Message from the CEO

I joined Tokyo Tatemono 38 years ago, and have since experienced dramatic social and economic changes while working in a variety of departments. Navigating change during such turbulent times has been instrumental in shaping who I am as a businessperson. In the early 1990s, as Japan's bubble economy was bursting, I was working in residential development.

Amid a rapidly collapsing market, I had to respond quickly and decisively to major changes in the direction of projects for which I was responsible. I subsequently gained experience in the Personnel Department, and in the 2000s, I was involved in the real estate securitization business, an area where the Tokyo Tatemono Group was an industry pioneer. During the formative years of the J-REIT market, I helped establish Japan Prime Realty Investment Corporation (JPR) and contributed to its management. I returned to the Company in 2007, but was seconded to a Group asset management company in 2009 to help revitalize JPR, whose financial position had deteriorated in the wake of the global financial crisis in 2008. This work in real estate finance exposed me to the dynamism of capital markets and deepened my appreciation for the importance of building trust through direct interaction with financial institutions and investors. In 2012, I became the general manager of what is now the Corporate Planning Department, where I led revitalization, structural reform, and organizational restructuring of the Group, following a significant loss recognized in 2011. I was appointed CFO in 2017, taking charge of financial strategies and leading the formulation of Medium-Term Business Plan (2020-2024), the predecessor to our new plan. This experience renewed my appreciation for the importance of balancing profit growth with financial discipline. Since, 2021, I have served as Division Director of the Commercial Properties Division, where I worked to lay the foundation for Tokyo Tatemono's growth through a focus on large-scale redevelopment projects and asset-turnover businesses. This was during a time when the road ahead was extremely difficult to predict due to the COVID-19 pandemic, emerging geopolitical risks, and the rapid deterioration of markets for offices, hotels, and other properties. Now, as CEO, I will fully leverage the experience I have gained through overcoming challenges and growing in step with the Company. I remain committed to further enhancing corporate value through active engagement with stakeholders.

Zenjiro Yasuda founded Tokyo Tatemono 129 years ago with the aim of modernizing real estate transactions and promoting urban development. At the heart of the Group's beginnings was Mr. Yasuda's conviction that buildings are what give real estate its value. This belief continues to underpin our principle of "The customer always comes first" and our enterprising spirit that remains attuned to the changing times. The Group has also developed three strengths since its founding in 1896.

The first strength is urban development with 'continuity and change' that will draw out new regional attractions. This core strength lies in the Group's ability to bring new value to local communities while respecting tradition and culture. During the Edo period, the Yaesu-Nihonbashi-Kyobashi (YNK) area of Tokyo was a thriving center of merchant and artisan culture. Through urban development with continuity and change, the Tokyo Tatemono Group has helped to make this district a timeless, fashionable neighborhood that connects ideas and nurtures the new. Our aim is to carry forward the cultural heritage and spirit of Edo while creating a richly diverse neighborhood in the heart of Tokyo that enhances people's wellbeing and reflects the character of an international city. TOFROM YAESU, a development project scheduled to open in 2026, is the perfect symbol of this neighborhood and our aspirations for it.

Our second strength is an enterprising spirit that strives for innovation and pioneers the future. We have nurtured and carried forward the spirit of our founder over the course of nearly 130 years. Tokyo Tatemono places great importance on the independence and initiative of its employees, and we take pride in having pioneered initiatives for society and the industry. These include securitizing real estate for the first time in Japan using the Act on Securitization of Assets; participating in the Kasumigaseki Common Gate project (the first private finance initiative with an agency of Japan's central government) and THE OTEMACHI TOWER, which features both urban and natural regeneration. The Group's willingness to take on new challenges reflects a corporate culture that quickly senses emerging trends and acts on them-an embodiment of our second core strength.

Our third strength is flexible and agile adaptability in step with the changing times. This strength has been shaped by our corporate culture, where the close relationship between management and the front line allows frontline ideas to be readily reflected in decision-making. Our flat organizational structure facilitates smooth communication, gives the organization the flexibility to embrace change, and enables rapid decision-making. During the previous medium-term business plan, this flexible and agile organizational structure and corporate culture enabled us to respond swiftly to environmental changes. We diversified our traditionally office- and residential-centered business portfolio by adding new asset types such as retail facilities, hotels, and logistics properties, allowing us to expand the scope of our business within a short timeframe.

In these times of rapid change and international volatility, we believe that only enterprises able to take innovative approaches to solving social issues while growing as a company will be able to achieve sustainable growth. This was the thinking behind our long-term vision of becoming a next-generation developer, which we announced in 2020. All members of the new management team, including myself, are determined to forge ahead in pursuit of our long-term vision, while maintaining continuity with the approach taken by the previous management team.

The word "developer" in our long-term vision embodies our deep commitment. We do not simply develop properties such as office buildings and residences. Rather, we aim to create places where people can live, work, relax, and access services. By improving the functionality of neighborhoods and cities from a long-term perspective and helping to foster culture, we hope to increase Group revenue as well. I therefore want all Tokyo Tatemono Group employees, from the management team to the people involved in real estate development, sales, operations, and property management, to work together in a spirit of co-creation, generating synergies and creating added value by developing neighborhoods and society.

On our journey to realizing our long-term vision, in June 2021 we identified 14 material issues from the perspective of both creating social value and the infrastructure needed to create such value with an awareness of the shared value with society that we will realize through our business. By addressing the material issues we have identified for social value creation through our business activities, we aim to generate shared value in three areas: the value of place, the value of experience, and coexistence with the earth and the environment. In addition, the value creation platform that underpins our material issues will generate shared value from value-creating talent and the realization of sustainability management. Our initiatives in the YNK area, where Tokyo Tatemono has been headquartered since its establishment, exemplify how our business generates shared value with society. We are cooperating with local residents and land rights holders in urban development projects that help make Tokyo more competitive as an international city, and the TOFROM YAESU project I mentioned earlier will enhance people's well-being and help promote a decarbonized, recycling-oriented society.

Realizing our long-term vision for 2030 will require well-balanced management that integrates both financial and non-financial perspectives. Through our business activities, we will address the material issues we have identified, aiming to maximize opportunities for positive social impact while minimizing the risk of negative effects. In doing so, we will continue to grow as a company and contribute to the realization of a sustainable society.

In addition, we have positioned the medium-term business plan as a milestone toward achieving our long-term vision. With that goal firmly in mind, we have adopted a three-year plan focused on building the foundation for growth. Looking even further ahead, we will carefully examine our track record and progress toward achieving the goals of our long-term vision, and incorporate a detailed action plan for its realization into our next medium-term business plan. The triple jump in track and field is a fitting analogy for our approach to realizing our long-term vision through a progressive value creation story. The previous medium-term business plan was our hop, the new plan is our step, and the next will be our jump.

Japan is reacclimating to a world with interest rates as it transitions away from unprecedented monetary easing policies. In addition, the sudden rise in construction costs due to factors such as inflation and labor shortages is currently a major issue. Moreover, we must remain attentive to the potential impact of U.S. tariff policies on the outlook for each Group business.

Meanwhile, in our core real estate markets, the buying and selling of income-producing properties continues to perform well. In the for-sale housing market, prices are still rising, supported by solid demand for properties in highly convenient urban locations-particularly from high-income dual-earner households and affluent families. Furthermore, despite the temporary downturn in the office leasing market during the COVID-19 pandemic, occupancy rates have remained high, supported by the overall recovery of Japan's economy and growing demand from companies that view talent acquisition as an investment. We are increasingly confident in the outlook for growth in rental income.

"A company is its people" and "human resources are the most important asset" are common catchphrases. Through my experience in Tokyo Tatemono's Personnel Department, I have come to appreciate the limitless potential and importance of human resources. From 1996, I spent four years involved in recruitment, training, and personnel system planning, and employees I hired during that time have congratulated me on my appointment as President and Chief Executive Officer. They joined the Company during the Asian Financial Crisis and Japan's own period of economic turmoil, and went on to experience hardships such as the global financial crisis of 2008, the Great East Japan Earthquake, and the COVID-19 pandemic. It was therefore meaningful to see that they had become core members of the Tokyo Tatemono Group. I believe my most important mission in management is to foster a culture in which all officers and employees take pride in their work and bring out their full potential, and to harness the power of our people to achieve sustainable growth and enhance the Group's value.

The Group philosophy, "Trust beyond the era," reflects our pride in the level of trust placed in us for more than a century and affirms our commitment to growing our businesses and creating a prosperous society. As I mentioned earlier, Tokyo Tatemono has set a long-term vision of becoming a next-generation developer by the end of 2030. The Group's aim is to be a good company for stakeholders by leveraging its businesses to solve social issues and achieve higher levels of growth as a company. In 2025, we launched a new three-year medium-term business plan with the aim of realizing our Group philosophy and long-term vision. Given our current price-earnings and price-book ratios, however, I sense that capital markets have yet to fully recognize our corporate value and medium-to-long-term story of sustainable growth. The new plan clearly highlights our emphasis on capital efficiency, with a strong focus on enhancing corporate value through growth investments aimed at increasing earnings and strengthening shareholder returns. As President and Chief Executive Officer, I will lead the Company in steadily executing our plans and will do everything in my power to meet the expectations and earn the trust of capital markets with regard to our growth.

With a 129-year history, the Tokyo Tatemono Group has an exceptional corporate culture and a shared sense of purpose. While upholding the spirit of our founder, we will continue to demonstrate an enterprising spirit and provide new added value through our real estate businesses. Under the leadership of a newly rejuvenated management team, all officers and employees will work together as one in our ongoing pursuit of being a good company for all stakeholders. We look forward to your continued understanding and support.