Major Cities (Retail : Laque) *1 *1 *1 *1 Name Urbannet Shijyo Karasuma Building Grand Front Osaka Location Kyoto-shi, Kyoto Osaka-shi, Osaka Main use Office, Retail Office, Retail Typical floor rentable space 1,584 m2 2,679 m2 (Tower A), 2,603 m2 (Tower B) 1,707 m2 (Tower C) Gross floor space 16,088 m2 481,628 m2 (in total) Building scale 7 stories above ground and 1 below 38 stories above ground and 3 below(tower A, B) 33 stories above ground and 3 below(tower C) Completion October 2010 March

44 Retail Properties Five wards of central Tokyo Tokyo Metropolitan area *7 *2 *3 Name Harajuku Quest Festa Azabu Placeo Aoyamaya Machida NT building Location Shibuya-ku, Tokyo Minato-ku, Tokyo Minato-ku, Tokyo Machida-shi, Tokyo Main use Retail Retail Retail Retail Gross floor space 5,367 m2 3,214 m2 18,674 m2 7,592 m2 (Our stake) Building scale 4 stories above ground and 2 below 6 stories above ground and 2 below 11 stories above ground and 3 below 7 stories above ground and 2 below Completion March 1988 May 1990 April 1992 October

45 Retail Properties Other Major Cities *7 *8 *1 Name NTT Credo Motomachi Building (Pacera) NTT-T building Urbannet Tenjin building (Resola Tenjin) Resola South Terrace Location Hiroshima-shi, Hiroshima Fukuoka-shi, Fukuoka Fukuoka-shi, Fukuoka Fukuoka-shi, Fukuoka Main use Retail Retail Retail, Office Retail Gross floor space 160,418 m2 61,506 m2 14,796 m2 6,184 m2 Building scale 35 stories above ground and 2 below 7 stories above ground and 3 below 9 stories above ground and 1 below 9 stories above ground Completion March 1994 September 1996 August 2011 April 2013 (Main part) August 2013 (Entire building) 44

46 Properties in the U.K. U.K. Name 1 King William Street 20 Finsbury Circus 265 Strand Location London, U.K. London, U.K. London, U.K. Main use Office Office, Retail Office Stake 100% 100% 100% Rentable floor space Approx. 100,000sqf* (Approx. 9,300 m2 *) Approx. 86,000sqf (Approx. 8,000 m2 ) Approx. 75,000sqf (Approx. 7,000 m2 ) Building scale 8 stories above ground* and 1 below 7 stories above ground and 1 below 8 stories above ground and 1 below Acquisition *After renewal June 2011 Under renewal construction until November 2016 (Schedule) September 2012 April

47 Properties in the U.S. U.S. Image after renewal Name 125 West 25th Street *1 141 Tremont Street 27 School Street Location New York, U.S. Boston, U.S. Boston, U.S. Main use Office, Retail Office Office, Retail Stake Co-owned Co-owned Co-owned Rentable floor space Approx. 138,000sqf *2 (Approx. 12,800 m2 *2 ) Approx. 68,000sqf (Approx. 6,300 m2 ) Approx. 62,000sqf (Approx. 5,800 m2 ) Building scale 11 stories above ground and 1 below 13 stories above ground 6 stories above ground and 1 below Acquisition December 2013 Under renewal construction until November 2016 (Schedule) January 2015 January 2015 *1 Formerly named 119 West 25 th Street *2 After renewal 46

48 Properties in the U.S. U.S. New acquisition Name Two Oliver Street 575 Lexington Avenue th Street 799 Broadway Location Boston, U.S. New York, U.S. Washington D.C., U.S. New York, U.S. Main use Office, Retail Office, Retail Office, Retail Office, Retail Stake Co-owned Co-owned Co-owned Co-owned Rentable floor space Approx. 223,000sqf (Approx. 20,700 m2 ) Approx.745,000sqf (Approx. 69,200 m2 ) Approx.106,000sqf (Approx. 9,800 m2 ) Approx.132,000sqf (Approx. 12,300 m2 ) Building scale 11 stories above ground and 1 below 35 stories above ground and 2 below 11 stories above ground and 3 below 6 stories above ground and 1 below Acquisition July 2015 August 2015 December 2015 July

49 1 King William Street Renovation Project Location Main use Rentable floor space Building scale London,City Office Approx. 100,000sqf* (Approx. 9,300 m2 * ) 8 stories above ground* and 1 below Stake 100% Renewal construction period August 2014 to November 2016(Schedule) 1 King William Street Bank of England Bank Sta. *After renewal City of London (Photo by Kevin Allen) 48

50 Disclaimer Plans, strategies, opinions and other statements by and for the Company presented in this document, excluding historical facts, are forward-looking statements about its operating performance in the future. As such, they contain risks and uncertainties. The contents stated above are based on the assumptions and opinions of the Company using information available at the time of writing. Changes in the environment and other factors may cause actual results to differ substantially from these forecasts. The information on this document is not a solicitation to buy securities of NTT Urban Development. Any investment in securities of NTT Urban Development must be based upon the independent investment judgment of the investor, and must not depend upon the information on this document. Unless otherwise noted, this document is prepared in conformity with Japan generally accepted accounting principles. [Photo] *1 Forward Stroke:P37, P40, P41, P42, P44 *2 SS Tokyo:P38, P43 *3 Kokyu Miwa Architectural Photography:P39, P41, P43 *4 Nacasa & Partners:P39 *5 Kaneaki Monma:P40 *6 Kurumata Photography Office:P41 *7 Kawasumi Architectural Office:P43, P44 *8 Hiroshi Ito:P44 49