Interim report
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August 6 , 2026 Consolidated Financial Results for the First Quarter of Fiscal 2026 ( April 1 , 2026 - June 30 , 2026 ) Fiscal 2026 ( Year ending March 31 , 2027 ) SUMITOMO REALTY & DEVELOPMENT CO . , LTD . Stock Exchange Listings Securities Code Location of Head Office URL TSE Prime Market 8830 Tokyo , Japan https://www.sumitomo-rd.co.jp/english/ 1. Results for First Quarter ( April 1 , 2026 - June 30 , 2026 ) ( 1 ) Consolidated financial results ( Amounts less than one million yen , except for per share amounts , are omitted . ) Profit attributable to Revenue from operations Operating income Ordinary profit Millions of yen % Millions of yen % Millions of yen % owners of parent Millions of yen % Three months ended Jun 30 , 2026 Three months ended Jun 30 , 2025 ( Reference ) Fiscal 2025 281,016 ( 4.2 ) 102,846 1.0 108,735 3.3 85,161 293,304 ( 7.1 ) 101,792 3.7 105,244 2.1 73,776 1,057,765 4.3 299,155 10.2 289,233 7.8 212,535 15.4 ( 1.0 ) 10.9 Notes 1 : Comprehensive Income Fiscal 2026 , 1st quarter : 111,624 millions of yen , 13.0 % ; Fiscal 2025 , 1st quarter : 98,781 millions of yen , 14.2 % 2 : Percentages represent changes year on year . Earnings per share Diluted earnings per share Three months ended Jun 30 , 2026 Three months ended Jun 30 , 2025 ( Reference ) Fiscal 2025 Yen 92.20 78.95 228.42 Yen Note : Average number of shares issued and outstanding ( consolidated ) Fiscal 2026 , 1st quarter : 923,630,958 shares ; Fiscal 2025 , 1st quarter : 934,422,414 shares A two - for - one stock split of common stock became effective on January 1 , 2026. Earnings per share and average number of shares issued and outstanding have been calculated assuming that the stock split had become effective at the beginning of the prior consolidated fiscal year . ( 2 ) Consolidated financial position ( Amounts less than one million yen , except for per share amounts , are omitted . ) Total assets Millions of yen Shareholders ' equity Millions of yen Shareholders ' equity ratio % 35.4 33.1 34.4 As of Jun 30 , 2026 As of Jun 30 , 2025 ( Reference ) Fiscal 2025 7,242,118 6,720,562 7,185,691 2,560,194 2,226,251 2,470,712 Note : Number of shares issued and outstanding ( consolidated ) As of Jun 30 , 2026 : 923,652,685 shares ; As of Jun 30 , 2025 : 932,223,968 shares 2. Dividend Position Dividends per share Fiscal 2025 Forecast for Fiscal 2026 Interim Yen 42.00 26.00 Year end Yen 23.00 26.00 Forecast for Fiscal 2026 announced on May 13 , 2026 has not been revised . Annual Yen 52.00 Note : A two - for - one stock split of common stock became effective on January 1 , 2026. Dividend per share for the interim period of FY2025 is stated on a pre - stock split basis . 3. Consolidated Business Forecasts for Fiscal 2026 ( Year ending March 31 , 2027 ) Fiscal 2026 Revenue from operations Millions of yen 1,070,000 owners of parent Millions of yen Profit attributable to Operating income Ordinary profit Millions of yen 320,000 Millions of yen Consolidated business forecasts announced on May 13 , 2026 have not been revised . 4. Results of main segments 300,000 223,000 Note : The foregoing estimates were based on information available as of the date this data was released , and actual results may differ from estimates due to various arising in the future . ( 1 ) Revenue from operations ( Millions of yen ) Three months ended Three months ended Jun 30 , 2025 Jun 30 , 2026 Increase ( Decrease ) Forecast for Fiscal 2026 Achieved ( % ) Leasing Sales Housing Step Other and Elimination / Corporate Total ( 2 ) Operating income 112,699 121,187 +8,488 480,000 137,650 122,533 ( 15,116 ) 21,756 18,612 ( 3,144 ) 300,000 207,000 279 25 41 19,199 16,104 ( 3,095 ) 1,997 293,304 2,578 281,016 +580 ( 12,288 ) 70,000 13,000 1,070,000 23 26 Three months ended Jun 30 , 2025 Leasing 52,924 Three months ended Jun 30 , 2026 58,128 Increase ( Decrease ) Forecast for Fiscal 2026 ( Millions of yen ) Achieved ( % ) +5,204 224,000 26 Sales 50,650 48,941 ( 1,708 ) 81,000 60 Housing ( 2,545 ) ( 4,033 ) ( 1,488 ) 17,000 Step 6,246 4,617 ( 1,629 ) 22,000 21 Other and Elimination / Corporate ( 5,483 ) ( 4,807 ) +676 ( 24,000 ) Total 101,792 102,846 +1,054 320,000 32
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(1) Explanation of Financial Results Operating income, ordinary profit, and profit (net income) all achieved record highs, with steady progress toward record-high profit for the 14th consecutive year In the first quarter, operating income, ordinary profit, and profit all achieved record highs for the first quarter. Ordinary profit and profit reached 36% and 38% of their respective full-year forecasts, and performance remains on track for record-high ordinary profit for the sixth consecutive year and record-high profit for the 14th consecutive year. The Leasing Business achieved record-high profit, driving overall performance The Leasing Business, mainly focusing on office buildings in Tokyo, achieved record-high profit for the first quarter and drove overall performance, as increased rental income from existing buildings, resulting from improved occupancy rates and rent increases taking effect, continued to make a significant contribution. In addition, the Sales Business, centered on condominium sales, maintained high profit levels, supported by higher selling prices, and its performance remains on track. Non-operating income/loss improved by ¥2.4 billion year on year, as an increase in dividend income more than offset higher interest expenses. Extraordinary income/loss improved by ¥14.9 billion year on year, mainly due to gain on sale of pure investment shares placed in a trust for orderly disposition. As a result, revenue from operations was ¥281.0 billion (down 4.2% year on year), operating income was ¥102.8 billion (up 1.0% year on year), ordinary profit was ¥108.7 billion (up 3.3% year on year), and profit attributable to owners of parent ( profit) was ¥85.1 billion (up 15.4% year on year). Leasing Business Achieved record-high profit with increased revenue and profit In the first quarter, in the Tokyo office market, where rent growth driven by tightening supply-demand conditions continues, increased rental income from existing buildings, resulting from improved occupancy rates and rent increases taking effect, as well as the full - year operation of Sumitomo Fudosan Roppongi Central Tower, contributed to the performance. As a result, both revenue and operating income reached record highs for the first quarter. Operating income has already reached 26% of the full-year forecast, and performance in this segment remains firmly. The positive effects of improved rental income resulting from improved occupancy rates and rent increases are expected to grow further. Newly leased area continued to exceed canceled area; the vacancy rate stood at 3.6% (down 2.1 percentage points year on year) In the first quarter, the vacancy rate improved significantly to 3.6% (down 2.1 percentage points year on year). Demand for new office leases remains strong from companies seeking more employee- friendly office environments and those stepping up recruitment to support business expansion, with newly leased area continuing to exceed canceled area. In addition, Sumitomo Fudosan Osaki Twin Building West and Sumitomo Shibakoen Building, both completed in the previous fiscal year, each commenced operations with more than 90% of their tenant space leased. End of Fiscal 2025 (March 31, 2026) As of June 30, 2026 Vacancy rate for existing buildings 4.3% 3.6% Sales Business High profit level maintained, with operating income reaching 60% of the full-year forecast In the first quarter, a total of 1,076 condominium units, detached houses, and land lots were delivered (down 435 units year on year), including units from projects where deliveries commenced during the quarter, such as Grand City Tower Ikebukuro and Garden House Narimasu. Although the number of units delivered decreased significantly year on year, this segment maintained high profit levels, supported by higher selling prices, and operating income remained on par with the same period of the previous fiscal year. Operating income reached 60% of the full-year forecast, and performance in this segment continues to be solid. Steady progress in condominium contracts, with most units scheduled for delivery in the current fiscal year already under contract In the first quarter, the number of condominium units sold was 520 (down 4 units year on year). Most units scheduled for delivery in the current fiscal year are already under contract, and our sales activities are now focused on units scheduled for delivery in the next fiscal year.
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Three months ended Jun 30, 2025 Three months ended Jun 30, 2026 YoY change Fiscal 2025 Forecast for Fiscal 2026 Number of condominium units sold 524 520 (4) 2,398 2,500 Number of units delivered 1,511 1,076 (435) 3,368 2,200 Condominiums/detached houses 1,493 1,029 (464) 3,276 — Land lots 18 47 +29 92 Revenue from operations (Million yen) 125,921 110,536 (15,384) 276,007 250,000 Condominiums/detached houses 120,902 91,345 (29,557) 252,267 — Land lots/others 5,018 19,191 +14,172 23,740 End of Fiscal 2025 As of June 30, 2026 Increase/ Decrease Completed condominium units for sale (Over one year since completion) 1,141 1,177 +36 Completed condominium units for sale (One year or less since completion) 320 183 (137) Housing Business Order trends improving; contract backlog built up in the previous fiscal year expected to be recognized going forward In the first quarter, the number of units contracted was 1,718 in Shinchiku Sokkurisan remodeling business (down 5 units year on year) and 430 in custom homes business (up 18 units year on year). Due to an increase in the average contract value, total contract value was ¥26.8 billion in Shinchiku Sokkurisan remodeling business (up ¥0.6 billion year on year) and ¥19.3 billion in custom homes business (up ¥2.4 billion year on year). In the first quarter, revenue and profit decreased due to a decline in the number of units delivered. However, given that order trends are improving and the contract backlog built up in the previous fiscal year is expected to be recognized as revenue going forward, we believe that progress toward the full-year forecasts for this segment remains in line with plan. Three months ended Jun 30, 2025 Three months ended Jun 30, 2026 YoY change Fiscal 2025 Forecast for Fiscal 2026 Number of units contracted 2,135 2,148 +13 8,345 8,800 Shinchiku Sokkurisan remodeling 1,723 1,718 (5) 6,559 6,700 Custom Homes 412 430 +18 1,786 2,100 Total contract value (Million yen) 43,146 46,199 +3,053 187,998 207,000 Shinchiku Sokkurisan remodeling 26,223 26,852 +628 104,811 115,000 Custom Homes 16,923 19,347 +2,424 83,187 92,000 Number of units delivered 1,076 923 (153) 8,343 8,500 Shinchiku Sokkurisan remodeling 889 756 (133) 6,453 6,500 Custom Homes 187 167 (20) 1,890 2,000 Revenue from operations (Million yen) 21,754 18,611 (3,142) 188,876 207,000 Shinchiku Sokkurisan remodeling 13,288 10,635 (2,652) 103,344 115,000 Custom Homes 8,465 7,975 (490) 85,531 92,000
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Step Business In the existing condominium market, the number of contracts declines while the average price per transaction continues to rise In the first quarter, in the existing condominium market, the core market for this segment, although the average price per transaction continued to rise, the number of contracts decreased year on year particularly in central Tokyo, due to buyers' cautious stance amid prolonged price increases and other factors. Against this market backdrop, the number of transactions in this segment was limited to 5,818 (down 1,699 year on year). In addition, due to the temporary impact of rebuilding the sales structure accompanying reforms to the personnel and compensation systems , including the abolition of the commission-based payment system , as well as costs associated with the reorganization of the brokerage office network , operating income stood at 21% of the full -year forecast, and performance in this segment is currently soft. (On a delivery basis) Three months ended Jun 30, 2025 Three months ended Jun 30, 2026 YoY change Fiscal 2025 Forecast for Fiscal 2026 Number of transactions 7,517 5,818 (1,699) 28,848 27,000 Transaction value (Million yen) 368,816 320,157 (48,659) 1,488,451 1,400,000 Average price per transaction (Million yen) 49.0 55.0 +5.9 51.6 52.0 (On a contract basis) Three months ended Jun 30, 2025 Three months ended Jun 30, 2026 YoY change Fiscal 2025 Forecast for Fiscal 2026 Number of transactions 7,282 4,794 (2,488) 27,668 27,000 Transaction value (Million yen) 357,471 271,840 (85,631) 1,460,795 1,400,000 Average price per transaction (Million yen) 49.0 56.7 +7.6 52.8 52.0 (2) Explanation of Financial Position Total assets as of the end of the first quarter amounted to ¥7,242.1 billion (up ¥56.4 billion from the end of the previous fiscal year). This was mainly due to an increase in investment securities, including investments in our subsidiary in India. Total liabilities amounted to ¥4,681.9 billion (down ¥33.0 billion from the end of the previous fiscal year). The main factors were the redemption of corporate bonds and decreases in accounts payable and accrued income taxes. Total net assets amounted to ¥2,560.1 billion (up ¥89.4 billion from the end of the previous fiscal year). Profit attributable to owners of parent for the first quarter stood at ¥85.1 billion, and retained earnings increased. As a result, the equity ratio improved to 35.4% (34.4% at the end of the previous fiscal year). (3) Explanation of Consolidated Earnings Forecasts and Other Forward-looking Information As stated above, we believe that our financial results for the current fiscal year remain on track , and there are no changes to the earnings forecasts announced on May 13, 2026. (4) Sale of Listed Securities, Including Strategic Shareholdings We plan to sell listed securities, including strategic shareholdings, with an aggregate market value of ¥400.0 billion over roughly the next 10 years. By using gain on sale to offset extraordinary losses and the anticipated increase in interest expenses, and allocating the proceeds from the sales to growth investments, including our business in Mumbai, India, we aim to achieve both sustainable growth and improved asset efficiency. At the end of the previous fiscal year, with the aim of steady sales going forward, we placed shares of 56 issuers, with an acquisition cost of ¥82.2 billion (equivalent to an approximate market value of ¥288.2 billion as of the end of the previous fiscal year), into a trust for orderly disposition. In the previous fiscal year, we sold securities with a market value of ¥49.0 billion, and in the first quarter of the current fiscal year, we sold securities with a market value of ¥24.5 billion.
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Consolidated Balance Sheets Sumitomo Realty & Development Co., Ltd. and its consolidated subsidiaries Assets Current assets: Cash and deposits \ 59,231 \ 59,172 Accounts receivable―trade 15,463 23,823 Real estate for sale 533,586 544,676 Real estate for sale in process 532,541 512,426 Costs on uncompleted construction contracts 11,434 4,647 Other inventories 1,286 1,128 Other current assets 72,943 81,249 Allowance for doubtful accounts (38) (36) Total current assets 1,226,449 1,227,086 Fixed assets: Property and equipment Buildings and structures, net 1,257,377 1,264,794 Land 3,236,709 3,233,825 Construction in progress 77,850 70,629 Other property and equipment, net 12,606 12,547 Total property and equipment 4,584,543 4,581,795 Intangibles Leasehold rights 69,118 69,118 Other intangibles 3,573 3,738 Total intangibles 72,692 72,857 Investment and other assets Investments securities 1,168,729 1,119,615 Guarantee and lease deposits 69,189 68,979 Net defined benefit asset 2,403 2,420 Deferred income taxes 20,170 20,305 Other investments and other assets 98,406 93,095 Allowance for doubtful accounts (465) (465) Total investment and other assets 1,358,434 1,303,951 Total fixed assets 6,015,669 5,958,604 Total assets \ 7,242,118 \ 7,185,691 Millions of yen June 30, 2026 March 31, 2026
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Liabilities and Net Assets Current liabilities: Notes and accounts payable―trade \ 12,112 \ 33,514 Short-term debt 19,778 22,767 Long-term debt due within one year 313,175 313,062 Long-term non-recourse debt due within one year 34,674 34,819 Commercial paper 247,000 236,000 Corporate bonds due within one year 40,000 20,000 Non-recourse bonds due within one year 6,000 6,000 Accrued income taxes 37,878 50,066 Provision for bonuses 1,605 5,158 Other current liabilities 182,859 212,848 Total current liabilities 895,081 934,237 Long-term liabilities: Corporate bonds 180,000 210,000 Non-recourse bonds 16,100 16,100 Long-term debt 3,018,132 2,998,320 Long-term non-recourse debt 118,366 118,852 Net defined benefit liability 3,775 3,829 Deferred tax liabilities 149,998 138,053 Guarantee and lease deposits received 287,150 282,764 Provision for share awards 5,534 5,458 Other long-term liabilities 7,785 7,364 Total long-term liabilities 3,786,843 3,780,741 Total liabilities 4,681,924 4,714,979 Net assets: Shareholders' equity Capital 122,805 122,805 Capital surplus 104,144 104,144 Retained earnings 1,911,240 1,848,307 Treasury stock (45,721) (45,807) Total shareholders' equity 2,092,468 2,029,449 Accumulated other comprehensive income (loss) Net unrealized holding gains on securities 411,323 389,573 Net deferred gains (losses) on hedges 47,539 43,436 Foreign currency translation adjustments 8,111 7,251 Remeasurements of defined benefit plans 751 1,001 Total accumulated other comprehensive income 467,725 441,262 Total net assets 2,560,194 2,470,712 Total liabilities and net assets \ 7,242,118 \ 7,185,691 Millions of yen June 30, 2026 March 31, 2026
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Consolidated Statements of Income Sumitomo Realty & Development Co., Ltd. and its consolidated subsidiaries Millions of yen Revenue from operations \ 281,016 \ 293,304 Cost of revenue from operations 160,933 173,655 Gross profit 120,083 119,649 Selling, general and administrative expenses 17,236 17,856 Operating income 102,846 101,792 Non-operating income Interest and dividend income 14,278 10,005 Other non-operating income 117 60 Total non-operating income 14,395 10,065 Non-operating expenses Interest expenses 8,206 6,412 Other non-operating expenses 300 200 Total non-operating expenses 8,507 6,612 Ordinary profit 108,735 105,244 Extraordinary income Gain on sale of property and equipment 88 54 Gain on sale of investment securities 15,973 5,126 Total extraordinary income 16,061 5,181 Extraordinary loss Provision for share awards － 4,298 Loss on disposal of property and equipment 658 179 Loss on sale of investment securities 1 － Other extraordinary loss 20 242 Total extraordinary loss 679 4,721 Income before income taxes 124,116 105,705 Income taxes 38,955 31,929 Profit 85,161 73,776 Profit attributable to non-controlling interests － － Profit attributable to owners of parent \ 85,161 \ 73,776 Fiscal year ended June 30, 2026 2025
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Consolidated Statements of Comprehensive Income Sumitomo Realty & Development Co., Ltd. and its consolidated subsidiaries Millions of yen Profit \ 85,161 \ 73,776 Other comprehensive income (loss) Net unrealized holding gains (losses) on securities 21,749 27,402 Net deferred gains (losses) on hedges 4,103 (611) Foreign currency translation adjustments 859 (1,685) Remeasurements of defined benefit plans (250) (100) Total other comprehensive income (loss) 26,463 25,005 Comprehensive income 111,624 98,781 Comprehensive income attributable to: Owners of the parent 111,624 98,781 Non-controlling interests － － Fiscal year ended June 30, 2026 2025