Financial Report for the Fiscal Year Ended March 2010

Transcription

1 May 27, 2010 MORI TRUST C., Ltd. Tranmn 2-chme Twer, Tranmn Minat-ku, Tky JAPAN TEL FAX Financial Reprt fr the Fiscal Year Ended March 2010 Mri Trust Grup recently annunced its cnslidated business perfrmance fr the year ended March 31, The Grup cnsists f 23 cnslidated cmpanies, including Mri Trust C., Ltd., Mri Trust Building Management C., Ltd., and Mri Kank Trust C., Ltd., and three equity-methd affiliates. [Mri Trust Grup Cnslidated Financial Reprt] (April 1, 2009 March 31, 2010) (Figures in millins f yen; figures less than ne millin yen runded dwn) FY 2009 FY 2010 FY 2011 (prjectin) 1 Operating revenue 226, , ,000 Leasing 68,009 62,544 60,000 Htel 22,041 27,801 21,000 Real estate sales 119,806 30,572 26,000 Other (Subsidiaries cnstructin subcntracting, etc.) 17,022 12,341 13,000 2 Operating incme 93,982 25,028 16,000 3 Ordinary incme 72,791 20,573 13,000 4 Net incme 35,219 8,899 17,000 Cnslidated Cmpanies (23 cmpanies) (*: Cmpany added t cnslidatin) MORI TRUST CO., LTD. / MORI TRUST BUILDING MANAGEMENT CO., LTD. / MORI KANKO TRUST CO., LTD. / MAMPEI HOTEL / YOKOHAMA GRAND INTER CONTINENTAL HOTEL C., Ltd. / MT&Hiltn Htel C., Ltd. / MT GOLF DEVELOPMENT CO., LTD. / LAFORET T&S CO., LTD. / FORETSEINE CO., LTD. / Ty Husing Management, Inc. / Ty Green Building C., Ltd. / URBAN LIFE C., Ltd. / URBAN LIFE JUUTAKUHANBAI C., Ltd. / LIZ INVESTMENT C., Ltd. / MT Lab C., Ltd. / MT Lab Capital C., Ltd. / MTL Fund N.1 Investment Limited Partnership / *MT Advanced Technlgy C., Ltd. / MT GENEX CORPORATION / MORI TRUST Asset Management C., Ltd. / Shiryama Heating & Cling Supply C., Ltd. / OHNO KOGYO CO., LTD. / AZMAX CORP. Equity-Methd Affiliates (3 cmpanies) PARCO CO., LTD. / THE ROYAL HOTEL, LIMITED / MORI TRUST Sg Reit, Inc. (As f March 31, 2010) 1

2 Overview f FY 2010 business perfrmance In the fiscal year ended March 31, 2010, perating revenue ttaled billin yen and rdinary incme was 20.5 billin yen. The year-n-year decline was chiefly due t the absence f special factrs that affected real estate sales business in the previus year. Leasing business accunted fr 62.5 billin yen f perating revenue, dwn frm the previus year. Althugh full-year peratin f Marunuchi Trust Twer Main made a significant cntributin, leasing revenues fell verall due t factrs including the end f full-building leases n Mita MT Building and Ginza MTR Building, wned by Mri Trust Sg Reit, Inc. Althugh htel business suffered frm sluggish persnal cnsumptin and falling banquet demand in the face f the ecnmic dwnturn, inclusin f Ykhama Grand Inter-cntinental Htel C., Ltd. in cnslidated results led t revenue f 27.8 billin yen. Revenue frm real estate sales business was 30.5 billin yen, largely driven by subsidiaries cndminium sales. Subsidiaries cnstructin subcntracting revenues cntributed t 12.3 billin yen in revenue frm ther business. Nn-perating incme and extrardinary incme included investment returns frm equity methd affiliates. As a result, rdinary incme ttaled 20.5 billin yen, while net incme amunted t 8.8 billin yen. Business perfrmance prjectins fr FY 2011 Fr the year ending March 31, 2011, Mri Trust Grup is cnservatively anticipating nging weakness in the ffice leasing market. Cnsequently, leasing business revenue is frecast t ttal 60 billin yen. Htel business revenue is prjected t decline t 21 billin yen due t factrs including Ykhama Grand Inter-cntinental Htel ceasing t be a cnslidated cmpany in April Revenue frm real estate sales business is frecast t ttal 26 billin yen, largely driven by cndminium sales. Ttal perating revenue is expected t be 120 billin yen and rdinary incme is frecast t be 13 billin yen. The sale f the Tky Shidme Building and ther factrs are expected t generate extrardinary incme, and sunder assets and a strnger financial psitin are prjected t result in net incme f 17 billin yen. Prjectins cntained in this dcument have been made n the basis f infrmatin available when it was released. Due t varius unfreseeable factrs, actual perfrmance may differ frm such prjectins. 2

3 Investments and Rental Prperties Frm the end f this fiscal year we applied the Accunting Standard fr Disclsures abut Fair Value f Investment and Rental Prperty (ASBJ Statement N. 20, Nvember 28, 2008) and the Guidance n Accunting Standard fr Disclsures abut Fair Value f Investment and Rental Prperty (ASBJ Guidance N. 23, Nvember 28, 2008). The cnslidated balance sheet amunt and fair value f such investments and rental prperties are set ut belw (fair value at fiscal year-end was calculated in-huse, based primarily n the Japanese Real Estate Appraisal Standards). Cnslidated balance sheet amunt: billin yen Fair value: billin yen Unrealized prfit: billin yen FY 2010 key business tpics Redevelpment Prjects Marunuchi Trust City In June 2009 Turist Infrmatin Center Tky (TIC Tky) pened in Marunuchi Trust City, adjacent t Tky Statin s Nihnbashi exit. Tgether with Shangri-La Htel, Tky, which pened in March 2009 in Marunuchi Trust Twer Main (cmpleted in Nvember 2008), this creates a fcal pint fr internatinal turism. In December 2009 Trust City Cnference Marunuchi (TCC Marunuchi) pened n the third flr f Marunuchi Trust Twer Nrth (cmpleted in September 2003). Adding a new element t urban infrastructure, this cnference center is anther step in the frmatin f an internatinal business hub. Sendai Trust City Mri Trust is currently develping Sendai Trust City n the frmer site f the Thku Gakuin junir and senir high schls in the Aba-ku, Ichibanch area f central Sendai. The grand pening f the cmplex, cmprising Sendai Trust Twer and the Residence Ichibanch, is scheduled fr August Cmpleted in April 2010, Sendai Trust Twer will ffer a brad array f urban services, including highly functinal ffices as well as the Westin Sendai the first freign luxury htel in the Thku regin and the retail facility Trust City Plaza (bth scheduled t pen n August 1, 2010). Trust City Plaza will huse a wide range f stres, and the secnd flr will feature a cllectin f renwned restaurants. This dining flr named Thku Takumigai will be a culinary paradise like n ther, 3

4 ffering dishes prepared by master chefs using carefully selected lcal ingredients frm arund the Thku regin. The Residence Ichibanch (scheduled fr cmpletin in June 2010) aims t ffer the finest in twer-style living. Mdel units pened within the twer in March Several events and prmtins were held at Sendai Trust City in 2009, including a cmmunity clean-up event, a prmtinal campaign marking ne year until the pening f Sendai Trust City and the Westin Sendai, and the Happy Greeting e-card prmtin. In December 2009 a Christmas Eve windw art display was staged at Sendai Trust Twer, using lighted windws t depict a giant Christmas tree n the frnt f the building. Acquisitin f Gvernment Land at Rppngi 1-chme In January 2010 Mri Trust made a successful bid fr the frmer site f a Ministry f Agriculture, Frestry and Fisheries training center. Redevelpment plans have yet t be determined. Frmer Tranmn Pastral Htel Site In partnership with Leeds TMK, Mri Trust began demlitin wrk n Tranmn Pastral Htel in May The wrk is scheduled t take eight mnths and shuld be cmpleted in January Redevelpment plans fllwing demlitin are yet t be determined. Htel and Resrt Business The Westin Sendai The Westin Sendai (general manager: William J. Pittn) is scheduled t pen in Sendai Trust City n August 1, In additin t sweeping views frm the upper flrs and spacius guest rms (292 rms ranging frm 30 m 2 t 142 m 2, average size apprximately 43 m 2 ), the htel will feature tw restaurants and a bar: Symphny, a restaurant ffering all-day dining, and HORIZON, a bar-lunge, bth n the 26th flr, and n the tp (37th) flr the Japanese restaurant Ichimuan, created by Yugyan Tankuma Kitamise, a lng-established restaurant famed fr Kyt cuisine. Cnrad Tky In Nvember 2009 the restaurant sectin f the Michelin Guide Tky 2010 awarded ne star t each f tw restaurants at Cnrad Tky: China Blue (Chinese cuisine) and Grdn Ramsay at Cnrad Tky (mdern French cuisine). In the htel sectin, Cnrad Tky was awarded Michelin s highest hnr f five red pavilins fr the third cnsecutive year. Lafret Htels and Resrts In mid-2009, t celebrate 80 years f Japan-Canada diplmatic relatins, Lafret Htels and Resrts held Canada Fair. Special prgrams featuring ppular Canadian leisure activities, cuisine, fd 4

5 prducts, and merchandise were ffered. In Octber 2009 the htel sectin f the Michelin Guide Kyt Osaka 2010 awarded tw pavilins t Htel Lafret Shin-Osaka. Investment Business MT Advanced Technlgy C., Ltd. Using investment frm MTL Fund N. 1 Investment Limited Partnership, perated by MT Lab Capital C., Ltd. as a general partner, MT Advanced Technlgy C., Ltd. was established in February 2009 t prvide ICT cnsulting and slutins. The cmpany ffers ICT services designed t raise verall business quality, including a service prvided t KDDI that enables its clients emplyees t securely cnnect t internal systems frm their persnal cmputers using simple settings when they are ut f the ffice. REIT Business In April 2010 Mri Trust transferred the Tky Shidme Building t Mri Trust Sg Reit and acquired the Akasaka Mitsuke MT Building. Lcated in the Shidme district, ne f Japan s largest redevelpment areas, the Tky Shidme Building faces Hamarikyu Gardens, ffering splendid views ver Tky Bay and a prime high-prfile lcatin. This large cmplex encmpasses ffices, the Cnrad Tky htel, and Pedi Shidme, retail facilities perated by Parc C., Ltd. In May 2010, Mri Trust Sg Reit annunced a public ffering f new shares. Organizatinal Changes Merger with Ohn Kgy Mri Trust is scheduled t merge with Ohn Kgy C., Ltd., a cnslidated cmpany engaged in building leasing, n July 1, Mri Trust will take ver the recnstructin f the Ohn Building (Kybashi 1-chme, Chu-ku, Tky) planned by Ohn Kgy. Transfer f Stck in Ykhama Grand Inter-cntinental Htel Since beginning c-management f Ykhama Grand Inter-cntinental Htel in March 2003, Mri Trust has strengthened the htel s financial psitin and augmented and stabilized its business base. As part f these effrts, in February 2007 Mri Trust transferred stck t the Ishin Htels Grup in the aim f enhancing peratinal efficiency thrugh jint business. As a result, key value-enhancement measures were undertaken thrugh the jint business and upn their cmpletin in December 2008 Ishin Htels Grup s stckhlding was transferred t Mri Trust and Hspitality Netwrk Crpratin (President: Yuji Tsutsumi). Subsequently, as part f cnsidering future develpment strategy fr the htel, 43.97% f Mri Trust s 58.68% stckhlding was transferred t Yuji Tsutsumi in April 2010 in the aim f creating a management structure t enable an active and flexible apprach t such pprtunities as linking 5

6 with Htel InterCntinental Tky Bay. As the hlder f 14.71% f utstanding shares in Ykhama Grand Inter-cntinental Htel, Mri Trust will cntinue t cperate in the business with a view t its further develpment. Nte: Revenue frm htel business Since Ykhama Grand Inter-cntinental Htel became a cnslidated cmpany with the acquisitin f stck frm the Ishin Htels Grup in December 2008, revenue frm the htel was included in financial results fr the year ended March 31, With the subsequent transfer f stck in April 2010, Ykhama Grand Inter-cntinental Htel ceased t be a cnslidated cmpany, thus its revenue is nt included in the financial frecast fr the year ending March 31,

7 <Reference> Multipurpse Redevelpment Prject Marunuchi Trust City Overview f redevelpment prjects Address (Main) Marunuchi, Chiyda-ku, Tky (Nrth) Marunuchi, Chiyda-ku, Tky Site Area 12,026.77m2 Ttal flr area 180,574.94m2 Main Nrth Ttal flr area 115,379.68m2 65,195.26m2 Number f flrs 37 stries abve 19 stries abve grund, 4 stries grund, 3 stries belw grund belw grund Maximum height 178m 99.6m Primary use ffice (2-26F) ffice (3-19F) htel (B1F,1F,27-37F) cnference center (3F) retail (2F) retail (1-2F) turist infrmatin center (1F) Building cmpletin Nvember 2008 September 2003 Htel tenant Shangri-La Htel, Tky Guest rm 202 rms Restaurant and Italian restaurant Piacere, Japanese restaurant bar facilities Nadaman,The Lbby Lunge Other facilities Wedding chapel, Ball Rm, Meeting facilities, Hrizn Club Lunge, CHI spa, Health club, Indr swimming pl Starting date March 2009 Sendai Trust City Sendai Trust Twer The Residence Ichibanch Address Ichibanch, Aba-ku, Ichibanch, Aba-ku, Sendai-shi, Miyagi Sendai-shi, Miyagi Site area 13,550.52m2 3,099.49m2 Ttal flr area 125,295.96m2 30,359.96m2 Number f flrs 37 stries abve grund, 29 stries abve grund, 2 stries belw grund 1 stries belw grund Maximum height 180m Apprx. 100m Primary use ffice (6-24F) residence htel (1-3F,25-37F) retail (1-5F) Scheduled fr cmpletin April 2010 June 2010 (scheduled) Htel THE WESTIN SENDAI Guest rm 292 rms Restaurant and Symphny(All day dining), bar facilities HORIZON(Lunge & bar), Ichimuan(Japanese) Other facilities Spa,Wedding chapel, Banquet hall, etc. Starting Date August 1,2010 (scheduled) The abve cntents is based n plans as f the date this dcument was released. Plans in this dcument subject t change. Mri Trust Grup: Ttal flr area leased r managed Leased r managed facilities (as f March 2010) Leased buildings: Apprx. 1,210,000 m2 (60 buildings) Htel & Resrt facilities: 29 htels (Apprx.7,100 guest rms) (Lafret Htels & Resrts 14 lcatins; MAMPEI HOTEL; CONRAD TOKYO; INTERCONTINENTAL YOKOHAMA GRAND; HOTEL SUNROUTE PLAZA SHINJUKU; Shangri-La Htel, Tky; RIHGA ROYAL HOTELS & Assciates Htels(Capital & Business tie-up partner: 10 htels)) 7

8 [Latest Htel Prject] THE WESTIN SENDAI *image Perspective Overview f Htel & Resrt business Address 1 Ichibanch, Aba-ku, Sendai, Miyagi Guest Rm 292 Rms Restaurant and Symphny(All day dining), HORIZON(Lunge & bar), bar facilities Ichimuan(Japanese) Other facilities Spa,Wedding chapel, Banquet hall, etc. Starting Date August 1,2010 (scheduled) Lafret Htels & Resrts Name f Htel Address Guest Rm, etc. Lafret Shuzenji Izu-shi, Shizuka 296 Rms Lafret Shuzenji & Cuntry club 18 Hlls Lafret Gra Hakne-machi, Ashigarashim-gun, Kanagawa 34 Rms Lafret It It-shi, Shizuka 84 Rms Lafret Yamanakak Yamanakak-mura, Minamitsuru-gun, Yamanashi 104 Rms Lafret Nasu Nasu-machi, Nasu-gun, Tchigi 118 Rms Lafret Shirakawa Glf curse Izumizaki-mura, Nishi-Shirakawa-gun, Fukushima 18 Hlls 48 Rms Lafret Za Resrt & Spa Za-machi, Katta-gun, Miyagi 197 Rms Lafret Club Htel Nakakaruizawa Karuizawa-machi, Kita-Saku-gun, Nagan 84 Rms Lafret Club Htel Hakubahapp Hakuba-mura, Kita-Azumi-gun, Nagan 45 Rms Lafret Biwak Mriyama-shi, Shiga 272 Rms Lafret Nankishirahama Shirahama-machi, Nishi-Mur-gun, Wakayama 182 Rms Htel Lafret Tky Shinagawa-ku, Tky 248 Rms Htel Lafret Shin-Osaka Ydgawa-ku, Osaka-shi, Osaka 332 Rms Lafret & Matsu Glf Club Sammu-shi, Chiba 18 Hlls MAMPEI HOTEL CONRAD TOKYO RIHGA ROYAL HOTELS Address Karuizawa-ch, Kitasaku-gun, Nagan Guest Rm 109 Rms Restaurant Main dining rm, Chinese restaurant Manzanr, and bar Yugyan Tankuma Kita-mise restaurant specializingin Kyt cuisine, facilities and Kapp Yugyan, Cafe, Bar, Other facilities Functin Rms, Exthetic Saln, Shp, etc. Starting Date 1894 Address 1 Higashi-shinbashi, Minat-ku, Tky Guest Rm 290 Rms Restaurant and Grdn Ramsay at Cnrad Tky (French), Cerise by Grdn Ramsay and bar (Brasserie), China Blue (Chinese), Kazahana (Japanese), facilities TwentyEight (Bar & Ruge) Other facilities Mizuki Spa & Fitness, Indr pl, Banquet rms, Wedding Chapel, etc. Starting Date 2005 RIHGA ROYAL HOTELS Name f Htel Address Guest Rm RIHGA ROYAL HOTEL (Osaka) Kita-ku, Osaka-shi, Osaka 973 Rms RIHGA ROYAL HOTEL Tky Shinjuku-ku, Tky 126 Rms RIHGA ROYAL HOTEL Kyt Shimgy-ku, Kyt-shi, Kyt 484 Rms RIHGA ROYAL HOTEL Hirshima Naka-ku, Hirshima-shi, Hirshima 490 Rms RIHGA ROYAL HOTEL Kkura Kkurakita-ku, Kitakyushu-shi, Fukuka 295 Rms RIHGA ROYAL HOTEL Niihama Niihama-shi, Ehime 94 Rms RIHGA Nakanshima Inn Nishi-ku, Osaka 340 Rms RIHGA ROYAL HOTEL Sakai Sakai-shi, Osaka 241 Rms Kuryn Ryal Htel Omachi-shi, Nagan 73 Rms Assciates Htel RIHGA Htel Zest Takamatsu Takamatsu-shi, Kagawa 122 Rms INTERCONTINENTAL YOKOHAMA GRAND Address Guest Rm Restaurant and bar facilities Other facilities Starting Date Shangri-La Htel, Tky Lease *image Perspective Minat Mirai, Nishi-ku, Ykhama-shi, Kanagawa 594 Rms Karyu(Chinese), Azur(French), La Vela(Italian), Ocean Terrace(Buffet dining), Pier 21(Seafd bistr), Nadaman(Japanese), Marine Blue(Bar & Ruge), Starbard(Music lunge), Patisserie(Pastry shp) Spa, Fitness, Banquet Halls, Wedding Chapel, etc Address 1 Marunuchi, Chiyda-ku, Tky Guest Rm 202 Rms Restaurant and Italian restaurant Piacere, Japanese restaurant Nadaman, bar facilities The Lbby Lunge Other facilities Wedding chapel, Ball Rm, Meeting facilities, Hrizn Club Lunge, CHI spa, Health club, Indr swimming pl Starting Date March

9 Mri Trust Grup: summary f cnslidated cmpanies MORI TRUST CO., LTD. URBAN LIFE JUUTAKUHANBAI C., Ltd. Lcatin Tranmn, Minat-ku, Tky Lcatin Minamisenba, Chu-ku, Osaka-shi, Osaka President Akira Mri President Kenkichi Takatsu Established June 10, 1970 Established July 29, 1982 Capital 10 billin yen Capital 300 millin yen Business sectrs Urban develpment, htel management and Business sectrs Planning and sales f cndminiums, dealing, investment business brkerage f leasing and peratins f real estate MORI TRUST BUILDING MANAGEMENT CO., LTD. LIZ INVESTMENT C., Ltd. Lcatin Tranmn, Minat-ku, Tky Lcatin Marunuchi, Chiyda-ku, Tky President Kenichi Uchimura Representative Shinji Arakawa Established April 1, 2002 Established July 28, 2005 Capital 100 millin yen Capital 3 millin yen Business sectrs Building management business Business sectrs Ownership and leasing f cmmercial building (management f prperty, facility and interir design) MORI KANKO TRUST CO., LTD. MT Lab C., Ltd. Lcatin Kitashinagawa, Shinagawa-ku, Tky Lcatin Akasaka, Minat-ku, Tky President Kazuyasu Abe Chair Akira Mri Established April President Masaki Murata (date f fundatin since incrpratin-type cmpany split) Established April 3, 2006 Capital 2 billin yen Capital 300 millin yen Business sectrs Operatin f the Lafret Htels & Resrts Business sectrs Investment banking services MAMPEI HOTEL MT Lab Capital C., Ltd. Lcatin Tranmn, Minat-ku, Tky Lcatin Akasaka, Minat-ku, Tky Chair Miwak Date President Hidemitsu Mri General Manager Yanai Yasutaka Established December 3, 2007 Established 1894 Capital 100 millin yen Capital 100 millin yen Business sectrs Management f investment fund, cnsulting Business sectrs Ownership and peratin f the Mampei Htel YOKOHAMA GRAND INTER CONTINENTAL HOTEL C., Ltd. MTL Fund N.1 Investment Limited Partnership Lcatin Minat Mirai, Nishi-ku, Ykhama-shi, Kanagawa General Partner MT Lab Capital C., Ltd. President Nbuyuki End Established August 31, 2007 Established May 12, 1988 Capital 1,631 millin yen Business sectrs Management f INTERCONTINENTAL YOKOHAMA GRAND MT&Hiltn Htel C., Ltd. MT Advanced Technlgy C., Ltd. Lcatin Tranmn, Minat-ku, Tky Lcatin Akasaka, Minat-ku, Tky President Kazuhik Oiwa President Masaki Murata Established Octber 22, 2004 Established February 27, 2009 Capital 20 millin yen Capital 450 millin yen Business sectrs Management f the Cnrad Tky Business sectrs ICT cnsulting services & ICT slutins ffering MT GOLF DEVELOPMENT CO., LTD. MT GENEX CORPORATION Lcatin Tranmn, Minat-ku, Tky Lcatin Shinbashi, Minat-ku, Tky President Tshi Kmatsu President Hitshi Suzuki Established Nvember 19, 2004 Established Octber 1945 Capital 100 millin yen Capital Apprx. 1,072 millin yen Business sectrs Ownership and Operatin f Lafret & Business sectrs Facelift f building and husing, and parking Matsu Glf Club peratin management, etc. LAFORET T&S CO., LTD. MORI TRUST Asset Management C., Ltd. Lcatin Tranmn, Minat-ku, Tky Lcatin Akasaka, Minat-ku, Tky President Ryji Tanaka President Satshi Hrin Established May 9, 1970 Established February 28, 2000 Capital 55 millin yen Capital 400 millin yen Business sectrs Sales and planning fr dmestic and verseas Business sectrs Operatin f real estate investment trusts rganized travel and ther varius services industries FORETSEINE CO., LTD. Shiryama Heating & Cling Supply C., Ltd. Lcatin Tranmn, Minat-ku, Tky Lcatin Tranmn, Minat-ku, Tky President Nbu Knmi President Akira Mri Established August 7, 2001 Established Nvember 6, 1989 Capital 550 millin yen Capital 300 millin yen Business sectrs Plannning, develpment and sales f urban residence Business sectrs Lcal heating and cling services in the Shiryama Garden and adjacent area Ty Husing Management, Inc. OHNO KOGYO CO., LTD. Lcatin Rppngi, Minat-ku, Tky Lcatin Kybashi, Chu-ku, Tky President Nbu Knmi Chair Akira Mri Established Nvember 27, 1979 Established August 1, 1937 Capital 10 millin yen Capital 50 millin yen Business sectrs Leasing management and peratins f real estate Business sectrs Leasing management and peratin f real estate, and steel peratin Ty Green Building C., Ltd. AZMAX CORP. Lcatin Tranmn, Minat-ku, Tky Lcatin Yachiy-shi, Chiba President Nbu Knmi President Michinbu Mizbe Established March 1, 1978 Established August 11, 1947 Capital 90 millin yen Capital 499 millin yen Business sectrs Cndminium management service Business sectrs Manufacturing and selling cld drawn special steel shapes URBAN LIFE C., Ltd. Lcatin Mtyamaminamimachi, Higashinada-ku, Kbe-shi, Hyg President Hitshi Nakamuara Established July 31, 1970 Capital 3 billin yen Business sectrs Develpment, planning, and sales f cndminiums, ffice buildings and stres 9

10 Mri Trust Grup: summary f equity-methd affiliates PARCO CO., LTD. MORI TRUST Sg Reit, Inc. Lcatin Shinsen-ch, Shibuya-ku, Tky Lcatin Akasaka, Minat-ku, Tky Established February 13, 1953 Established Octber 2, 2001 Business sectrs Develpment, peratin, cnsulting, Business sectrs Investment in real estate and asset-backed and prperty management fr shpping centers, etc. securities investing primarily in real estate THE ROYAL HOTEL, LIMITED Lcatin Nakanshima, kita-ku, Osaka-shi, Osaka Established March 14, 1932 Business sectrs Htel management centered n ldgment, banquet and restaurant, and htel incidental business 10

11 Cnslidated Financial Statements Cnslidated Balance Sheets (as f March 31, 2010 and 2009) MORI TRUST CO., LTD. and its cnslidated subsidiaries (\ millins) Assets Ⅰ.Current assets 1 Cash and depsits 26,734 14,895 2 Ntes and accunts receivable-trade 4,925 5,083 3 Shrt-term investment securities 23,287 14,633 4 Real estate fr sale 59,957 60,774 5 Real estate fr sale in prcess 16,911 34,388 6 Real estate fr develpment 9,641 7,791 7 Other inventries 2,327 2,972 8 Deferred tax assets 717 2,650 9 Other 5,949 10,405 Allwance fr dubtful accunts 3,823 3,794 Ttal current assets 146, ,798 Ⅱ.Nncurrent assets 1 Prperty, plant and equipment (1) Buildings and structures, net 148, ,200 (2) Machinery, equipment and vehicles, net 2,022 1,927 (3) Land 523, ,312 (4) Glf curses 1,489 1,489 (5) Cnstructin in prgress 19,352 8,119 (6) Other 1,469 1,725 Ttal prperty, plant and equipment 696, ,775 2 Intangible assets (1) Leasehld right 6,225 6,293 (2) Gdwill (3) Other 1,218 1,339 Ttal intangible assets 8,027 8,616 3 Investments and ther assets (1) Investment securities 7,075 11,084 (2) Investments in uncnslidated subsidiaries and affiliates 69,345 71,534 (3) Lng-term lans receivable 1,400 1,449 (4) Deferred tax assets (5) Guarantee depsits 10,397 11,571 (6) Other 1,693 2,128 Allwance fr dubtful accunts Ttal investments and ther assets 90,788 98,344 Ttal nncurrent assets 795, ,736 Ttal assets 941, ,534 11

12 (\ millins) Liabilities Ⅰ.Current liabilities 1 Ntes and accunts payable-trade 8,934 13,360 2 Shrt-term lans payable 237, ,113 3 Current prtin f lng-term lans payable 132,653 81,900 4 Accunts payable-ther 4,387 4,037 5 Incme taxes payable 6,975 27,829 6 Accrued expenses 1,613 1,813 7 Advances received 6,332 8,393 8 Depsits received 2,255 1,028 9 Prvisin fr bnuses Other Ttal current liabilities 400, ,201 Ⅱ.Nncurrent liabilities 1 Lng-term lans payable 204, ,489 2 Lng-term lease depsited 57,838 60,274 3 Lng-term guarantee depsited 62,855 65,907 4 Lng-term depsits received Deferred tax liabilities 7,085 6,001 6 Prvisin fr retirement benefits 3,276 3,246 7 Other Ttal nncurrent liabilities 336, ,593 Ttal liabilities 737, ,795 Net assets Ⅰ.Sharehlders' equity 1 Capital stck 10,000 10,000 2 Capital surplus 6,643 6,643 3 Retained earnings 206, ,392 4 Treasury stck 21,096 21,096 Ttal sharehlders' equity 201, ,939 Ⅱ.Valuatin and translatin adjustments 1 Valuatin difference n available-fr-sale securities Deferred gains r lsses n hedges Freign currency translatin adjustment Ttal valuatin and translatin adjustments Ⅲ.Minrity interests 3,246 5,339 Ttal net assets 204, ,739 Ttal liabilities and net assets 941, ,534 12

13 Cnslidated Statements f Incme (Fr the years ended March 31, 2010 and 2009) (\ millins) Ⅰ.Operating revenue 133, ,879 Ⅱ.Operating cst 94, ,332 Operating grss prfit 39, ,547 Ⅲ.Selling, general and administrative expenses 14,198 14,564 Operating incme 25,028 93,982 Ⅳ.Nn-perating incme 1 Interest and dividends incme Gain n sales f securities Gain n valuatin f securities Equity in earnings f affiliates 2,046-5 Other Ttal nn-perating incme 4,325 1,364 Ⅴ.Nn-perating expenses 1 Interest expenses 7,687 7,851 2 Lss n sales f securities ,536 3 Equity in lsses f affiliates - 2,715 4 Other 664 1,452 Ttal nn-perating expenses 8,779 22,555 Ordinary incme 20,573 72,791 Ⅵ.Extrardinary incme 1 Gain n sales f nncurrent assets Gain n sales f investment securities Gain n sales f subsidiaries and affiliates' stcks Other Ttal extrardinary incme 2, Ⅶ.Extrardinary lss 1 Lss n sales f nncurrent assets 253 1,873 2 Lss n retirement f nncurrent assets Impairment lss 517 2,775 4 Lss n valuatin f inventries - 1,687 5 Lss n valuatin f investment securities - 1,198 6 Other Ttal extrardinary lsses 1,251 7,693 Incme befre incme taxes and minrity interests 21,507 65,710 Incme taxes-current 11,171 36,185 Incme taxes-deferred 3,044 4,334 Ttal incme taxes 14,215 31,850 Minrity interests in lss 1,608 1,359 Net incme 8,899 35,219 13