Notice Regarding Conclusion of Trust Agreement for the Purpose of Selling Listed Securities

Purpose of Scheme Introduction

Based on the policy dated August 7, 2025, Sumitomo Realty plans to systematically sell listed securities (both strategic holdings and pure investments) totaling 400 billion yen over the next ten years, allocating the proceeds towards sustainable growth funding. This time, shares worth approximately 250 to 300 billion yen across 50 to 60 companies, for which disposal consent has been obtained from the issuing companies, will be set into a trust, entrusting the trustee with the sale. As a result, including 30 billion yen already sold, the company aims to secure sales of around 300 billion yen out of the 400 billion yen disposal target, enabling it to achieve its goal of reducing the ratio of strategic shareholdings to shareholders’ equity to below 10% two years ahead of schedule.

Overview of the Trust Agreement and Upcoming Schedule

Sumitomo Realty acts as both settlor and beneficiary of the trust, with Mizuho Trust & Banking as the trustee. The trust setup scale ranges from 250 to 300 billion yen covering 50 to 60 stocks. The trust period extends from the start date until March 31, 2036. The trust agreement is scheduled for conclusion in late February 2026, with trust commencement and pure investment transfer planned for late March 2026. The trustee will have discretionary authority to sell the trust shares until all are sold, with capital gains and received dividends expected to contribute to operating income growth while offsetting interest rate increases.