Notice of Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2010

• In the first three quarters of the fiscal year ending March 31, 2010, consolidated net sales stood at ¥104.1 billion, up ¥0.1 billion year on year. However, operating income was ¥11.9 billion, down ¥14.3 billion, and ordinary income was ¥7.5 billion, down ¥14.4 billion. The net loss amounted to ¥2.2 billion, compared with a net income of ¥12.4 billion for the same period of the previous fiscal year. These results primarily reflected the posting of a loss on a revaluation of inventories from the Residential Property Sales Business segment and the reversal of deferred tax assets in the first half of the fiscal year.
• In the Leasing Business segment, both sales and income declined with net sales reaching ¥74.1 billion, down ¥0.4 billion year on year, and operating income of ¥25.0 billion, down ¥2.0 billion. This decline was primarily attributable to a fall in rents and a rise in vacancies at existing properties and the effects of the sale of properties in the previous year, which outweighed higher sales from new properties in the Otemachi 1-chome Urban Area Redevelopment Project and other projects.
• In the Residential Property Sales Business segment, net sales rose ¥3.1 billion from a year ago, to ¥23.0 billion, reflecting a rise in the number of condominiums delivered and an increase in revenue from the sale of land. However, the operating loss was ¥9.8 billion (compared with operating income of ¥1.5 billion a year ago), primarily reflecting a loss on a revaluation of inventories posted in the first half.

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