A Message from the President

I would like to begin by expressing my our gratitude to our shareholders for their ongoing support.

<Business environment and results for the interim period under review >

During the interim period under review, the Japanese economy showed some signs of recovery, although conditions remained difficult in the wake of the Great East Japan Earthquake. With negative factors such as the appreciation of the yen and the slowdown of overseas economies, the outlook remains uncertain.
In the real estate industry, the built-for-sale market continued to see firm sales of newly built condominium units even after the earthquake, aided by low interest rates and policy support. In the office building market, however, although the vacancy rate improved, rent levels tended to remain somewhat sluggish due largely to cost cutting in the corporate sector.
In this operating environment, the consolidated results of the Tokyu Land Corporation and its consolidated subsidiaries (“the Group”) for the interim period under review showed a decline in operating revenue year on year, primarily due to the posting of high condominium sales in the previous year. Nonetheless, net income rose mainly due to the consolidation of silent partnerships.
On the basis of these business conditions, the interim dividend was set at 3.5 yen per share, as previously announced.

<Formulation of medium-term management plan>

In November, the Group formulated and announced the new medium-term plan, which covers the period from the year ending March 2012 to the year ending March 2014. The Group decided to announce the plan only after careful assessment of the impact of the Great East Japan Earthquake and it was released based on the judgment that six months had elapsed since the disaster and it was possible to factor the impact of the earthquake into the business plan and other materials. The Group is committed to achieving the goals through the steady execution of key strategies. The Group hopes to continue to earn the trust and support of all stakeholders in the years to come. We hope that the Group can continue to count on your support and cooperation.

November 2011

Kiyoshi Kanazashi, President & CEO