Further Promotion of Along-Line Development and the Real Estate Business

「Profit increased year on year in the real estate sales business due to the sale of a large property」

「Construction of Phase II of Shibuya Scramble Square (Central Building and West Building) began in May 2025. A multilayered pedestrian network is scheduled to be substantially completed in fiscal 2030, followed by completion of Phase II of Shibuya Scramble Square (Central Building and West Building) and other facilities in fiscal 2031, with significant improvements to transfers between railway stations and access to the surrounding area targeted for overall completion in fiscal 2034.」

「We will continue to move forward with development plans while flexibly adjusting course after carefully reviewing construction cost inflation and future rent prospects」

「Company　Construction of Shibuya Station District Development Plan Phase II (Central Building, West Building and others)　Real estate business　Real estate leasing facilities　70,200　17,800　2025．５　2031」

「In July 2024, Shibuya AXSH (SHIBUYA AXSH) opened in the Shibuya Station East Exit area, with the office space fully leased.」

「(New) In the real estate business, construction of the Company's Shibuya 2-chome 17 District Type 1 Urban Redevelopment Project, which was under development at the end of the previous consolidated fiscal year, was completed in June 2024, and operations began in July 2024 as Shibuya AXSH (SHIBUYA AXSH). (Plan change) In the real estate business, due to changes to the project plan and other factors, the Company changed the planned investment for its Tokyo Station Yaesu 1-chome East B District Urban Redevelopment Project from ¥6,296 million to ¥27,047 million and changed the scheduled completion date to February 2026.」

「DRESSER Tower Minami-Machida Grandberry Park, a 34-story condominium building with one basement level and 375 units directly connected to Minami-Machida Grandberry Park Station on the Den-en-toshi Line, was completed in March 2024. Sales performed well after launch, and all units were sold.」

「(New) In the real estate business and other operations, operations began in April 2023 as Tokyu Kabukicho Tower for the Kabukicho 1-chome District Development Plan, which was undertaken by the Company, ㈱東急レクリエーション, ㈱THM and ㈱TSTエンタテイメント and was under development at the end of the previous consolidated fiscal year. (Plan change) In the real estate business, the Company changed the planned investment for its Shibuya 2-chome 17 District Type 1 Urban Redevelopment Project, which was under development at the end of the previous consolidated fiscal year, from ¥9,908 million to ¥9,244 million due to changes to the project plan and other factors.」

「In the real estate business, operating revenue increased to ¥60.558 billion, up 36.0% year on year, and operating profit increased to ¥12.421 billion, up 101.9%, owing mainly to property sales in the Company's real estate sales business and a recovery in hotel occupancy rates.」

「The Company is promoting a mixed-use redevelopment project around Tsunashima Station combining commercial, public and residential facilities. DRESSER Tower Shin-Tsunashima, a 29-story condominium building with one basement level and 252 units directly connected underground to Shin-Tsunashima Station on the Tokyu Shin-Yokohama Line, performed well after sales began in November 2021, and all units were sold. In Vietnam, all 557 units of the SORA gardensⅡ condominium in Binh Duong Province, where the Company has pursued new-town development since 2012, were sold. In the same area, the Company also reopened Hikari, an environmentally conscious commercial facility featuring a restaurant that addresses food loss and solar power generation facilities. Tokyu Kabukicho Tower also opened in April 2023.」

「In the real estate business, the Company changed the planned investment for its Shibuya 2-chome 17 District Type 1 Urban Redevelopment Project, which was under development at the end of the previous consolidated fiscal year, from ¥8,638 million to ¥9,858 million due to changes to the project plan and other factors. In the real estate business and other operations, construction of the main building for the Kabukicho 1-chome District Development Plan, undertaken by the Company and ㈱東急レクリエーション, was completed in January 2023. Operations are scheduled to begin in April 2023 as Tokyu Kabukicho Tower.」

「In the real estate business, the Company changed the planned investment for its Shibuya 2-chome 17 District Type 1 Urban Redevelopment Project, which was under development at the end of the previous consolidated fiscal year, from ¥8,638 million to ¥9,858 million due to changes to the project plan and other factors.」

「In the real estate business, operating revenue was ¥44.534 billion, down 3.4% year on year, due mainly to a decrease in properties delivered during the first quarter of the current consolidated fiscal year in the Company's real estate sales business. In the real estate leasing business, operating profit increased to ¥6.151 billion, up 3.8%, as a recovery was seen, particularly at commercial facilities.」

「In July 2021, Shibuya Hikarie's Hikarie Deck opened. The deck opened ahead of schedule as part of an approximately 800-meter pedestrian route connecting the east and west sides of Shibuya Station, with further improvements in pedestrian circulation between the top of Miyamasuzaka and the top of Dogenzaka planned for the future. In December 2021, construction began on the new building for the Shibuya 2-chome 17 District Urban Redevelopment Project planned for the Shibuya Station East Exit area.」

「In the real estate business, operating revenue increased to ¥124.269 billion, up 42.1% year on year, due mainly to sales of large-scale properties in the Company's real estate sales business and the rebound from the impact of the temporary closure of some facilities following the declaration of a state of emergency issued in April last year. Operating profit increased to ¥32.069 billion, up 159.9%.」

「The Company is undertaking infrastructure development through public-private partnerships to improve safety and convenience. In August 2020, it completed construction of the Shibuya Station East Exit stormwater retention facility as a flood-control measure.」

「As of 31 December 2020 Company Business site Project name Segment Facilities Planned investment Start and scheduled completion Total (¥ million) Amount paid to date (¥ million) Start Completion Company Shibuya 2-chome 17 District Type 1 Urban Redevelopment Project Real estate business Real estate leasing facilities 8,638 421 2020.11 2024.５」

「In the real estate business, following approval of the rights conversion associated with the Tokyo Station Yaesu 1-chome East B District Urban Redevelopment Project, the Company transferred the land, buildings and structures, and other assets held as real estate leasing facilities at Yaesu Center Building to construction in progress.」

「In the hotel and resort business, construction of the Mishima Station South Exit West District Plan, undertaken by the Company and ㈱東急ホテルズ and under development at the end of the previous consolidated fiscal year, was completed in May 2020, and operations began in June 2020 as Tokyu Mishima Station Front Building.」

「In the real estate business, operating revenue increased to ¥154.901 billion, up 3.2% year on year, due to increased revenue from the opening of Shibuya Scramble Square and Minami-Machida Grandberry Park in the real estate leasing business. Operating profit was ¥22.182 billion, down 0.1%, owing mainly to the reaction to the previous fiscal year's high-margin property sales in the Company's real estate sales business. In the real estate business, the Company additionally acquired an interest in part of the land and buildings located at 5-chome, Jingumae, in October 2019 as real estate leasing facilities. The carrying amount of the acquired facilities was ¥9.1 billion, and the land area was 1,100㎡.」

「In the real estate business and other operations, construction of the Company's Phase I Shibuya Station District Development Plan (East Building), which was under development at the end of the previous consolidated fiscal year, was completed in August 2019, and operations began in November 2019 as Shibuya Scramble Square Phase I (East Building). Kabukicho 1-chome District Development Plan Planned investment ¥65,000 million Construction start 2019.８ Completion March 2022」

「In the real estate business, operating revenue increased to ¥45.282 billion, up 3.7% year on year, and operating profit increased to ¥9.470 billion, up 20.9%, mainly because property sales revenue increased in the real estate sales business and revenue increased in the real estate leasing business, including revenue from Shibuya Stream, which opened in September 2018.」

「In the real estate business and other operations, construction of the Company’s Shibuya Station South Block project, which was under development at the end of the previous fiscal year, was completed, and operations began in September 2018 as “Shibuya Stream (SHIBUYA STREAM).” In the real estate business, operating revenue was ¥150.101 billion, up 13.1% year on year, due in part to increased revenue from the Company’s real estate leasing business following the opening of Shibuya Stream, while operating profit was ¥24.922 billion, down 1.3% year on year, mainly reflecting the reversal of the previous fiscal year’s high-margin property sales in the Company’s real estate sales business.」

「In the real estate business and other operations, construction of the Company’s Shibuya Station South Block project, which was under development at the end of the previous fiscal year, was completed, and operations began in September 2018 as “Shibuya Stream (SHIBUYA STREAM).”」

「In the hotel and resort business, we acquired the land and buildings located at 1-chome Kichijoji-Minami, Musashino-shi, Tokyo, in April 2018 as hotel facilities and other assets. The carrying amount of the acquired asset was ¥9.114 billion, and the land area was 2,050㎡.」

「In the real estate business, we acquired a partial interest in the land and buildings located at 5-chome Jingumae, Shibuya-ku, Tokyo, in December 2017 as a real estate leasing asset. The carrying amount of the acquired asset was ¥9.704 billion, and the land area was 1,178㎡.」

「During the cumulative second quarter, construction of the Shibuya Miyashita-cho Project, a real estate project of consolidated subsidiary Shibuya Miyashita-cho Realty Co., Ltd. that had been planned at the end of the previous consolidated fiscal year, was completed in April 2017, and operations began as Shibuya Cast (SHIBUYA CAST.).」

「In the real estate business, we acquired the land and buildings located at 1-chome Kabukicho, Shinjuku-ku, Tokyo, in November 2016. The carrying amount of the acquired asset was ¥7.364 billion, and the land area was 1,054㎡.」

「In the transportation business, passenger numbers in the railway operations segment increased 1.6% for commuter passes and 0.2% for non-commuter passengers during the cumulative second quarter, with total passenger numbers increasing 1.0%, due in part to the opening of the second phase of Futako-Tamagawa Rise.」

「In the real estate business, we acquired the "Daiwa Shibuya Dogenzaka Building" in April 2016 as a real estate leasing asset. The carrying amount of the acquired asset was ¥6.403 billion, and the land area was 721㎡.」

「In addition to redevelopment along our railway lines, we will continue to promote comprehensive development around stations, strengthen our consulting business for utilizing assets along our railway lines, and further expand the leasing business through an investment-recycling business model.」