Notice Regarding Introduction of Listed Securities Sale Scheme Using Trust

Overview of Business Progress

Sumitomo Realty & Development Co., Ltd. resolved at the Board of Directors meeting to introduce a scheme to reliably and systematically proceed with the sale of held listed securities using a trust. The shares established in the trust will be limited to those stocks whose issuers have consented to the sale, and once the trust contract is concluded, cancellation or retrieval will not be allowed. Voting rights will be exercised at the discretion of the trustee, and sales will be executed within the company's selling policy instructions by the trustee's discretion. The trust period is from the contract conclusion in February 2026 to March 31, 2036, and the scale of trust establishment and target stocks will be announced as soon as confirmed.

Future Developments and Impact on Management

Through this scheme, the company plans to systematically sell 400 billion yen of listed securities over the next 10 years, leveraging sale gains and dividends to cover interest rate increases while linking operating income growth to net income. Upon completion of sales, revenue contributions are expected from the Roppongi 5-chome West district redevelopment and large-scale developments in Worli, Mumbai, India, anticipating further profit growth. The trust is scheduled to commence in March 2026, with transfers to pure investment shares also planned.