Offering True Value as Ecosystem Engineers

Integrated Report

2024“A Love for People A Love for the City”

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

“A Love for People A Love for the City”
Forever Taking On New Challenges—The Mitsubishi Estate Group

1

Index

3 CEO Message
9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section

The Spirit of Mitsubishi: Three Principles“Shoki Hoko”“Shoji Komei”“Ritsugyo Boeki”

所期奉公

処事光明

立業貿易

Corporate Responsibility to Society
Strive to enrich society, both materially andspiritually, while contributing toward thepreservation of the global environment.

Integrity and Fairness
Maintain principles of transparency andopenness, conducting business withintegrity and fairness.

Global Understanding through Business
Expand business, based on an
all-encompassing global perspective.

76 Corporate Governance
98 Financial Section
100 Corporate Data

The Mission of the Mitsubishi Estate GroupWe contribute to society through urban development.
By building attractive, environmentally sound communities where people can live,
work, and relax with contentment, we contribute to the creation of a truly meaningful society.

The Mitsubishi Estate Group Code of Corporate Conduct
In order to carry out the Group’s Mission, we pledge to observe the following Code of Conduct:

1

2

3

We will act with integrity.

We will strive to earn the trustof our clients.

We will strive to createa vibrant workplace.

We will approach all objectives from ourclients’ point of view, providing safe andreliable products and services, and makeinformation available as appropriate.

While aiming at personal growth, we will
respect the human rights and diversity ofopinions of others and increase our creativity and professionalism, while displaying
our collective strengths as a team.

We will base our conduct on laws and ethics
and always reflect with humility upon our
behavior, valuing our communication withsociety and placing priority in our corporate
activities on earning trust through fairness
and transparency.

For details on the Mitsubishi Estate Group Guidelines for Conduct:

Mitsubishi Estate’s Website

https://www.mec.co.jp/en/company/charter/(Formulated December 1, 1997; revised on August 1, 2002, January 1, 2006, and April 1, 2018)

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

CONTENTS
PP

3 CEO Message
9 Value Creation Story
10

History of Value Creation

15

Value Creation Model

16

Long-Term Management Plan 2030

19

Marunouchi’s Past, Present, and Future

24

Strategies for Increasing Social Value

26

CFO Message

31

Progress of Long-Term Management Plan 2030

P 35 Business Review
36

Business Review

37

Reorganization of Business Groups

38

Commercial Property Business		39		 Office Building Business		

41		 Retail Property Business / Outlet Mall Business		

42		 Logistics Facility Business		

43		 Hotel Business		

44		 Airport Business45

Residential Business

47

International Business

51

Investment Management Business

52	Architectural Design & Engineering Businessand Real Estate Services Business
53

Innovation and Business Transformation Group54

Business Development, Client Relations & Solutions GroupP 55 Sustainability (ESG) Section

2

Index

3 CEO Message

56

Sustainability Frameworks / Framework for Monitoring Key Themes

57

External Evaluations of ESG Performance

9 Value Creation Story

58

Pursue Tangible and Intangible Urban Development for the Next Generation

35 Business Review

61

Maintain Commitment to Reducing Environmental Impact

64

Consider People, Empathize with People, Protect People

67

Create and Circulate New Value70

Information Disclosure Based on the TCFD’s Recommendations

71

SASB

72

Human Capital

55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial Section
100 Corporate Data

P 76 Corporate Governance
77

Message from the Chairperson of the Board

78

Corporate Governance System

83

Evaluation of the Effectiveness of the Board of Directors

85

Remuneration

88

Dialogues with Shareholders and Investors (ESG Meetings)

90

Shares Held for Strategic Purposes

91

Directors

92

Corporate Executive Officers, Executive Officers, and Group Executive Officers

93

Message from an Outside Director

95

Risk Management

P 98 Financial Section
98

Status of Shareholdings

99

Eleven-Year Summary of Selected Financial Data (Consolidated)

P100		 Corporate Data
100

Principal Mitsubishi Estate Group Companies

101

Corporate Information
Mitsubishi Estate’s Website

A Word about Integrated Report 2024
We adopted this integrated report format starting from FY2018, having published annual reports through to FY2017. With this integrated report, we have expanded coverage of non-financial information, centering on environmental, social, and governance (ESG) topics, compared with prior annual reports. In doing so, we aim to increase readers’ awarenessof our efforts to raise the corporate value of the Mitsubishi Estate Group from a medium- to long-term perspective. We hope that this report promotes a deeper understanding of the Group among all of our stakeholders, including shareholders and investors.

Definition of Term Covered“FY2023” refers to the Group’s fiscal year ended March 31, 2024, and other fiscal years are referred to in a corresponding manner.

Caution Concerning Forward-Looking Statements
This integrated report contains forward-looking statements concerning Mitsubishi Estate Co., Ltd., and its future strategies and earnings outlook, including forecasts, plans, and decisions based on information available at the time of publication. As with any forecast, plan, or decision, forward-looking statements are inherently susceptible to potential risks,
uncertainties, and assumptions. The Company’s actual results may therefore vary materially from those expressed or implied in its forward-looking statements.

CONTENTSCEO Message

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

3

Index

3 CEO Message
9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section“A Love for People
A Love for the City”

Continuously Taking On Challenges as Ecosystem Engineers to
Build Sustainable Business Models and Contribute to Society throughUrban Development

76 Corporate Governance
98 Financial Section
100 Corporate Data

Atsushi Nakajima
President & Chief Executive Officer
Mitsubishi Estate Co., Ltd.

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

CEO Message

4

Index

3 CEO Message

Leading the Management of the Mitsubishi EstateGroup with Unwavering Commitment

As my first step in my role to lead the management of Mitsubishi Estate,shareholders, to examine the future direction of the Mitsubishi Estate Group in

35 Business Review

I am President & Chief Executive Officer (CEO) Atsushi Nakajima of Mitsubishi

its efforts to improve its corporate value. In May 2024, the Group unveiled Long-

55 Sustainability (ESG) Section

Estate, and I assumed this role a year ago. At the beginning of my message inTerm Management Plan 2030 Review. While the targets for the efficiency indica-last year’s integrated report, I referred to the saying, “the journey of a thousand

tors of return on assets (ROA), return on equity (ROE), and earnings per share

miles begins with a single step,” and stated that taking that first step is crucial(EPS) remained unchanged under Long-Term Management Plan 2030, theto achieving an ambitious goal.

review took into account changes in the business environment and the progressI engaged in communication with internal and external stakeholders, includingof various businesses to revise the Group’s approach toward achieving the

9 Value Creation Story

76 Corporate Governance
98 Financial Section
100 Corporate Data

plan’s targets. This enhanced the visibility of the plan.
Following the recategorization and downgrading of the COVID-19 pandemic to
a Category V infectious disease, life returned to near normalcy in the previous
fiscal year. This was a welcome change from over three years of restrictions on
going out. The business environment for retail properties and hotels has seen apositive shift, supported by a rebound in domestic consumption and a sharp risein inbound tourism. On the other hand, there is a growing sense of uncertainty inglobal affairs, including the ongoing crisis in Ukraine and the increasingly desperate situation between Palestine and Israel. In Europe and the United States,
factors including overheating inflation and persistently high interest rates areaffecting our businesses to a certain degree. For example, the escalation of construction costs due to rising material prices has become a significant challenge
for the real estate industry. Since FY2023, despite exorbitant construction costs
coupled with labor shortages, making it increasingly challenging to promotebusiness in Japan, the Group has commenced construction of Torch Tower, partof the TOKYO TORCH project, the Akasaka 2•6-chome Development Project, andthe Tenjin 1-7 Project. Despite the impact of escalating construction costs, thesteady start of each project through various measures represents a significant
step toward the achievement of Long-Term Management Plan 2030.
While a number of changes are expected to continue, the Group will continue to

Mitsubishi Estate’s Website

offer true value by using its originality and ingenuity to drive growth andincrease both social and shareholder value. I will continue to oversee theGroup’s management with the utmost dedication and commitment.

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

CEO Message

5

Index

3 CEO Message

Aiming to Earn Recognition Globally as the World’s
Foremost Real Estate Business Groupaccounts for a significant portion of the Group’s profits. At the same time, theextensive experience in real estate development, property management, asset

35 Business Review

Mitsubishi Estate develops its businesses by offering real estate and services

management, and brokerage.

55 Sustainability (ESG) Section

with true value. This is based on the idea that offering something of value will

Reaffirming these strengths, the Group will focus further on non-asset-based

contribute to ongoing economic activities for both the people of today and future

income streams, such as fee income, through the provision of specialist expertise.

generations.

Specifically, we will return to the basics of business in terms of development,

With this in mind, I believe that the Group and each of its employees must be

sales, property management, asset management, and other skills and capabilities,

Ecosystem Engineers. The Group adopted “Be the Ecosystem Engineers” as theto fully increase individual and organizational strengths. I am confident that thistitle of its vision statement in Mitsubishi Estate Group Sustainability Vision 2050.

will enable the Group to offer true value as Ecosystem Engineers, thereby

The idea behind this title serves as a helpful approach for increasing both social

improving its corporate value.

Group also benefits from a range of strengths and expertise gained from its

9 Value Creation Story

76 Corporate Governance
98 Financial Section
100 Corporate Dataand shareholder value. Ecosystem Engineers are companies and people (engineers)
providing spaces and infrastructure (ecosystems) that continuously facilitate theestablishment of cooperative economic, environmental, and social relationships.
As Ecosystem Engineers, the Group and its employees lead greater society andthe industry with the aim of earning recognition globally as the world’s foremost
real estate business group.
The Mitsubishi Estate Group has been at the forefront of transforming

Long-Term Management Plan 2030 Review (Shareholder Return Policy)

Adopting a Stable Shareholder Return Policy
Owing to a Favorable Profit Growth Outlook

Marunouchi from fields into a highly attractive area by offering value focused on

Looking at Long-Term Management Plan 2030 Review, I would first like tothe future. The Group has led the development of Marunouchi, evolving it into an

discuss shareholder returns.

enduringly attractive area by fostering collaborative relationships with numer-

In terms of dividends, the outlook for future improvements in business perfor-

ous partner companies, government bodies, and other key players.

mance and stable leasing cash flow has led to the introduction of a progressive

Today the Group’s businesses extend into a variety of domains, including thedividend policy. This policy involves increasing the dividend by ¥3 per share

International Business. While maintaining ongoing efforts will become a major

every year, in principle, until FY2030.

challenge for the Group, I am convinced that its businesses will expand andRegarding business performance outlook, the Group anticipates achieving con-become more sustainable by earning the understanding of partners throughsistent growth driven by factors including its accumulation of capital-recycling

cooperation and sharing its ambitions with them.

assets in Japan and overseas. Furthermore, the Company anticipates additional

In my management duties, I am keen to focus strongly on driving the

growth in leasing cash flow, reflecting the completion of 8 Bishopsgate (London)

Mitsubishi Estate Group’s earnings power, a core competence. In order to ensure

last year and the impending completion of Torch Tower, along with the stable

the long-term sustainability of the ecosystem, it is essential to generate returns

cash flows from leasing buildings in Marunouchi and Manhattan, New York.

that are commensurate with the value provided. Currently, revenue from assets

Going forward, the Group will commence the divestment phase for projects

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

CEO Message

6

Index

3 CEO Message

amassed in Japan and overseas. We expect capital gains on these projects to

9 Value Creation Storyfluctuate to a certain degree from year to year, depending on market conditions
and other factors. We will seek to maximize profits by carefully analyzing opti-

35 Business Review

mal times for buying and selling. To this end, while acknowledging that operat-

55 Sustainability (ESG) Section

ing profit and net income will vary from year to year, our objective is to both
76 Corporate Governancemaximize profit when market opportunities arise and provide stable shareholder returns by outlining that dividends will increase progressively with the

98 Financial Section

upward trend in business performance and stable leasing cash flows.

100 Corporate Data

Next, I will discuss share buybacks. Although we have conducted share buybacks flexibly and dynamically and provided shareholder returns on the largest
scale among our peers, feedback from shareholders has suggested that ourbuyback efforts are volatile and lack predictability, making them difficult toassess positively.
In light of this feedback, the review presented a policy of continuous and flexible share buybacks. Specifically, we anticipate conducting share buybacks of¥50.0 billion in FY2024, with buybacks on a similar scale in FY2025 and FY2026.
This policy is designed to enhance predictability for shareholders. We will also
examine the possibility of conducting additional buybacks in response to market
conditions, based on our share price and cash flow performances.

The Mitsubishi Estate Group’s Marunouchi business began in 1890 when
Yanosuke Iwasaki, the president of Mitsubishi Company, purchased Marunouchi
land at the request of the Meiji government of Japan. Based on our unwavering

Long-Term Management Plan 2030 Review (Business Strategies)

commitment to modernizing Japan, we spent over 130 years developing the
Marunouchi area into a world-leading business center. This has involved navi-

Achieving Continuous Growth by Reaffirming andRefining the Group’s Strengths

gating various events along the way, including Japan’s period of rapid economic

Turning to business strategies, Mitsubishi Estate has reorganized its businesses

I believe that Marunouchi must remain ahead of the times. Marunouchi is not

in Japan, separating the Marunouchi business into its own segment from theonly a leading business area in Japan but also a multi-faceted place whereprevious Commercial Property Business.

people can work comfortably and connections can be developed. At times, it is

growth and the collapse of the country’s bubble economy, while remaining at theforefront of the times.

also a place for relaxing and celebrating special occasions. The source of

Mitsubishi Estate’s Website

Marunouchi’s outstanding appeal lies in all these facets.
CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

CEO Message

7

Index

3 CEO Message

Addressing Social Issues through Business
Activities, Driven by Our Diverse Human Resources

35 Business Review

appealing area.

In May 2024, Mitsubishi Estate revised its key themes related to sustainability.

55 Sustainability (ESG) Section

Despite discussion during the COVID-19 pandemic that offices had become

The Group is committed to responsible business promotion with an eye toobsolete, the pandemic ultimately reaffirmed their importance. In general, com-future generations 50 or 100 years from now. Mindful that such business pro-panies previously saw expenditure on offices as a cost. However, with a growing

motion is the best way for it to develop continuously into the future and returnnumber of companies seeking better offices to improve employee satisfaction

value to its stakeholders on an ongoing basis, the Group adopted four key

and promote recruitment, offices have been repositioned as an investment. In an

themes in relation to urban development, the global environment, respect forexternal survey, the Marunouchi area was chosen as the place where people arepeople, and value creation.

most likely to work due to its convenient access to transportation, concentration

While these four themes are closely interrelated, and each one is a key theme,of companies, and other advantages. We will ensure that Marunouchi continues

ultimately, I believe business is about people. Human resources, our mostto grow and become an office area that remains the preferred choice, continuing

valuable asset, play the leading role in offering value to society. I call upon theto further enhance its appeal in accordance with the changing times.

Group’s employees—its human resources—to be Change Makers andMeanwhile, seeds that were planted for projects in Japan and overseas are

Professionals. Possessing the spirit to take on challenges without fearing

about to come to fruition. In FY2024, joint venture properties that leveraged thechange or being bound by convention, Change Makers are capable of building

Group’s know-how are scheduled for completion and opening, including the par-businesses while drawing in others and gaining the cooperation of external

tial opening of GRAND GREEN OSAKA. In joint ventures, the Group secures fee

parties. As the term implies, Professionals have specialist expertise. By promot-

income that is not dependent on assets by utilizing its diverse know-how anding our business through Professionals with a variety of specialist expertise andhuman capital—such as in project management, leasing management, architec-

the spirit to take on challenges, while drawing in others, we can offer new value

tural design and engineering, property management, and asset management—that goes beyond conventional frameworks. It is my belief that by consistently

to generate highly efficient profits.

pursuing these efforts, the entire Group can become Ecosystem Engineers,

In the International Business, we aim to achieve the target for operating profit

enabling it to offer true value continuously.

Mitsubishi Estate will reaffirm the approach and appeal of its urban development efforts to date. It will examine what a next-generation area requires andseek to improve profitability in Marunouchi by developing it into an even more

9 Value Creation Story

76 Corporate Governance
98 Financial Section
100 Corporate Dataof ¥90.0 billion, which we established under the long-term management plan,ahead of schedule, through the selective investments we have amassed thus far,depending on market circumstances. Our focus on developed countries provides
us with excellent business opportunities, including in the United States, where
we have a long track record, and in Australia, where we have expanded our business through collaborations with local partners in recent years. We will continue

Mitsubishi Estate’s Website

to make growth investments proactively, with the goal of increasing profits byselling properties at the optimum times.
CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

CEO Message

8

Index

3 CEO Message

To Our Stakeholders

Particularly in a climate of ongoing uncertainty in the external environment
due to various factors, I will strive to bridge any gaps between our approach and9 Value Creation Story

I believe that maintaining dialogue with stakeholders is of the utmost impor-that of our shareholders and investors on how best to achieve our targets,

35 Business Review

tance. In an environment where people hold disparate standpoints andthrough communication or, if necessary, examining the possibility of revising ourapproaches, doggedly maintaining careful communication is imperative for

55 Sustainability (ESG) Section

policies. I will pursue corporate management that promotes a deep understand-understanding the views of others and ensuring that others understand youring of the Group’s businesses and creates fans of the Group through ongoingown views.

engagement in open-minded dialogue with a variety of stakeholders.
The Mitsubishi Estate Group uses the catchphrase, “To the Future with
Mitsubishi Estate,” which incorporates a message emphasizing the importance

76 Corporate Governance
98 Financial Section
100 Corporate Dataof being challenge- and value creation-oriented and using these traits to create
true value, hope, and inspiration. At the core of my management philosophy is a
spirit of embracing challenges and creating true value. Carefully considering
what is true value for stakeholders, I am driven to push boundaries and take on
various challenges. With every employee continuing to take on challenges, theGroup will work together to achieve the long-term management plan andincrease its corporate value continuously across its global business portfolio.
We appreciate your continued support for our endeavors. Together, let us forge apath to the future with Mitsubishi Estate.

Atsushi Nakajima
President & Chief Executive Officer
Mitsubishi Estate Co., Ltd.

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Value Creation
Story

9

Index

3 CEO Message
9 Value Creation Story
10 History of Value Creation
15 Value Creation Model
16 Long-Term Management Plan 2030
19 Marunouchi’s Past, Present, and Future
24 Strategies for Increasing Social Value
26 CFO Message
31 Progress of Long-Term Management Plan 2030

35 Business Review

10

History of Value Creation
55 Sustainability (ESG) Section

15

Value Creation Model

76 Corporate Governance16

Long-Term Management Plan 2030

98 Financial Section

19

Marunouchi’s Past, Present, and Future

24

Strategies for Increasing Social Value

26

CFO Message

31

Progress of Long-Term Management Plan 2030

100 Corporate Data

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

History of Value Creation

Index

10

Value Creation Story
3 CEO Message

The Mitsubishi Estate Group has expanded its business activities into various domains by utilizing its unique expertise and know-how amassed through its long track record of real estatedevelopment. The Group has continuously taken on challenges in anticipation of changes in its operating environment and the coming era, such as participating in new asset types and
2,000

9 Value Creation Story

600

expanding into overseas markets, while further refining its strengths, centered on office building development and property management.
2000000

600000Operating Revenue / Operating Profit
Operating revenue (left scale)(Billions of yen)
Marunouchi

OfficeBuilding
Business

1978
Opening of Sunshine City

Japan

2002
Completion of the Marunouchi
Building

1894
Completion of Mitsubishi Ichigokan

1,500
1500000

2013
Completion of GRAND FRONT
OSAKA

1993
Completion of Yokohama Landmark Tower

RetailProperty
Business
Logistics
Facility
Business

2000
Opening of GOTEMBA PREMIUM OUTLETS®

Hotel
Business

2021
Completion of Tokiwabashi
Tower

2007
Completion of Shin-Marunouchi Building

2015
Completion of Dai Nagoya Building

15 Value Creation Model

Operating profit (right scale)

16 Long-Term Management Plan 2030

Operating Revenue¥1.50 trillion

2028
Scheduled completion of Torch Tower
2027
Scheduled completion of GRAND GREEN OSAKA(Umekita Phase II)

10 History of Value Creation

19 Marunouchi’s Past, Present, and Future

Operating Profit¥278.6 billion

24 Strategies for Increasing Social Value
26 CFO Message

2013
Opening of MARK IS Minatomirai

2022
Opening of FUKAYA HANAZONO PREMIUM OUTLETS®

31 Progress of Long-Term Management Plan 2030

2012
Completion of Tatsumi 3-chome
Development Project2023
Completion of Tokyo Ryutsu Center Distribution New A Building

35 Business Review

1989
Opening of Royal Park Hotel in Hakozaki

400

2024
Scheduled opening of Rosewood Miyakojima

55 Sustainability (ESG) Section
4000002018
Commencement of theoperation of Takamatsu Airport
2011
Establishment of Mitsubishi
Estate Residence Co., Ltd.

AirportBusiness
Residential
Business
1,000

1969
Sale in lots of Akasaka Park House
1972
Establishment of Mitsubishi Estate
New York Inc.

U.S.
1000000

International
EuropeBusiness

2019
Opening of Miyako Shimojishima Airport Terminal

76 Corporate Governance2018
Entry into businesses developing commercial nursing homes
and residences for students

98 Financial Section

1990
Capital investment in the Rockefeller GroupInternational, Inc.

100 Corporate Data

2021
Participation in a data center development business

1986
Establishment of MEC UK Limited

2023
Completion of 8 Bishopsgate
2008
Establishment of Mitsubishi Estate
Asia Pte. Ltd.

Asia and
Oceania
Investment Management
Business

2021
Establishment of branch office in Australia

2015
Acquisition of TA Realty LLC

2022
Assets under management exceeds the ¥5-trillion mark200
200000500
500000Mitsubishi Estate’s Website

00
FY19950

FY1996

FY1997

FY1998FY1999FY2000FY2001

FY2002

FY2003

FY2004

FY2005

FY2006

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

CONTENTS

FY20230

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

History of Value Creation

11

Index

Value Creation Story
Our Long-Term Perspective and Forward-Looking DNA

Since

1894

The Mitsubishi Estate Group has expanded its business activities into various fields by leveraging the unique knowledge,
expertise, and relationships it has amassed through its long years of real estate development and property management.

3 CEO Message
9 Value Creation Story

Today, the Group continues to take on challenges in anticipation of changes in its operating environment and the coming era.
10 History of Value Creation
15 Value Creation Model
16 Long-Term Management Plan 2030
19 Marunouchi’s Past, Present, and Future

Transforming Mitsubishigahara into a World-Leading Business Center

24 Strategies for Increasing Social Value
26 CFO Message

Development of Japan’s Full-Fledged Office Building

31 Progress of Long-Term Management Plan 2030

In 1890, when Yanosuke Iwasaki purchased Marunouchi land from the Meiji governmentof Japan, the area was an expanse of flat, grassy fields known as Mitsubishigahara, or
Mitsubishi Fields. It was there that Mitsubishi Estate developed Mitsubishi Ichigokan,
Japan’s first modern office building. Japan’s era of high economic growth saw thecompletion of several office buildings and the area’s expansion into a world-leadingbusiness center. Today, the entire area continues its transformation into a neighborhood with an abundance of attractions, extending beyond business to include retailfacilities, hotels, event venues, and disaster preparedness centers. Using Marunouchi,
an area of approximately 120 hectares in its entirety, Mitsubishi Estate continues to evolveurban development, anticipating ever-changing societal demand and customer needs.

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial Section
100 Corporate Data

Deploying a Long-Term Perspective Cultivated through the Development of Marunouchi in Other Areas

Development of Minato Mirai 21, a Large-Scale Area ProjectIn the 1980s, Mitsubishi Estate took part in the Minato Mirai 21 urban development
project as the largest private-sector landowner. The year 1993 saw the completion of
Yokohama Landmark Tower (296 m), the symbol of Minato Mirai. Based on the conceptof a bustling 24-hour city, the tower attracted a lot of attention as Japan’s first vertically integrated building, with a shopping mall, offices, and hotels from top to bottom.
It remains a symbol of Yokohama, more than 30 years after its completion. Meanwhile,
Mitsubishi Estate continues to enhance the attractiveness of the Minato Mirai district
through its involvement in area management, as well as through the development ofoffice buildings and retail facilities.

1993

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

History of Value Creation

12

Index

Value Creation Story
3 CEO Message

Our Long-Term Perspective and Forward-Looking DNA

2000

Mitsubishi Estate Global Partners
EuropeUnited States

Europa Capital

Carry outmarketing and researchand create funds worldwide

Beginning with the opening of GOTEMBA PREMIUM OUTLETS® in 2000, Mitsubishi
Estate introduced the then-unfamiliar culture of outlet malls, originating in the UnitedStates, to Japan. Today, it operates 10 outlet malls nationwide. Incorporating leisureelements into shopping, the malls offer experiential value new to shopping, allowing
shoppers to escape from everyday life. Over 20 years on from the opening of the firstoutlet mall, PREMIUM OUTLETS® have taken root in Japan, and the total annual salesof the 10 facilities have grown to more than ¥400.0 billion. GOTEMBA PREMIUM
OUTLETS®, the flagship outlet mall in the series, continues to evolve in various ways,
including attracting a hotel to adjacent land and offering helicopter excursion experiences.

TA Realty

10 History of Value Creation
15 Value Creation Model
16 Long-Term Management Plan 2030
19 Marunouchi’s Past, Present, and Future

Establishing Outlet Malls as Part of Japanese Culture

Expansion of U.S.-Style Outlet Malls throughout Japan

9 Value Creation Story

24 Strategies for Increasing Social Value

Provide global investment
opportunities to investors
around the world

Japan

Japan Real Estate AssetManagement Co., Ltd. (JRE)

26 CFO Message
Asia-Pacific

31 Progress of Long-Term Management Plan 2030

MEC Global Partners Asia

35 Business Review
55 Sustainability (ESG) Section

Groupwide Synergy

76 Corporate Governance

Mitsubishi Jisho Investment
Advisors, Inc. (MJIA)

The Group’s network for investment anddevelopment and management and services

98 Financial Section
100 Corporate Data

Entering into the Investment Management BusinessPioneering Entry into the J-REIT Market
In 2001, Japan Real Estate Investment Corporation (JRE), of which Mitsubishi Estate is
the main sponsor, became the first J-REIT to go public. (Nippon Building Fund Inc. went
public at the same time.) With an emphasis on prime assets developed by Mitsubishi
Estate, its sponsor, JRE broadens the range of real estate investment to include
institutional and individual investors in the form of small-lot real estate investments,
conducting highly profitable and stable asset management.
Mitsubishi Estate promotes its Investment Management Business globally,acquiring U.S.-based TA Realty LLC in 2015. With a global platform spanning Japan, theUnited States, Europe, and Asia, the business’s global assets under management(AuM) have increased to ¥5.7 trillion (as of FY2023 year-end).

2001

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

History of Value Creation

13

Index

Value Creation Story
3 CEO Message

Our Long-Term Perspective and Forward-Looking DNA

9 Value Creation Story

2016

10 History of Value Creation
15 Value Creation Model
16 Long-Term Management Plan 2030
19 Marunouchi’s Past, Present, and Future

Expanding Our Presence through a Nimble, Market-Oriented Approach

24 Strategies for Increasing Social Value
26 CFO Message

Entry into Real Estate Development in Australia

31 Progress of Long-Term Management Plan 2030

Since entering the real estate development business in Australia in 2016, Mitsubishi
Estate has rapidly expanded its business there, with development investment to dateexceeding ¥140.0 billion. In addition to offices, hotels, condominiums, and rental apartments (build-to-rent), the Company is involved in the development of a variety of asset
types, including Land Lease Community and Master Plan Community. Earning recognition for its transaction execution and project delivery capabilities through the accumulation of developments and joint ventures in Australia, Mitsubishi Estate has
established a firm position as the preferred Japanese developer among market leaders in various sectors in the country. The Company’s foresight and pioneering spirit areboth bearing fruit, enabling it to gain a significant first-mover advantage.

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial Section
100 Corporate Data

Developing Projects in the Center of London for Nearly 40 Years

Completion of 8 Bishopsgate, a High-Rise Office Building
Since establishing a local subsidiary in 1986, Mitsubishi Estate has developed
large-scale office buildings consistently in the center of London for nearly 40 years.
These include Paternoster Square, Central Saint Giles, and 8 Finsbury Circus. In 2023,
it completed the construction of 8 Bishopsgate (wholly owned by Mitsubishi Estate),a high-rise office building in the centrally located City of London. The Company has
built solid relationships of trust with industry figures and government agencies by
gaining a thorough understanding of the market through its long development trackrecord and by accumulating development expertise. It continues to plan several newlarge-scale developments.

2023

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

History of Value Creation

14

Index

Value Creation Story
Note: Figures as of FY2023

Carefully Selected and Abundant Real Estate Asset Touchpoints

Natural Capital and Manufactured Capital

The Mitsubishi Estate Group possesses a market-resilient asset portfolio diversified across a variety of different areas and assets.

3 CEO Message
9 Value Creation Story
10 History of Value Creation
15 Value Creation Model

Commercial Property BusinessResidential Business

Number of Office Buildings under Management
Number of Hotels under Operation

210
23

23 (including 10 outlet malls)
23
Logistics Facilities (Total Number of Developed Facilities)
10
Number of Airports Operated by Airport Business

16 Long-Term Management Plan 2030

2,271
349,446

Number of Condominiums Sold a Year
Number of Condominiums under Management

20

Number of Overseas Offices
Investment Management Business

Assets under Management

24 Strategies for Increasing Social Value
26 CFO Message
31 Progress of Long-Term Management Plan 2030

International Business

Retail Properties

19 Marunouchi’s Past, Present, and Future

35 Business Review
55 Sustainability (ESG) Section

5.7 trillion

Approx. ¥76 Corporate Governance
98 Financial Section

Relationships and Partnerships Founded on TrustSocial Capital

100 Corporate Data

The relationships of trust built up over the years with customers and the long-lasting relationships formed with business partners and subcontractors are among the Mitsubishi Estate Group’s key strengths. We also proactively support and collaborate with start-up companies.
Number of Tenants (Nationwide, All Purposes)
Number of Office Workers in Marunouchi
Number of Members Eligible to
Join the Residence Club

Approx.

3,354 companies
Approx. 350,000

192

Number of Start-Ups in Support Hubs (Marunouchi)
Amount of Investment in Start-Ups(Commitment Basis)

Approx. ¥36.4 billion

680,000 households

Human Resource Strategy to Maximize Value Creation

Human Capital

The Mitsubishi Estate Group aims to maximize its value creation as an organization through human resources who demonstrate the competencies ofProfessionals, who create new value using their specialist expertise, and Change Makers, who spur innovation by augmenting each other’s strengths
through collaborations, while possessing the five traits that the Group requires (please refer to the Human Capital section starting on page 72).
Number of Group Employees
Operating Revenue per Employee

11,045¥136 million

Proportion of Women among New-Graduate Hires
Voluntary Turnover Rate

43.8%
0.6%

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Value Creation Model

15

Index

Value Creation Story

Inputs (Strengths)

Business Model / Outputs (Results)

Outcomes

3 CEO Message
9 Value Creation Story

Human Capitaland Intellectual Capital
Innovation DNA ong-term perspective on urbanLdevelopment reflected in the developmentof Marunouchi
Foresight to constantly stay ahead of thetimes and the spirit to take on challenges
The ability to improve the value of urban
areas by leveraging our extensive
business relationships

Natural Capital and
Manufactured Capital
Carefully Selected and Abundant
Real Estate Asset Touchpoints
Investment Management
Business
2%

Residential
Business
13%
International
Business
22%

Architectural Design &Engineering Business, Real
Estate Services Business,and other businesses
1%
Marunouchi
Property
Business
34%

Total Assets
Approx. ¥7.5 trillion(March 31, 2024)

Responsibility to the next generation

Increasing
Social Value

Synergy

Increasing
Shareholder
Value

Responsibility as a leading company

 nhance earnings power (a coreE
competence), the foundational
strength of a real estate businessthat can adapt to a changing
environment
 nsure asset management in aE
broad sense

Continue to be a company that is valued
and needed by customers, local communities, and employees

Continue providing social infrastructure for the
next generation

Transform into a Highly Efficient Business Portfolio
Resilient to Changes in Market Conditions

Four key themes aimed at mutual sustainabilityof the Group and society

Domestic Asset Business

Pursue tangible and intangible
urban development for the next
Urban development
generationand services

Residential
Business

Marunouchi
Property Business

The global
environment

Respect forpeopleGrow International Business

3,354 companies

Number of Office Workers in Marunouchi
Approx.

5%
10 %
¥200

ROA 

EPS 

10 History of Value Creation
15 Value Creation Model
16 Long-Term Management Plan 2030
19 Marunouchi’s Past, Present, and Future
24 Strategies for Increasing Social Value
26 CFO Message
31 Progress of Long-Term Management Plan 2030

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial Section
100 Corporate Data

Increasing social value
2030 Targets

Consider people, empathizewith people, protect people“ Urban areas of choice” that arevalued by all generations anddevelop organicallyInternational
Business

Non-Asset Business ealization of sustainable urbanR
areas and global environment

Adapt to a Changing Future

Number of Tenants (Nationwide, All Purposes)Realization of a highly efficient portfolio resilient to changes in market
conditions

ROE 
International Asset Business

Maintain commitment to reducing
environmental impact

Mitsubishi Estate will continuously offer
value to its shareholders, society, and allother stakeholders by improving its
corporate value sustainably through urban
development.

 ursuit of efficiency expected by equity
P
markets
Long-Term Management Plan 2030
KPI Targets

Leverage Existing Strengths

Commercial Property
Business

We contribute to society
through urban development.

Increasing shareholder value

Creating a truly meaningful society through urban development

Relationships and Partnerships
Founded on Trust elationships of trust built up withR
customers and solid relationships withbusiness partners and subcontractors

The Mission of the Mitsubishi
Estate Group
Return to basics

Responsibility to the EarthContinue to maintain the health of the
global environment for the sustainabilityof the social and business environment

Commercial Property
Business
28%

Social CapitalBe the Ecosystem Engineers

Continue to operate a responsible business that we can proudly pass on to thenext generation as a legacy to the future

 society in which diverse peopleA
can work and live happily

Create and circulate new value
Value creation

Investment Management Architectural Design & Engineering BusinessBusinessand Real Estate Services Business

350,000

New and Other
Businesses

Anticipating changing times and fostering affluence and convenience

Mitsubishi Estate’s Website

Corporate Foundations Underpinning Our Businesses
Corporate Governance

Financial Foundations: Financial Capital

Sustainable Corporate Growth (Improving Corporate Value)

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Long-Term Management Plan 2030

Strategies for Increasing Shareholder Value: Growth Strategies and Targets

16

Index

Value Creation Story
3 CEO Message

Leveraging our long-term perspective on urban development and forward-looking DNA, in addition to our extensive user reach and abundant real estate asset touchpoints, strengths of the

9 Value Creation Story

Group, we will seek to realize growth in the three domains of our domestic asset business, international asset business, and non-asset business.

International Asset Business

Domestic Asset Business

10 History of Value Creation
15 Value Creation Model

Leverage Existing Strengths 	Advance Marunouchi NEXT Stage project	Increase NOI* with long-term development projects

	Optimize capital-recycling business in line with market conditions

19 Marunouchi’s Past, Present, and Future* Net operating income = Rental income – Rental costs (excluding depreciation)
Early to Mid-Stage

Mid- to Late Stage

Advance Redevelopment Projects
RentalA dvance and commercialize redevelopment projects, including in Marunouchi

CapitalRecyclingO ptimize the balance of new investments and capital returns in response to market conditions

ResidentialS ecure and commercialize redevelopment projects

2030 Goal

Profit Contributions from Redevelopment Projects
Achieve sizable profit contributions from large-scale projects, including Torch Tower

Increase the number of units sold and realize profits from redevelopment projects

24 Strategies for Increasing Social Value
26 CFO Message
31 Progress of Long-Term Management Plan 2030

Approx. +¥50.0
billion(vs. FY2019)35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance

Grow International Business 	U.S.: Enhance and diversify capital-recycling business	Europe: Advance development business and enhance revenue base

Early to Mid-Stage	Asia: Enhance development business

98 Financial Section

Mid- to Late Stage

Profit Scale with Asset Accumulation
U.S.

16 Long-Term Management Plan 2030

 trengthen capital-recycling business with local resourcesS
Carry out joint project development with local partners

Europe nact approach to investments and returns: Stabilize revenues and enhance capital efficiency
EAdvance large-scale development projects (8 Bishopsgate, 60–72 Upper Ground, etc.)Asia ecure development opportunities and accumulate assets
SRealize profits (from residential and ongoing projects)

2030 Goal

Stabilize Profitability via Capital Recycling

100 Corporate Data

Approx. +¥50.0
billion(vs. FY2019)

Optimize investments and capital returns

Non-Asset Business

Adapt to a Changing Future 	Grow fee business	Create new B2C and B2B2C businesses
Early to Mid-Stage

Mid- to Late Stage

Promote Commercialization in New Domains
ExistingNew	Utilize new technologies, e.g., AI and robotics

Boost Profitability in New Domains

Investment Management Business: Grow assets under management (aim for ¥5.0 trillion by the mid-2020s)
Hotel management business: Expand number of hotel rooms (open 3–4 hotels per year) elect new domains
SIdentify business partners
Implement field trials

 onduct business trials
CAchieve early profits

 cale up businessesSAchieve sizable profit contributions

2030 Goal
Approx. +¥50.0
billion(vs. FY2019)

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Long-Term Management Plan 2030

Commercial Property Business

Office Building
Business

Index

Value Creation Story

Overview of Business Segments
Business Name

17

3 CEO Message

Business Details

Overview

Development and Leasing
Business
Operation and Management
BusinessEngages in the development, leasing, and property management of office buildings inmajor Japanese cities

Retail Property
Business / Outlet
Mall Business

Develops and operates retail properties and PREMIUM OUTLETS®, which boast top-classcustomer-drawing power, nationwide, mainly in the major metropolitan areas

Logistics Facility
Business

Develops, leases, operates, and manages logistics facilities, centered on the LogicrossseriesDomestic Asset

International
Asset

Non-Asset

9 Value Creation Story
10 History of Value Creation
15 Value Creation Model
16 Long-Term Management Plan 2030
19 Marunouchi’s Past, Present, and Future
24 Strategies for Increasing Social Value
26 CFO Message
31 Progress of Long-Term Management Plan 2030

Development Business

Hotel Business
Management BusinessContributes to regional development through involvement in the operation of 10 airports
in Japan

Airport Business

Marunouchi Property
Business

Residential Business

Develops hotels in a wide range of categories and conducts a business that operates
hotels under the Royal Park Hotels brandOperation and Management

Promotes development, leasing, operation, and management focused on office buildingsin the Otemachi, Marunouchi, and Yurakucho areas
Maximizes profits through area-wide development and management

Condominium Sale andLeasing Business
Operation and Management
and Brokerage Businesses

Offers brokerage, management, and other services, in addition to operating a residential
condominium business under “The Parkhouse” brand and a rental apartment businessunder “The Parkhabio” brand

Development and Leasing

International Business

Undertakes office building development and leasing businesses mainly in the UnitedStates and the United Kingdom, as well as projects in various cities in Asia and Oceania

Investment Management
Business

Offers asset management services for investors in Japan, the United States, Europe,and Asia

Architectural Design &Engineering Business

Mitsubishi Jisho Design Inc. undertakes architectural design and engineering services
for construction and civil engineering works

Real Estate Services
Business

Mitsubishi Real Estate Services Co., Ltd. conducts real estate brokerage, condominium
and office building leasing management support, and operates a parking-lot
management businessNew and Other Businesses

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

Innovates business models using digital technology and promotes open innovation
CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Long-Term Management Plan 2030

18

Index

Value Creation Story

Improvement of Earnings Power to Increase Social and Shareholder Value

3 CEO Message

The Mitsubishi Estate Group will accelerate its strategies for increasing social and shareholder value to realize its mission of contributing to society through urban development by capitalizing

9 Value Creation Storyon the Group’s strengths in each of its businesses to improve earnings power.
10 History of Value Creation
15 Value Creation Model

Creation of a Truly Meaningful Society through Urban Development

16 Long-Term Management Plan 2030
19 Marunouchi’s Past, Present, and Future

Aiming to Increase Social and Shareholder Value by Maintaining Cycle as Ecosystem Engineers

24 Strategies for Increasing Social Value
26 CFO Message

Lasting
Business
Model

2030 Targets

Four Key Themes ursue tangible and intangible urbanPdevelopment for the next generation
Maintain commitment to reducing
environmental impact
Consider people, empathize with people,
protect peopleCreate and circulate new value

Social Value

Social Issues /New Demand

Be theEcosystem
Engineers

31 Progress of Long-Term Management Plan 2030

2030 Goals

Shareholder
Value

ROA

ROE

5%

10%

35 Business Review

200

55 Sustainability (ESG) Section¥

EPS

76 Corporate Governance
Earnings
Power

98 Financial Section
100 Corporate Data

Social Issues /New Demand

Climate Change / GHG Emissions

Business Costs

Low Birthrate and Aging Population

Maintenance and Enhancement of Urban Functions

Innovation

Lifestyles

Existing Businesses
Otemachi, Marunouchi, andYurakucho (Daimaruyu)

Residential

Capital Recycling

Overseas Assets

etc.

New Businesses
Fee Business

New Assets

Office Business

Daimaruyu
Leasing Business

Earnings Powerin Existing
Businesses

Condominium
Business

Logistics Business

International
Business

Further refine existing businesses
Return to the basics of business in terms of sales, development, and negotiation capabilities.
Offer new value and take on challenges continuously, even in existing businesses

Arena Business

Data Center Business

Hilton Okinawa Miyako
Island Resort

Mitsubishi Estate’s Website

Earnings Powerin NewBusinesses

Take on new challenges for
future generations
Develop further sources of revenue, primarily in businessareas adjacent to existing businesses. Ensure the sustainability of businesses through steady growth

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Marunouchi’s Past, Present, and Future

19

Index

Value Creation Story

Development of Marunouchi for More Than 130 Years

3 CEO Message

The Mitsubishi Estate Group has overseen the development of the Marunouchi area for more than 130 years, amassing unique knowledge and expertise in urban development while evolving

9 Value Creation Story

the area into Japan’s preeminent business center. Today, we are actively promoting Marunouchi NEXT Stage with the aim of establishing Marunouchi as a “co-creation platform for innovation
10 History of Value Creation

through companies, employees, and visitors.”

15 Value Creation Model
16 Long-Term Management Plan 2030

1890 Starting from Scratch

1890s First Phase of Development

1960s Second Phase of Development

Purchase of Marunouchi land

Evolution into a full-scale business center

In 1890, Yanosuke Iwasaki, the first president of Mitsubishi Company,
purchased Marunouchi land at the request of the Meiji government ofJapan. The area, which was an expanse of flat, grassy fields, became
known as Mitsubishigahara, or Mitsubishi Fields.

The construction of the area’s first modern office building,
Mitsubishi Ichigokan, was completed in 1894. Thereafter, threestory redbrick office buildings began springing up, resulting in a
townscape reminiscent of London’s business center, which led tothe area becoming known as the “London Block.”

Rising demand for office space due to rapid
economic growth

19 Marunouchi’s Past, Present, and Future
24 Strategies for Increasing Social Value
26 CFO Message

As Japan entered an era of high economic growth, demand for
office space rose sharply. To address this demand, Mitsubishi
Estate began rebuilding the area with largescale office buildings to provide an abundant
supply of large-capacity office space under
the Marunouchi remodeling plan of 1959.

31 Progress of Long-Term Management Plan 2030

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial Section
100 Corporate Data

1995–2019 Third Phase of Development

2020– Marunouchi NEXT Stage

Strengthening of the international competitiveness of Marunouchi

Creation of new value

Following the announcement of the reconstruction of the former Marunouchi Building in 1995, the Company transformed the Marunouchi area—which had up until then been purely a business district—into a space with a vibrantand bustling atmosphere, based on the concept of creating the world’s most interaction-inspiring neighborhood.
Aiming to make that concept
broader and more comprehensive,
Marunouchi Bldg.
Marunouchi Park Building andMarunouchi Nijubashi Bldg.
Mitsubishi Ichigokan
we expanded our urban development
efforts to Otemachi and Yurakucho
from 2008, in order to strengthen theinternational competitiveness ofMarunouchi by establishing a financial business center and a greater
infrastructure. Furthermore, we
worked to give the area a fresh
appeal based on a new sense ofvalues by adding new functionality,
such as the development of culturaland artistic functions, including a
museum, and the promotion of environment-friendly initiatives.

Positioning urban development from 2020 onward as part of Marunouchi NEXT Stage, we will promote urban
development that generates improvements in people’s quality of life and which spurs the discovery of and solutions to social issues through the emergence of innovation and strengthening of our digital foundations. Throughthe promotion of such urban development and area management, we
Tokiwabashi
Otemachi Gate Building(Uchikanda 1-chome ProjectTower
aim to transform Marunouchi into a[tentative name])“co-creation platform for innovation
through companies, employees, andvisitors.”
Under Marunouchi NEXT Stage, wewill redevelop the Marunouchi area
by investing between approximately¥600.0 billion and ¥700.0 billion (ourshare of the total investment) by
2030 in reconstruction projects andarea management centered on
Tokiwabashi and Yurakucho.

Photo by Kawasumi and Kenji Kobayashi Photo Studio

Torch Tower

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Marunouchi’s Past, Present, and Future

20

Index

Value Creation Story

Marunouchi: Continuously Evolving with the Times*

1

3 CEO Message
9 Value Creation Story

Comparison of Area Sizes Rental Revenue from Buildings in Marunouchi(Non-Consolidated) City of London

292 haApprox. 200%
Expansion

86 ha

Hong Kong Central

181 haService providers

76 ha

New York Midtown

178 ha255,773 million

Toranomon

¥

58 ha

Tokyo Marunouchi

120 haBreakdown of Office Tenants in Marunouchi(Contracted Floor Space) 

75 ha

Number of Companies 
Approx.

Number of Office Workers 
Approx.

5,000*

2

350,000

Finance
22.2%

Trading
10.4%

March 2000

Information
6.3%

Approx. 835
thousand m2*2
Professional Firms
4.4%

Railway Lines Servicing the Area 

Finance
23.4%

Trading
9.5%

Approx. 180%
GrowthManufacturing
42.5%

March 2024

1,478

3

Number of Companies Listed on the Prime Marketof the Tokyo Stock Exchange*4 

103
76

19 Marunouchi’s Past, Present, and Future
24 Strategies for Increasing Social Value
26 CFO Message

19

New York

16

Nihonbashi

31

Toranomon

13

ShibuyaMarunouchi Market (Marunouchi
Building)

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial Section
100 Corporate Data

Number of Environment-Friendly Buildings Marunouchi

34

29

16 Long-Term Management Plan 2030

Manufacturing
22.4%(Companies)

DBJ Green BuildingCertified Buildings

24

Buildings Using Renewable Energy

35

3
0

Mitsubishi Estate’s Website
2

ShinagawaShinagawaMarunouchi Illumination

Number of Companies Listed on Fortune
Global 500*5 

LondonApprox.

Information
9.0%(Companies)
Marunouchi

7,400,000
Marunouchi Market (Gyoko-dori Ave.)
Approx.166,300
Marunouchi Market (Marunouchi Building) Approx.10,200
Marunouchi Illumination

Approx.
thousand m2

Professional Firms
17.5%

13 stations, 28 lines*

Toranomon

Visitor Numbers for Major Events 

Others18.2%
Others14.2%

3

15 Value Creation Model

31 Progress of Long-Term Management Plan 2030

49 ha

Nihonbashi

Medical service providers

10 History of Value Creation

ShinagawaSingapore Downtown Core

ShibuyaShops

FY2023

Nihonbashi

562
321
357
68

Restaurants¥125,405 million

FY2001

Shibuya

Number of Stores 

0*1 Source: Mitsubishi Estate Co., Ltd.
*2 Calculated by The Council for Area Development and Management of Otemachi, Marunouchi, and Yurakucho based on the 2021 Economic Census for Business Activity*3 Includes the same station sometimes servicing multiple lines*4 Basic Information on Listed Companies, February 2023 edition, vol. 2*5 Fortune Global 500, 2022

OTEMACHI FINANCIAL CITY
GRAND CUBECONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

21

Marunouchi’s Past, Present, and Future

Index

Value Creation Story

Marunouchi Area Map

3 CEO Message

Yurakucho

Marunouchi

Otemachi

9 Value Creation Story
10 History of Value Creation
900 m

N

15 Value Creation Model

Kokyo (Imperial Palace) Gaien National Garden
Palace HotelTokyo

Otemon Tower •ENEOS Bldg.

PalaceBldg.

MITSUI & CO. Building

OtemachiPark Bldg.

uc

Yurakucho Ekimae Bldg.
(ITOCiA)(Owned by a
Mitsubishi Estate
consolidated subsidiary)

Marunouchi Naka-dori Ave.

Marunouchi Park Bldg.

Marunouchi
2-chome Bldg.

Mitsubishi Ichigokan
MuseumMitsubishi Bldg.

(Planned completion in FY2028)

Shin-Nisseki
Bldg.

Mizuho Marunouchi
Marunouchi Terrace
Tower

St
at

ion

Otemachi
Bldg.

Otemachi Naka-dori Ave.

Marunouchi Naka-dori Ave.

Marunouchi
Eiraku Bldg.

Otemachi Tower

Tokyo Station, Marunouchi Line

Daimyo-koji Ave.

HOSHINOYA Tokyo
Otemachi Naka

-dori Ave.

OTEMACHI FINANCIAL CITY
North Tower
South Tower

Tokyo
SankeiBldg.

Otemachi Station, Marunouchi

ad e2Otemachi Gate Building(Uchikanda 1-chome Project[tentative name])(Planned completion in 2025)

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial SectionLine

NTT Communications
Otemachi Bldg.

Yomiuri Kaikan
BIC Cameraho

Yomiuri
Shimbun
Office Bldg.

Otemachi First SquareShin-Marunouchi
Bldg.

Marunouchi Bldg.

Shin-Tokyo Bldg.

Ginkokaikan

The Industry Clubof Japan and
Mitsubishi UFJ
Trust andBanking Bldg.

OTEMACHIFINANCIAL CITY
GRAND CUBE

KDDI
Otemachi Bldg.

on LineTokio Marine Nichido
Headquarters Building
Renovation

Yusen Bldg.

Marunouchi 1st St.

Mitsubishi
Corp.
Head Office

Gyoko-dori Ave.

Marunouchi
Naka-dori Bldg.

31 Progress of Long-Term Management Plan 2030

Chiyoda Line

SMBC East Tower

O te mac hi Rive rsid e Pro me n

Otemachi Station,
Marunouchi 2nd St.

Marunouchi 3rd St.

Babasaki-dori Ave.

Shin-Kokusai
Bldg.

Meiji Yasuda Seimei Bldg.

Marunouchi
Mitsui Bldg.

Otemachi Station, Tozai Lineak

Yurakucho
Center Building(Yurakucho Marion)

ShinYurakucho
Bldg.

Meiji Seimei Kan
Bldg.

Marunouchi
Nijubashi Bldg.

Marunouchi Center Bldg.
MUFG Bank
Head Office

Tokyo International Forum

Nihon Seimei
Marunouchi Bldg.
JP TOWER

Tokyo Station, JR Keiyo Line

Marunouchi 7th St.

Hib

Yu
r

Yurakucho
Bldg.

Marunouchi 6th St.

3

Yurakucho
Denki Bldg.

Imperial
Theater

Kokusai Bldg.

SanshiKaikan Bldg.

26 CFO Message

Nijubashimae Station, Chiyoda Line

KishimotoBldg.

24 Strategies for Increasing Social Value

Keidanren
KaikanOtemachi Station, Toei Mita Line

Hibiya-dori Ave.

4
Marunouchi 4th St.

Dai-ichi Life
Hibiya First

Yurakucho Station, Yurakucho Line

e
Lin
iya
Hib

The
PeninsulaTokyo

Togyo KaikanNippon Broadcasting
System Bldg.

iya

Sta
ti

on,

Toho Hibiya
Promenade
Building

Marunouchi
Police Sta.
HibiyaSankei Bldg.

Marunouchi 5th St.

HibiyaMarine Bldg.

Nippon Life
Marunouchi
Garden Tower

ion, Hanzom

Hibiya Station, Toei Mita Line

HibiyaWadakura-bori
Moat

Babasaki-bori Moat

19 Marunouchi’s Past, Present, and Future

JA Bldg.
Otemachi One Tower

Ote Center Bldg.

Otemachi Stat

Hibiya-bori Moat

Hib
Ch iya S
iyo tada tio
Lin n,
Tokyo Midtowne

SMBC
Head Office
Bldg.

16 Long-Term Management Plan 2030

NIKKEI Bldg.

Tokyo Kotsu
Kaikan Bldg.
(Owned by a
Mitsubishi Estate
consolidated
subsidiary)

Marunouchi
South Exit

Tokyo Bldg.

Marunouchi
Central Exit

Marunouchi
North Exit

Shin-Marunouchi
Center Bldg.

Marunouchi Oazo

Marunouchi Marunouchi
Hotel
Kitaguchi Bldg.

Otemachi Nomura Bldg.

Chiyoda Ward
Sports Center
Otemachi PLACE
WEST TOWER

100 Corporate Data

NTT Communications
Otemachi Bldg. (Annex)
Urbannet
Otemachi Bldg.

Shin-Otemachi
Bldg.
NTT
Marunouchi
Bldg.

NTT Data
Otemachi Bldg.

Otemachi PLACE
EAST TOWER

Yurakucho Infos
Marunouchi Police Sta.

Tokyo Station
TOKYO TORCH (Tokyo Tokiwabashi Project)

Pacific Century Place
Marunouchi Bldg.

Marunouchi
Central Bldg.

GranTokyo
South Tower

Eitai-dori Ave.

Sapia Tower

1

Zenigamecho
Bldg.

TOKIWA BRIDGE

Torch Tower(Planned completion in 2028)

Completion before 2002
Redevelopment completed
GranTokyo
North Tower

Marunouchi
Trust Tower Main

Marunouchi
Trust Tower North

Tekko Bldg.

Redevelopment scheduled

Tokiwabashi Tower

Mitsubishi Estate’s Website
1,900 mCONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Marunouchi’s Past, Present, and Future

22

Index

Value Creation Story

Promoting Marunouchi NEXT Stage

3 CEO Message

Positioning urban development from 2020 onward as part of Marunouchi NEXT Stage, we will continue to promote new, forward-looking

9 Value Creation Story

urban development and area management by embarking on the redevelopment of the Tokiwabashi and Yurakucho areas, in order to fur10 History of Value Creation

ther evolve Marunouchi into an appealing and vibrant area.

2
1

TOKYO TORCH(Tokyo Tokiwabashi Project)

Tokiwabashi Tower
Property Name

Torch Tower

Location

Zenigame-cho Building

16 Long-Term Management Plan 2030

Otemachi Gate Building(Uchikanda 1-chome Project[tentative name])
This project will establish business and industrial support
facilities for the agrifood (a portmanteau of “agriculture” and“food”) sector to accelerate innovation through cooperation
among companies.
Site Area
5,100m2
Total Floor Area
85,200m2
Building Size
26 aboveground floors /3 belowground floors
Completion
January 2026 (planned)

Chiyoda and Chuo, Tokyo

Site Area
Total Floor Area

Tower CTOKYO TORCH (Tokyo Tokiwabashi Project)

146,000m

553,000m

2

Floor Area Ratio

19 Marunouchi’s Past, Present, and Future
24 Strategies for Increasing Social Value
26 CFO Message
31 Progress of Long-Term Management Plan 2030

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance

31,400m2
2

15 Value Creation Model

20,000m

30,000m

2

2

98 Financial Section

1,860%

Floors(aboveground /belowground)

38 floors / 5 floors

62 floors / 4 floors

4 belowground floors

9 floors / 3 floors

Construction
LaunchJanuary 2018

September 2023

January 2018

April 2017

Completion

June 2021

End of March 2028
(planned)

End of March 2028
(planned)

March 2022

Project Overview
61-RF Observatory

3

100 Corporate Data

Yurakucho Building and Shin-Yurakucho
Building Redevelopment Project
Mitsubishi Estate has decided to redevelop the Yurakucho
Building and Shin-Yurakucho Building in front of JR Yurakucho
Station, a prime location, as the first phase of theredevelopment of the Yurakucho area.

59-60F Rental Housing
Torch Tower

53-58F Hotel

7-52F Offices
Tokiwabashi
Tower

3-6F Grand Hall
B1-6F Retail / Park

Tower C
Zenigame-cho Building

4
Kokusai Building and Teigeki Building
Redevelopment Project
Mitsubishi Estate, Toho Co., LTD., and the Idemitsu Museum ofArts have decided to jointly undertake the integrated
redevelopment of the Kokusai Building, which is owned by
Mitsubishi Estate, and the Teigeki Building, which is owned by
Toho and the Idemitsu Museum of Arts.

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Marunouchi’s Past, Present, and Future

23

Index

Value Creation Story

Promoting Marunouchi NEXT Stage

3 CEO Message
9 Value Creation Story

Initiatives for Future Generations

10 History of Value Creation
15 Value Creation Model

Flexible Workspace Business

16 Long-Term Management Plan 2030
19 Marunouchi’s Past, Present, and Future

Offering workspaces designed for all working people

24 Strategies for Increasing Social Value itsubishi Estate offers flexible offices accommodating a diverse array of workstyles
M
to create urban areas with even more comfortable working environments where
people can assemble and interact. As part of these efforts, we established thespecialized Flexible Workspace Planning and Operation Department.

26 CFO Message
31 Progress of Long-Term Management Plan 2030

35 Business Review

 nder the xLINK brand, we operate seven flexible workspace facilities in theU
Marunouchi area, accommodating the wide-ranging needs of companies and a broad
spectrum of workstyles, including through private rooms for two to 20 people andpartially set-up offices.
In February 2023, we acquired Regus Japan Holdings Co., Ltd. With this acquisition,
we captured a market share of the flexible workspace business domain all at once.
Using Regus Japan’s globally expanding platform, we aim to create synergies with
the Marunouchi area, including through office leasing.

55 Sustainability (ESG) Section
Innovative Communities Business (Start-Up Support)

Creating and developing an ecosystem for start-ups
 he Innovative Communities Department oversees the Innovative Communities
T
Business, which operates working facilities serving as bases for various companies,
such as start-ups and non-Japanese companies making forays into Japan, and bases
for collaborations with academia. It also focuses on providing business development
support and support for holding events promoting interactions, among other activities.

76 Corporate Governance
98 Financial Section
100 Corporate Data he Innovative Communities Business aims to help add value to the Marunouchi areaTand enhance Japan’s competitiveness by establishing it as an area with plentiful
opportunities for cooperation and co-creation among companies promoting new
businesses and with academia by supplementing the current lineup of companies in
the Marunouchi area with start-ups and growing Japanese and overseas companies.

Business Support Menu Provision of business development support services
 rrangement and holding of events promoting interactions andA
operation of organizations for facilitating ongoing interactions

Mitsubishi Estate’s Website

Arrangement and implementation of field trials
Investments in and implementation of the Corporate Accelerator Program

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Long-Term Management Plan 2030

24

Index

Value Creation Story

Strategies for Increasing Social Value: Overview of Sustainability (ESG) Initiatives

3 CEO Message

In FY2024, the Mitsubishi Estate Group made a fresh start by revising its key themes related to sustainability and its material issues in light of environmental and social change and the

9 Value Creation Story

increasingly complex demands on companies to pursue sustainability. With the aim of creating a truly meaningful society, as set forth in its basic mission as a company that is needed bygenerations to come, the Group will expedite efforts to address social issues by promoting business responsibly with an eye to future generations to realize both the ongoing growth of the

10 History of Value Creation

Group and the sustainability of society.

15 Value Creation Model
16 Long-Term Management Plan 2030

Mitsubishi Estate Group Sustainability Vision 2050

Two-strategic-driver framework

19 Marunouchi’s Past, Present, and Future

Be the Ecosystem Engineers*

24 Strategies for Increasing Social Value
26 CFO Message

Responsibility to the next generation

Return to basics

Continue to operate a responsible business that we can proudly pass on to thenext generation as a legacy to the future

31 Progress of Long-Term Management Plan 2030

 nhance earnings power (a core competence), the foundational strength of aEreal estate business that can adapt to a changing environment
Ensure asset management in a broad sense

Responsibility to the Earth

35 Business Review
55 Sustainability (ESG) Section

Continue to maintain the health of the global environment for the sustainability ofthe social and business environment

76 Corporate Governance

Responsibility as a leading company
Continue to be a company that is valued and needed by customers, local
communities, and employees

98 Financial Section
100 Corporate Data

Input
Basic Policy

Basic Policy

Continue providing social infrastructure for the next generation

Transform into a highly efficient businessportfolio resilient to changes in market conditions

2030 Goals
Four key themes aimed at mutual sustainabilityof the Group and society

Increasing
Social Value

Synergy ursue tangible and intangible urban development for thePnext generation

Increasing
Shareholder
Value

2030 Goals

ROA

ROE

5%

10%

EPS

200

¥

Maintain commitment to reducing environmental impact
Consider people, empathize with people, protect people

OutputCreate and circulate new value
Mitsubishi Estate’s Website“Creating a truly meaningful society through urban development,” the mission of theGroup, by establishing the sustainability of both the Group growth and society* We aspire to be a corporate group (= engineers) that provides spaces and infrastructure (= ecosystems) where all actors (individuals, corporations, and more) are able to coexist sustainably and thrive together—economically, environmentally, and socially. (Announced February 5, 2020)

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Long-Term Management Plan 2030

25

Index

Value Creation Story

Strategies for Increasing Social Value: Four Key Themes for 2030 Targets

3 CEO Message

In order to 1) clarify the relationship between its businesses and its strategies for increasing social value; 2) promote understanding of the significance of sustainability-oriented management

9 Value Creation Story

within the Group; and 3) align itself with the demands and expectations of shareholders and society, the Mitsubishi Estate Group returned to the question of why it pursues its sustainability
10 History of Value Creation

efforts and revised its key themes related to sustainability.

15 Value Creation Model

Please refer to our website for details.

Process for Identifying Four Key Themes

https://mec.disclosure.site/e/sustainability/key-themes/process/16 Long-Term Management Plan 2030
19 Marunouchi’s Past, Present, and Future

Mapping Out Material Issues

Identifying Four Key Themes

After clarifying social issues, we mapped out those that have a close connection with the Mitsubishi Estate Group on two
axes—one representing the scale of impact on the Group’s growth (finances) and the other representing the scale ofimpact on society (stakeholders)—and assessed the importance of each issue. Issues assessed as having a particularly
significant impact within their respective axis (green areas) were identified as material issues.

The material issues identified were organized into four groups: urban development and services, the global environment,
respect for people, and value creation, and based on the results, the “Sustainability of the Mitsubishi Estate Group andSociety: Four Key Themes” was established.

26 CFO Message

Sustainability of the Mitsubishi Estate Group and Society: Four Key Themes

35 Business Review

The Mitsubishi Estate Group’s Material Issue Matrix
Very highBiodiversity
Waste reduction and circularity
Child labor

Supply chain (environmental)

Forced labor

Occupational health and safety

Rights of indigenous people
Harassment

Impact on the society surrounding the Group

Discrimination

Climate change, greenhouse gas
and embodied carbon reduction
Low birthrate and aging population
Quality of products and services

Urban development and stakeholder
diversity, equity, and inclusion(DE&I) promotion

Customer satisfaction

Urban development and thewellness of people

Maintenance and enhancementof urban functions

Contribution to local communities

Resilience

Urban development andservices

Supply chain (social)

Pursue tangible and intangible urban
development for the next generation

Classification of Material Issues
Maintenance and enhancement of urban functions

Customer satisfaction

Quality of products and services

Resilience

Contribution to local communities

Lifestyle change

Increase in business costs (materials, fuel costs, labor shortages, etc.)

Climate change, greenhouse gas and embodied carbon reduction

The global
environment

31 Progress of Long-Term Management Plan 2030

55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial Section
100 Corporate Data

Waste reduction and circularity

Maintain commitment to reducing
environmental impact

Supply chain (environmental)
Biodiversity

Innovation
Partnerships
Poverty issues

Unequal society

Policy interest rate trends

Increase in business costs (materials, fuelcosts, labor shortages, etc.)
Water

Marketing

Education

Conflicts

Low birthrate and aging population

Lifestyle change

Respect forpeopleValuecreation

Freedom of association

Impact on the Group's growth

High

Supply chain (social)

Urban development and stakeholder diversity, equity,and inclusion (DE&I) promotion

Consider people, empathize withpeople, protect people

Urban development and the wellness of people
Occupational health and safety

Freedom of expression
High

24 Strategies for Increasing Social ValueBusiness and human rights*

Innovation

Create and circulate new valuePartnerships

Mitsubishi Estate’s Website

Very high* Encompasses issues including child labor, forced labor, harassment, discrimination, rights of indigenous people

Foundation of management with two strategic drivers
Human resources

Corporate governanceCompliance

CONTENTS
Capital policyE

Environment

S

SocialG

GovernanceMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

CFO Message

26

Index

Value Creation Story
3 CEO Message
9 Value Creation Story

The Mitsubishi Estate Group Will Offer Value a Step
Ahead of the Times by Responding Flexibly to
Changes in Society to Steadily Promote Long-Term
Management Plan 2030 Review

10 History of Value Creation
15 Value Creation Model
16 Long-Term Management Plan 2030
19 Marunouchi’s Past, Present, and Future
24 Strategies for Increasing Social Value
26 CFO Message
31 Progress of Long-Term Management Plan 2030

FY2023 Performance and FY2024 Forecast
The Mitsubishi Estate Group Posts Record-High Net Income for the Third
Consecutive Year and Forecasts Operating Profit of ¥300.0 Billion in FY2024,

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governancea First for the Group98 Financial Section

In FY2023, the fiscal year ended March 31, 2024, the Mitsubishi Estate Group
posted operating revenue of ¥1.50 trillion (up ¥126.8 billion year on year), oper-

100 Corporate Data

ating profit of ¥278.6 billion (down ¥18.0 billion), and net income of ¥168.4 billion(up ¥3.0 billion), achieving a record high for net income for the third consecutive
year. These results were largely driven by the solid performances of hotels andretail properties, including outlet malls, condominium sales, and fee businesses,
such as architectural design and engineering and real estate brokerage.
In FY2024, the Group expects to achieve operating profit of ¥300.0 billion for the
first time. Under the progressive dividend policy of increasing the dividend by

Naoki Umeda
Senior Executive Officer¥3 per share every fiscal year, in principle, announced in Long-Term Management
Plan 2030 Review, we plan to issue record-high dividends of ¥43 per share.
From FY2024, the Group expects to realize continuous capital gains in Japanand overseas as it enters a phase of selling the properties it has developed
globally through selective investments. Although the demolition of several exist-

Mitsubishi Estate’s Website

ing buildings due to redevelopment in the Marunouchi area will adversely affectrental profit until new buildings are completed, we hope these capital gains willmore than cover the impact, resulting in an increase in operating profit. In

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

CFO Message

27

Index

Value Creation Story
3 CEO Message

addition, we expect the pace of profit growth to accelerate as rents and theOverseas, real estate investment markets in certain regions are slightly slug-

earnings power of operational assets are likely to increase on the back of risinggish amid rising interest rates due to monetary tightening policies in many

inflation in Japan.

countries, notably the United States. Viewing these conditions as an opportunity,

10 History of Value Creation

the Group is taking advantage of excellent investment opportunities to make

15 Value Creation Modelselective investments aimed at future profit growth. With interest rates expected

16 Long-Term Management Plan 2030

to fall at some point in the future, we will use the portfolio we have developed

19 Marunouchi’s Past, Present, and Futureand realize capital gains on the recovery of overseas investment by selling at

24 Strategies for Increasing Social Value

the optimum time, taking into account market conditions.

26 CFO Message

Market Environment
Further Profit Growth by Responding Appropriately to Market Change

31 Progress of Long-Term Management Plan 2030

The real estate market environment is changing at breakneck speed due to factors such as the increased activity among people following the end of the COVID19 pandemic, signs of inflation in Japan, yen depreciation, rising interest rates

Capital Policies

overseas, and a slump in the real estate market in China.

(Investments and Shareholder Returns)

In Japan, energy and food costs are rising and real inflationary pressures are
emerging for the first time in almost three decades. In the real estate business,rising construction costs due to skyrocketing material prices and labor costs are

9 Value Creation Story

A More Predictable Shareholder Return Policy

becoming a major issue in new development projects. On the other hand, given

In Long-Term Management Plan 2030, the Mitsubishi Estate Group adopted

the upward trend in wages, we believe that a virtuous cycle of inflation is under-

return on assets (ROA), return on equity (ROE), and earnings per share (EPS) as

way, shifting from cost-push inflation to demand-driven inflation.

key performance indicator targets. Control of the balance sheet, particularly ofGiven this trend, we are actively identifying opportunities to raise office rents inequity, will be critical to achieving the targets for ROE and EPS. During its

the office business, which is a core business of the Mitsubishi Estate Group. The

FY2023 results presentation, the Group announced updates to its shareholder

Group aims to achieve long-term profit growth by offering high-quality officereturn policy for achieving its KPIs as part of Long-Term Management Plan 2030

space, particularly in the Marunouchi area. In recent years, a growing number ofReview, a review of the long-term management plan—specifically, the introduc-companies have been seeking better locations and amenities to secure humantion of a progressive dividend policy of a ¥3 per share increase every fiscal year

resources. Meanwhile, in the wake of the pandemic, offices have become notand continuous and flexible share buybacks. These updates are intended toonly places for operations but also places for communication, including for theaddress many calls from shareholders and investors for a more predictable

fostering of a corporate culture. While companies used to view the office as ashareholder return policy.

cost, we sense that many are now recognizing it as an investment. The

The Mitsubishi Estate Group continues to enjoy stable cash flows from the

Mitsubishi Estate Group aims to capitalize on this tailwind to create businessoffice buildings in Marunouchi and Manhattan, New York, as well as from large-

opportunities.

scale developments such as Tokyo Torch Tower and 8 Bishopsgate in London. In

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

addition, the Group expects to achieve profit growth thanks to capital gains fromits ongoing developments in Japan and overseas. Although capital gains
CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

CFO Message

28

Index

Value Creation Story
3 CEO Message

fluctuate each fiscal year due to market conditions in various countries, thealso plan to conduct buybacks on a similar scale in both FY2025 and FY2026. In

Group decided to provide stable shareholder returns by increasing dividends

addition, we have left room to flexibly conduct additional buybacks based on theunder its progressive dividend policy.

future performance of our share price and cash flow. We plan to cancel the

10 History of Value Creation

Over the past five years, the Mitsubishi Estate Group’s ¥230.0 billion of share

shares from buybacks immediately except for a portion to be used for future

15 Value Creation Modelbuybacks have reduced the number of its shares and its total equity, the denom-

purposes, such as the granting of restricted stock compensation.

16 Long-Term Management Plan 2030

inator of both EPS and ROE, thereby contributing significantly to EPS growth, inAt the same time, the Mitsubishi Estate Group remains strongly focused on

19 Marunouchi’s Past, Present, and Future

particular. However, in response to shareholder feedback that its returns wereretaining its current credit ratings and maintaining its financial soundness. For

24 Strategies for Increasing Social Value

not predictable, the Group decided to introduce continuous and flexible share

this reason, the Group intends to use the proceeds from the sale of cross-

26 CFO Message

buybacks for a period of several years to enhance stability and predictability.

shareholdings and low-yield assets to finance shareholder returns.

31 Progress of Long-Term Management Plan 2030

Specifically, we have approved share buybacks of ¥50.0 billion for FY2024. We

9 Value Creation Story

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance

New Shareholder Return Policy Unveiled in May 2024

98 Financial Section

Progressive Dividends Increasing ¥3 Per Share Every Year, in Principle

100 Corporate Data

Shareholder Returns (Dividends)

Business Strengths

Shareholder Value

Reflect prospects for continuous improvement in performance to implement progressive dividends
increasing ¥3 per share every year, in principle (¥60 or more in FY2030)(Yen)

Stable rental cash flow from Marunouchi,
outlet malls, and flagship buildings in
Europe and the U.S.

70

50

Further growth of rental cash flow
through the completion of Tokyo Torch
Tower, 8 Bishopsgate, etc.

¥60 or more

60

Dividends increasing ¥3 per share every year

40
33
30

30

36

38

40

43

31

Continuous and stableshareholder returns
Improved predictability

26
20

Maximize profits on sales by carefully
monitoring the market

Mitsubishi Estate’s Website
10
0

18/3 19/3 20/3 21/3 22/3 23/3 24/3 25/3 26/3 27/3 28/3 29/3 30/3 31/3
Dividends per share(Forecast)

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

CFO Message

29

Index

Value Creation Story
3 CEO Message

Continuous Share Buybacks

9 Value Creation Story

Business Strengths and Management Strategies

Shareholder Returns (Share Buybacks)

Shareholder Value

Share buybacks of ¥50.0 billion approved in FY2024
High-level capital gains
Maximize profits on sales by carefully
monitoring the market

10 History of Value Creation
15 Value Creation Model
16 Long-Term Management Plan 2030

Buybacks of ¥50.0 billion per year planned for FY2025 and FY2026

Additional buybacks to be considered depending onshare price, cash flow, etc.

19 Marunouchi’s Past, Present, and Future
24 Strategies for Increasing Social Value
26 CFO Message

Consider additional
buybacks flexibly

Strategic recovery, including of
Marunouchi assets

Enhance stability and predictability

Cancel shares after buybacks
Annual base of¥50.0 billion in buybacks

Sale of cross-shareholdings, etc.

31 Progress of Long-Term Management Plan 2030

Flexible additional returns

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance

FY2024FY202598 Financial Section

FY2026

100 Corporate Data

Progress of KPIs
Progressing toward the Achievement of Long-Term Management Plan 2030’s
KPI Targets

Group aims to achieve the target of ¥350.0 billion much earlier than most people expect.
Turning to various other KPIs, we achieved EPS of ¥131.96 in FY2023 and expect EPS togrow to ¥138.0 in FY2024, supported by steady profit growth and the effect of the reduced
share count from ongoing share buybacks. The probability of achieving our EPS target is

The Mitsubishi Estate Group adopted the efficiency indicators of ROA of 5%, ROE of 10%,increasing owing to the growth strategies and capital policies outlined in Long-Termand EPS of ¥200.0 as KPIs in Long-Term Management Plan 2030. In terms of profit

Management Plan 2030 Review.

growth, on which the KPIs are premised, the outlook for achieving profit growth is positive,

Although some shareholders and investors have commented that ROA and ROE growthreflecting in part the favorable performance of operational assets due to the post-COVID-19

have been sluggish, any sluggishness is largely attributable to the fact that the Group

recovery, solid office rental income, and capital gains on properties transitioning from thehas been in a phase of proactive investment for future profit growth, and that its balance

investment to the divestment phase in Japan and overseas. Regarding the ¥350.0 billion

sheet has been expanded in accounting terms because the weaker yen pushed up theto ¥400.0 billion operating profit targets set out in Long-Term Management Plan 2030, thevalue of our overseas assets. Along with strong profit growth going forward, we will
make progress toward our targets by managing equity through shareholder returns and

Mitsubishi Estate’s Website

other measures.
CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

CFO Message

30

Index

Value Creation Story
3 CEO Message

Strategies for Increasing Social Value
Integrating Increases in Both Social Value and Shareholder Value

In addition, we have proactively applied ESG finance in our financing activities,

9 Value Creation Story

raising ¥236.5 billion to date through the issuance of sustainability-linked bonds

10 History of Value Creationand the securing of sustainability-linked loans. We have also leveraged green

15 Value Creation Model

The Mitsubishi Estate Group seeks to realize its mission and achieve sustainablefinance in the development of projects in Japan and overseas, such as the Tokyo

16 Long-Term Management Plan 2030

growth by increasing both social value and shareholder value. Corporate sus-

Torch Project in Japan and Parkline Place in Sydney, Australia, and have gained

19 Marunouchi’s Past, Present, and Future

tainability and social sustainability are inseparable. As a leading company, therecognition for our sustainability initiatives in new projects.

24 Strategies for Increasing Social Value

Group must promote its business activities responsibly for the sake of future

26 CFO Message

generations and the planet. With this in mind, the Group established “Be the
Ecosystem Engineers”—set down in Sustainability Vision 2050—as a fundamental
policy to be emphasized in its business activities under Long-Term Management
Plan 2030 Review. Under this policy, the Group endeavors to integrate sustainability into its core business of urban development.

Commitment to Long-Term Management Plan 2030
Staying One Step Ahead to Provide Value by Leveraging Our Strengths
The Mitsubishi Estate Group has engaged in urban development for more than
130 years. Although the unexpected has occurred frequently during that time,
including Japan’s post-war high-growth period, the collapse of its bubble econ-

31 Progress of Long-Term Management Plan 2030

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial Section

omy, and the global financial crisis, the Group has consistently provided value
with a focus on the future by anticipating the needs of the times through urban

100 Corporate Datadevelopment.
The uncertain global situation, including the pandemic and the crisis in
Ukraine, as well as the rapid rise in commodity prices and interest rates were
not anticipated when Long-Term Management Plan 2030 was formulated. In theface of these challenging conditions, we have responded flexibly to the changes
in society while keeping our long-term vision firmly in mind. As well as confronting
these changes in society, we became more confident in our ability to achieve
growth continuously. This led us to announce Long-Term Management Plan
2030 Review to better guide us toward achieving our KPI targets. We are committed to communicating carefully so that our stakeholders can fully appreciate
our strengths in creating value ahead of the curve and our potential for businessgrowth. We look forward to your continued support.

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Progress of Long-Term Management Plan 2030

31

Index

Value Creation Story
3 CEO Message

In FY2023, the Mitsubishi Estate Group recorded business profit of ¥278.9 billion and expects business profit to exceed ¥300.0 billion for the first time in FY2024, a record high.
As for key performance indicators (KPIs), return on assets (ROA) was 3.9%, return on equity (ROE) 7.4%, and earnings per share (EPS) ¥131.96. In FY2024, the Group expects to achieve

9 Value Creation Story

record-high EPS for the fourth consecutive year.
10 History of Value Creation
15 Value Creation Model

Changes in Business Profit

Progress of KPIs

(Billions of yen)(%)(Yen)

400

16 Long-Term Management Plan 2030

200

12

137.93Long-Term Management Plan Target (FY2030)

350.0 billion–¥400.0 billion

279.3

300

224.7
9.3

46.1

89.4

35 Business Review

278.9
9

150

8.5
8.1

7.8

51.4

7.6

7.3

55.8

37.9

200

7.9

131.96
7.4

76 Corporate Governance
7.2

98 Financial Section

108.64101.34

96.97

6

5.6

100

100 Corporate Data

5.0

86.78

5.2

55 Sustainability (ESG) Section

137.93116.45 125.54

6.6

24 Strategies for Increasing Social Value

31 Progress of Long-Term Management Plan 2030
10.0

17.7

32.2

240.9
15.7

19.0

Up 4.5% year on year for a fourth consecutive record high

300.3

19 Marunouchi’s Past, Present, and Future

26 CFO Message

EPS ¥

¥

296.9

200

74.00
60.13

239.0
100

201.5

201.6

215.8

52.85

215.2

3

0

3.3

3.3

3.6

3.8

4.0

4.1

4.4
3.8

4.4
3.9

3.9
50

0

-22.4

-24.2

-24.5

-26.6

-29.3

FY2019FY2020

FY2021

FY2022

FY20230

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024
Forecast
FY2024
Forecast

FY2030Target

FY2030TargetDomestic Asset Business
International Asset Business
Non-Asset BusinessEliminations or Corporate
Note: Business profit is calculated as operating profit + equity in earnings of unconsolidated subsidiaries and affiliates.

EPS (right scale)
ROA* (left scale)ROE (left scale)* Since FY2020, ROA has been calculated as business profit ÷ total assets (average of the amount at the beginning and endof the fiscal period).

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Progress of Long-Term Management Plan 2030

32

Index

Value Creation Story
3 CEO Message

Domestic Asset Business

Major Property Sales

9 Value Creation Story egan construction of Torch Tower, the symbolic property of Marunouchi NEXT Stage,B
in September 2023 with the aim of completion in 2028. Due to complete two properties
in Osaka during FY2024 (Osaka Dojimahama Tower and GRAND GREEN OSAKA)
Annual outlet mall sales exceeded ¥400.0 billion in FY2023

FY2023

Strong performance in condominium business centered on properties in central Tokyo apitalized on a stable transaction market in Japan to record capital gains of ¥75.0 billion
C
in FY2023

75.0 billion¥

3rd MINAMI AOYAMA

10 History of Value Creation

Use: Office / Total Floor Area: 14,700 m2


15 Value Creation Model

Toyosu Foresia (partial ownership)

16 Long-Term Management Plan 2030

Use: Office / Total Floor Area: 101,500 m2


19 Marunouchi’s Past, Present, and Future

20 properties, including rental apartments andassisted living residences

24 Strategies for Increasing Social Value

3rd MINAMI AOYAMA

Office Vacancy Rate (as of March 31, 2024)

Marunouchi

2.33%

31 Progress of Long-Term Management Plan 2030

35 Business Review

the ARGYLE aoyama
Nationwide

3.30%

Use: Office / Total Floor Area: 23,100 m2


55 Sustainability (ESG) Section

Logista Logicross Ibaraki Saito (Buildings A and B)

FY2022Major Properties under Development in the Marunouchi Area

Use: Logistics / Total Floor Area: 139,600 m2 (combined
total of A and B)


66.0 billion¥

26 CFO Message

19 properties, including rental apartments andassisted living residences

76 Corporate Governance
98 Financial Section
100 Corporate Data

the ARGYLE aoyama

Otemachi Gate Building(Uchikanda 1-chome
Project [tentative name])

Torch Tower

Total Floor Area: 85,200 m2
Completion: January 2026

Total Floor Area: 553,000 m2
Completion: March 2028

Capital Gains by Asset(Billions of yen)

75

80

66

Recently Completed Properties (Includes Properties Nearing Completion)

23

60

39

40

Osaka Dojimahama Tower

GRAND GREEN OSAKA(Umekita Phase II
Development Project)

Total Floor Area: 67,000 m2
Completion: April 2024

Partial Opening:
September 2024

47
5

20

33

7

10

8

7

8
15

35
24

24
6
3
14
43

Mitsubishi Estate’s Website

28

0FY2019
Offices

Logistics Facilities

FY2020Hotels

FY2021

FY2022

Residential Business (excluding condominiums)

FY2023

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Progress of Long-Term Management Plan 2030

33

Index

Value Creation Story
3 CEO Message

International Asset Business

Major Property Sales nnounced that the profit target (operating profit of ¥90.0 billion) will be achieved aheadAof schedule as the selective investments that have progressed in various regions willsoon begin to yield returns

9 Value Creation Story

32.0 billion, centered on the U.S.

10 History of Value Creation

FY2023 result: ¥15 Value Creation Model evised investment strategy in response to accumulated selective investments, mainlyR
in developed countries and regions such as the U.S., Europe, and Australia, and higherthan-expected profits. Increased the probability of achieving profit targets ahead of scheduleby leveraging the Group’s capabilities.

Eastampton

Stateline 77

16 Long-Term Management Plan 2030

Location:
Use:
Size:
EIRR:

Location:
Use:
Size:
EIRR:

19 Marunouchi’s Past, Present, and Future

New Jersey
Logistics
Approx. 31,000 m2
Over 100%South Carolina
Logistics
Approx. 93,000 m2
Over 30%

24 Strategies for Increasing Social Value
26 CFO Message
31 Progress of Long-Term Management Plan 2030

61.0 billion in various regions, notably Europe

Balance Sheet and Profit & Loss Highlights
Results Over Past Three Years(FY2021–FY2023 Average)

Asia

Aim to Achieve Plan Targets
Ahead of Schedule

U.S.

30%

49%
Operating Profit

65.5 billion¥

Total Assets

1.3 trillion¥
EuropeCentral St. Giles

Hanover

Location:
Use:
Size:
EIRR:

Location:
Use:
Size:
EIRR:

LondonOfficeApprox. 66,000 m2
Over 10%55 Sustainability (ESG) Section
Pennsylvania
Logistics
Approx. 42,100 m2
Approx. 100%

Operating Profit

76 Corporate Governance
98 Financial Section
100 Corporate Data

90.0 billion

Approx. ¥Total Assets

Gains on Property Sales by Region

1.5(Billions of yen)trillion¥
ROA: Approx. 6%

21%

80

61

60

Investment Strategy
40

Region35 Business Review

FY2022 result: ¥Late 2020s

39

Investment Policy

Developed Countries andRegions (U.S., Europe,
Australia, etc.)

Proactive
Investment

	Expand capital recycling assets to ensure continuous capital gains
	Invest proactively in growth regions and new assets
	Earn revenue through hybrid-model investments, mainly in the U.S.

Developing Countries(Mainly in Asia)

Diversified
Investments
Emphasis on
Investment
Efficiency

	Select regions and asset types based on markets and businesspractices	Expand opportunities through partnerships with leading local
businesses

29

28
20

16
12

0

U.S.

2
5

11
12
12

FY2019FY2020EuropeAsia & Oceania

18
FY202132

22

25

FY2022

FY2023

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Progress of Long-Term Management Plan 2030

34

Index

Value Creation Story

Non-Asset Business

3 CEO Message

Financial Strategy
The high level of liabilities is a feature of the real estate industry. For this reason, appropriate
control through financial strategies is essential. In principle, Mitsubishi Estate pursues
long-term fixed-rate, low-interest financing that takes advantage of its creditworthiness,but the Company also secures financing through other optimal methods while monitoringmarket volatility. It maintains scrupulous financial discipline so that it can pursue financing
flexibly according to real estate market conditions. The Company’s financial management
aims to maintain its current credit rating and a net interest-bearing debt to EBITDA ratio(after hybrid debt deductions) of less than 8.0 times.

Hotel Management Business ecorded average daily rate (ADR) and revenue per available room (RevPAR) beyondRthe pre-pandemic level in FY2023 due to increased inbound demand boosted by the
weakening yen rove operational assets targeting consumers alongside the outlet mall business
D(Domestic Asset Business)
Business Performance of Royal Park Hotels

Consolidated Interest-Bearing Debt

(Yen)(%)
100

25,00020,00080

15,00060(Billions of yen)
Lease Liabilities
1.5(As of March 31, 2024)
Bonds
880.5

¥3,138.1 billion

FixedLong-Term

Floating 14.6%

Short-Term 7.4%

0

0

1Q

2Q
3Q
FY2020ADR (left scale)

4Q

1Q

2Q
3Q
FY2021

RevPAR (left scale)

4Q

1Q

2Q
3Q
FY2022

4Q

1Q

2Q
3Q
FY2023

4Q¥

Net Interest-Bearing Debt/EBITDA Ratio
and Debt-Equity (D/E) Ratio(Billions of yen)

Occupancy rate (right scale)2,503.1

Borrowings
2,256

20

I n FY2023, although the businessrecorded an operating loss due inpart to incentive fee adjustments
resulting from a decrease in themarket valuation of investment
funds in the United States, profits
from sources including base fees
remained solid at approximately¥10.0 billion.
AuM grew to ¥5.7 trillion, up ¥300
billion from the end of FY2022. The
business established AuM of ¥10.0
trillion and operating profit of ¥30.0
billion as targets for FY2030.

Europe
450

JRE
1,200

UnitedApprox.
States¥5.7 trillion MJIA
2,550
1,200

6.6
6.9

6.2

2,504.3

Total

Overseas
3,300

7.3
6.6
2,000

24 Strategies for Increasing Social Value
26 CFO Message
31 Progress of Long-Term Management Plan 2030

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governancebillion635.0¥
billion(of which variable rate

7.3 years

100 Corporate Dataaccounts for¥415.4 billion)(Since October 23, 2023)
Long-term debt rating

7.6
7.3

Moody’s

A2

S&P Global

A+

6

6.2

2,645.9
2,862.2
3,150.0
2,346.8
2,488.4
2,720.4
3,008.2

1,000

Japan
2,400

19 Marunouchi’s Past, Present, and Future

9(Billions of yen)
Asia and Oceania
300

16 Long-Term Management Plan 2030

Credit Ratings(Times)3,000

Assets under Management (AuM)

15 Value Creation Model

Foreign Currencies

Credit rating agency

Investment Management
Business

Average Loan Duration(Non-Consolidated)

10 History of Value Creation

98 Financial Section
Japanese Yen

5,000

92.6%

Breakdown of Japanese Yen
and Foreign Currencies(compared with theend of FY2022)

40

Ratio of Short-Term andLong-Term Borrowings

85.4%

Up ¥266.5 billion
10,000

Fixed and Floating
Rates

9 Value Creation Story

3

1.37

1.33

1.31

1.38

1.19

1.17

1.18

1.24

0

FY2022AA-(positive)

Mitsubishi Estate’s Website

0

FY2021Rating and Investment
Information, Inc.
Japan Credit Ratings
Agency, Ltd.

AA+

FY2023 FY2024 (Forecast)

Net interest-bearing debt (left scale)
Net interest-bearing debt (after hybrid debt deductions) (left scale)
Net interest-bearing debt/EBITDA ratio (right scale)
Net interest-bearing debt/EBITDA ratio (after hybrid debt
deductions) (right scale)
D/E ratio (right scale)
D/E ratio (after hybrid debt deductions) (right scale)

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Business Review

35

Index

3 CEO Message
9 Value Creation Story
35 Business Review
36 Business Review
37 Reorganization of Business Groups
38 Commercial Property Business		 39 Office Building Business		 41 Retail Property Business / Outlet Mall Business		 42 Logistics Facility Business		 43 Hotel Business

36

Business Review

37

Reorganization of Business Groups

38

Commercial Property Business45

Residential Business53 Innovation and Business Transformation Group

47

International Business

54	Business Development, Client Relations &Solutions Group

51

Investment Management Business		 44 Airport Business
45 Residential Business47 International Business51 Investment Management Business
52	Architectural Design & Engineering
Business and Real Estate Services Business

55 Sustainability (ESG) Section
76 Corporate Governance52	Architectural Design & Engineering
Business and Real Estate Services Business

98 Financial Section
100 Corporate Data

53

Innovation and Business Transformation Group

54	Business Development, Client Relations &Mitsubishi Estate’s Website

Solutions GroupCONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Business Review

36

Index

Business Review

The Mitsubishi Estate Group operates the Commercial Property Business and various other businesses in Japan and overseas. Under Long-Term Management Plan 2030, we will enhance
our earnings power in each segment through business strategies that leverage our competitive advantages, as well as actively working to establish new businesses and services that pursue

3 CEO Message
9 Value Creation Story

synergies with our established businesses.
35 Business Review
36 Business Review
Fiscal year ended March 31, 2024 (consolidated)

Millions of yen
Operating Revenue

Operating Profit (Loss)

Total Assets

849,771

211,795

4,487,546

3%
5%

		 41 Retail Property Business / Outlet Mall Business		 42 Logistics Facility Business

1%

11%

38 Commercial Property Business		 39 Office Building Business

Commercial Property Business

22%

37 Reorganization of Business Groups

Residential Business

398,827

38,888

908,475

		 43 Hotel Business		 44 Airport Business

17%

45 Residential Business

Operating Profit

International Business278.6 billion

173,770

51,4481,612,125

51 Investment Management BusinessApprox. ¥13%

Investment Management Business

Operating Revenue

13%

58%

Total Assets

7,583.7 billion(1,619)146,78252	Architectural Design & Engineering
Business and Real Estate Services BusinessArchitectural Design & Engineering
Business and Real Estate Services
Business

73,265

9,021

69,031Other Businesses

11,009(1,577)

18,841

54	Business Development, Client Relations &Solutions Group55 Sustainability (ESG) Section

Approx. ¥69%

30,96253 Innovation and Business Transformation Group

1,504.6 billion

Approx. ¥26%

47 International Business

62%

76 Corporate Governance

Eliminations or Corporate(32,918)(29,328)

340,94598 Financial Section
100 Corporate Data

Total

1,504,687

278,627

7,583,748
Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Reorganization of Business Groups

37

Index

Business Review

In accordance with changes in the business environment and other factors, Mitsubishi Estate has reorganized the Commercial Property Business Group, dividing it into the Commercial
Property Business Group and the Marunouchi Property Business Group, to reflect the need to plan and execute strategies dynamically in line with business models and to expedite efforts

3 CEO Message
9 Value Creation Story

toward acquiring new asset types and operational assets. The Commercial Property Business Group will strengthen capital-recycling businesses, including for offices, logistics facilities, andhotels, and bolster competitiveness and profitability during the operational phase of projects. The Marunouchi Property Business Group will accelerate efforts to further differentiate the
Marunouchi area and enhance its profitability.

36 Business Review
Fiscal year ended March 31, 2024 (consolidated)

Previous Segments

Millions of yen
Operating Revenue

Operating Profit (Loss)

Total Assets

499,138

114,730

2,045,822

New Segments

37 Reorganization of Business Groups
38 Commercial Property Business		 39 Office Building Business

Commercial Property Business
Commercial Property Business Group

35 Business Review

		 41 Retail Property Business / Outlet Mall Business		 42 Logistics Facility Business

Commercial Property Business Group

Marunouchi Property Business

381,027

97,082

2,441,724

		 43 Hotel Business		 44 Airport Business

Marunouchi Property Business Group45 Residential BusinessResidential BusinessResidential Business Group

Investment Management Business Group

Architectural Design & Engineering
Business Group

Real Estate Services Business Group

38,888

908,475

47 International Business51 Investment Management BusinessResidential Business GroupInternational Business
International Business Group

398,827

173,770

51,4481,612,12552	Architectural Design & Engineering
Business and Real Estate Services Business53 Innovation and Business Transformation GroupInternational Business Group

Investment Management Business Group

Architectural Design & Engineering
Business Group

Investment Management Business

30,962(1,619)146,782

Architectural Design & Engineering
Business and Real Estate Services
Business

73,265

9,021

69,031Other Businesses

11,00954	Business Development, Client Relations &Solutions Group55 Sustainability (ESG) Section
76 Corporate Governance(1,577)

18,841

98 Financial Section
100 Corporate Data

Real Estate Services Business GroupEliminations or Corporate(63,313)(29,346)

340,945
Mitsubishi Estate’s Website

Total

1,504,687

278,627

7,583,748

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Commercial Property Business
Operating Profit (Results and Forecasts)

Commercial Property
Business Group

250,000

200,000

188,852

211,795

200,000(Billions of yen)
120
100

100,000

80

Marunouchi Property
Business Group

100

97
8

47

Property
Sales

Fees, etc.

in the Commercial Property Business due to a decrease in capital gains,

60

Rents

40
50,000110,000
0

FY2022

FY2023

20

59

Rents

0

FY2024 (Forecast)20
0

FY2023

with the office vacancy rate in Marunouchi at 2.33% (as of FY2023 year-end).
In FY2024, while Mitsubishi Estate forecasts a decline in operating profit

89

Risks

Opportunities nhancement of the appeal of cities in a way that is unique to area development
EIntroduction of the latest technologies and promotion of environment-friendly officebuildings
Expansion in demand stemming from the recovery of inbound tourism
Reduction of labor and improvements in operational efficiency by increasing the useof IT and the Internet of Things (IoT)
Provision of experiential value tailored to diversifying customer needs
Creation of offices offering value unique to in-person environments (office buildings)
Provision of flexible working spaces tailored to a variety of workstyles (officebuildings)
Advantages of being Japan’s leading location for offices in the face of polarizing
office demand (office buildings)
Increasing logistics needs resulting from expansion in e-commerce demand (logistics facilities)

35 Business Review
36 Business Review
37 Reorganization of Business Groups
38 Commercial Property Businessit expects profits from hotels and retail properties to continue to grow. The

		 39 Office Building BusinessCompany also expects operating profit to decline in the Marunouchi business,

		 41 Retail Property Business / Outlet Mall Businessmainly due to a decrease in rental income as a result of property sales and		 42 Logistics Facility Businessclosures for reconstruction.

		 43 Hotel Business

FY2023

		 44 Airport Business
45 Residential Business

Market Environment
 teep rise in the cost of construction materials and increasing utility costs, etc., as aS
result of inflation
Potential decline in consumer demand due to rising pricesDeclining office demand due to the spread of various workstyles (office buildings)
Increasing competition among different areas resulting from the supply of a large
volume of office space (office buildings)
Changing consumer behavior reflecting the spread of e-commerce (retail properties)
Labor shortages due to the turnover of human resources during COVID-19 (hotels)
Intensifying competition for land acquisition due to the entry of new players (logistics
facilities)

9 Value Creation Story

contributed to an increase in profits. Office leasing also performed strongly,

60
40

In FY2023, the strong performance of hotels and retail properties coupledwith capital gains on the sale of 3rd MINAMI AOYAMA and other properties

80

150,000

90,0003 CEO Message(Billions of yen)

114.7
8.7 Fees, etc.

Index

Business Review

Breakdown of Operating Profit(Millions of yen)

38

47 International Business51 Investment Management Business
52	Architectural Design & Engineering
Business and Real Estate Services Business53 Innovation and Business Transformation Group
54	Business Development, Client Relations &Solutions Group

Office Buildings

Retail Properties / Outlet Malls

55 Sustainability (ESG) Section

Engages in the development, leasing, and property management of office buildings in major Japanese cities, with afocus on Marunouchi

Develops retail properties and outlet malls nationwide,
mainly in major metropolitan areas

76 Corporate Governance
98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

Logistics Facilities

Hotels

Airports

Engages in the development,
leasing, and management oflogistics facilities, centered on the
Logicross series

 ngages in the development andEmanagement of hotels in Japan,
centered on the Royal Park Hotels
seriesOperates private airport
management business

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Commercial Property Business

39

Index

Business Review

Office Building Business

3 CEO Message
9 Value Creation Story

Competitive Advantages
	Ownership of about 30 office buildings in the Marunouchi area, a leading business area in Japan with one of theworld’s greatest concentrations of companies.
	Expansion of rental profits through the promotion of stable and continuous redevelopment in the Marunouchi
area.

Vacancy Rates

35 Business Review(%)

36 Business Review

10

37 Reorganization of Business Groups
8

38 Commercial Property Business	Promotion of urban development in major cities throughout Japan by applying development know-how cultivatedover a history of more than 130 years to urban development in a variety of areas.
	Leasing capabilities underpinned by relationships with companies and information networks built through theGroup’s wide-ranging businesses.

6	Relationships with the central and local governments built through public–private cooperation in urban
development.

4	Resilient urban development and area management facilitating cooperation with local communities through areawide development, rather than the construction of individual buildings.

Business Strategies
Marunouchi area	Positioning urban development from 2020 onward as part of Marunouchi NEXT Stage, we will establish a “co-creation
platform for innovation through companies, employees, and visitors” through digital transformation (DX), the spurringof innovation, and field trials using the entire Marunouchi area.
Main office areas in Japan	We will make selective investments in the main office areas of major cities across Japan. Positioning the officebuilding business as a capital-recycling business, we aim to develop real estate with high turnover rates
emphasizing asset efficiency, incorporate high-performance assets into our portfolio, and capture high-level andcontinuous capital gains.
Property management
	We aim to maintain and increase asset value over the long term and capture fee income as a non-asset businessby conducting property management on a Groupwide basis after the completion of properties.

Urban development
and services

The global
environment

In the Marunouchi area, we will prepare for large-scale disaster drills in cooperation with the government,
police, and fire department, as well as for normal precautionary measures, training plans, emergency responseplans, etc. In the event of a major disaster, we will respond to people who have difficulty returning home
and to those who are injured, while maintaining our function as the center of the Japanese economy.
In the development of new properties, we promote zero energy buildings (ZEBs) and obtain environmental
certifications proactively, such as CASBEE and DBJ Green Building Certification, as well as international
certifications, including LEED and WELL Certification. We help reduce environmental impact by developing
buildings that raise energy efficiency while maintaining comfort.

5.47%

		 39 Office Building Business		 41 Retail Property Business / Outlet Mall Business

3.45%

		 42 Logistics Facility Business		 43 Hotel Business		 44 Airport Business

2

2.33%

45 Residential Business47 International Business0

07/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3

52	Architectural Design & Engineering
Business and Real Estate Services Business

Vacancy rates nationwide; all uses in Japan (non-consolidated)
Vacancy rates for offices in Marunouchi (non-consolidated)
Vacancy rates in Tokyo central five wards (market)
Note: The graph was prepared using property data from Miki Shoji Co., Ltd. and Mitsubishi Estate.

(Yen/tsubo-month)

31,03029,471

30,00053 Innovation and Business Transformation Group
54	Business Development, Client Relations &Solutions Group

Average Rents (Non-Consolidated)
35,00051 Investment Management Business

55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial Section

25,000100 Corporate Data

20,00015,00010,000Mitsubishi Estate’s Website
5,000
007/3 08/3 09/3 10/3 11/3 12/3 13/3 14/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3
All uses in Japan

Offices in Japan

Note: The graph was prepared using property data from Mitsubishi Estate.

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Commercial Property Business

40

Index

Business Review

Office Building Business

3 CEO Message
9 Value Creation Story

Pipeline

35 Business Review
Marunouchi Area

Tokyo (Other Than Marunouchi)

Other Than Tokyo

36 Business Review
37 Reorganization of Business Groups

Osaka Dojimahama Tower
Total Floor Area: 67,000 m
Completion: April 2024

2

FY2023

Partial Opening: September 2024

Toyosu 4-2 Development
Project (tentative name)
Otemachi Gate Building(Uchikanda 1-chome Project[tentative name])

FY2024

GRAND GREEN OSAKA(Umekita Phase II)		 44 Airport Business
45 Residential Business47 International Business

The Landmark Nagoya
Sakae (Nishiki 3-25
Development Project[tentative name])

FY2025

Shibuya-ku Dogenzaka
2-chome Project(tentative name)

Total Floor Area: 109,700 m2
Scheduled Completion:
March 2026

51 Investment Management Business

Tenjin 1-7 Project(tentative name)52	Architectural Design & Engineering
Business and Real Estate Services BusinessTotal Floor Area: 74,000 m2
Scheduled Completion:
December 2026

53 Innovation and Business Transformation Group

Total Floor Area: 87,100 m2
Scheduled Completion:
February 2027

76 Corporate GovernanceTotal Floor Area: 553,000 m2
Scheduled Completion: End of March 2028

Yurakucho Area Redevelopment Project54	Business Development, Client Relations &Solutions Group55 Sustainability (ESG) Section

Torch Tower

https://www.youtube.com/watch?v=stqH3DtOJ1M

		 41 Retail Property Business / Outlet Mall Business		 43 Hotel BusinessTotal Floor Area: 85,200 m
Completion: January 2026

Project Movie:
Short movie introducing TOKYO TORCH

		 39 Office Building Business		 42 Logistics Facility BusinessTotal Floor Area: 136,000 m2
Scheduled Completion:
June 2025

2

FY202738 Commercial Property Business

Akasaka 2•6-chome
Development Project(tentative name)
Total Floor Area: 205,800 m2
Scheduled Completion:
FY2028

Kobe Sannomiya
Kumoi Dori 5-chome
Redevelopment Project
Total Floor Area: 98,600 m2
Scheduled Completion: FY2027

98 Financial Section
GRAND GREEN OSAKA(Umekita Phase II)

100 Corporate Data

Completion: FY2027

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Commercial Property Business

41

Index

Business Review

Retail Property Business / Outlet Mall Business

3 CEO Message
9 Value Creation Story

Outlet Mall Business: Operating Revenue,
Operating Profit, and Store Area

35 Business Review

	The top customer-drawing power of PREMIUM OUTLETS®.

(FY2023)36 Business Review

	Information networks and tenant relationships built through wide-ranging Groupbusinesses, including developments in the Marunouchi area.

Operating Revenue 

37 Reorganization of Business Groups	Extensive development and management know-how gained through a portfolio
consisting of three different business formats—namely, urban mixed-use retailproperties, stand-alone retail properties, and PREMIUM OUTLETS®—businesscoverage in Japan stretching beyond Tokyo, all the way from Hokkaido to
Kyushu, and an extensive tenant network.

¥

Competitive Advantages

Operating Profit ¥Store Area 

57,376 million

38 Commercial Property Businessmaruyama class

23,013 million

Area Mapof Main Retail
Properties

373,000m

		 41 Retail Property Business / Outlet Mall Business		 42 Logistics Facility Business

2

SENDAI-IZUMI PREMIUM OUTLETS®
IZUMI PARK TOWN Tapio
FUKAYA-HANAZONO PREMIUM OUTLETS®

	With urban mixed-use retail properties, we aim to enhance convenience througha diverse lineup of stores while attracting shoppers and tourists.

TOKI PREMIUM OUTLETS®
SAIDAIJI GREEN TERRACE

FUKAYA-HANAZONO PREMIUM
OUTLETS®

47 International Business

AMI PREMIUM OUTLETS®

51 Investment Management Business

AQUA CITY ODAIBAMARK IS Minatomirai
GOTEMBA PREMIUM OUTLETS®
MARK IS Shizuoka
RINKU PREMIUM OUTLETS®

Urban development
and services

Value creation

		 44 Airport Business

SANO PREMIUM OUTLETS®

SHISUI PREMIUM OUTLETS®

	With PREMIUM OUTLETS®, we will continue to expand and refurbish existing
facilities and develop new ones to offer visitors unique spaces and meet theirneeds for a fun, one-of-a-kind experience.
We create unique facilities that reflect local characteristics and userneeds in their respective locations to continue in our efforts to evolve
into a deeply cherished presence in communities over the long term.

		 43 Hotel Business

45 Residential BusinessBusiness Strategies

	For stand-alone retail properties, we develop optimal categories based on
detailed analyses, such as location features, local demand characteristics, anddiscussions with tenants.

		 39 Office Building Business

52	Architectural Design & Engineering
Business and Real Estate Services Business53 Innovation and Business Transformation Group
54	Business Development, Client Relations &Solutions Group55 Sustainability (ESG) Section

KOBE-SANDA PREMIUM OUTLETS®

76 Corporate Governance

MARK IS Fukuoka Momochi

MARK IS Minatomirai

TOSU PREMIUM OUTLETS®

GOTEMBA PREMIUM OUTLETS® pursues next-generation urban
development that includes establishing a heliport and launching ahelicopter cruising service for sightseeing in the surrounding area.

98 Financial Section

Outlet Mall Business: Total Assets and ROA(Billions of yen)
17.3
150

12.6

13.6

14.7

16.1

15.0

Mitsubishi Estate’s Website

10.0

100
50

100 Corporate Data

(%)
20.0

200

110.7

121.7

124.6

137.4

148.0

5.0
0

0

20/3

21/3

22/3

23/3

24/3

Total assets (left scale)
ROA (right scale)

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Commercial Property Business

42

Index

Business Review

Logistics Facility Business

3 CEO Message
9 Value Creation Story

Competitive Advantages
	A business platform with a broad range of functions related to logistics facilities,
from land acquisition and development to building operations, ownership, andasset management.
	Tenant relationships and information networks through wide-ranging Groupbusinesses, including developments in the Marunouchi area.

Changes in Gains on Sales

Total Assets
Assets in operation
36% (2 buildings)

15

14¥27.0 billion
8(As of March 31, 2020)

83

Assets under development
64% (8 buildings)

0(As of March 31, 2024)

		 41 Retail Property Business / Outlet Mall Business

FY2018 FY2019 FY2020 FY2021 FY2022 FY2023

		 43 Hotel Business
Assets under development
52% (12 buildings)

Notes: 1. Ratio by value
2. Excluding TRC
3. Total fixed assets and equity investments

	We aim to generate stable capital gains by leveraging our logistics facility
business platform to sell developed properties to Mitsubishi Estate Logistics
REIT Investment Corporation, which is managed by Mitsubishi Jisho Investment
Advisors, Inc., and other parties.

		 44 Airport Business
45 Residential Business47 International Business51 Investment Management Business
52	Architectural Design & Engineering
Business and Real Estate Services Business53 Innovation and Business Transformation Group	We intend to generate synergies Groupwide by sharing the information networks
and management know-how acquired by TRC, which has been involved in logistics facility business operations for over 50 years.

Respect for people		 39 Office Building Business		 42 Logistics Facility BusinessBusiness Strategies

The logistics facility business offers comfortable environments forfacility workers by improving communal areas with kiosks, rental
meeting rooms, shower rooms, laundry rooms, and other amenities,
and establishing bicycle-sharing stations, thereby contributing to thepromotion of well-being for tenant companies.

174.0 billion

¥

7

4

The global
environment

36 Business Review

38 Commercial Property Business
10

5

Logicross Zama Komatsubara has installed solar power generationequipment on its rooftop and employs an in-house consumption scheme
power purchase agreement (PPA) model. The facility became Mitsubishi
Estate’s first to receive Zero Energy Building (ZEB) certification.

35 Business Review

37 Reorganization of Business Groups	Management know-how and experience gained through Tokyo Ryutsu Center Inc.
(TRC) and its competitiveness underpinned by being based in Heiwajima, a location
providing excellent access to central Tokyo and Haneda Airport.

	We intend to make acquisitions of land and undertake leasing operations bymaking use of our multiple information networks and tenant relationships.

Assets in operation
48% (4 buildings)(Billions of yen)54	Business Development, Client Relations &Solutions Group
Logicross Zama

Logicross Sagamihara

55 Sustainability (ESG) Section
76 Corporate GovernanceKyoto Joyo Core Logistics Facility (Tentative Name)
The Kyoto Joyo Core Logistics Facility (tentative name) isscheduled to be developed as Japan’s first logistics facility toaccommodate next-generation mobility through the establishment of a dedicated ramp connected directly to an expressway
interchange.
As the logistics industry becomes an increasingly importantpart of social infrastructure due to the expansion of e-commerceand other factors, the government and other bodies are taking
the initiative in adopting new logistics systems that utilize nextgeneration mobility, such as fully automated trucks and driverless follower vehicle platoons, to address social issues
including labor shortages.

98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Commercial Property Business

43

Index

Business Review

Hotel Business

3 CEO Message
9 Value Creation Story

Competitive Advantages
	Leveraging our development expertise and the tenant relationships
we have built by handling diverse real estate assets as a comprehensive developer in order to acquire sites for hotels and promote
hotel development.
	Applying more than 30 years of hotel management experience with
the Royal Park Hotels brand to expand our networks of full-service
hotels and accommodation-oriented, limited-service hotels.

35 Business Review
Management
Business

Development
Business*

37 Reorganization of Business Groups
38 Commercial Property Business

Number of Rooms at Royal Park Hotels(Rooms)
6,000

4,916

Business Strategies
	We focus on the development of hotels under the Royal Park Hotels
brand on sites we have acquired ourselves while actively looking tolease properties to other operators and generate capital gains
through the sale of properties after holding them for a certain
period of time.
	With the Royal Park Hotels brand, we aim to steadily increase operating profit by improving the operating profit ratio at existing hotels
while opening three to four new hotels on a yearly basis throughthe leasing of properties developed by other companies and the utilization of various schemes, including management contracts andfranchise contracts.

Urban development
and services

Value creation

The hotel business offers accommodations that meet awide range of needs through richly varied development.
Incorporating hotel functions into mixed-use buildings
provides support for visitors during their stay.

36 Business Review

Hilton Okinawa Miyakojima
Resort(Opened June 2023)

		 39 Office Building Business

Rosewood Miyakojima(Scheduled to open in 2024)

		 42 Logistics Facility Business		 41 Retail Property Business / Outlet Mall Business		 43 Hotel Business

Canopy by Hilton Okinawa
Miyakojima Resort(Scheduled to open in spring 2026)

		 44 Airport Business
45 Residential Business

4,415
4,000

3,815

4,129

47 International Business51 Investment Management Business

3,399
Dorchester Collection(Scheduled to open in FY2028)

2,809
2,434 2,434

52	Architectural Design & Engineering
Business and Real Estate Services Business53 Innovation and Business Transformation Group

2,000
Conrad Nagoya(Scheduled to open in summer 2026)

Hotel Okura Kyoto Okazaki Bettei(Opened January 2022)
Waldorf Astoria Osaka(Scheduled to open in early FY2025)

0

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023

Canopy by Hilton Osaka Umeda(Scheduled to open in September 2024)

55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial Section

Ace Hotel(Scheduled to open in 2027)

Through partnerships with overseas brands and otherplayers, the hotel business aims to expand its hotel
lineup while providing a diverse array of added value
to society that Mitsubishi Estate could not achieve on
its own.

54	Business Development, Client Relations &Solutions Group

100 Corporate Data

Mitsubishi Estate’s Website

The Royal Park Hotel
Iconic Nagoya

The Royal Park Hotel
Canvas Fukuoka Nakasu

Hilton Okinawa Miyakojima
ResortWaldorf Astoria Osaka(rendering of completed hotel)* Excludes Royal Park Hotels brand

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Commercial Property Business

44

Index

Business Review

Airport Business

3 CEO Message
9 Value Creation Story

Competitive Advantage
	Operation of airports by Mitsubishi Estate, leveraging its trackrecord of operating several airports, the expertise gained in businesses related to inbound tourism through outlet malls and hotels,
and its cooperation with other Mitsubishi Estate Group businesses.

Wakkanai Airport

Involvement in the Operation of
10 Airports by Leveraging theKnow-How of the Group

35 Business Review

Memanbetsu Airport
Asahikawa Airport
Kushiro Airport
Obihiro Airport

36 Business Review
37 Reorganization of Business Groups
38 Commercial Property Business

Hakodate Airport

		 39 Office Building Business		 41 Retail Property Business / Outlet Mall BusinessBusiness Strategies
	We aim to ensure stable operation at each airport while seeking
to achieve operational efficiency and sophistication throughinter-airport cooperation.

		 42 Logistics Facility Business		 43 Hotel Business

New Chitose Airport

Mt. Fuji Shizuoka Airport

45 Residential Business	We will work to invigorate regions by leveraging our urban
development expertise and to increase revenues for passenger
terminal buildings by harnessing our expertise in the development
and operation of retail facilities.

Urban development
and services

The global
environment

In cooperation with local communities, the airport
business connects cities, towns, and people, increasing
the non-resident population while capitalizing on theregional characteristics of its airport locations, tocreate a safe and secure space where visitors forvarious purposes can spend valuable time.
Miyako Shimojishima Airport improved its thermal
insulation performance while contributing to the
local forest cycle, by incorporating a large panel(cross-laminated timber) using local materials stipulated
by Okinawa Prefecture into the structural materials
of its roof.

		 44 Airport Business47 International Business51 Investment Management Business
52	Architectural Design & Engineering
Business and Real Estate Services Business53 Innovation and Business Transformation Group

Miyako Shimojishima
Airport Terminal

Takamatsu Airport

54	Business Development, Client Relations &Solutions Group55 Sustainability (ESG) Section

The Essence of Mitsubishi Estate’s Urban Development at Miyakojima: Promoting
Urban Development and a Tourism Center through Airport Operation
In addition to the Miyako Shimojishima Airport Terminal, Mitsubishi Estate is
promoting a plan to develop resort hotels, including the Hilton Okinawa Miyakojima
Resort, Rosewood Miyakojima (scheduled to open in 2024), Japan’s first Rosewood
hotel, and Canopy by Hilton Okinawa Miyakojima Resort (scheduled to open inspring 2026). The Company aims to create resorts that blend into the naturalenvironment, in harmony with Miyakojima’s beautiful scenery while coexisting withlocal communities.
Through both the development of hotels and the operation of airports, Mitsubishi
Estate will invigorate the tourism industry and the local economy in Miyakojima andOkinawa while offering high-quality tourism value.

76 Corporate Governance
98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Residential Business
Breakdown of Operating Profit(Millions of yen)(Billions of yen)
40

38,88840,00040,000Index

Business Review

Operating Profit (Results and Forecasts)
50,00045

3 CEO Message
9 Value Creation Story

38.8
2.8

Other

15

Property Sales

35 Business Review

30

35,03730,00020
20,000In FY2023, operating profit rose on an increase in profits for condominiums,

36 Business Review

and capital gains on rental apartments remained strong.

37 Reorganization of Business Groups

In FY2024, Mitsubishi Estate expects operating profit to grow thanks to an
10

10,00021

increase in solid profits for condominiums.

Condominiums

38 Commercial Property Business		 39 Office Building Business		 41 Retail Property Business / Outlet Mall Business0		 42 Logistics Facility Business

0

FY2022

FY2023

FY2024 (Forecast)

24/3期

FY2023

		 43 Hotel BusinessNote: G&A expenses were appropriated for each profit category on a pro-rata basis.

		 44 Airport Business

Market Environment
Adverse impact on housing demand stemming from concerns regarding rising interest rates
Contraction in the housing market due to a population decline in Japan

Risks

Soaring construction material costs caused by inflation

Diversification of housing needs brought about by workstyle and lifestyle changes

Opportunities

Expansion of business opportunities resulting from population inflows into cities
Digitalization of real estate transactions and increasing adoption of IoT devices in living spaces

Competitive Advantages

Business Strategies
	We aim to expand our customer base by strengthening our brand power through theenhancement of product appeal, reliability, and services and by leveraging said brandpower to acquire loyal “fans.”	We intend to optimize material costs and construction costs by utilizing our leadingbusiness scale in residential condominium development in Japan.

	Product-planning capabilities that ensure our buildings have disaster-management functions that keeppeople safe through resilience in natural disasters and offer both comfort and cost performance and which
respect the environment and local regions by paying careful attention to preserving biodiversity and helping
realize a low-carbon society.
	The ability to provide services to meet all housing-related needs.

47 International Business51 Investment Management Business
52	Architectural Design & Engineering
Business and Real Estate Services Business53 Innovation and Business Transformation Group	We are promoting redevelopment projects that make full use of our abundant know-how
related to real estate development and of the comprehensive capabilities of the Mitsubishi
Estate Group.

54	Business Development, Client Relations &Solutions Group	We are aiming to stabilize segment profits through capital gains from rental apartments
and other investment-purposed properties in the Residential Business.

55 Sustainability (ESG) Section

	We aim to strengthen non-asset businesses in such areas as residence management,
brokerage, custom-built housing, and renovation.

76 Corporate Governance	We are providing one-stop services as a corporate group making full use of all of thephases of the value chain, from land acquisition, development, sales, and management
through to brokerage.

98 Financial Section

	The power of The Parkhouse condominium and The Parkhabio rental apartment brands backed by outstanding technologies, uncompromising product quality control, and a long and extensive track record.
	Quality control of The Parkhouse brand at all stages of the development process—from design and construction to completion—with “Check Eyes,” our quality management and performance indication system,
which reflects our dedication to all aspects of the properties we offer.

45 Residential Business

Urban development
and services

The Residential Business underpins comfortable and enriched lifestyles bydeveloping high-quality houses based on outstanding technological capabilities
and quality control. In addition, the business engages in disaster-resilient urban
development emphasizing relationships and mutual assistance while cooperatingwith local communities.

Respect for people

The business offers residential functions for a wide range of people at different
stages of their lives through its entry into businesses for assisted living residences,
student residences, and other residence types.

100 Corporate Data

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Residential Business

3 CEO Message

Rental Apartment BusinessLand Bank Breakdown in Reporting Term

Total Assets(March 31, 2024)(March 31, 2024)

FY2024–FY2026

6,650 units

5,550 units

Total:

Mitsubishi Jisho Residence Club

Assets underdevelopment

29%

16,600 units(37 buildings)

Approx.

Assets inoperation

162.0 billion¥

71%(45 buildings)

FY2027–FY2029

4,400 units

Note: Ratio by value

Changes in Gains on Sales
FY2023

FY2024 (Forecast)¥117,792 million ¥159,965 million ¥156,000 million

Condominiums
Sold (units)

1,596

2,271

25.9%

36 Business Review
37 Reorganization of Business Groups
38 Commercial Property Business		 39 Office Building Business		 41 Retail Property Business / Outlet Mall Business		 42 Logistics Facility Business

45 Residential Business

1,750

24

23

47 International Business51 Investment Management Business

15

52	Architectural Design & Engineering
Business and Real Estate Services Business53 Innovation and Business Transformation Group10

54	Business Development, Client Relations &Solutions Group

7

26.1%

35 Business Review

20

10Gross Profit
Margin*2

9 Value Creation Story

		 44 Airport Business(Billions of yen)
25

Condominium
Sales*1

In 2018, we integrated the housing membershiporganizations and customer information managed
by various Group companies into the Residential
Business Group to establish the Mitsubishi Jisho
Residence Club. At approximately 680,000 households, the number of customers eligible to join is
the largest in the industry, and the club offers
comprehensive support covering all of the housing needs of customers. Through the club’s activities,
we aim to further enhance the satisfaction andconvenience of potential buyers and strengthen
the Mitsubishi Estate Group’s value chain.

		 43 Hotel BusinessBusiness Data
FY2022

Index

Business Review

Condominium Business

FY2030 onward

46

29.0%

5

5

55 Sustainability (ESG) Section*1 Sales = Sales of new condominiums + Supplementary revenue relating to condominiums*2 Gross profit = Sales – COGS (land acquisition and development costs, building construction costs, etc.);
Gross profit margin = Gross profit ÷ Sales

The Parkhouse Gran
Sanbancho 26

The Parkhouse
Takanawa Place0

FY2019FY2020

FY2021

FY2022

Note: Changes in capital gains (before G&A expenses) for Residential Business

The Parkhabio SOHO Yutenji

The Parkhabio Minami-Oi

FY2023

Hmlet Japan Co-Living Business
Hmlet Japan offers co-living rental apartmentsthat allow residents to expand their networks anddevelop fulfilling lifestyles and careers just by
virtue of living there. Apartments can be rented
for a minimum period of one month, and contracts
for electricity, gas, water, and Wi-Fi are pre-arranged.
Residents can choose between furnished or
non-furnished plans, starting a comfortable newlifestyle on the day they move in.

76 Corporate Governance
98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

International Business
Breakdown of Operating Profit(Millions of yen)(Billions of yen)

89,40080,00070,000

60

51.4

50

9

3 CEO Message
9 Value Creation Story

Condominiums

In FY2023, although its operating profit decreased due to the absence of the

26

30

51,448Property Sales

20

40,00021

Leasing

20,000
0

–4.6

Other

–10

FY2022

FY2023

FY2024 (Forecast)Business advanced efforts to capture selective investment opportunities to

36 Business Review

achieve its targets for 2030.

37 Reorganization of Business Groups

In FY2024, in addition to increasing income through the sale of condominiums

100

35 Business Review

large-scale capital gains recorded in the previous fiscal year, the International

40

60,000Index

Business Review

Operating Profit (Results and Forecasts)
100,00047

24/3期

38 Commercial Property Businessin Australia and the completion of 8 Bishopsgate in the United Kingdom, the		 39 Office Building Business

International Business will aim to maximize capital gains while analyzing the		 41 Retail Property Business / Outlet Mall Businessoverseas market carefully.

		 42 Logistics Facility Business

FY2023

		 43 Hotel BusinessNote: G&A expenses were appropriated for each profit category on a pro-rata basis.

		 44 Airport Business
45 Residential Business

Market Environment
Reconsideration of the purpose and meaningfulness of offices as diversified workstyles become
established

EuropeUnited States

47 International BusinessMitsubishi Estate London Limited

Rockefeller Group International, Inc.

51 Investment Management BusinessEuropa Capital Group*Mitsubishi Estate New York Inc.
TA Realty LLC*

Soaring construction material costs and rising utility costs due to accelerating inflation

Risks

Stagnation in the market for buying and selling real estate due to rising interest rates

53 Innovation and Business Transformation GroupRisks particular to various areas and countries

54	Business Development, Client Relations &Solutions GroupReaffirmation of the value of real settings, such as offices

Opportunities

55 Sustainability (ESG) Section

Opportunities to invest in growth assets that match social and economic changes

Asia and Oceania

Economic growth over the medium to long term centered on Asia and Oceania

Mitsubishi Estate Asia Pte. Ltd.

Results Over Past Three Years(FY2021–FY2023 Average)
Asia

U.S.

30%

49%
Operating Profit

Balance Sheetand Profit & Loss
Highlights¥

65.5 billion
Total Assets

1.3 trillion¥
Europe21%

52	Architectural Design & Engineering
Business and Real Estate Services Business• Yangon Branch• Australia Branch

Late 2020s

Aim to Achieve Plan Targets
Ahead of ScheduleMitsubishi Estate Vietnam Company Limited• Hanoi Branch

76 Corporate Governance
98 Financial Section
100 Corporate Data

PT. Mitsubishi Estate Indonesia
Mitsubishi Estate (Thailand) Co., Ltd.

Operating Profit

Mitsubishi Estate (Shanghai) Ltd.

90.0 billion

Approx. ¥Total Assets

1.5

trillion¥
ROA: Approx. 6%

Mitsubishi Estate Taiwan Ltd.

Mitsubishi Estate’s Website

MEC Global Partners Asia Pte. Ltd.** Group companies under the Investment
Management Business segment

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

International Business

48

Index

Business Review

United States

3 CEO Message
9 Value Creation Story

Competitive Advantages
Rockefeller Group International, Inc. (RGII)’s development know-how

Major Project Locations

36 Business Review
Rockefeller Group International, Inc.
Mitsubishi Estate New York Inc.

	In addition to large-scale and mixed-use developments, as exemplified by the Rockefeller Center,
RGII has established an extensive development
track record throughout its approximately 90-year
history, including logistics facilities and residences(for selling and leasing).

37 Reorganization of Business Groups
38 Commercial Property Business

TA Realty
New Jersey
Washington, D.C.

TA Realty LLC’s sourcing power	TA Realty invests and manages in a wide range ofmarkets across the United States centered on
logistics facilities and rental apartments, thereby
also contributing to the Group’s sourcing power inthe country. With unique strengths in logistics
facilities, TA Realty boasts a leading record acrossthe United States in terms of transaction amounts.

35 Business Review

Mitsubishi Estate Group Offices and Project Locations

Virginia
Phoenix

		 41 Retail Property Business / Outlet Mall Business		 42 Logistics Facility Business		 43 Hotel Business

DenverIrvineBoston
New York		 39 Office Building Business		 44 Airport Business
45 Residential Business

Atlanta

47 International Business51 Investment Management Business

Miami

52	Architectural Design & Engineering
Business and Real Estate Services Business53 Innovation and Business Transformation Group

Business Strategies

54	Business Development, Client Relations &Solutions Group	Reinforcement of capital-recycling business leveraging know-how of RGII

55 Sustainability (ESG) Section

	Promotion of joint ventures with local partners
	Expected return from investment: Internal rate of return (IRR) of 8%–10%76 Corporate Governance

The global
environment

Respect for people

Value creation

Adopting reusable building materials and highly energy-efficientequipment, the International Business develops environment-friendly
logistics warehouses for the new era with features including process
management that minimizes waste volumes.

98 Financial Section
100 Corporate Data

The Green at Florham Park offers an environment where people with
developmental disorders can live with peace of mind.

The Company engages in the development of data centers as demand
increases, and it has developed three such centers (five buildings)
to date.

Mitsubishi Estate’s Website

1221 Avenue of the Americas

1271 Avenue of the Americas

Leasable Area: Approx. 244,000 m2
Completion: 1972

Leasable Area: Approx. 195,000 m2
Completion: 1959, renovated in 2019

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

International Business

49

Index

Business Review

Europe3 CEO Message
9 Value Creation Story

Competitive Advantages

35 Business Review

Office Development Based on Our Advantages

Know-how and broad network based on a business track record ofapproximately 40 years

36 Business Review

	Our business in Europe has a track record in many Group-led developments for highly
individualized and challenging projects requiring consultations with government bodies andapplications for approval, as well as know-how cultivated through such activities.

38 Commercial Property Business

37 Reorganization of Business Groups		 39 Office Building Business

Europa Capital’s extensive network		 41 Retail Property Business / Outlet Mall Business	Since 1995, Europa Capital has put together and managed 13 funds, investing a total ofmore than €13.4 billion in 21 countries in Europe. During this time, it has built relationships
with over 120 institutional investors, primarily in North America and Europe.

		 42 Logistics Facility Business		 43 Hotel Business		 44 Airport BusinessBusiness Strategies	Implementation of investments and returns with a focus on balancing profit
stability and capital efficiency
	Promotion of business development centered on large-scale projects that havealready been decided
	Expected return from investment: IRR of 8%–10%

Urban development
and services

8 Bishopsgate

Warwick Court

Building Size: 51 aboveground floors
Total Floor Area: Approx. 85,000 m2
Completion: June 2023

Building Size: 8 aboveground floors
Total Floor Area: Approx. 29,000 m2
Completion: Renovated July 2022

Our share: 100%O
 ur first major renovation project in the U.K.

Investment amount: Approx. ¥114.0 billionI ncrease in revenues through renovation of existing properties

Increase in leasable area by approx. 2.8 times through redevelopmentN early 100% contract rate

45 Residential Business47 International Business51 Investment Management Business
52	Architectural Design & Engineering
Business and Real Estate Services Business53 Innovation and Business Transformation Group
54	Business Development, Client Relations &Solutions Group

Realization of High Capital Gains

55 Sustainability (ESG) Section

The major renovation of Warwick Court has transformed it into an
office building for the new era, enhancing well-being, catering todiversity, and reducing environmental impact, while making full useof the building’s original exterior and structure.

76 Corporate Governance
98 Financial Section

The global
environment

100 Corporate Data

8 Finsbury Circus

Central St. Giles

Total Floor Area: Approx. 23,000 m2
Completion: 2016

Total Floor Area: Approx. 66,000 m2
Completion: 2010

FY2019: ¥16.0 billion

Mitsubishi Estate’s Website

39.0 billion

FY2022: ¥CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

International Business

50

Index

Business Review

Asia and Oceania

3 CEO Message
9 Value Creation Story

Competitive Advantages
Promotion of businesses in 11 countries and regions across Asia and Oceania

35 Business Review

Mitsubishi Estate Group Offices and Project Locations
Major Project Locations

36 Business Review

	We develop businesses in a wide range of countries, including Singapore, Vietnam,
Indonesia, Thailand, and China. Most recently, we opened a branch office in Australia in May
2021, where we are also expanding the scope of our businesses.

37 Reorganization of Business Groups
38 Commercial Property Business		 39 Office Building BusinessNetwork of MEC Global Partners Asia Pte. Ltd.

		 41 Retail Property Business / Outlet Mall Business	Creates and operates core funds targeting investments in a diverse array of real estate,such as offices, retail properties, logistics facilities, and residences.

		 42 Logistics Facility Business

Beijing		 43 Hotel Business

Crystal Bridge
SuzhouChengduMitsubishi Estate (Shanghai) Ltd.
Shanghai

45 Residential BusinessHangzhouBusiness Strategies
	Establishment of a capital-recycling asset portfolio	Selection of regions and asset types based on markets and business practices

Chennai	Expansion of opportunities through partnerships with leading local businesses

SingaporeHands-on development through employees assigned from Japan and local staff
for major-share projects

Value creation

47 International Business51 Investment Management Business
52	Architectural Design & Engineering
Business and Real Estate Services Business53 Innovation and Business Transformation Group
54	Business Development, Client Relations &Solutions Group

Mitsubishi Estate Asia Pte. Ltd.
MEC Global Partners Asia Pte. Ltd.

55 Sustainability (ESG) Section

PT. Mitsubishi Estate Indonesia

Collaboration with local partners for minor-share projects

Urban development
and services

ManilaHo Chi Minh City

Bangkok
Kuala Lumpur

	Organizational structure:

Respect for people

Mitsubishi Estate (Thailand) Co., Ltd.

YangonMitsubishi Estate Vietnam Company Ltd.

	Expected return from investment: IRR of 8%–10% from developed countries
and 10% or more from developing countries

When participating in projects, we identify and address human rights
risks in the supply chain, including by analyzing such risks throughhuman rights due diligence and checklists and applying the
Mitsubishi Estate Group Supplier Code of Conduct when ordering construction for projects in which we hold a major share.

Mitsubishi Estate Taiwan Ltd.
TaipeiHanoi

		 44 Airport BusinessJakarta

76 Corporate Governance
98 Financial Section

Oasis Central Sudirman

100 Corporate Data

We create added value and realize quality that we could not achievealone while contributing to the growth of local real estate markets bycombining the local knowledge of partners in various countries with
the Group’s extensive experience in each phase of projects, fromdevelopment through to property management.

SydneyMitsubishi Estate’s Website
Melbourne

180 George Street
CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Investment Management Business
Operating Profit (Results and Forecasts)

Breakdown of Operating Profit(Millions of yen)(Billions of yen)

15,00010

3 CEO Message
9 Value Creation Story−1.6

In FY2023, although the Investment Management Business recorded an operating

5

9.9

Base fees

fiscal year, base fees performed strongly, generating ¥9.9 billion in profits.
In FY2024, with incentive fee adjustments projected to be limited, the

0

5,000

–5
0

–11.5

Investment Management Business expects to achieve an increase in operating

Incentive fees

–10

–1,619–15–5,000

FY2022

FY2023

FY2024 (Forecast)

24/3期

35 Business Review

loss due in part to adjustments for incentive fees recorded in the previous

10,000

8,054

Index

Business Review

15

13,00051

36 Business Review
37 Reorganization of Business Groups
38 Commercial Property Businessrevenue and operating profit, as it grows steadily toward achieving assets

		 39 Office Building Businessunder management (AuM) of ¥10.0 trillion and operating profit of ¥30.0 billion

		 41 Retail Property Business / Outlet Mall Businessby the end of FY2030.

		 42 Logistics Facility Business

FY2023

		 43 Hotel Business		 44 Airport Business

Market Environment
 ecrease in inflows of capital to real estate investment funds due to continuing highDinterest rates in the U.S.

Risks

 oss of real estate acquisition opportunities as a result of stagnation in real estateL
investment market
Decline in valuation of AuM due to rising interest and capitalization rates in Japan

Opportunities

47 International Business	We have established a global platform (Mitsubishi Estate Global Partners [MEGP]), which facilitates cooperation
among various bases in Japan, the United States, Europe, and Asia. Promoting MEGP as a global brand, we offer services in response to demand from investors in Japan and overseas seeking diversified investment effects.
	We leverage hybrid-model investment, whereby we invest in and manage funds created by Group companies using
our funds and the funds of third-party investors. Through these efforts, we simultaneously pursue the expansion of
our portfolio and diversified investment effects overseas and the capturing of greater service opportunities and feesfrom third-party investors.

Inflows of investment funds to core funds thanks to market recovery
 ontinuously maintaining and expanding AuM through the creation and management
Cof stable real estate investment funds that are highly resilient, even during economic
downturns

45 Residential BusinessBusiness Strategies

The global
environment

Expansion of internal growth led by rising rents, reflecting inflation in Japan
Urban
development
and services

The Group helps raise the environmental performance of real estate globally and offers
sustainable real estate assets to communities through its policy of responsible management.

We offer a diverse range of real estate investment options by creating financial products intune with the times that meet a variety of needs for global investors seeking real estate
Value creation asset management.
As of March 31, 2020

Competitive Advantages
Ability to meet inbound and outbound investment needs through relationships withinstitutional investors in Japan and overseas, capitalizing on foundations establishedin JapanLocal expertise, networks, and track records in various markets through M&As overseas
 n extensive product lineup and solid cross-border sales set-up from maintainingA
management companies in Japan, the United States, Europe, and Asia as Group companies

Asia and
Oceania120

Changes in AuM(Billions of yen)

Asia and Oceania
300

Japan
1,890
Europe450

Total

Europe
450

JRE
1,050

United Approx.
States ¥3.6 trillion
1,200
MJIA
840

Overseas
1,770

As of March 31, 2024

52	Architectural Design & Engineering
Business and Real Estate Services Business53 Innovation and Business Transformation Group
54	Business Development, Client Relations &Solutions Group55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial Section
100 Corporate Data

JRE
1,200

Total

Overseas
3,300

51 Investment Management Business

UnitedApprox.
States ¥5.7 trillion MJIA
1,200
2,550

Mitsubishi Estate’s Website

Japan
2,400

CONTENTS

Architectural Design & Engineering Businessand Real Estate Services Business
Operating Profit (Results and Forecasts)
9,021
8,000

7,000

6,000

4,000

4,176

2,000

0

FY2022

FY2023

FY2024 (Forecast)

In FY2023, order amounts and operating
revenue exceeded the levels of the previous
fiscal year in the Architectural Design &Engineering Business. In the Real Estate
Services Business, real estate brokerageand parking-lot management businesses
performed favorably.
We expect both the Architectural Design &Engineering Business and the Real Estate
Services Business to perform solidly in
FY2024 by capturing projects that capitalize
on existing relationships with customers andthe Group’s comprehensive strengths.

52

Index

Business Review

Architectural Design & Engineering Business(Millions of yen)
10,000

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Competitive Advantages
	The Architectural Design & Engineering Business has extensive experience and expertise inurban planning and development, from the design and management of buildings and proposal-based
consulting to the planning and design of underground networks, transport hubs, and infrastructure
facilities.
	We undertake design and management with an in-depth understanding of operation, maintenance,and management from the perspectives of business operators and clients based on experiencecultivated as a comprehensive developer’s in-house design office.
	We have an abundant information network established in Asia and Oceania centered on local
subsidiaries in Shanghai and Singapore.

3 CEO Message
9 Value Creation Story
35 Business Review
36 Business Review
37 Reorganization of Business Groups
38 Commercial Property Business		 39 Office Building Business		 41 Retail Property Business / Outlet Mall Business		 42 Logistics Facility Business		 43 Hotel Business		 44 Airport Business

Real Estate Services Business
Competitive Advantages
	The Real Estate Services Business offers one-stop solutions leveraging a wide-ranging service menu,
including support utilizing commercial real estate (CRE) information and real estate brokerage, and the
Mitsubishi Estate Group’s comprehensive strengths.
	We provide solutions throughout Japan leveraging our nationwide branch network backed by specialist
expertise and knowledge.

Business Strategies
	The Real Estate Services Business engages in a wide range of business activities, including realestate brokerage and leasing management support of condominiums and office buildings
through Mitsubishi Real Estate Services Co., Ltd., and a parking-lot management businessthrough Mitsubishi Estate Parks Co., Ltd.

Urban development
and services

The global
environment

The Real Estate Services Business proposes optimal solutions to maximize asset value,
addressing various real estate issues, including aging buildings and changes incustomer needs.

Business Strategies

45 Residential Business47 International Business	Using the technologies and networks it has developed, Mitsubishi Jisho Design Inc. offers a wide
range of design services in Japan and overseas, comprising everything from construction design,planning, and consulting to interior design.
	In addition to handling design project orders from within the Group and from long-establishedclients, the Architectural Design & Engineering Business is working closely with the Business
Development, Client Relations & Solutions Group to win new orders.
	We are expanding our earnings base by focusing on growth fields, such as construction management,
renovation, wooden architecture, carbon neutrality for existing buildings, and smart-city projects.
	We provide technological support to and create synergies with Group companies.

The global
environment

Value creation

The Architectural Design & Engineering Business modernizes real estate and cities fornext-generation value creation through design, including wood construction and conversion in new and existing buildings, construction that mitigates environmental impact
through carbon neutrality, and offices that support activity-based working (ABW)—
choosing a work setting in accordance with the activity or task at hand—by using big data
to identify the location of employees and smart cities that support new types of mobility.

51 Investment Management Business
52	Architectural Design & Engineering
Business and Real Estate Services Business53 Innovation and Business Transformation Group
54	Business Development, Client Relations &Solutions Group55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

Deploying its in-house-developed parking-lot management cloud system, Mitsubishi
Estate Parks contributes to both enhancing convenience for parking-lot users andmitigating environmental impact (reducing paper use and exhaust emissions).

CONTENTSInnovation and Business Transformation Group
Overview

Business Creation
Department

1Creation of new businesses2 reation of frameworks and promotion of open innovation
C
initiatives aimed at the creation of new businesses

Use of new technology to achieve the following goals:
DX Promotion
Department

1Securement of new sources of earnings

2

 eightening of earnings and increases in productivity by
H
refining existing business models and work processes3 stablishment of a Groupwide IT platform and promotion
Eof Groupwide IT governance and cybersecurity	Leveraging our knowledge cultivated in the real estate business, we will expand our business domains byproactively cooperating with external partners. As a field for verifying the business structures borne of suchcooperation, the Group will utilize diverse real estate stock that it owns and manages. Initiatives to dateinclude Elecinema, Ecofurni (a business reselling used office furniture), and 5G-infrastructure sharing.
	We will drive automation and laborsaving processes by using IT and digital tools to increase productivity
cross-organizationally and across the entire Group.
	We will promote the increased efficiency and sophistication of real estate-related processes by leveraging
technologies while creating new value and functions for real estate.
	We invest proactively through corporate venture capital (BRICKS FUND TOKYO) and venture capital in
Japan and overseas to promote open innovation while leveraging our New Business Proposal System
to uncover new business seeds from within the Company, thereby driving new business creation bothinternally and externally.

Changes in demand in existing domains resulting from the spread of a variety of workstyles, etc.

Urban development
and services

The global
environment

Risk of becoming an outdated company due to delays in promoting digitalization

Risks

Loss of business opportunities arising in an era of volatility, uncertainty, complexity, and ambiguity
Increasing risk of information leaks resulting from aging IT security

Respect for people

Value creation

Index

3 CEO Message

	In response to latent social needs, we will seek new earnings opportunities by accumulating and analyzing available data.

Market Environment

53

Business Review

Business Strategies

	The Innovation and Business Transformation Group aims to promote the creation of new value inthe business model innovation domain.

Innovation andBusiness
Transformation
Group

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Based on the three investment themes of new lifestyles, paradigm shifts
in established industries, and sustainability, BRICKS FUND TOKYO co-creates
growth industries and offers new value to society through proactive
investments in fields with strong future growth potential, management
support drawing on the Mitsubishi Estate Group’s management infrastructure,
field trials in Otemachi, Marunouchi, Yurakucho, and other areas, andsupport for implementation in society in terms of the promotion of businessco-creation and collaboration.

9 Value Creation Story
35 Business Review
36 Business Review
37 Reorganization of Business Groups
38 Commercial Property Business		 39 Office Building Business		 41 Retail Property Business / Outlet Mall Business		 42 Logistics Facility Business		 43 Hotel Business		 44 Airport Business
45 Residential Business47 International Business51 Investment Management Business
52	Architectural Design & Engineering
Business and Real Estate Services Business53 Innovation and Business Transformation Group
54	Business Development, Client Relations &Solutions GroupRaising the efficiency of real estate operations leveraging digital technologies

Opportunities

Expansion of new businesses through business reforms
Establishment of platforms and ecosystems using new technologies

Competitive Advantages
	Our wide-ranging business portfolio in the real estate domain as a comprehensive developer.
	Our business-to-consumer contact points with workers and visitors in area development districts suchas Otemachi, Marunouchi, and Yurakucho, with visitors to retail facilities and airports, and with residents
and other parties based on our position among the leading companies in Japan in terms of the numberof condominiums supplied and assets under management.
	Relationships established with diverse tenants and corporate business partners, from leading major
companies from various industries to start-up companies that have become tenants at our innovation
hubs, including Inspired.Lab, FINOLAB, and EGG JAPAN.

Message from the Executive Officer in Charge of the Business Creation and DX Promotion Departments

Leading New Urban Development by Combining the Real and Digital Worlds
The Innovation and Business Transformation Group plays a major role in increasing revenues
and profits in the non-asset business domain and service content provision domain underLong-Term Management Plan 2030. Furthermore, it accelerates the development of new businesses and the transformation of existing businesses by proactively promoting open innovation with a variety of external stakeholders, including real estate technology companies andentities from other industries. Against this backdrop, in June 2021 Mitsubishi Estate unveiled
the Mitsubishi Estate Digital Vision, defining the future direction of the Company’s lifestyle andurban development efforts beyond digital transformation (DX). As of March 2024, we havealready completed the development of infrastructure, including the Marunouchi Point App(approx. 240,000 users) and the Machi Pass common ID (approx. 630,000 users), which provide entry points connecting the Marunouchi area and beyond with users, and began
Keiji TakanoGroupwide marketing using an analysis platform (Storage of Data Analyses) that amasses a
Senior Executive Officer
variety of data from inside and outside the Group. In these ways, we promote urban development of the future through the provision of experiences that allow users to move seamlessly
between the online and offline worlds. Meanwhile, the Company has established the Mitsubishi Estate Computer Security
Incident Response Team, an organization to promote security within the DX Promotion Department. As chief information
security officer, I work to strengthen the promotion of cybersecurity for the entire Group.

55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

CONTENTS

Business Development, Client Relations & Solutions Group

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

54

Index

Business Review
3 CEO Message

Overview
	The Business Development, Client Relations & Solutions Group will deliver the most effective proposals to customers by centrally managing customer contact point information with the aim of maximizing the acquisitionof business opportunities for the Group.

9 Value Creation Story

	Acting as a Companywide contact point, the Business Development, Consulting & Solutions Department will make proposals making full use of the Company’s resources in response to all manner of customer real estate utilization needs.

35 Business Review

	The Office Leasing and Tenant Relations Department 1 and Department 2 will carry out extensive office leasing activities by leveraging the Group’s diverse assets and customer relationships.
	In addition to functions for identifying new content and cultivating new customers, the Collaborative Creation Sales Department will conduct differentiated sales activities anticipating the needs of the era.

36 Business Review
37 Reorganization of Business Groups
38 Commercial Property Business

Various apparent and latent needs of customers

		 39 Office Building Business

Existing customers / New customers

		 41 Retail Property Business / Outlet Mall Business		 42 Logistics Facility Business

Improvement of proposal capabilities based on business model creation proposals with content that anticipates the needs of the era

		 43 Hotel BusinessBusiness Development, Client Relations & Solutions Group
Business Development, Consulting &Solutions Department

Office Leasing and Tenant Relations
Department 1 and Department 2(proposals for the sale of all types of real estate)(office leasing)

Further identification of customer-focused needs and reinforcement of relationships

		 44 Airport Business
Collaborative Creation Sales Department(development of partnerships and content and matching)
Sales support through the provision of proposal content andbuilding of business models based on cooperation

Client Strategy Planning Department
Comprehensive adjustment functions

45 Residential Business

Collaboration partners
Partners with uniqueand competitive content
and know-how(the arts, entertainment,
wellness, etc.)

Further reinforcement of capabilities for cultivating new customers and making proposals thereto that havethus far been beyond the ability of individual departments, by strengthening organic collaboration among sales departments

47 International Business51 Investment Management Business
52	Architectural Design & Engineering
Business and Real Estate Services Business53 Innovation and Business Transformation Group
54	Business Development, Client Relations &Solutions Group55 Sustainability (ESG) Section
The Mitsubishi Estate Group’s variety of business opportunities and apparent needs

76 Corporate Governance

Other departments / Group companies / New services and business models

98 Financial Section

Workstyle Reforms and Workplace Proposals

Making Use of University-Owned Land

Mitsubishi Estate consolidates know-how unique to the
Mitsubishi Estate Group, which has continuously pursued
the ideal workplace, including knowledge gained from studies
of its own offices, to support the promotion of workstylereforms by planning and proposing workstyles that facilitate
new value creation (on-site surveys, analyses, and studies
on floor space requirements).

Using (renting) land in the Surugadai district of Tokyo held by Tokyo
Medical and Dental University, Mitsubishi Estate developed CIRCLES
Ochanomizu, a compact office series. In addition to prompting theuniversity to examine the effective use of its real estate, this arrangement
enabled the joint promotion of open innovation through industry–academia
collaboration.

Mitsubishi Estate Head Office
Received the Minister of Economy, Trade and Industry
Award at the 31st Nikkei New Office Award ceremony

CIRCLES Ochanomizu

100 Corporate Data

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Sustainability(ESG) Section

55

Index

3 CEO Message
9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes
57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation

56
57

Sustainability Frameworks / Framework for Monitoring Key Themes
External Evaluations of ESG Performance

58	Pursue Tangible and Intangible Urban Development
for the Next Generation
61

Maintain Commitment to Reducing Environmental Impact

61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value70	Information Disclosure Based on the TCFD’s
Recommendations
71 SASB
72 Human Capital76 Corporate Governance64

Consider People, Empathize with People, Protect People

67

Create and Circulate New Value

98 Financial Section
100 Corporate Data

70	Information Disclosure Based on the
TCFD’s Recommendations
71

SASB
Mitsubishi Estate’s Website

72

Human Capital
CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Sustainability (ESG) Section
Sustainability Frameworks

3 CEO Message

Sustainability Frameworks

9 Value Creation Story

ReportSupervision

35 Business Review

Sustainability Committee
Committee chair: President & chief executive officer of Mitsubishi Estate Co., Ltd.
Deputy committee chair: E xecutive officer in charge of Mitsubishi Estate’s
Sustainability Management and Promotion Department
Committee members: • Executives in charge of respective functional and businessgroups at Mitsubishi Estate, executive in charge of the
Corporate Group, presidents of major Group companies, andothers• Chairperson of Mitsubishi Estate • Standing statutory auditors• Outside experts and others (invited as necessary)

Chief Sustainability Officer

Instruction

To achieve the key themes related to sustainability and key performance indicators (KPIs)
established as strategies for increasing social value in Long-Term Management Plan 2030,
the Mitsubishi Estate Group monitors projects and initiatives related to these themes and
KPIs in the annual plans of business and functional groups. Information on the status oftarget accomplishment and details of initiatives are compiled by the Mitsubishi Estate
Sustainability Management and Promotion Department, which functions as the secretariat
for sustainability initiatives. This information is then reported to the Sustainability
Committee and the Sustainability Subcommittee. After meetings of the Sustainability
Committee, the executive officer in charge of the Mitsubishi Estate Sustainability
Management and Promotion Department, who is responsible for overseeing sustainability
initiatives, reports on the deliberations of the meeting in question at the following meetingof the Board of Directors. Moreover, the accomplishment of annual plan targets is used as
one of the qualitative evaluation items for determining the remuneration paid to officers.

55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes
57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation

Sustainability Subcommittee
Committee chair: G eneral manager of Mitsubishi Estate’s Sustainability Management
and Promotion Department
Committee members and others:• Executive officer in charge of Mitsubishi Estate’s Sustainability Management andPromotion Department, general managers of line and staff departments for functionaland business groups, executive in charge of the Corporate Group, and sustainability
managers and staff at major Group companies• General manager of Internal Audit Office• General manager of Mitsubishi Estate’s Audit Committee Office

Executive officer in charge of Mitsubishi
Estate’s Sustainability Management andPromotion Department

Deliberation /ReportSustainability
Promotion
Executive OfficeSustainability
managers and staff

Mitsubishi Estate’s
Sustainability
Management andPromotion
Department

Each Mitsubishi Estate
department and
Mitsubishi Estate Group
company61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value70	Information Disclosure Based on the TCFD’s
Recommendations
71 SASB

History of Sustainability Committee Meetings
FY2023

Framework for Monitoring Key Themes

Index

Sustainability (ESG) Section

Board of Directors

Mitsubishi Estate takes a Groupwide approach to sustainability. Chaired by the president &chief executive officer of Mitsubishi Estate and with the director responsible for sustainability(the executive officer in charge of the Sustainability Management and Promotion
Department at Mitsubishi Estate) as the deputy chair, the Group’s Sustainability Committee
comprises executives in charge of respective functional and business groups and the executive in charge of the Corporate Group, as well as presidents of major Group companies,
and it ensures effective Groupwide promotion of sustainability. The Sustainability
Subcommittee serves as a forum for detailed discussions designed for the preparation of
Sustainability Committee meetings.
The Sustainability Committee typically meets twice each fiscal year to deliberate andreport on important matters related to sustainability. Prior to committee meetings, theSustainability Subcommittee conducts preliminary discussions reporting while compilinginformation on efforts to promote sustainability made by business groups and other entities.
Reports on matters discussed or reported at meetings of the Sustainability Committee
are reported at the following meeting of the Board of Directors by the individual responsible
for overseeing sustainability initiatives. This arrangement allows for oversight by the Boardof Directors. Meanwhile, in implementing policies and plans approved by the Sustainability
Committee, the director responsible for sustainability oversees the process, while the sustainability managers and staff of each department at Mitsubishi Estate and each Mitsubishi
Estate Group company and of the Sustainability Promotion Executive Office (Sustainability
Management and Promotion Department at Mitsubishi Estate) together spearhead theexecution of specific activities and studies.

56

First Meeting (July 19, 2023)

 stablishment of the Timber Procurement Guidelines
ERevision of the key themes and material issues related to sustainability for strategies to increase social value in thelong-term management plan (progress report)
Updates to information disclosure based on TCFD recommendations
Status of progress on KPIs of Mitsubishi Estate Group 2030 Goals for the SDGs

72 Human Capital76 Corporate Governance
98 Financial Section
100 Corporate Data

Second Meeting (February 19, 2024)

 evision of the key themes and material issues related to sustainability for strategies to increase social value in theRlong-term management plan (progress report)
Status of operation and revision of sustainability incentive programStatus of adoption of renewable energy aimed at achieving RE100 in FY2025
Stakeholder engagement
Assessment of risks in relation to construction materials in the supply chainOMY SDGs ACT5/diversity and inclusion initiatives

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Sustainability (ESG) Section

57

Index

Sustainability (ESG) Section

External Evaluations of ESG Performance (as of July 2024)

Please refer to the Company’s website for details.
https://mec.disclosure.site/e/sustainability/management/evaluations/

Mitsubishi Estate has been selected for inclusion in the following ESG indices for socially responsible investment.

3 CEO Message
9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes
57 External Evaluations of ESG Performance

5-Star Rating, the highest rank, in GRESB Standing
Investments Benchmark,*1
4th consecutive year

CDP Climate Change 2023 Questionnaire “A”(highest possible rating)
CDP Water Security Questionnaire “A”(highest possible rating)
CDP Forests Questionnaire 2023 “B”

3-Star Rating in GRESB Development
Benchmark*2

Certified in 2024 as Outstanding Health andProductivity Management Organization

58	Pursue Tangible and Intangible Urban
Development for the Next Generation
61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value70	Information Disclosure Based on the TCFD’s
Recommendations
71 SASB
72 Human Capital

Dow Jones Sustainability
Asia Pacific Index,*3
4th consecutive year

S&P Global Sustainability
Yearbook Member 2023

FTSE4Good Global Index,
23rd consecutive year

FTSE Blossom Japan Index,
8th consecutive year (adopted by GPIF)FTSE Blossom Japan Sector Relative Index,
3rd consecutive year
(adopted by GPIF)

76 Corporate Governance
98 Financial Section
100 Corporate Data

Morningstar Japan ex-REIT Gender
Diversity Tilt Index(adopted by GPIF)MSCI Nihonkabu ESG Select Leaders Index*4(adopted by GPIF, selected in March 2024)

MSCI Japan Empowering Women Select Index,*4
7th consecutive year (adopted by GPIF)

S&P/JPX Carbon Efficient Index,
7th consecutive year (adopted by GPIF)

Mitsubishi Estate’s Website*1 Assessment of the performance of existing portfolios*2 Assessment of new development and large-scale renovation portfolios*3 In 2023, the index selected 156 companies (including 75 Japanese companies) from 600 major companies in the Asia-Pacific region.
*4 Please refer to the following disclaimer for details on MSCI. http://info.msci.com/l/36252/2017-06-27/kj5n9b

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

58

Index

Four Key Themes
Sustainability (ESG) Section

Pursue Tangible and Intangible Urban Development for the Next Generation
In order to establish ourselves as a leading company that represents Japan, we are aware of our responsibility and impact in providing social infrastructure as a comprehensive
real estate developer and we pursue world-class urban areas and services that we can proudly pass on to the next generation. By engaging in businesses with intrinsic value,

3 CEO Message
9 Value Creation Story
35 Business Review

we gain formidable brand power in urban development and related services, to provide “urban areas of choice” that are valued by all generations and develop organically.
55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes
57 External Evaluations of ESG Performance

Material Issues
Maintenance and enhancement of urban functions
Low birthrate and aging population

Customer satisfaction

Resilience
Lifestyle change

Contribution to local communities

Increase in business costs (materials, fuel costs, labor shortages, etc.)58	Pursue Tangible and Intangible Urban
Development for the Next Generation
61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value

Risks

Opportunities

70	Information Disclosure Based on the TCFD’s
Recommendations
71 SASB1 idelining of existing business model due to lifestyle change, decrease in value of ownedS
assets, and disengagement of customers

1 table increase in profit and business opportunities due longstanding and ongoingS
trust in product and service quality and its wider impact

2

Delays in promoting development due to cost increases

23Loss of trust and disengagement of customers due to delays in recovery from disasters
and insufficient risk response capacity cceleration of differentiation and increase in earning opportunities due to expansion inA
the potential of the Otemachi, Marunouchi, and Yurakucho districts

76 Corporate Governance3Increased opportunities in International Business by leveraging domestic track record andknow-how

98 Financial Section

72 Human Capital

100 Corporate Data

Vision“Urban areas of choice” that are valued by all generations
and develop organically

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Four Key Themes

Pursue Tangible and Intangible Urban Development for the Next Generation

59

Index

Sustainability (ESG) Section

Related Initiatives

3 CEO Message
9 Value Creation Story
35 Business Review

Fourth Phase of the Chain Urban Renaissance Project
in Otemachi: Realizing Future-Oriented Values
at TOKYO TORCH
In September 2023, Mitsubishi Estate commenced construction of Torch Tower in the TOKYOTORCH district in front of the Nihonbashi Exit of Tokyo Station, a mixed-use development
project that constitutes the fourth phase of the Chain Urban Renaissance Project in Otemachi,
which has been an ongoing venture for 20 years. Located adjacent to Tokyo Station, Torch
Tower—which will become Japan’s tallest skyscraper at approximately 390 m—features
offices and large-scale retail properties in addition to an observation deck, rental apartments,
a luxury hotel, and an entertainment hall, with completion scheduled for 2028.
The Chain Urban Renaissance Project in Otemachi started in 2003 as a project integratinga rezoning effort implemented by the Urban Renaissance Agency and urban development
led by landowners and business partners to renovate functions in the area, where buildings
and urban infrastructure facilities had deteriorated significantly. The project will realize fourlarge-scale mixed-use redevelopment projects over a period of 25 years, including theTOKYO TORCH district.
Guided by its long-term perspective on urban development, Mitsubishi Estate has participated in all four redevelopment phases in capacities that include landowner and business
partner. Through its involvement in modernizing buildings; creating vibrancy through thedevelopment of retail properties, hotels, and other amenities in the Otemachi area, which
was best known previously as an office district; improving aboveground and undergroundpedestrian networks; and updating and developing urban infrastructure facilities, such as
electricity substations, utility tunnels, a sewage treatment facility, data centers, and disastersupport facilities, the Company has been central to the ongoing updates of functions
throughout the area.
When the project began, 70% of the buildings in the Otemachi area were more than 30
years old. Since then, over half of those have been redeveloped, transforming Otemachi into
both an international business center and a vibrant area with a diverse range of functions.
Torch Tower marks the culmination of the TOKYO TORCH district development and theChain Urban Renaissance Project in Otemachi. In developing this extensive and symbolic
district, Mitsubishi Estate will engage in future-oriented measures related to the sustainabilityof people, the city, and the global environment, developing the functions needed for the futureof Japan and the global city of Tokyo to create a new landmark that will illuminate Japan.

Torch Tower

55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes

Tokiwabashi Tower

57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation
61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value
Rendering of the TOKYO TORCH district exterior upon completion
View of the low-rise section of Torch Tower from the south sideof the district70	Information Disclosure Based on the TCFD’s
Recommendations
71 SASB
72 Human Capital

Torch Tower has received Leadershipin Energy and Environmental Design(LEED®) BD+C CS Core and Shell Goldprecertification under the LEED® rating
system for new buildings and expects
to receive Gold certification upon its
completion.

Torch Tower has received WELL
precertification under the WELL
Building Standard® and expects toreceive Gold certification upon its
completion.

76 Corporate Governance
98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

Otemachi in 2004

Otemachi in 2024

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Four Key Themes

Pursue Tangible and Intangible Urban Development for the Next Generation

60

Index

Sustainability (ESG) Section

Related Initiatives

3 CEO Message
9 Value Creation Story
35 Business Review

Marking the 50th Anniversary of the Opening of Izumi Park
Town and Looking Ahead to Its Future
In 2024, Izumi Park Town (Sendai, Miyagi Prefecture), which the Mitsubishi Estate Groupdevelops and manages, celebrated the 50th anniversary of its opening. The Group beganwork on this suburban housing development—among the largest urban development projects
to be undertaken solely by a private-sector operator in Japan at a total development area of
1,074 hectares and home to more than 10,000 households—in the high-growth period of the
1960s, when there was a pressing need to develop high-quality residential environments
nationwide. Through this unprecedentedly large project, the Group realized a new style ofurban living in harmony with nature, with the aim of creating a model case to address
issues faced by cities.
Development of this extensive site has advanced gradually while incorporating changes insociety over time to realize a well-balanced distribution of various functions—such as housing,retail properties, schools, medical facilities, and hotels—and coexistence with nature, establishing the Izumi Park Town brand as a housing development in the suburbs of Sendai thatis home to a diverse range of households.
Today, on the 50th anniversary of its opening, urban development at Izumi Park Town hasentered a new phase. In May 2019, the town was selected as a priority promotion project
under the Ministry of Land, Infrastructure, Transport and Tourism’s Smart City Model
Program in response to changes in its environment. Under this program, we are working toaddress social issues faced by suburban housing developments, with a focus on Asahi, a
new district created in 2022. Mitsubishi Estate’s urban development efforts at Izumi Park
Town will continue well into the future.

55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes
57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation

Firefighting drill led by the Tokyo Fire Department at theShin-Marunouchi Building

People × City Disaster Drill
Comments from an organizer

Further Strengthening of Public–Private Cooperationa Century on from the Great Kanto Earthquake of 1923:
Holding of the 97th People × City Disaster Drill
In September 2023, the 100th anniversary of the Great Kanto Earthquake, the Mitsubishi
Estate Group held a comprehensive drill centered on the Marunouchi area in preparation fora major disaster through public–private cooperation with the Metropolitan Police Department
and the Tokyo Fire Department and with the participation of approximately 2,000 employees.
The occasion marked the Group’s first large-scale drill in cooperation with the Metropolitan
Police Department in the Marunouchi area. With the aim of enhancing disaster resiliencethroughout the area in cooperation with customers, employees of tenant companies in the
Marunouchi Building and the Shin-Marunouchi Building also took part in the drill.
Mitsubishi Estate’s history of preparing for disasters can be traced back to the Great Kanto
Earthquake, when the Marunouchi area—which had avoided damage—became a hub forrelief and support efforts for earthquake victims while also accepting the temporary relocationof over 400 entities, including government agencies, banks, and companies, serving as acenter for disaster recovery and undertaking the core functions of political and economic
activities until Tokyo’s recovery.
Today, the entire Mitsubishi Estate Group has inherited this DNA, establishing policies forresponding to disasters and measures to ensure proper and prompt recovery through theEmergency Response Manual, the Disaster Response Manual, and other materials covering
the entire Group, in addition to taking preventive measures and holding regular drills.
Mitsubishi Estate continues to earn the trust of its customers by offering resiliencethrough safe and secure urban development.

61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value70	Information Disclosure Based on the TCFD’s
Recommendations
71 SASB
72 Human Capital76 Corporate Governance
98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

CONTENTS
Launch of first phase of Takamori sales in 1974

Panoramic view of Izumi Park Town

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

61

Index

Four Key Themes
Sustainability (ESG) Section

Maintain Commitment to Reducing Environmental Impact

3 CEO Message

In order to fulfill our responsibility to the global environment and realize sustainability, we will maintain our commitment to minimizing environmental impact in our corporate

9 Value Creation Story

activities and will seek to enhance corporate value as a leading environmentally friendly company.
By realizing a recycling-oriented society, preserving healthy forests, conserving and restoring biodiversity, and thereby creating positive impact, we will create an environment
in which our business can operate in a sustainable manner.

35 Business Review
55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes

Material Issues
Climate change, greenhouse gas and embodied carbon reduction

Waste reduction and circularity

Supply chain (environmental)

Biodiversity

Risks

57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation
61	Maintain Commitment to Reducing
Environmental Impact

Opportunities

1Loss of sustainability in our business environment due to changes in the global
environment1

 ifferentiation of products and services and acquisition of new business opportunities
Dand customers through innovative responses to the environmental issues

64	Consider People, Empathize with People,
Protect People2Increase in costs due to compliance with environment-related regulations and guidelines2

67 Create and Circulate New Value3 isengagement of customers and decrease in profit opportunities due to failing to complyDwith environmental requirements of customers

 cquisition of business opportunities through utilization of existing building stock throughAsuch measures as large-scale building and residential renovations leveraging know-how

3

 nhanced investor engagement and increased stock market presence through proactiveE
information disclosure70	Information Disclosure Based on the TCFD’s
Recommendations
71 SASB

Targets

Results

CO2 and other GHG emissions reductions*1•	Reduce Scope 1 and 2 emissions by a total of 70% or more and Scope 3 by 50% or more by fiscal 2030
compared with fiscal 2019•	Achieve net-zero emissions by 2050 (reduce Scope 1, 2, and 3 by 90% or more. Neutralize residual emissions*2)(Targets approved by the SBT initiative*3 in June 2022)

Total emissions: 2,277,376 t-CO2 (down 43.6%)
comprising Scope 1 + Scope 2 emissions of 224,239 t-CO2(down 52.9%) and Scope 3 emissions of 2,053,137 t-CO2(down 42.4%)

Renewable energy (%)*1

Aiming to achieve 100% by FY2025 (joined RE100)

55.4%

Waste disposal (kg/m2)*1

20% reduction per m2 by 2030, compared with FY2019

6.4kg/m2

Waste recycling rate (%)*1

90% by 2030

59.5%

Procurement of timber in countries with low risk of illegal logging only,
including Japan-grown timber*4

Achieve 100% by fiscal 2030

99.94%

72 Human Capital76 Corporate Governance
98 Financial Section
100 Corporate Data

*1 Selection of target organizations is based on control criteria. Properties in which the Mitsubishi Estate Group’s ownership rights and trust beneficiary rights are less than 50% are excluded from calculations, in principle. FY2023 result as of June 27, 2024.
*2 Emissions that remain unabated within the Group’s value chain in 2050 are termed “residual emissions.” The SBTi standard requires neutralizing any residual emissions using forest absorption and carbon removal technologies outside the value chain to achieve net-zero emissions.
*3 An international initiative promoting the establishment of emission reductions targets consistent with scientific findings to achieve the target of limiting the average global temperature rise resulting from climate change to 1.5ºC above pre-industrial levels.
*4 Applies to procurement of timber in the Mitsubishi Estate Group’s own value chain. FY2022 result.

Mitsubishi Estate’s Website

VisionRealization of sustainable urban areas and global environment

CONTENTS

Four Key Themes

Maintain Commitment to Reducing Environmental Impact

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

62

Index

Sustainability (ESG) Section

Related Initiatives

3 CEO Message
9 Value Creation Story

Japan’s First ZEB-Certified Airport Terminal
Commencing Solar Power Generation at
Miyako Shimojishima Airport
Managed by the Mitsubishi Estate Group, Miyako Shimojishima Airport in Miyakojima,
Okinawa Prefecture, obtained Zero Energy Building (ZEB) Ready certification by improving
its thermal insulation performance through the incorporation of cross-laminated timber(CLT) into the structural materials of its roof—a first for an airport in Japan—and promoting
proactive efforts to leverage natural energy. As an environmentally friendly airport, it will
begin a project to generate solar power to further enhance its environmental performance.
The airport will achieve net-zero energy consumption by installing solar panels and storage
batteries on neighboring land and consuming all electricity generated at the terminal toaddress an issue unique to remote islands, namely, a lack of nearby surplus renewableenergy and difficulties in purchasing renewable energy from external sources. Power generationis scheduled to begin in April 2025. With this initiative, the Group will ensure that Miyako
Shimojishima Airport becomes the first airport terminal in Japan to obtain ZEB certification,
the highest level available, and expand environmental measures in various businesses.

Aiming to Achieve a Decarbonized Society by Ensuring
Condominiums Meet the ZEH-M Oriented Standard
In its strategies to reduce its CO2 emissions, Mitsubishi Estate Residence has adopted atarget of achieving a 50% reduction in emissions by 2030 compared with its FY2019 level.
As part of efforts to achieve this target, it will aim to obtain ZEH-Oriented certification for all
the condominiums and rental apartments it offers from 2025.
As an example, The Parkhouse Matsudo Honcho (scheduled for completion in late March
2025) has adopted ECO ONE (hybrid water heater and heating system manufactured by
Rinnai Corporation), which helps meet the ZEH standard by reducing CO2 emissions
significantly, and installed solar panels and outlets for charging electric vehicles (in certain
locations). Through these efforts, The Parkhouse Matsudo Honcho will meet the standard
for ZEH-M Oriented certification along with that for low-carbon buildings defined in the
Low-Carbon City Act.
The Mitsubishi Estate Group will continue to promote environmental initiatives through its
housing businesses.

35 Business Review
55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes
57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation
61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value70	Information Disclosure Based on the TCFD’s
Recommendations
71 SASB
72 Human Capital

ZEH-M Oriented Concept

Requires a minimumof energy

Uses energy
efficiently
Heating

Reduces

76 Corporate Governance
98 Financial Section
100 Corporate Data

Heating
Cool insummerMiyako Shimojishima Airport Terminal

CLT roof

Warm inwinterGood insulation
and airtightness

Air-conditioning

Air-conditioning

Lighting

Lighting

Hot-water supply

Hot-water supply

Highly efficientequipment

Reduces energy consumption by 20% or more

Mitsubishi Estate’s Website

CONTENTS

Four Key Themes

Maintain Commitment to Reducing Environmental Impact

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

63

Index

Sustainability (ESG) Section

Related Initiatives

3 CEO Message
9 Value Creation Story

Renovation Business Promoting the Effective Use of
Existing Properties in Cities in Japan and Overseas
Amid a growing number of aging and deteriorating buildings in Japan, the Mitsubishi EstateGroup is expanding efforts to address issues through renovations by ensuring that Group
companies leverage each other’s know-how to meet societal demands for the effective useof such buildings, incorporating the perspectives of the consideration for global and local
environments and population dynamics in Japan.
In particular, leveraging assets effectively together with developers for use over the longterm is ingrained in the DNA of Mitsubishi Jisho Design Inc., which has served as Mitsubishi
Estate’s in-house design office for much of its 130-year history. The major renovation of the
Otemachi Building enabled Mitsubishi Jisho Design to fully demonstrate its capabilities. The
building was more than 6o years old, having been completed in 1958. Rather than rebuilding
it, Mitsubishi Estate chose to use its original structure and materials with the aim of creating abuilding to last 100 years. Completion of highly challenging renovation work at a building
with tenants that is directly connected to the subway lines of Otemachi Station was achievedin May 2022, thanks to Mitsubishi Jisho Design’s design techniques and skills in supervising
the work and by consolidating the know-how of all parties involved. In addition to fully refurbishing the building’s infrastructure, the renovation provided added value by creating new
networking spaces where people and companies can meet, including the introduction of
networking functions throughout the building to enable venture companies and start-ups tointeract with one another.
In environmental terms, in addition to achieving a significant reduction in the amount ofwaste and construction materials compared with developments involving demolition andnew construction, the renovation lowered future building management costs by using alkaliresistant, glass fiber reinforced concrete (GFRC), which is more durable and fire resistant thanregular concrete, as the principal material for the exterior. In addition, the introduction of LED
lighting and the adoption of low-emissivity (low-E) double glazing with superior thermal insulation
and window frames with embedded sunshades improved the building’s environmental performance,
including achieving energy savings from reduced heat load (reduction of approximately 44%).

The Group’s efforts to make effective use of existing properties also extend overseas.
The development of 600 Fifth—an office building in Washington D.C. (the capital of theUnited States) on which Mitsubishi Estate New York Inc., Rockefeller Group International, Inc.
(the Group’s U.S. subsidiary), and Taisei USA LLC have commenced work as a joint venture—
will minimize the construction period, costs, and environmental load through a renovation
plan to utilize the original structure and add four new levels to the existing eight-floor building to create 11 floors plus a penthouse through creative construction techniques.

35 Business Review
55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes
57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation
61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value70	Information Disclosure Based on the TCFD’s
Recommendations

Original building (former headquarters of the Washington
Metro Area Transit Authority)

Rendering of project exterior

Meanwhile, in the United Kingdom, we conducted the large-scale renovation of Warwick
Court, an office building forming part of the redeveloped district of Paternoster Square(completed in 2003), next to St. Paul’s Cathedral, a historic building and symbol of London.
Completed in July 2022, the renovation made full use of the building’s original exterior andstructure to transform it into an office building that meets the demands of the new era,enhancing well-being and reducing environmental impact.
The Mitsubishi Estate Group will expand its business activities globally and create assets
responsibly using the credibility and brand power it has amassed through continuous
pioneering efforts in tune with the times.

71 SASB
72 Human Capital76 Corporate Governance
98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

CONTENTS
Otemachi Building before renovation

Otemachi Building after renovation

Paternoster Square, a mixed-use development project

Warwick CourtMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

64

Index

Four Key Themes
Sustainability (ESG) Section

Consider People, Empathize with People, Protect People
We create urban areas that embrace people’s lives and lifestyles, value the connections between people, and enable each and every individual to spend time productively.
We take business and human rights issues seriously, creating environments that physically and mentally fulfill the people who live, work, and relax in them, and aim for

3 CEO Message
9 Value Creation Story
35 Business Review

urban development and services that help diverse people to live happily.
55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes

Material Issues
Low birthrate and aging population

Supply chain (social)

Urban development and stakeholder diversity, equity, and inclusion (DE&I) promotion

Urban development and the wellness of people

Occupational health and safety

Business and human rights

Risks

58	Pursue Tangible and Intangible Urban
Development for the Next Generation
61	Maintain Commitment to Reducing
Environmental Impact

Opportunities1 oss of supply chain continuity and reputation due to inadequate human rights and occuL
pational health and safety compliance1Increase in competitiveness over the medium to long term due to industry-leading humanrights initiatives

2

Mismatch between supply and demand due to inadequate support for diversity of urban
areas and services and society with low birthrate and aging population2

 reation of opportunities to develop and manage types of assets that give considerationC
to diversity

3 Outflow of human resources and decrease in employee engagement and competitiveness due to3

 alue added to urban areas and services and increase in opportunities to acquire customers
Vthrough promotion of wellness measuresinadequate support for internal diversity

57 External Evaluations of ESG Performance64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value70	Information Disclosure Based on the TCFD’s
Recommendations
71 SASB
72 Human Capital

Targets

Results

Use of timber specified in Sustainable Sourcing Code*1 for concrete formwork
panels (certified timber and Japan-grown timber)*2

100% by 2030

80%

Percentage of female managers*3

Over 20% by fiscal 2030, 30% by fiscal 2040, and 40% by fiscal 2050

8.1%

*1 The code, in which international agreements and guidelines for sustainability in different sectors are used as a reference, specifies guidelines and methods of operation aimed at implementing sustainability-oriented procurement, among other matters.
*2 In respect to Mitsubishi Estate and Mitsubishi Jisho Residence Co., Ltd. For properties completed in FY2022; FY2022 results.
*3 In respect to Mitsubishi Estate. Results as of April 1, 2024.

76 Corporate Governance
98 Financial Section
100 Corporate Data

VisionA society where diverse people can work and live happily

Mitsubishi Estate’s Website

CONTENTS

Four Key Themes

Consider People, Empathize with People, Protect People

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

65

Index

Sustainability (ESG) Section

Related Initiatives

3 CEO Message
9 Value Creation Story

Developing Residences Catering to Diverse Lifestyles

35 Business Review

Mitsubishi Estate Residence is expanding asset development businesses other than condominiums in accordance with the declining birthrate and aging population and increasingly
diverse lifestyles. Positioning the development of housing for seniors, which offers high-quality
residences and enriched lifestyles to seniors, as a new business pillar, it is currently developing 20 properties in the Tokyo Metropolitan area as healthcare assets and will promoteresidential developments under a new brand together with HIMEDIC, Inc. (ResorttrustGroup), a company operating Senior Lifestyle and Medical businesses, with which it concluded a joint venture agreement in November 2023. Mitsubishi Estate Residence also plansto open the Kamakura Iwase 1-chome Project—work on which began in October 2023—as acommercial assisted living residence, the company’s first joint development with Sompo
Care Inc., which operates a nursing care business in the SOMPO Group, accelerating its contribution to the creation of new lifestyles for seniors.
Meanwhile, as ensuring access to education for all students and developing environments
to facilitate it becomes increasingly important, Mitsubishi Estate Residence has developed
seven residences for students since it first took part in the development of such residencesin 2018. Along with a plan emphasizing privacy in accordance with the times, the company
supports the enriched lifestyles and future endeavors of students through the provision ofnutritious meals with the establishment of a dining lounge and the creation of facilities toencourage interactions among students.

55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes
57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation
Hmlet Sangenjaya

Blueground Park Place Mita

61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People

Promoting a Co-Living Business Tailored to Increasingly
Diverse Workstyles and Lifestyles and Globalization
Mitsubishi Estate expects that increasingly diverse lifestyles globally will lead to growing
demand for rental apartments offering greater flexibility. With this in mind, it established ajoint venture company with Singapore-based Hmlet Pte. Ltd. (currently Habyt Pte. Ltd.) in
2019, taking the lead in launching a co-living business in Japan to incorporate a community
development concept into rental apartments for medium- to long-term residents. In the wakeof the COVID-19 pandemic, with the number of foreign residents in Japan exceeding the prepandemic level, Japan has become an attractive place to stay for digital nomads. NonJapanese residents from more than 50 countries occupy approximately 80% of the roughly
850 rooms in operation at Hmlet’s 45 locations (as of June 2024).
In anticipation of the further expansion of these new ways of living, Mitsubishi Estate
concluded an exclusive licensing agreement in Japan with Blueground Holdings Ltd., which
operates over 15,000 rooms in 17 countries and 34 cities globally, to bolster its flexible
rental apartment business (flexible living business), which includes the co-living business.
By further expanding our flexible living business, we will meet demand arising fromincreasingly diverse lifestyles in Japan and overseas.

67 Create and Circulate New Value70	Information Disclosure Based on the TCFD’s
Recommendations
71 SASB
72 Human Capital76 Corporate Governance
98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website
Charm Premier Grand Gotenyama (commercial assisted living facility)

The Park Hive Hasekura, Sendai (student condominium)

CONTENTS

Four Key Themes

Consider People, Empathize with People, Protect People

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

66

Index

Sustainability (ESG) Section

Related Initiatives

3 CEO Message
9 Value Creation Story

Aiming to Create Communities and a Society Where
Everyone Can Play Active Roles with Peace of Mind
Mitsubishi Estate, which aims to promote diversity, equity, and inclusion (DE&I) in society
through urban development, is accelerating a variety of measures on the basis that further
understanding and promotion of DE&I within the Company is essential to achieving thisgoal. In January 2024, recognizing that promoting the active role of women is critical toconducting management and operating businesses, Mitsubishi Estate became the first realestate company in Japan to endorse the Women’s Empowerment Principles (WEPs), clarifying the position of gender equality in its management by signing a statement declaringthat it will act based on the WEPs. Establishing high-level corporate leadership in genderequality is one of the WEPs. Mindful of this, to identify issues through opportunities formembers of the management team to communicate with frontline employees, Mitsubishi
Estate held a luncheon in March 2024 where employees and executives could talk freely
about future career plans, issues, and other topics. The Company plans to hold several
such gatherings going forward.
Meanwhile, as of April 2024, we regard same-sex partners and their families in thesame way as heterosexual marriages and define them as such in various internal programs.
In this way, we are creating vibrant workplaces through respect for individual humanrights and diverse ways of thinking, as set forth in the Mitsubishi Estate Group Code ofCorporate Conduct.

Promoting Initiatives to Establish a Sustainable Supply Chain

35 Business Review

The Mitsubishi Estate Group has led the way in the real estate industry in advancing various
measures aimed at strengthening supply chain management from the perspectives of business and human rights and of environmental conservation. In FY2023, along with its usual
surveys using a questionnaire, the Group conducted in-person interviews of those working
on construction sites. Through these efforts, we endeavor to gain a better understanding of
the circumstances in the supply chain. In addition, believing that it has a duty to identify
risks in relation to construction materials, the Group has begun conducting traceability surveys
with the cooperation of suppliers for construction materials designated as high risk throughthe due diligence process. Moreover, we have begun the introduction of a consultation andgrievance contact service for non-Japanese workers, which we are expanding steadily at
relevant sites, to establish a grievance mechanism for non-Japanese workers employedat construction sites.
Meanwhile, the Construction and Real Estate Human Rights Due Diligence Study Group,
established in 2018 with Mitsubishi Estate as the organizing company, transitioned to
become the Construction and Real Estate
登録企業従業員対象
Human Rights Due Diligence Promotion
Council in 2023 to further develop its activities, with Mitsubishi Estate spearheading the
外国人相談窓口
council’s efforts. The council conducts surJP-MIRAI (責任ある外国人労働者受入れプラットフォーム)
veys and research continuously to raise thelevel of human rights throughout the industry「仕事のこと」「健康のこと」「生活のこと」「子どもの学校のこと」「行政手続き」など、なんでも相談することができます。
through collaboration among companies that
秘密は守ります。働いているところに言いません。
face the same issues in the construction and
AM 10:00～PM 6:00 火曜日～土曜日
real estate industry.
21言語対応Although the establishment of our ideal
supply chain remains a work in progress, we
電話以外の通信手段がない場合 0800-080-4086 に電話してください
相談方法
will fulfill our responsibility as a leading
チラシの識別コード
1 アプリをダウンロード
3
2 会員登録(QR)を読み取る
company in the industry and continue work新規登録をクリック
ing to contribute to the sustainable developマイページ
ment of our supply chain and of society.

55 Sustainability (ESG) Sectionとうろくきぎょうじゅうぎょういんたいしょう

ア シ ストがいこくじん

せきにん

しごと

そうだん まどぐち

がいこくじん ろうどうしゃうけい

けんこう

せいかつ

ぎょうせいてつづ

ひみつ

こ

がっこう

そうだん

まも

はたら

56	Sustainability Frameworks /Framework for Monitoring Key Themes
57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation
61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value70	Information Disclosure Based on the TCFD’s
Recommendations
71 SASB
72 Human Capital76 Corporate Governance

い

かようび

どようび

にちようび げつようび にほん しゅくじつ やす（日曜日、月曜日、日本の祝日は休み）

98 Financial Section

げんごたいおうでんわいがいそうだん ほうほう

つうしんしゅだん

ばあい

100 Corporate Data

でんわ

しきべつ

かいいんとうろくよと

しんき とうろく

けんさくまたは ウェブサイトを検索
https://portal.jp-mirai.org

Luncheon withoutside directors
and employees

はんかくり よ う き や く

ここを
クリック

ど う い

利用規約に同意しメールと
とう ろく

パスワードを登録

え い こ も じ え い おおもじ

す う じ き ご うくあ※パスワードは、半角で英小文字・英大文字・数字・記号を組み合わせ、
けたいじょうにゅうりょく

きごう

い か

つか

10桁以上で入力してください。記号は以下が使えます。

そうだん

4 アシストへ相談

しきべつ

識別コード

Mitsubishi Estate’s Website

ここから
そうだん

相談
参加法人名：株式会社〇〇〇〇
で ん わ

電話、メール、チャット
そうだん

Luncheon with President & CEO Nakajima
and employees

Consultation and grievance contact service for
non-Japanese workers

で相談

識別コード：

アシストのページ

関連法人：株式会社〇〇〇〇
法人番号：

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

67

Index

Four Key Themes
Sustainability (ESG) Section

Create and Circulate New Value

3 CEO Message

We will prevent the stagnation of the Group’s business model and develop businesses that match and anticipate the times by continuing to create new value through innovation.
Through co-creation and collaboration with diverse partners, we will create value that we cannot achieve alone, update lifestyles, and foster affluence and convenience that

9 Value Creation Story
35 Business Review

match the times.
55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes
57 External Evaluations of ESG Performance

Material Issues
Innovation

58	Pursue Tangible and Intangible Urban
Development for the Next Generation

Partnerships

61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People

Risks

Opportunities1 lowdown in growth and decline in competitiveness due to mediocrity in urban developS
ment and services and delays in updating existing businesses1 rban diversification, differentiation, and acquisition of competitive edge through proU
vision of innovative development schemes and services2

 lowdown in growth due to delays in diversification and globalization of business owingS
to absence of outstanding partners

2

 xpansion of business opportunities and fields and provision of value added that cannotE
be achieved alone through diverse partnerships

67 Create and Circulate New Value70	Information Disclosure Based on the TCFD’s
Recommendations
71 SASB
72 Human Capital76 Corporate Governance
98 Financial Section
100 Corporate Data

VisionAnticipating changing times and fostering affluence and convenience

Mitsubishi Estate’s Website

CONTENTS

Four Key Themes

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Create and Circulate New Value

68

Index

Sustainability (ESG) Section

Related Initiatives

3 CEO Message
9 Value Creation Story

Building an Incubation Ecosystem for Innovation
With a history spanning a quarter of a century, Mitsubishi Estate’s support for start-ups andpromotion of incubation efforts focusing on the Marunouchi area (Otemachi, Marunouchi,
and Yurakucho) dates back to 2000, when it established an organization that assisted venture companies. Since then, always in touch with the times, Mitsubishi Estate has engaged
in the operation of seven facilities and communities, including the creation of EGG JAPAN(currently EGG), an incubation office for early-stage start-ups that was a pioneering initiativein Japan in 2007; FINOLAB, Japan’s first fintech hub; and Inspired.Lab, which focuses on the
deep tech field. In fall 2024, the Company plans to open Japan’s first incubation hub dedicatedto the climate tech. Meanwhile, we are advancing academic collaborations with Tokyo
University, Tokyo Medical and Dental University, and Hitotsubashi University. Through theseendeavors, we will boost efforts to create new value for society by building an incubation
ecosystem through collaboration with players in industry, government, and academia
centered on the Marunouchi area.

35 Business Review

Investment Management Business Using Bases in Japan,
the United States, Europe, and Asia Operating the MEGP
Platform

55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes

Since listing Japan’s first real estate investment trust (REIT) on the Tokyo Stock Exchange in
2001, Mitsubishi Estate has led the creation of new markets and investment opportunities
through the integration of finance and real estate. Its management of a global real estate
portfolio through Mitsubishi Estate Global Partners (MEGP), a global investment platform
established through a particularly strategic M&A track record, is without precedent in thereal estate industry, and MEGP’s assets under management have grown to reach ¥5.7 trillion.*
Through the ongoing expansion of MEGP’s portfolio, the Mitsubishi Estate Group will meetthe needs of investors around the world for long-term, stable management while raising theenvironmental performance of real estate globally and offering sustainable real estate
assets to communities by maintaining the Group’s policy of responsible management.

57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation
61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value* As of March 2024 for Japan and December 2023 for overseas investors70	Information Disclosure Based on the TCFD’s
Recommendations

MEGP
https://www.mecglobalpartners.com/

Mitsubishi Estate’s Start-Up Ecosystem
Attorneys andaccountants

Police /Governments

Major companies(R&D / businesscreation divisions)

76 Corporate Governance

Universities, etc.

Socialimplementation /Commercialization

Business
start-up 0–1

Mentoring

Incubators

Marunouchi
Start-Up
Ecosystem

Collaborationand cocreation
boost

Facilities, etc.

100 Corporate Data

more
more

more

Angel investors

LondonBostonFinancing

Networking,matching

98 Financial Section

Mentors
Accelerators

Field trials

Area landownerorganizations

Other
start-ups

72 Human Capital

Local Expertise

Entrepreneurs

Consultants
Relevant
ministries andagencies

71 SASB

Tokyo

VC

CVC

Singapore
Community
operators

Facility andlab operators

Mitsubishi Estate’s Website
more

more
Japan Climate Tech Lab (tentative name)

CONTENTS

Four Key Themes

Create and Circulate New ValueMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

69

Index

Sustainability (ESG) Section

Related Initiatives

3 CEO Message
9 Value Creation Story

Business Model Innovation through Co-Creation with a
Wide Range of Partners
Mitsubishi Estate promotes new business creation and open innovation leveraging its accumulated business assets, capabilities, and know-how with the aim of spurring change of its
own accord to realize business transformation: business model innovation for creating
value that enriches future generations.
BRICKS FUND TOKYO, our corporate venture capital (CVC) fund launched in April 2022 forengaging in the co-creation of growth industries, established three investment themes (newlifestyles, paradigm shifts in existing industries, and sustainability) and 12 focus areas toaccelerate investment in promising impact areas on the concept of co-creating impact,
supporting transformation, and building the foundations for the future together with others.
The fund aims to contribute to improvements in corporate value over the medium to longterm and create growth companies by providing investment targets with social implementation
support, such as management support drawing on the Group’s management infrastructure,
field trials in the Marunouchi area and elsewhere, business co-creation, and collaboration.
We expect our total investment in start-ups and venture capital companies in Japan andoverseas to come to ¥50.0 billion on a cumulative basis (including commitments) by themid-2020s. Along with investment and business support for start-ups that take on thechallenge of creating social impacts over the medium to long term, such as addressing
social issues and transforming industrial structures, we will create value that enriches
future generations by promoting open innovation.
Meanwhile, through open innovation with a diverse range of partners, Mitsubishi Estatecreates new businesses—including elevator advertising and 5G infrastructure sharing
businesses—backed by its core competitiveness. It also operates the Mitsubishi Estategroup Innovation Challenge (MEIC), a new business proposal system for Mitsubishi Estateand Group company employees to encourage them to take on challenges with the goal of
creating new businesses and promoting Groupwide innovation that helps diversify theGroup’s sources of earnings and strengthen its core business. Businesses produced throughthe system include Ecofurni, a business that resells used furniture, and GYYM, a reservation
support service for fitness facilities.

BRICKS FUND TOKYO Activity Results (April 2022–April 2024)

35 Business Review
55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes
57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation
61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value70	Information Disclosure Based on the TCFD’s
Recommendations
71 SASB
72 Human Capital76 Corporate Governance
98 Financial Section
100 Corporate Data

Examples of new businesses created through open innovation and MEIC

Mitsubishi Estate’s Website

BRICKS FUND TOKYOhttps://bricks-fundtokyo.com/
CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Information Disclosure Based on the TCFD’s Recommendations

3 CEO Message

to its existing analysis of two scenarios including one in which global warming is kept within 2°C of the
pre-Industrial Revolution level, as required by the Paris Agreement, and began analyzing the future
impact of climate change on the core businesses of the Mitsubishi Estate Group. The Company will continue to enhance the content of its disclosure while aiming to strengthen its climate change governanceand business strategies.
Please refer to the Mitsubishi Estate Group website for information disclosure
based on TCFD recommendations:

Risk Analysis Using CRREM

https://mec.disclosure.site/e/sustainability/activities/environment/tcfd/

Overview of CRREM
CRREM is a tool developed by European research institutes and organizations to evaluate and analyze thetransition risks faced by commercial real estate properties. Using CRREM, it is possible to calculate thetiming and percentage of stranded assets as well as the cost and associated implications of future emissions by comparing the greenhouse gas (GHG) emissions pathways up to 2050 that meet the 2°C and

1.5°C targets outlined by the Paris Agreement with the emissions pathway of a company’s properties.
As a result, companies can consider countermeasures and their effects. Note that properties are liable tobecome “stranded assets” when the decarbonization pathways in a company’s portfolio exceed the 2°C
and 1.5°C pathways, thereby increasing transition risks.

Using CRREM to Analyze Mitsubishi Estate’s Transition Risk
We utilized the CRREM methodology to quantitatively assess the impact of future climate change on ourbusinesses, particularly the transition risk of the properties we own.
Scope of Analysis
The analysis covers a total of 84 properties owned by the Company as of the end of FY2021, including
office, retail, and logistics facilities, selected from properties subject to GRESB* reporting in 2022.
Defining Case Parameters
Case 1 : In addition to our existing decarbonization efforts, this case takes into account the strengtheningof energy-saving measures (air-conditioning, LED lighting, etc.) and the introduction ofgreen energy.
Case 2 : S upplementing Case 1 with the introduction of renewable energy through electricity contracts
with non-fossil-fuel energy certificates, this case assumes all properties have transitioned torenewable electricity by FY2025.
Case Analysis Results
Each case was compared with the emissions pathways for the 2°C and 1.5°C targets outlined by the Paris
Agreement. The results are as follows.
Case 1 : D espite strengthening energy-saving measures and introducing green energy, as well as
contributing to lowered grid emission factors, emission levels are expected to exceed the 1.5°C
pathway around 2037. Therefore, the initiatives taken in this case might not be sufficient.
Case 2 : T here will be no emissions from electricity after FY2025 following the transition to renewableelectricity. However, as there are still likely to be emissions caused by district heating andcooling, as well as energy generated from gas, it is possible that emission levels will exceed the
1.5°C pathway around 2047.

Index

Sustainability (ESG) Section

Regarding Information Disclosure Based on the TCFD’s Recommendations
In May 2020, in accordance with the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD), Mitsubishi Estate disclosed information (governance, strategies, risk management,
and metrics & targets on climate change) in line with the TCFD framework. In May 2023, to expand thescope of its disclosure, the Company adopted the Carbon Risk Real Estate Monitor (CRREM), which analyzes transition risks (risks related to the process of transitioning to a lower-carbon economy), in addition

70

Measures and Initiatives Based on Case Analysis (Including Opportunities)
This case analysis is based on properties owned at the end of FY2021 and assumes there will be no change
until 2050. However, in reality, GHG emissions intensity is expected to improve due to the reconstruction ofproperties to ensure superior energy-saving performance, new property acquisitions, and so forth.
To achieve our goal of adopting 100% renewable energy by FY2025, we will further advance the use ofelectricity contracts with non-fossil-fuel energy certificates, which we have thus far been promoting, andexamine the introduction of corporate power purchase agreements (PPA), along with other contracts. In
addition, we will strive to improve GHG emissions intensity and increase the rate of designing buildings withsuperior energy-saving performance by aiming to achieve high environmental performance in line withZEB requirements for all new buildings to be developed.
* GRESB (Global Real Estate Sustainability Benchmark) is a benchmark established mainly by a group of European pension funds to assess
the consideration given by real estate companies and real estate investment institutions to the environment, society, and other areas.

9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes
57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation
61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value70	Information Disclosure Based on the TCFD’s
Recommendations
71 SASB
72 Human Capital76 Corporate Governance
98 Financial Section
100 Corporate Data

GHG Intensity Pathway(kg-CO2e/m2)
100

1 emission levels exceed
Point where
1.5ºC pathway in Case 1 (around 2037)

Complete transition to renewableenergy for all properties (2025)

80
60

Point where emission levels exceed
1.5ºC pathway in Case 2 (around 2047)

40

Mitsubishi Estate’s Website

20
0
21

22

23

24

1.5°C pathway

25

26

27

28

29

2°C pathway

30

31

32

33

Case 1

34

35

36

37

Case 2

38

39

40

41

42

43

44

45

46

47

48

49

50

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

SASB

71

Index

Sustainability (ESG) Section
Please refer to our website for detailed information on the SASB.

Information Disclosure Based on SASB Standards

https://mec.disclosure.site/e/sustainability/table-of-contents/sasb-index/

3 CEO Message
9 Value Creation Story

Notes
Our business applies to the Infrastructure–Real Estate sector according to the Sustainable Industry Classification System® (SICS®), and we disclose the following information based on the standard of this sector.

35 Business Review
55 Sustainability (ESG) Section

Sustainability Disclosure Topics and Accounting Metrics (FY2023)

56	Sustainability Frameworks /Framework for Monitoring Key Themes

Energy Management
UNIT OF MEASURE

CODE

Energy consumption data coverage as a percentage of total floor area, by property subsector

Percentage (%) byfloor area

IF-RE-130a.1

Total energy consumed by portfolio area with data coverage, percentage grid electricity, andpercentage renewable, by property subsector

MWh, %

IF-RE-130a.2

Environmental data>(2) Other>Basic Data on Target Properties

https://mec.disclosure.site/e/sustainability/activities/esg-data/environment/#sec_1_2_1

Environmental data>(2) Other>1. Climate Change (GHG Reduction and Energy
Management)>GHG Emissions, Energy Use, and Other Data by Type of Property

https://mec.disclosure.site/e/sustainability/activities/esg-data/environment/#sec_1_2_2_3

Environmental data>(1) KPI>1. Climate Change (GHG Emissions and Energy Use)

https://mec.disclosure.site/e/sustainability/activities/esg-data/environment/#sec_1_1_1

Environmental data>(2) Other>1. Climate Change (GHG Reduction and Energy Management)

https://mec.disclosure.site/e/sustainability/activities/esg-data/environment/#sec_1_2_2

57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation

Like-for-like percentage change in energy consumption for the portfolio area with data coverage%

IF-RE-130a.3

Environmental data>(2) Other>1. Climate Change (GHG Reduction and Energy Management)

https://mec.disclosure.site/e/sustainability/activities/esg-data/environment/#sec_1_2_2

Percentage of eligible portfolio that has an energy rating and is certified to ENERGY STAR,by property subsector

Percentage (%) byfloor area

IF-RE-130a.4

Environmental data>(2) Other>5. Green Building Certification

https://mec.disclosure.site/e/sustainability/activities/esg-data/environment/#sec_1_2_6

61	Maintain Commitment to Reducing
Environmental Impact

Environment>Climate Change Strategies

https://mec.disclosure.site/e/sustainability/activities/environment/climate-change/

64	Consider People, Empathize with People,
Protect People

Environmental data>(2) Other>Basic Data on Target Properties

https://mec.disclosure.site/e/sustainability/activities/esg-data/environment/#sec_1_2_1

Environmental data>(2) Other>3. Water>Water Usage by Type of Property

https://mec.disclosure.site/e/sustainability/activities/esg-data/environment/#sec_1_2_4_2

Description of how building energy management considerations are integrated into
property investment analysis and operational strategy

UNIT OF MEASURE

CODE

n/a

IF-RE-130a.5

Water Management

67 Create and Circulate New Value

UNIT OF MEASURE

CODE

Water withdrawal data coverage as a percentage of total floor area and floor area inregions with High or Extremely High Baseline Water Stress, by property subsector

Percentage (%) byfloor area

IF-RE-140a.1

Total water withdrawn by portfolio area with data coverage and percentage in regions withHigh or Extremely High Baseline Water Stress, by property subsector

Thousand m3, %IF-RE-140a.2

Environmental data>(2) Other>3. Water

https://mec.disclosure.site/e/sustainability/activities/esg-data/environment/#sec_1_2_4

Like-for-like percentage change in water withdrawn for portfolio area with data coverage,
by property subsector%

IF-RE-140a.3

Environmental data>(2) Other>3. Water

https://mec.disclosure.site/e/sustainability/activities/esg-data/environment/#sec_1_2_4

Environment>Conserving Water Resources

https://mec.disclosure.site/e/sustainability/activities/environment/water/

CODE

n/a

IF-RE-140a.4

UNIT OF MEASURE

CODE

Percentage of new leases that contain a cost recovery clause for resource efficiencyrelated capital improvements and associated leased floor area, by property subsector

Percentage (%) byfloor area

IF-RE-410a.1—

Percentage of tenants that are separately metered or submetered for grid electricity
consumption and water withdrawals, by property subsector

Percentage (%) byfloor area

IF-RE-410a.2—

UNIT OF MEASURE

CODE

n/a

IF-RE-410a.3

76 Corporate GovernanceManagement of Tenant Sustainability Impacts

Discussion of approach to measuring, incentivizing, and improving sustainability impactsof tenants

71 SASB
72 Human Capital

UNIT OF MEASURE

Description of water management risks and discussion of strategies and practices tomitigate those risks

70	Information Disclosure Based on the TCFD’s
Recommendations

98 Financial Section
100 Corporate Data

Environment>Climate Change Strategies

https://mec.disclosure.site/e/sustainability/activities/environment/climate-change/

Environment>Reducing Waste and Preventing Pollution

https://mec.disclosure.site/e/sustainability/activities/environment/waste/

Environment>Conserving Water Resources

https://mec.disclosure.site/e/sustainability/activities/environment/water/

Climate Change Adaptation
Area of properties located in 100-year flood zones, by property subsector
Description of climate change risk exposure analysis, degree of systematic portfolio
exposure, and strategies for mitigating risks

UNIT OF MEASURE

CODE

m2

IF-RE-450a.1

UNIT OF MEASURE

CODE

n/a

IF-RE-450a.2—
Environment>Information Disclosure Based on TCFD Recommendations

https://mec.disclosure.site/e/sustainability/activities/environment/tcfd/

Mitsubishi Estate’s Website

Activity Metrics
UNIT OF MEASURE

CODE

Number of assets, by property subsector

Number

IF-RE-000.A

Environmental data>(2) Other>Basic Data on Target Properties

https://mec.disclosure.site/e/sustainability/activities/esg-data/environment/#sec_1_2_1

Leasable floor area, by property subsector*

m2

IF-RE-000.B

Environmental data>(2) Other>Basic Data on Target Properties

https://mec.disclosure.site/e/sustainability/activities/esg-data/environment/#sec_1_2_1

Percentage of indirectly managed assets, by property subsector
Average occupancy rate, by property subsector* Indicates the total floor area

Percentage (%) byfloor area

IF-RE-000.C—%

IF-RE-000.D—

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Human Capital

72

Index

Sustainability (ESG) Section
3 CEO Message

Vision for Our Ideal Human Resources and Organization
The Mitsubishi Estate Group promotes a wide range of businesses on a Groupwide basis, including the Commercial Property, Residential, International, and Investment Management businesses.
The Group believes it needs human resources who can demonstrate the competencies that comprise the two roles of “Professional” and “Change Maker” while possessing the five traits it requiresof them to achieve further business expansion.

9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section

Creating Value as the Mitsubishi Estate Group
Mitsubishi Estate Group Sustainability Vision 2050

Demonstrating the Qualities of Professionals and Change Makers

Be the Ecosystem Engineers

56	Sustainability Frameworks /Framework for Monitoring Key Themes
57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation

We aspire to be a corporate group (= engineers) that provides spaces
and infrastructure (= ecosystems) where all actors (individuals, corporations,and more) are able to coexist sustainably and thrive together—economically,
environmentally, and socially.

61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value

ChangeMaker

ChangeMaker

ChangeMaker

Competencies
Professional

Ideal Human Resources

Organizational Culture

Professional

Professional

ChangeMaker

Professional

ChangeMaker
Professional

Five Traits
As One Team

TraitsDefinition

Desired Strengths

People with Vision

People who can visualize what theywant to achieve and have the determination and dynamism to do so

The ability to create andpromote their vision withdetermination andcourage

People with Frontline
Capabilities and theRequired Skill Sets for
Their Role

People who develop their skills andknowledge as a professional in boththeir field of specialization and thereal estate industry and who havethe ability to drive business forward

The ability to make soundjudgments, be customeroriented, and drive business forward while also
being productive andpossessing risk management skills as well as
professional-level skills
and knowledge

People with Integrity

People with high ethical standards,
who act with integrity and fairness,
and who build good relationships
with those around them

Open-mindedness andhigh ethical standards

People with TeamBuilding Skills

People capable of carrying out
human resource development andmanagement in order to increase
the competitiveness of theorganization

The ability to nurturetalent, work as part of ateam, and deploy management skills

People with a Passion
for Taking On
Challenges andInnovation

People who are not bound by precedent or convention and who havethe spirit to take on challenges andact without fear of failure

Challenge-oriented andinnovative70	Information Disclosure Based on the TCFD’s
Recommendations
71 SASB
72 Human Capital76 Corporate Governance
98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

Creating an organizational culture that maximizes value by combining the strengths of every employee
CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Human CapitalCompetencies

Professional
Human resources who create new value using their
specialist expertise
In addition to steadily advancing large-scale developments in Japan, Mitsubishi Estate recognizes that it must strengthen
its International Business, expand its non-asset business, and advance into businesses in the services and content
domain, while becoming a trusted presence as a developer capable of leading its partners by maintaining an awarenessof its role and skills as a professional in those fields to accelerate the development of businesses in order to create value
and achieve Long-Term Management Plan 2030. Based on this view, the Company has improved its recruitment of specialist human resources in various domains and invested proactively in training programs to help all employees acquire andstrengthen the expertise they require.

3 CEO Message

MeasuresUtilizing the Competency Development Program

Strengthening the Recruitmentof Specialist Human Resources

FY2023 Results

FY2023 Results(specialists and digitalspecialists)

Positioning the knowledge, skills, and experience required foreach job grade as Compulsory Study Topics, Mitsubishi Estateprovides training and access to external courses for every
employee to acquire such knowledge, skills, and experience
within fixed periods to facilitate their lifelong learning.
The Company has also established a program to provide full
subsidies of up to ¥300,000 per year for employees to attend
courses on required competency development topics (27 in total,
including foreign languages, business skills, digital transformation, the SDGs, and liberal arts) as Optional Study Topics.

• Professionals have high aspirations of their own andnever compromise on quality.
• We establish an ideal and aim to consistently deliver thebest results by pursuing high standards and paying meticulous attention to the smallest details.

9 Value Creation Story
35 Business Review

Number of Recruits: 24

Number of Participants (cumulative total)
Compulsory Study Topics: 247
Optional Study Topics: 523

Focus on Quality• Professionals strive to be highly knowledgeable about
the industry and the latest trends and to build extensive
networks.
• Always seeking to grow, we relish a challenge and spareno effort in forging a path to the future.

Index

Sustainability (ESG) Section

Qualities Required in Every Employee

Inquire Continuously

73

Since FY2020, Mitsubishi Estate has
been strengthening the recruitment ofspecialist human resources for businessdomains to be improved strategically inorder to achieve Long-Term
Management Plan 2030.
In particular, the Company is proactively recruiting specialist humanresources for the DX domain, creating a
digital specialist position in FY2024 andadvancing a system to properly train andassess DX human resources.

55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes
57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation
61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value70	Information Disclosure Based on the TCFD’s
Recommendations

Accomplishments (Value Created)
DX Promotion Leveraging Professionals
In accordance with the Mitsubishi Estate Digital Vision, formulated in June 2021, digitalspecialists take the lead in building secure IT infrastructure, developing digital contact
points and online services, and reforming and strengthening existing businesses in theGroup. For example, these efforts have delivered results that have direct business
impacts by leveraging flow data obtained from our business data and various touchpoints
on a common data platform accessible to all Group companies.

71 SASB
72 Human Capital76 Corporate Governance
98 Financial Section
100 Corporate Data

Mitsubishi Estate Local Open Network(MELON)

Locally oriented
digital touchpoints

Provide Leadership• Using the Group’s organizational strengths, Professionals
emphasize providing leadership to consolidate the viewsof all parties.
• With our project promotion capabilities, we aim toachieve our goals while fostering cooperation among all
project members.
• We maximize the performance of teams as a whole andlead them to success through smooth communicationand the ability to build a consensus.

Simpletouchpoints withcitiesThird-party data

Learning experiences /Education

Resources /EnergyUX
Loop
Mobility
services

Up-to-date andappealing UX*1
Community
Food /
Healthcare*1 User experiences*2 Meetings, incentives, conferences,and exhibitions

Government
services

Locally
focused data
infrastructure

3D
maps

Digitized andlocal physicaltouchpoints

Lifestyle

E-commerce
Co-creative
company data

Mobility

Waste

Entertainment

Smart-City
Operating
SystemRobotsMitsubishi Estate’s Website
Disaster
preparedness

MICE*2Barrier
free

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Human CapitalCompetencies

74

Index

Sustainability (ESG) Section

Qualities Required in Every Employee

Change Maker
Human resources who augment each other’s strengths
through collaboration
A distinguishing feature of the Mitsubishi Estate Group’s business model is the need to grow businesses by continuously
creating new value and domains in accordance with new lifestyles and trends ahead of the times as a developer engaged
in urban development, which is a long-term business. The Group requires employees to have the spirit to take on challenges
without being bound by precedent, so that they can identify issues from fresh perspectives and augment each other’s
strengths through collaboration by using internal and external networks while leveraging the Group’s strengths of along-term perspective and forward-looking DNA.

Expand Curiosity and Sensitivity

Stay Ahead of the Times• With high aspirations, Change Makers emphasize theimportance of always being interested in new developments.
• Maintaining a broad perspective and continuously
expanding our sensitivity to gauge the trends of the times
is crucial.
• Our curiosity and insights enable us to identify newopportunities and spur innovation.

• Change Makers anticipate the trends of the times andemphasize the importance of fearlessly spurringinnovation.
• We aim to continuously stay ahead of the times byproactively incorporating new ideas and technologies
with a focus on the future.

3 CEO Message

Measures
Providing Training toSpur Innovation

Using the 10% Rule System

FY2023 Results

FY2023 Results

Participation Rate: 100%

Percentage of Employees Engaged in Business

Mitsubishi Estate provides training for
employees newly appointed to positions
where they will become managerial candidates. The training requires the candidates
to rethink their aspirations and reformtheir own behaviors to spur innovation.

We have introduced a system that seeks to have employees dedicate 10% of business hours to activities promoting businessmodel innovation, or activities improving operational efficiency
and transforming our corporate culture that contribute to suchinnovation. The content of the activities is included in assessments of human resources.
Employees are free to choose how they use their time and are
currently working on a wide range of topics, such as developing
measures to improve efficiency in their daily work, building networks with external parties, and preparing applications for the
New Business Proposal System.
An internal survey found over 70% of employees were
engaged in business model innovation through such initiatives.
We aim to increase that percentage even further.

Model Innovation: 71%

Percentage of Employees Engaged in Business Model Innovation

35 Business Review
55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes
57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation
61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value70	Information Disclosure Based on the TCFD’s
Recommendations

(%)
100
80

9 Value Creation Story

69.5%

68.4%

71.0%

80.0%

71 SASB
72 Human Capital

60
40

76 Corporate Governance

20

98 Financial Section

0
FY2021

FY2022

FY2023

FY2030(Target)100 Corporate Data

Achievements (Value Created)
Taking On the Challenge of Developing a Flying Car BusinessChange Frameworks and Rules• Change Makers embrace ideals and emphasize the importance of remaining unbound by established frameworks
or rules.
• We create a better future by pursuing innovation andincorporating new methods and approaches.

Mitsubishi Estate’s involvement in a flying car
business, which it positions as one element in thecity of the future, began with the efforts of an
employee who used the Company’s 10% Rule
System to realize business model innovation.
A mobility revolution featuring flying cars will
expand our business, creating a borderless world
and transforming lifestyles—a prime example of abusiness that is ahead of the times.

Mitsubishi Estate’s Website

Designed by Mitsubishi Jisho Design

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Human Capital
Organizational Culture

75

Index

Sustainability (ESG) Section
3 CEO Message

Measures

Ideal Organization

As One Team

Determining the Current State of Gender Diversity
and Implementing Measures

Holding Unconscious
Bias Training

FY2023 Results

FY2023 Results

Number of Respondents: 1,031

Number of Participants:

9 Value Creation Story
35 Business Review

An organization that maximizes value by combining thestrengths of each of its employees
The Mitsubishi Estate Group recognizes that accommodating diverse human resources and workstyles is crucial tomanaging and operating its businesses. The Group therefore aims to maintain a well-balanced composition of employees
in terms of nationality, gender, age, career stage (graduate recruits and mid-career recruits), and other characteristics. In
particular, Mitsubishi Estate focuses on ensuring diversity in its recruitment through a range of initiatives, such as setting
a target for female employees to account for more than 40% of its workforce every year, introducing a recruitment
process for non-Japanese human resources in its graduate recruitment, and strengthening recruitment of mid-careerhires (mid-career hires account for approximately 40% of new recruits in the average year). We also encourage a diversityof opinions to create an environment where employees can freely express their diverse values and views with peace ofmind. In this way, the Group aims to achieve ongoing growth by creating a vibrant workplace.

Open-Minded

Borderless• Aim to create an organization that engages witheveryone and respects open-mindedness• Embrace diverse opinions and values and create new
possibilities through flexible thinking and cooperation• Develop an environment emphasizing transparency andempathy where all members can exchange opinions freely• Aim to create an organization that facilitates Groupwide
cooperation and augments its strengths• Encourage an abundance of collaboration transcending
departments, divisions, and companies to create new value• A borderless organizational culture that drives innovationand successResponse Rate: 81.6%

In FY2023, Mitsubishi Estate conducted an attitude survey of all
employees to determine the current state of gender diversity
within the Company, sharing the issues that emerged with directors and members of the management team.
Based on the survey results, in FY2023 we advanced measures to create an organizational culture that facilitates gender
diversity. These include communicating messages from thepresident & CEO, becoming a signatory to the Women’s
Empowerment Principles (WEPs), and holding luncheons withexecutives and female employees as part of efforts to support
the career development of women.

1,277

Participation Rate: 97.0%
In FY2023, Mitsubishi Estate held unconscious bias training for all employees
based on the results of the attitude
survey outlined on the left to further
instill opinion diversity. In each business
unit, employees watched a video andengaged in discussions. In a post-training
questionnaire, 99% of respondents
stated that they understood the concept
of unconscious bias.

55 Sustainability (ESG) Section
56	Sustainability Frameworks /Framework for Monitoring Key Themes
57 External Evaluations of ESG Performance
58	Pursue Tangible and Intangible Urban
Development for the Next Generation
61	Maintain Commitment to Reducing
Environmental Impact
64	Consider People, Empathize with People,
Protect People
67 Create and Circulate New Value70	Information Disclosure Based on the TCFD’s
Recommendations
71 SASB
72 Human Capital76 Corporate Governance
98 Financial Section

Future Direction
Holding an Engagement Survey

100 Corporate Data

Although we already monitor and disclose employee satisfaction levels (the proportion of
employees responding in the affirmative to a question in the in-house, employee questionnaire, asking if they find their work rewarding), we plan to hold an engagement
survey in FY2024 to identify organizational and individual issues in greater detail andimplement measures aimed at ensuring that all employees work “As One Team.”

Opinion Diversity• Respect different backgrounds and individuality• Ensure psychological safety while aiming to create anorganization where everyone and anyone can state theiropinions freely and see them adopted by all• Create new ideas by embracing diverse perspectives andencouraging constructive discussions

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Corporate
Governance

76

Index

3 CEO Message
9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
77 Message from the Chairperson of the Board
78 Corporate Governance System
83	Evaluation of the Effectiveness of theBoard of Directors

77
78

Message from the Chairperson of the Board
Corporate Governance System

85 Remuneration
88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes

83

Evaluation of the Effectiveness of the Board of Directors

85

Remuneration

88

Dialogues with Shareholders and Investors (ESG Meetings)

90

Shares Held for Strategic Purposes

91 Directors
92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers
93 Message from an Outside Director
95 Risk Management

98 Financial Section
100 Corporate Data

91

Directors

92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers
93

Message from an Outside Director

95

Risk Management

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Message from the Chairperson of the Board

77

Index

Corporate Governance
3 CEO Message

Mitsubishi Estate positions the development and promotion of its
corporate governance system as one of its most importantmanagement tasks in realizing the Mitsubishi Estate Group’s basic
mission of contributing to the creation of a truly meaningful society
by building attractive, environmentally sound communities where
people can live, work, and relax with contentment.
Mitsubishi Estate has adopted a Company with Nominating
Committee, etc., structure. Under this structure, the role of the Boardof Directors is to decide on basic management policies andsupervise overall management. The Board of Directors endeavors toensure the transparency and objectivity of management so that it
can fulfill its accountability to shareholders and other stakeholders.
To this end, it has implemented initiatives on an ongoing basis, suchas introducing performance-based officer remuneration, increasing
the proportions of outside directors on the Board of Directors and allcommittees, ensuring that independent outside directors serve as
the chairpersons of all committees, deciding not to retain its defense
strategy efforts against possible hostile takeover attempts, introducing
a third-party evaluation of the effectiveness of the Board of Directors,
disclosing a skills matrix, and increasing the number of female
directors to two.
In FY2023, Mitsubishi Estate sought to improve its corporate
governance system. In terms of the composition of the Board of
Directors, it reduced the number of directors concurrently serving as
corporate executive officers by one, raising the proportion of outside
directors serving on the Board. It also conducted a third-party
evaluation of the Board of Directors, held once every few years, toexamine the Board’s effectiveness. Meanwhile, following on fromshare buybacks in FY2019 and FY2021 totaling approximately¥130.0 billion, the Company completed share buybacks of approximately ¥100.0 billion between November 2022 and November 2023
to increase capital efficiency and shareholder value as part of capital
policies set out in Long-Term Management Plan 2030. Furthermore,in May 2024 it has approved share buybacks of approximately ¥50.0
billion to be conducted between May 2024 and November 2024.
In addition, Mitsubishi Estate endorsed the Women’s Empowerment
Principles (WEPs), established jointly by the United Nations Global
Compact and the United Nations Development Fund for Women(currently UN Women), signing a statement for taking action inaccordance with the WEPs, in its efforts to improve diversity.
The Board of Directors spent approximately one year carefully
discussing and refining Long-Term Management Plan 2030, which
was introduced in April 2020. Combining strategies for increasing
shareholder value with strategies for increasing social value, which
entail implementing initiatives aimed at realizing a sustainable
society, the plan focuses on realizing the Group’s basic mission.

Given that the business environment has changed since theformulation of Long-Term Management Plan 2030, includingchanges in people’s values due to the impact of the COVID-19
pandemic, inflationary risks, the risk of increases in interest rates,and geopolitical risks, the Company conducted a review of the planin FY2023 as it entered its fifth year. Without changing the approachof combining strategies for increasing both social and shareholder
value, Mitsubishi Estate decided to aim to raise earnings power invarious areas of its real estate business, including development,
operation, sales, fee businesses, capital management, and corporate,
based on the concept of a return to basics in strategies for increasing
shareholder value. Meanwhile, in strategies for increasing social
value, it decided to redefine its key sustainability themes as actions
for ensuring the sustainability of both the Mitsubishi Estate Groupand of society, enhancing their affinity with urban development, theGroup’s core business, with the aim of integrating sustainability into
its businesses. The Company will redouble its efforts in promoting
the management plan to achieve its 2030 targets.
Amid the rapid pace of change in the business environment inrecent years, the Board of Directors recognizes that the value
demanded of the Group will also change. Mindful of this, the Board
continuously discusses what it must do to transform changes into
opportunities, earn the support of stakeholders, and achieve ongoinggrowth unique to the Group.
As chairperson of the Board, I will work to establish a management
supervisory structure from a long-term perspective by encouraging
and leading active discussions at meetings of the Board of Directors,
which comprises members with a diverse range of knowledge andexperience, while utilizing my own experience of business execution.
Guided by the basic mission of the Group, the Board of Directors willmeet the expectations of shareholders and investors throughconcerted efforts to promote management that anticipates futurechanges in society and the business environment.


9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
77 Message from the Chairperson of the Board
78 Corporate Governance System
83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration
88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes
91 Directors
92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers
93 Message from an Outside Director
95 Risk Management

98 Financial Section
100 Corporate Data

August 2024

Mitsubishi Estate’s Website

Junichi Yoshida
Chairperson of the Board
Mitsubishi Estate Co., Ltd.

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Corporate Governance System

78

Index

Corporate Governance
3 CEO Message

Basic Policy
Mitsubishi Estate aims to realize the enhancement of corporate value through a harmonious
balance between corporate growth and the interests of its various stakeholders by following
its brand slogan, “A Love for People A Love for the City” based on its basic mission of“contributing to society through urban development.” The Company shall position thedevelopment and promotion of its corporate governance system as one of the most importantmanagement issues in realizing this goal.
In developing and promoting our corporate governance system, to bring about greater
clarity with regard to roles and the strengthening of functions in both the supervision ofmanagement and the execution of business while also fulfilling accountability to ourshareholders and other stakeholders, the basic policy shall work to ensure the transparency
and objectivity of management.

35 Business Review

System Structure

55 Sustainability (ESG) Section

As a Company with Nominating Committee, etc., Mitsubishi Estate has established theNominating Committee and the Remuneration Committee, which are composed entirely ofoutside directors, and the Audit Committee, which is membered solely by non-executive
directors. Positioned under the Board of Directors, these committees help promote highstandards and ensure transparency in the decision-making process.

General Meeting of Shareholders

Composition of the Board of Directors

Composition of the Audit Committee

77 Message from the Chairperson of the Board
78 Corporate Governance System
83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration

90 Shares Held for Strategic Purposes

Delegate authority to
execute business andsupervise

Audit Committee

76 Corporate Governance88	Dialogues with Shareholders and Investors(ESG Meetings)

Board of Directors

Cooperate

9 Value Creation Story

Nominating Committee
Composition of the Nominating Committee

Remuneration Committee

91 Directors
92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers

Composition of the Remuneration Committee

93 Message from an Outside Director

Accounting Auditor

95 Risk Management

Audit Committee Office

Cooperate

98 Financial Section

Audit

100 Corporate Data
Cooperate

Audit

Internal Audit Department

President & Chief Executive Officer
Outside directors

Risk Management & Compliance Committee

Sustainability Committee

Risk Management & Compliance Subcommittee

Sustainability Subcommittee

Internal audit

Corporate Strategy Committee

Corporate Executive Officers

Functional Groups, Business Groups, and Corporate Staff Departments

Executive Committee

Group Strategy Committee

Strategic Investment Committee

Inside directors(not concurrently
serving as corporate
executive officers)
Inside directors(concurrently serving as
corporate executive
officers)

Mitsubishi Estate’s Website

Chairperson andcommittee chair

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Corporate Governance System

79

Index

Corporate Governance
Board of Directors
The Board of Directors decides the basic policy of the Company’s
management, and it also carries out supervision of the execution ofduties by directors and corporate executive officers. As of June 27,2024, the Board of Directors consists of 14 directors, of whom
seven are outside directors. The role of chairperson of the Board of
Directors is held by the chairperson of the Board of the Company,
who does not concurrently serve as a corporate executive officer.
The membership of the Board of Directors is appropriatelybalanced with members from a diverse range of backgrounds.
Insidedirectors:

Outsidedirectors:

7

7Committee Duties

Committee Activities(FY2023)

7/14

Proportion of Outside
Directors

50.0%(As of June 27, 2024)

35 Business Review

Five meetings in FY2023
	Determination of candidates forserving on the Board of Directors
in the next fiscal year based onstandards for nominating director
candidates formulated by the
Nominating Committee	Reports and deliberations withregard to the nomination of corporate executive officers prior to
the resolution by the Board of
Directors	15 meetings in FY2023
	Performance of audits throughcoordination with the accounting
auditor and internal audit divisions based on audit standards
and plans	Attendance at important meetings, review of important documents, and visits to internal
divisions, branches, and subsidiaries by full-time members of the
Audit Committee	Six meetings in FY2023
	Decision-making on individual
remuneration amounts based on
the remuneration system

77 Message from the Chairperson of the Board

4 (4 outside)

5 (3 outside, 2 inside)

4 (4 outside)

Nominating Committee

Audit Committee

Remuneration Committee

55 Sustainability (ESG) Section
76 Corporate Governance78 Corporate Governance System
83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration
88	Dialogues with Shareholders and Investors(ESG Meetings)

OutsideTsuyoshi Okamoto

Outside—Melanie Brock

Outside—Wataru Sueyoshi

Outside

Ayako Sonoda

OutsideNaosuke Oda

Outside——Femaledirectors:

Noboru Nishigai

Inside——2

Hiroshi Katayama

Inside

—

—

71.4%

14.2%

	Formulation of remuneration
policies for corporate executive
officers and directors
	Decision-making on remuneration
amounts for individual corporate
executive officers and directors

Tetsuo Narukawa

10/14

2/14

	Auditing and compilation of audit
reports pertaining to the performance of duties by corporate
executive officers and directors
	Decision-making on the details of the
proposals related to the appoint­ment,
dismissal, and non-reappointmentof the accounting auditor

Outside1012	Decision-making on the details of
the proposals to the General
Meeting of Shareholders related
to the appointment and dismissalof directors

Masaaki Shirakawa

4

Male
directors:

Remuneration Committee

Inside/Outside

Nonexecutive
directors:

Proportion of Non-Executive
Directors

Audit Committee

Name
Corporate executive officers concurrently serving
as directors:

9 Value Creation Story

Nominating Committee

90 Shares Held for Strategic Purposes

Membership*

Proportion of Female
Directors

3 CEO Message

Nominating Committee, Audit Committee, and Remuneration Committee—

91 Directors
92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers
93 Message from an Outside Director——

95 Risk Management

98 Financial Section
100 Corporate Data———

Mitsubishi Estate’s Website* All three committees are composed solely of non-executive directors.

Committee chair

Committee member

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Corporate Governance System

80

Index

Corporate Governance
3 CEO Message

The Evolution of Mitsubishi Estate’s Corporate Governance System
Mitsubishi Estate has positioned the development and promotion of its corporate governancesystem as one of its most important management issues.
Since transitioning to a Company with Nominating Committee, etc., in 2016, the Company’s
basic policy has been to “develop and promote its corporate governance system to bringabout greater clarity with regard to roles and the strengthening of functions in bothmanagement supervision and business execution, while also working to ensure thetransparency and objectivity of management in order to fulfill its obligation to be accountable
to its shareholders and other stakeholders.” To this end, the Company has steadily promoted
the improvement of its corporate governance system, giving due consideration to changes insocial conditions and the business environment as well as to the demands of its stakeholders.
In FY2023, Mitsubishi Estate revised the composition of the Board of Directors, reducing thenumber of directors concurrently serving as corporate executive officers by one to lower the2016
Organizational
structure andoutsidedirectors

2017 ransition to Company
Twith Nominating
Committee, etc., structureIncrease in proportion ofoutside directors (7 of 15)
Composed of a majority of outside directors

2018

2019

 aking of all committeeM
members into nonexecutive directors
Membership ofRemuneration Committee
composed entirely ofoutside directors

 hange of committeeC
chair of Audit Committee
to outside director
Membership ofNominating Committee
composed entirely ofoutside directors

number of directors from 15 to 14 and raise the proportion of outside directors serving on the
Board from 47% to 50%. The Company also examined the effectiveness of the Board byconducting a third-party evaluation of it, held once every few years, to improve its corporate
governance system.
The Company also completed share buybacks approved in FY2022 of approximately ¥100.0
billion to increase capital efficiency and shareholder value as part of policies set out in LongTerm Management Plan 2030. In addition, it endorsed the Women’s Empowerment Principles(WEPs), formulated by the United Nations, signing a statement for taking action in accordancewith the WEPs, in its efforts to further improve diversity.
The following is an overview of the changes made to Mitsubishi Estate’s corporate
governance system to date.

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
77 Message from the Chairperson of the Board
78 Corporate Governance System
83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration

2020

Composed solely of
non-executive directors

2021

2022

2023

 isclosure of a skills
DmatrixImprovement of gender
diversity evision of composition of theR
Board of Directors (reduced from15 to 14 members)
Increase in proportion of outside
directors serving on the Board of
Directors

88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes
91 Directors
92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers

Composed solely of outside directors

Nominating
Committee

93 Message from an Outside Director
Outside directors
Composed solely of non-executive directors

95 Risk Management

An outside director serves as the committee chair

98 Financial Section

Audit
Committee
Composed of a majority of outside directors

Inside directors(not concurrently
serving as corporate
executive officers)

Composed solely ofoutside directors

Remuneration
Committee
Introduction of restricted
stock compensation
systemIntroduction of
performance-based
incentive system

 etailed disclosure of theD
officer remuneration
systemA doption of a revised officer
remuneration system (to improve thelinkage between the officer remuneration
system and the attainment of the targetsof Long-Term Management Plan 2030
and to further align officers’ interests
with those of shareholders following theincrease in the percentage of variable
remuneration)

 xecution of shareEbuybacks of ¥30.0 billion

 esolution to executeRshare buybacks of ¥100.0
billion (buyback period:
November 2022 toNovember 2023)
Cancellation of treasury
stock (equivalent to4.83% of the total number
of issued shares prior tocancellation)

Officerremuneration

Other aspectsof corporate
governance9 Value Creation Story

Clarification of the rolesof those who supervise
management and those
who execute businessIntroduction of a Group
executive officer system ommencement ofCevaluations of theeffectiveness of theBoard of Directors
Establishment of the
Mitsubishi Estate Co.,
Ltd., Corporate
Governance Guidelines

 xecution of shareEbuybacks of approximately¥100.0 billion (introductionof flexible capital policies
based on market
conditions)Decision not to retain
defense strategy efforts
against possible hostile
takeover attempts

Implementation of
third-party evaluations indetermining theeffectiveness of theBoard of Directors

100 Corporate Data

Inside directors(concurrently serving
as corporate
executive officers)

Committee chair ompletion of share buybacks
C
approved in FY2022
Implementation of third-party
evaluation of the effectiveness of
the Board of Directors

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Corporate Governance System

81

Index

Corporate Governance
3 CEO Message

Appointment Standards for Director Candidates
1. Purpose
These standards shall establish guidelines for the nomination of directors by the Nominating
Committee.
When nominating director candidates, the committee shall strive to ensure diversity and an
appropriate balance in the backgrounds of directors, such as experience, specialist knowledge,
and expertise, for the Board of Directors as a whole, as stipulated in Article 5 (Composition of
the Board of Directors) of Mitsubishi Estate’s Corporate Governance Guidelines.
2. Director Candidates
Director candidates shall fulfill a duty of care as a prudent manager toward the Company, in
addition to understanding the Group’s basic mission of contributing to the creation of a truly
meaningful society by building attractive, environmentally sound communities where people
can live, work, and relax with contentment. Furthermore, director candidates shall be endowedwith the necessary skills in accordance with management strategies while having thequalities and capabilities to contribute to enhancing medium- to long-term sustainablecorporate value in consideration of the characteristics of the Company’s business, such assupporting urban development in the Marunouchi area.

(1) Inside Director Candidates
For directors from within the Company, in addition to displaying the abovementioned qualities
and capabilities—specifically, demonstrating outstanding integrity, leadership, and foresight—
candidates to be nominated shall be corporate officers in charge of one of the Company’sbusiness groups or corporate officers in charge of corporate staff who have extensive
knowledge and experience related to the Group’s business, who can perform oversight roles
with a Companywide perspective, and who are highly trained, or, alternatively, personnel withsuch experience or personnel with translatable experience.
(2) Outside Director Candidates
For outside directors, in addition to the abovementioned qualities and capabilities, candidates
shall be nominated for their operational and management experience, for the application of
their experience and knowledge in specialized fields such as global business and risk
management, for having the character and knowledge enabling objective and fair judgments
based on the perspective that they will contribute to the common interests of shareholders
without bias toward the interest of any particular party of interest, and for satisfying theIndependence Standards for Independent Outside Directors.
3. The Revision or Abolishment of These Standards Shall Require a Resolution of theNominating Committee.

Board of Directors’ Skills Matrix

Inside directors
Outside directors

GenderAge

Junichi Yoshida
Atsushi Nakajima
Bunroku Naganuma
Naoki Umeda
Mikihito Hirai
Noboru Nishigai
Hiroshi Katayama
Masaaki Shirakawa
Tetsuo Narukawa
Tsuyoshi Okamoto
Melanie Brock
Wataru Sueyoshi
Ayako Sonoda
Naosuke Oda

Male
Male
Male
Male
Male
Male
Male
Male
Male
Male
FemaleMale
Female
Male

66
60
61
58
55
63
65
74
75
76
60
67
60
71

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
77 Message from the Chairperson of the Board
78 Corporate Governance System
83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration
88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes
91 Directors
92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers
93 Message from an Outside Director

In January 2020, the Company formulated Long-Term Management Plan 2030 based on theGroup’s medium- to long-term management strategies and business strategies. To realize
the plan, the Company has identified the skills (knowledge, experience, and capabilities)
Name

9 Value Creation Story

Terms
served
8
2
3
2
1
5
8
8
6
5
2
1
1
−

needed for the Company’s Board of Directors to exercise its management oversight function
and monitoring function effectively.
The skills of the Company’s directors are provided below.

Long-term vision on urban
Corporate management Organizational strategy / International knowledge
development (industry insight)
experience
Business strategy

Treasury, accounting,and financeCompliance /Risk management

ESG / Sustainability

Notes: 1. To clarify the balance of skills of the Board of Directors, the matrix lists outstanding skills in relative terms from among the skills possessed by each director. Accordingly, it does not reflect all of the skills (knowledge, experience, and capabilities) that each director possesses.
2. Ages and terms served as of the General Meeting of Shareholders held on June 27, 2024

95 Risk Management

98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Corporate Governance System

82

Index

Corporate Governance
3 CEO Message

Independence Standards for Independent Outside Directors
Candidates for the outside director position shall fulfill a duty of care as a prudent manager
toward the Company; understand the Group’s basic mission of contributing to the creation ofa truly meaningful society by building attractive, environmentally sound communities where
people can live, work, and relax with contentment; apply their qualities and capabilities tocontribute to enhancing medium- to long-term sustainable corporate value, as well as theirexperience and knowledge in specialized fields such as global business, finance, and risk
management in view of the Group’s business characteristics, such as supporting urban
development in the Marunouchi area; and have the character and knowledge that enableobjective and fair judgments, based on the perspective that they shall contribute to the common
interests of shareholders without bias toward the interest of any particular party of interest.
As a general principle, candidates shall not be elected if the Tokyo Stock Exchange’s standards

for independence and the following standards for the independence of outside directors
apply to them.
(1) A shareholder or executive member of an entity holding voting rights exceeding 10% of thetotal voting rights of the Company(2) A transaction party or executive member of an entity whose transactional amounts in themost recent fiscal year have exceeded 2% of consolidated operating revenue of the Company(3) A representative employee, employee, or member of staff of the Company’s accounting
auditor(4) An attorney, certified public accountant, tax accountant, consultant, or other party who hasreceived compensation from the Company exceeding ¥10 million in the most recent fiscal year

Attendance at Meetings of the Board of
Directors and Committees

Tsuyoshi Okamoto

Board of Directors
Nominating Committee
Remuneration Committee

Tetsuo Narukawa

Board of Directors
Audit Committee

Masaaki Shirakawa

Board of Directors
Nominating Committee
Remuneration Committee

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
77 Message from the Chairperson of the Board
78 Corporate Governance System
83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration

Attendance Rates of Outside Directors in FY2023 and Contributions Made
Name

9 Value Creation Story

88	Dialogues with Shareholders and Investors(ESG Meetings)
Overview of Contributions Made and Work Performed to Fulfill Expectations of Role

90 Shares Held for Strategic Purposes
91 Directors

8/9
5/5
6/6

Tsuyoshi Okamoto poses pertinent questions and offers valuable advice from an objective viewpoint independent of management executives in charge of business execution,leveraging his management experience at a comprehensive energy company. Accordingly, he fulfills supervisory and monitoring functions of the Company’s management.

9/9
15/15

Tetsuo Narukawa poses pertinent questions and offers valuable advice from an objective viewpoint independent of management executives in charge of business execution,leveraging his international experience as well as management experience at financial institutions and real estate companies. Accordingly, he fulfills supervisory andmonitoring functions of the Company’s management.

93 Message from an Outside Director

9/9
5/5
6/6

Masaaki Shirakawa poses pertinent questions and offers valuable advice from an objective viewpoint independent of management executives in charge of business execution,leveraging his knowledge in finance and economics, among other fields, gained through his experience working at a central bank. Accordingly, he fulfills supervisory andmonitoring functions of the Company’s management.

98 Financial Section

Shin Nagase

Board of Directors
Audit Committee

9/9
15/15

Shin Nagase poses pertinent questions and offers valuable advice from an objective viewpoint independent of management executives in charge of business execution,leveraging his management experience at an airline company. Accordingly, he fulfills supervisory and monitoring functions of the Company’s management.

Wataru Sueyoshi

Board of Directors
Audit Committee

7/7
12/12

Wataru Sueyoshi poses pertinent questions and offers valuable advice from an objective viewpoint independent of management executives in charge of business execution,leveraging his knowledge of corporate law, risk management, and corporate governance based on his experience as an attorney. Accordingly, he fulfills supervisory andmonitoring functions of the Company’s management.

Ayako Sonoda

Board of Directors
Nominating Committee
Remuneration Committee

7/7
5/5
4/4

Ayako Sonoda poses pertinent questions and offers valuable advice from an objective viewpoint independent of management executives in charge of business execution,leveraging her extensive knowledge of ESG issues, the SDGs, CSR, and other matters developed through sustainability management consulting activities. Accordingly, shefulfills supervisory and monitoring functions of the Company’s management.

Melanie Brock

Board of Directors
Nominating Committee
Remuneration Committee

9/9
5/5
6/6

Melanie Brock is tasked with supervising and overseeing the management of the Company by leveraging the broad range of expertise she has cultivated through her
involvement in international consulting activities in areas such as marketing, business strategy, and the promotion of diversity and by utilizing her ability to ask relevant
questions and give advice as appropriate from a global and objective perspective independent of the executive management team.

Note: As Wataru Sueyoshi and Ayako Sonoda became directors on June 29, 2023, the number of meetings they attended differs from that of other directors.

92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers

95 Risk Management

100 Corporate Data

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Evaluation of the Effectiveness of the Board of Directors

83

Index

Corporate Governance
3 CEO Message

Purpose of Evaluating the Effectiveness of the Board of Directors
effectiveness as a whole based on evaluations conducted annually by each director. In addition,
the Board discloses a summary of the evaluation results and subsequently formulates andimplements policies based thereon to enhance its effectiveness where necessary.

With the aim of confirming that the Board of Directors is functioning effectively through its
oversight function to improve corporate value on a medium- to long-term basis and toenhance corporate governance, the Board of Directors analyzes and evaluates its

9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section

Initiatives Undertaken Thus Far to Realize the Desired Role of the Board of Directorsthat information is provided more extensively to outside directors.
In FY2020, based on Long-Term Management Plan 2030—unveiled in January 2020—theCompany began including items regarding initiatives to be improved going forward in addition
to existing items from the perspective of appropriately monitoring management to increasesocial value and shareholder value over the long term. Furthermore, the Company consulted
with a third-party evaluation organization at each phase of the evaluation process, which
involved the creation of questionnaires, an analysis of the questionnaires’ responses, and thesharing recognition of issues to be addressed. An overview of the evaluation process andresults of the third-party evaluation conducted on the effectiveness of the Board of Directors
are as follows.

Mitsubishi Estate transitioned to a Company with Nominating Committee, etc., structure in June
2016. The Company defines the primary duties of the Board of Directors as deciding on basic
management policies and important matters of business execution as well as supervising theexecution of duties by directors and corporate executive officers from the perspective of bringing
about greater clarity with regard to roles and the strengthening of functions in both management
supervision and business execution. In accordance with the results of the analysis of the annual
evaluation of the Board of Directors’ effectiveness, the Board has thus far implemented initiatives
to enable it to carry out its role appropriately. These include enhancing discussions regarding
management plans by carefully examining agenda items as well as increasing opportunities forand improving the content of reporting from corporate executive officers, in addition to ensuring

76 Corporate Governance
77 Message from the Chairperson of the Board
78 Corporate Governance System
83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration
88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes
91 Directors

1. Process of Evaluation

92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers(1) Method of Evaluation

93 Message from an Outside Director

All directors conducted self-evaluations in the form of a response to a questionnaire related to the composition, operation, effectiveness, etc., of the Board of Directors and each of the Nominating, Audit,
and Remuneration committees. Taking these results into consideration, directors discussed the issues with each other and examined proposed corrective measures at Board of Directors’ meetings.

95 Risk Management

98 Financial Section

STEP

1

Issuance of a questionnaire to all directors

STEP

STEP

2

Discussion at a meeting of the Board of
Directors in light of the evaluation results

3

100 Corporate Data

Launch of initiatives based on the Board’s
approval(2) Items of Evaluation
In terms of evaluation items based on Long-Term Management Plan 2030, the Company has
confirmed “diversity for fulfilling the oversight function of the Board of Directors” as part ofthe evaluation of the Board’s composition and “topics to be fleshed out in future discussions
for monitoring and the nature of reports on the status of business execution from corporate
executive officers” as part of the evaluation of the Board’s effectiveness and operation. With
questions surveying satisfaction levels with the status quo and opinions on the direction formaking improvements designed to gauge the relevance and degree of room for improvement,
the FY2023 effectiveness evaluation increased the number of questions surveying directors’

opinions on the direction for making improvements to sound out their opinions on the
direction for realizing the Company’s overall policies.
Role and Composition of
the Board of Directors

Role of the Board of Directors and its chairperson, proportion of outside directors, membership size, diversity,and skills

Effectiveness of the Boardof Directors

Management planning, business execution (including business risk assessment), internal control and risk
management, sustainability, dialogue with and information disclosure to shareholders and investors, operation of
the Nominating, Audit, and Remuneration committees, etc.

Operation of the Board of
Directors

Method and frequency of meetings, required time, report on status of business execution of corporate executive
officers, provision of information outside of Board of Directors’ meetings, questions and answers, training, etc.

Others

Method of the evaluation of the effectiveness of the Board of Directors, etc.

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Evaluation of the Effectiveness of the Board of Directors

84

Index

Corporate Governance

2. Results of Evaluation and Future Initiatives(Results of Evaluation) The evaluation confirmed that the Board of Directors was functioning effectively.
(Analysis of Results) 	In the questionnaire on the evaluation of Board effectiveness completed by each director, despite an increase in the number of comments pointing out challenges in themethods for monitoring changes in the business environment and in the degree to which the level of discussion can be improved, a high proportion of respondents rated
the majority of items as appropriate.
		  In analyzing the results, identifying issues, and examining measures for remediation, the Board of Directors held discussions that took into account recommendations
and comments on issues from directors on various evaluation items while referencing the analysis results and advice on issues provided by the third-party organization.
In particular, with respect to appropriate monitoring of Long-Term Management Plan 2030, a high level of awareness was observed regarding such matters as thecontents of reporting by corporate executive officers on business execution, themes for improving the strength of monitoring, and the balance between the time used forbriefings and the time designated for discussions.
(1) Main Items Improved Since the Previous Evaluation

3 CEO Message
9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
77 Message from the Chairperson of the Board
78 Corporate Governance System
83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration

Major Tasks for Further Enhancing Board Effectiveness Since the FY2022 Effectiveness Evaluation and Future Initiatives
Continuously examine the possibility of expanding monitoring to tighten supervision of the progress of the execution of management strategies that respond to changes in the businessenvironment, such as geopolitical risks and price fluctuation
Increase opportunities to confirm the progress of measures implemented in response to changes in the business environment by conducting visits to business sites and other activities, which
could not be conducted during the COVID-19 pandemic, to promote understanding of the Company’s operations among outside directors
Continuously examine the composition and diversity of the Board of Directors to further improve its effectiveness88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes
91 Directors
92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers
93 Message from an Outside Director
95 Risk Management

FY2023 Initiatives

98 Financial Section

	Reduced the number of inside directors concurrently serving as corporate executive officers to ensure an equal number of inside directors, who had been a majority, and outside directors tofurther improve the transparency and effectiveness of the Board of Directors

100 Corporate Data	Increased opportunities to confirm the progress of measures implemented in response to changes in the business environment by conducting visits to business sites and other activities,
which could not be conducted during the COVID-19 pandemic, to promote understanding of the Company’s operations among outside directors(2) Main Issues and Future Initiatives Aimed at Further Improvements in Board EffectivenessExaminations and discussions at meetings of the Board of Directors identified the following points.
	The Board of Directors must reexamine and revise ways to improve the provision of information, monitoring methods, and the decision process for issues to be discussed at meetings of theBoard of Directors to enable it to further utilize the expertise of outside directors so that it can tighten supervision of the progress of the execution of management strategies that respond tochanges in the business environment, such as geopolitical risks and price fluctuation.

Mitsubishi Estate’s Website

	The Board of Directors must continuously examine its composition and diversity to further improve its effectiveness.
CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Remuneration

3 CEO Message

Total Remuneration Paid to Directors and Corporate Executive Officers in FY2023
Category

Inside directors
Corporate executive officers
Outside directors

Total remuneration(Millions of yen)Fixed remuneration(Millions of yen)

Performance-based
remuneration(Millions of yen)

9 Value Creation Story
Recipients

376

376

—

5

1,496

614

881

16

143

143

—

9

Notes: 1. Remuneration for the Company’s directors who concurrently serve as corporate executive officers is included in the remuneration
for corporate executive officers.
2. The figures above include two inside directors, one corporate executive officer, and two outside directors who resigned during FY2023.

(i) Procedures for Deciding Remuneration Paid to Officers
The policy concerning decisions on the details of remuneration paid to directors andcorporate executive officers of the Company and the details of remuneration for each person
shall be decided upon by a resolution of the Remuneration Committee, which comprises
solely outside directors.
(ii) Basic Policy for Deciding Remuneration for Officers
The basic policy for deciding remuneration for directors and corporate executive officers of
the Company is as follows.
•	The remuneration system shall be linked with our medium- to long-term performance targets, etc., aimed at in management strategies and medium-term management plans andrealize sustained corporate value improvement and the sharing of value with shareholders.
• The remuneration system shall allow for the provision of incentives to management
executives to encourage them to take on challenges and conduct appropriate risk-taking inline with the above strategies’ targets and expectations of shareholders and other stakeholders.
• The remuneration system shall make it possible to fulfill high accountability for the benefitof our shareholders and other stakeholders through objective deliberations and judgments
by the Remuneration Committee.
(iii) Remuneration Systems for Officers
Remuneration systems for directors and corporate executive officers shall be separately
established in consideration of their respective functions and roles to be fulfilled for the

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
77 Message from the Chairperson of the Board
78 Corporate Governance System

Board Policies and Procedures in Determining the Remuneration of Senior Management and Directors

Basic remuneration
40%

Index

Corporate GovernanceThe decision-making policy concerning details of remuneration for each director and corporate
executive officer of the Company is deliberated at meetings of the Remuneration Committee.
The Remuneration Committee also confirms that the method for deciding the details of
remuneration paid to each director and corporate executive officer for each fiscal year and thedetails of each confirmed amount of remuneration are consistent with said policy.
In FY2022, the remuneration system was revised to improve the linkage between officer
remuneration and the attainment of the targets of Long-Term Management Plan 2030 and tofurther align officers’ interests with those of shareholders following the increase in the percentage of variable remuneration.

Composition of the Remuneration of Corporate Executive Officers

85

purpose of achieving sustained corporate value improvement. In addition, directors who
concurrently serve as corporate executive officers shall be paid remuneration as corporate
executive officers.
•	Directors (excluding directors who concurrently serve as corporate executive officers)
In consideration of their function and role of supervising the performance of duties bycorporate executive officers and directors, they shall receive, in principle, only basic remunerationin the form of cash, and the standards shall be decided upon individually taking into accountfactors such as their position and responsibilities as directors and whether they are full-timeor part-time.
•	Corporate executive officers
In consideration of their function and role of taking charge of business execution of theCompany, their remuneration shall, in principle, comprise basic remuneration and variable
remuneration. Variable remuneration comprises monetary compensation that is paid basedon short-term performance, etc., and stock compensation, etc. (including monetary compensation
paid based on indicators such as stock price), that is paid with a view to realizing the
medium- to long-term sharing of value with shareholders. The standards and ratios of basic
remuneration and variable remuneration, valuation indicators for variable remuneration, andother matters shall be decided upon taking into account medium- to long-term performancetargets, etc., aimed at in management strategies and the current management plan andfactors such as position and responsibilities as corporate executive officers.

Performance-based component (40%)(Enhances the linkage of evaluation items with those of Long-Term Management Plan 2030)

Performance-based monetary compensation
30%

Share price-linked component (30%)

Restricted stock compensation
Variable component: 10%

Fixed component: 10%83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration
88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes
91 Directors
92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers
93 Message from an Outside Director
95 Risk Management

98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

Phantom stock
10%
CONTENTS

Fixed remuneration (40%)

Variable remuneration (60%)

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Remuneration

86

Index

Corporate Governance
Overview of Performance-Based Remuneration(1) Performance-Based Monetary Compensation
1 Form of remuneration: Cash
2 Performance evaluation and method for determining remuneration
With the aim of achieving further corporate growth and greater efficiency while guaranteeing financial soundness, the amount of remuneration varies depending on consolidated business profit,
ROA, ROE, EPS, and the target level of business profit in the divisions for which the individual officers are responsible.
When determining remuneration, the amount is calculated using the actual indicators, etc., for the previous fiscal year, to which is added an evaluation of qualitative aspects, established during
interviews with the president, including the degree of contribution to performance over the medium to long term and the status of ESG-related initiatives, the level of progress of each business(domestic, international, and non-asset) in achieving targets stipulated in Long-Term Management Plan 2030, with the final remuneration amount being decided by the Remuneration Committee.
Please see the table below for details.
(2) Remuneration by Shares with Restriction on Transfer (Fixed and Variable Components)
1 Form of remuneration: Shares
2 Restricted stock period: Until an officer resigns
3 Performance evaluation and method for determining remuneration
With the objectives of creating incentives for officers to achieve sustainable growth and of further aligning officers’ interests with those of shareholders, the Company adopted stock-based
remuneration with a restricted transfer period that runs until the time an officer resigns. The amount of monetary compensation that can be claimed when allocating stock is determined by the
Remuneration Committee.
The Company will determine the method for deciding variable remuneration and the major evaluation items by using the same evaluation items as those for (1) Performance-Based Monetary Compensation.

Performance of responsible division: 50%*Companywide performance: 50%*

Indicators and Process for Calculating the Evaluation Index
Achievement ratio compared with performance over the last five fiscal years10% se the four indicators of consolidated business profit, ROA, ROE, and EPS (1:1:1:1)
U
Use standard deviation to calculate the level of difficulty of achieving the performance of the relevant fiscal year compared with performance over the last five fiscal years
Fluctuation range of 200%–0%Achievement ratio compared withannual business plan targets

30%

 se the four indicators of consolidated business profit, ROA, ROE, and EPS (1:1:1:1)
ULevel of payment determined through comparisons with figures for the above four indicators under annual business plans (level of payment is 100% if achievement is in line with the plan’stargets but fluctuates between 200% and 0% depending on the level of achievement)

Level of achievement compared withtargets for three businesses stipulated
in Long-Term Management Plan 2030

10%

Level of payment determined through comparisons with targets for three businesses (domestic, international, and non-asset) stipulated in Long-Term Management Plan 2030
(qualitative assessment using five levels [200%, 150%, 100%, 50%, and 0%])Level of achievement of divisional
annual targets for achieving the goalsof Long-Term Management Plan 2030

* Accounts for 15% of total remuneration

50%

Controlling Officers and Group Executive Officers
The following four indicators used at a ratio of 20:10:10:10
 1 Level of achievement toward the business group budget: Use consolidated business profit as a general rule (level of achievement toward the individual company budget for Group executive officers) 2 Medium-term initiatives: Approximately covering upcoming five years, including ESG initiatives
 3 Initiatives to establish new business models: New business creation, non-asset businesses, service and content provision, etc.
 4 Initiatives to realize earnings for the entire Mitsubishi Estate Group: Initiatives that go beyond the business group, etc. (initiatives that go beyond individual companies in the case of Group
executive officers)Officers interviewed by the president & chief executive officer, who assesses them on each item using five levels (200%, 150%, 100%, 50%, and 0%*)* Targets for each item listed in annual business plans, with evaluations conducted using the details of these targets with a base score of 100%
Other Executive Officers
Use the four indicators of “level of achievement toward the business group budget,” “medium-term initiatives,” “initiatives to establish new business models,” and “initiatives to realize
earnings for the entire Mitsubishi Estate Group” at a ratio of 10:10:10:20
Evaluation method the same as that for controlling officers and Group executive officers

3 CEO Message
9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
77 Message from the Chairperson of the Board
78 Corporate Governance System
83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration
88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes
91 Directors
92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers
93 Message from an Outside Director
95 Risk Management

98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Remuneration

87

Index

Corporate Governance(3) Medium- to Long-Term Performance-Based Remuneration (Phantom Stock)
1 Form of remuneration: Cash
2 Performance evaluation period: Approximately three years
3 Performance evaluation and method for determining remuneration
With the objectives of creating an incentive to work for sustainable growth and of promoting the further sharing of value with shareholders, the amount of phantom stock remuneration varies
depending on the share price and on an indicator based on the Company’s total shareholder return (TSR) ranking relative to five peer companies.*1 The base amount by position and the final
remuneration amount are determined by the Remuneration Committee.
*1 Five peer companies: Nomura Real Estate Holdings, Inc., Tokyu Fudosan Holdings Corporation, Mitsui Fudosan Co., Ltd., Tokyo Tatemono Co., Ltd., and Sumitomo Realty & Development Co., Ltd.
4

Calculation method for individual amount paid

3 CEO Message
9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
77 Message from the Chairperson of the Board
78 Corporate Governance System

Share price in final month of performance evaluation period

Remuneration
amount=Remuneration base amount*2

××83	Evaluation of the Effectiveness of theBoard of Directors

Vesting ratio*3

Issue price

85 Remuneration
88	Dialogues with Shareholders and Investors(ESG Meetings)*2 Remuneration base amountThe remuneration base amount corresponds to the rank of the officer eligible for payment, as listed below.

90 Shares Held for Strategic Purposes
President & chief executive officer

Deputy president

Executive vice president

Senior executive officer

Corporate executive officer¥19,647,000¥12,675,000¥10,413,000¥8,352,000¥6,288,000

91 Directors
92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers
93 Message from an Outside Director
95 Risk Management*3 Vesting ratio
A rank is given to the TSR of the Company and its peers. The percentages in the table below correspond to the Company’s TSR rank, with 100% being the upper limit.

98 Financial Section
TSR rank

1st

2nd

3rd

4th

5th

6th

Vesting ratio

100%

80%

60%

40%

20%

0%

100 Corporate Data

TSR is calculated using the formula below.

TSR=(Share price for the final month of the performance evaluation period – Share price for the first month of the performance evaluation period)+
Total dividends per share for dividend distributions with a record date within the performance evaluation period(excluding the final month of the performance evaluation period)

Mitsubishi Estate’s Website

Share price for the first month of the performance evaluation period

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Dialogues with Shareholders and Investors (ESG Meetings)

STEP

1

Hold ESG meetings

STEP

2

Implement a questionnaire of meeting
participants

Index

Corporate Governance

Mitsubishi Estate holds integrated ESG meetings that focus on the non-financial aspects of its ESG activities to enable shareholders and investors to gain an understanding of the direction of its
management over the long term.
We relay the opinions, requests, proposals, and other feedback that we receive through such dialogues to senior management at meetings of the Board of Directors. By incorporating the results ofthe dialogues into a plan–do–check–act (PDCA) cycle, we aim to achieve continuous growth.

STEP

88

STEP

3

Discuss matters based on the contents ofthe meetings and the results of the questionnaire and identify issues

4

Take action in response to the identified
issues3 CEO Message
9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
77 Message from the Chairperson of the Board
78 Corporate Governance System(1) Achievements over the Last Two Fiscal Years
In addition to the Sustainability Management and Promotion Department, which is in chargeof environmental and social matters, and the General Affairs Department, which oversees
corporate governance, the Company holds ESG meetings with the attendance of the Investor
Relations Office when requested. The total number of ESG meetings held by the Company in
FY2022 and FY2023 is stated in the table on the right.
(2) Questionnaire Results (Meeting Participants in FY2023)
At the close of ESG meetings, we issued a questionnaire to participants regarding their levelof satisfaction with the dialogue and their rating of our ESG initiatives, in order to measure theeffectiveness of integrated ESG meetings and ascertain areas of improvement and othermatters for incorporation into future dialogues.
In the results of the FY2023 questionnaire, many participants commented that the opportunity
to exchange opinions in a comprehensive manner in an integrated ESG meeting was instructive
and efficient. In addition to more than 90% of participants responding that they were “satisfied”
or “generally satisfied” with the dialogue, approximately 30% of the companies that participated
responded that the meetings helped improve their rating of Mitsubishi Estate.
Somewhatdissatisfied
6%

Worsened0%

Changes inShareholders’ andInvestors’ Evaluationof Mitsubishi Estate’s
Dialogue Efforts

Unchanged
73%

Distribution ratio(number of shares issued)*

85 Remuneration

Corporate shareholders andinstitutional investors in Japan

24

Approximately 29.8%

88	Dialogues with Shareholders and Investors(ESG Meetings)

Overseas institutional investors

24

Approximately 14.7%

90 Shares Held for Strategic Purposes

Total

48

Approximately 44.5%

91 Directors* Estimated based on the results of a shareholder identification survey outsourced to a third-party institution inquiring into beneficial owners
using the shareholders’ register (as of March 31, 2024)

92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers
93 Message from an Outside Director

Evaluation of ESG Activities

95 Risk Management

(%)

80

98 Financial Section
100 Corporate Data

60

40

20

Improved

27%

Dissatisfied
0%

Number of companies for which
ESG meetings were held
(total number of companies)

83	Evaluation of the Effectiveness of theBoard of Directors

Satisfaction with
Dialogue

Generallysatisfied25%

Mitsubishi Estate’s Website
Satisfied69%

0
E (initiatives) E (disclosure) S (initiatives) S (disclosure) G (initiatives) G (disclosure)
Excellent

Good

Average

Somewhat insufficient

Poor

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Dialogues with Shareholders and Investors (ESG Meetings)

89

Index

Corporate Governance
3 CEO Message(3) Major Issues Addressed in Response to Issues Raised during Meetings
We have communicated the comments and proposals received at ESG meetings to the Board of Directors and are continuously examining ways to address them in order to make further improvements.
The status of our responses to the issues raised to date is as follows.

Comments and Proposals

Status of Responses

9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section

ESG	Mitsubishi Estate should improve, and reflect in management plans, the link
between social and economic value.

	Revised material issues, strengthening the correlation between strategies forincreasing social and shareholder value

76 Corporate Governance	Declared goal of achieving net-zero carbon emissions by 2050 in accordance withthe standards of the Science Based Targets (SBT) initiative	Brought forward significantly the schedule for achieving the Company’s goal in
relation to RE100 from 2050 to 2025

77 Message from the Chairperson of the Board

E	Given the increasing number of companies declaring net-zero carbon emissions
targets for 2050, Mitsubishi Estate should also consider making such a declaration.
	Can Mitsubishi Estate bring forward the schedule for achieving its goal in relation to
RE100?
	The low level of the target for increasing the percentage of female managers is amatter of concern.
	The percentage of male employees taking childcare leave of absence is low. Efforts
are required to eliminate differences between male and female employees in taking
childcare leave.

	Upwardly revised the targets for the percentage of female managers from 10% by
2030 to over 20% by FY2030, 30% by FY2040, and 40% by FY2050
	With the ultimate goal of maintaining a childcare leave of absence rate of at least
100% among eligible male employees by FY2030, strengthened calls to such
employees and achieved goal in FY2022 (110.6%)

SNote: Rate of 82.4% in FY2023

	An oversight function is necessary for the entire supply chain, including secondand third-tier suppliers.

	The Company should address human rights risks in supply chain management.
	The number of female directors must be increased to diversify the composition of
the Board of Directors.
	The Company must disclose a skills matrix and a process for selecting directors
based on such a skills matrix.
	A third-party evaluation of the Board of Directors is recommended.

G	The Company should consider more detailed disclosure of milestones for overall remuneration, KPIs for single-year, performance-based compensation, and other systems.
	As the alignment of long-term interests between officers and shareholders is weak,
the Company should consider raising the percentage of share-based remuneration.
	Board of Director membership is large.

	Established the Mitsubishi Estate Group Supplier Code of Conduct and carried out asurvey via questionnaire of second- and third-tier suppliers. Currently looking atways of implementing the survey that will enable a deeper understanding of the
supply chain in the future	Established a consultation service for non-Japanese workers on construction sites

78 Corporate Governance System
83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration
88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes
91 Directors
92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers
93 Message from an Outside Director
95 Risk Management	Increased the number of female directors
98 Financial Section

	Disclosed a skills matrix and revised appointment standards for director candidates
	Introduced a third-party evaluation component to the effectiveness evaluation of theBoard of Directors, with the Board confirming a policy to implement the third-party
evaluation once every several years
	Carried out more detailed disclosure regarding the remuneration system throughthe Company’s website and integrated report and disclosed information on thesystem in English
	Revised the remuneration system: Increased the percentage of performance-based
and share-based remuneration, while extending the restricted stock transfer period
to the time when an officer resigns
	Reduced the total number of directors from 15 to 14 by lowering the number of insidedirectors from eight to seven, ensuring an equal number of inside and outside directors, to further improve the transparency and effectiveness of the Board of Directors

100 Corporate Data

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Shares Held for Strategic Purposes

90

Index

Corporate Governance

The Company acquires and holds shares for other than purely investment purposes if it deems such shareholdings to be useful in facilitating the Group’s business activities smoothly in cases suchas when seeking to maintain or reinforce medium- to long-term transactional relationships or in procuring funds on a stable basis.
In regard to the holding of listed shares as investment shares for other than purely investment purposes, we examine the rationality of such holdings from the perspective of whether they areuseful or not in facilitating the Group’s business activities smoothly, focusing on such aspects as the background of the acquisition, record of transactions, status of cooperative and collaborative
relationships, and level of dividend payouts. The findings of these examinations, as well as the number of reductions of such shares and the policy on reductions going forward, are reported to theBoard of Directors at least once a year, and we are proceeding with sales in an appropriate manner.
In addition, the Company has been conducting ongoing investments in venture businesses since FY2015. Centered on the Innovation and Business Transformation Group, these efforts are aimed
at heightening the value of existing businesses and expanding the Company’s business domains through the utilization of technologies and coordination with external partners.

3 CEO Message
9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
77 Message from the Chairperson of the Board

Holdings of Shares Held for Strategic Purposes (Total for Listed and Non-Listed Companies)

170(Billions of yen)83	Evaluation of the Effectiveness of theBoard of Directors

2
4

150

16
166

40.8

40
8

140

120

78 Corporate Governance System

50

160

130

Sales Amount (Listed Shares)

22

30

34

41

30

152

91 Directors

20
148
138

110

134

133

129

127

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023

92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers

12.2
8.4

122
0

Holdings other than new business-related holdings

17.9

10

100

88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes

33
164

85 Remuneration

1.4

4.2

4.2

5.7

0

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023

New business-related holdings

93 Message from an Outside Director
95 Risk Management

98 Financial Section
100 Corporate Data

Please refer to our Corporate Governance Report for more information on our corporate governance system.
https://www.mec.co.jp/assets/img/governance/corpo2407_e.pdf

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Directors

91

Index

Corporate Governance(As of June 27, 2024)

3 CEO Message
9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance

Junichi Yoshida

Atsushi Nakajima

Bunroku Naganuma

Naoki Umeda

Mikihito Hirai

77 Message from the Chairperson of the Board

Chairperson of the Board 
2016
111,737 shares

Director
2022
66,564 shares

Director
2023
56,164 shares

Director
2022
35,320 shares

Director
2023
16,407 shares

78 Corporate Governance System
83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration
88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes
91 Directors
92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers

Noboru Nishigai

Hiroshi Katayama

Masaaki Shirakawa

Tetsuo Narukawa

Tsuyoshi Okamoto

93 Message from an Outside Director

Director
2021
29,901 shares

Director
2016
38,670 shares

Outside Director
2016– shares

Outside Director
20184,400 shares

Outside Director
20193,400 shares

95 Risk Management

98 Financial Section
100 Corporate Data

Melanie Brock

Wataru Sueyoshi

Ayako Sonoda

Naosuke Oda

Outside Director2022
800 shares

Outside Director2023
100 shares

Outside Director2023
700 shares

Outside Director2024– shares

Key for director profile above:
Name
Position
Appointment year
Number of shares held
(As reported in the Notice of Convocation of
the 125th Ordinary General Meeting of
Shareholders)

Mitsubishi Estate’s Website

CONTENTS

Corporate Executive Officers, Executive Officers, and Group Executive Officers

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

92

Index

Corporate Governance(As of April 1, 2024)

3 CEO Message
9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance

Atsushi Nakajima

Kenji Hosokane

Yuji Fujioka

Bunroku Naganuma

Yutaro Yotsuzuka

Ryozo Kawabata

Keiji Takano

77 Message from the Chairperson of the Board

Representative Corporate
Executive Officer, President& Chief Executive Officer

Representative Corporate
Executive Officer, Deputy
President

Representative Corporate
Executive Officer, Executive
Vice President

Representative Corporate
Executive Officer, Executive
Vice President

Representative Corporate
Executive Officer, Executive
Vice President

Representative Corporate
Executive Officer, Executive
Vice President

Senior Executive Officer

78 Corporate Governance System
83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration
88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes
91 Directors
92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers

Toru Kimura

Ikuo Ono

Naoki Umeda

Haruhiko Araki

Masato Aikawa

Hirofumi Kato

Toru Takeda

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

Senior Executive Officer

93 Message from an Outside Director
95 Risk Management

98 Financial Section
100 Corporate Data
Corporate Executive Officer

Executive Officers

Mikihito Hirai

Takashi Kobari

Masahiro Murai

Masaharu Miyajima

Toshiyuki Inoue

Satoshi Iwata

Masaki Yamagishi

Seijin Chino

Junji Inagawa

Hitoshi Kubo

Shuichi Shimizu

Kiyoshi Ota

Tetsuya Okusa

Masanori Iwase

Group Executive Officers

Atsuhiko Oida

Masaharu Miyajima

Masaki Yamagishi

Hitoshi Kubo

Tomohiro Okada

Group Executive Officer

Group Executive Officer

Group Executive Officer

Koji Kurebayashi
Masaya Oshima
Jiro Mearashi

Mitsubishi Estate’s Website

CONTENTS

Message from an Outside Director

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

93

Index

Corporate Governance
3 CEO Message

Tsuyoshi Okamoto
Outside Director
Chair of the Nominating Committee
and Member of the Remuneration
Committee

discussions at meetings of the Board of Directors. The diversity and independence of
the Board’s members are also of a level that is satisfactory.
With that said, the Company must not become complacent. Internal and external
conditions will undoubtedly continue to change, and external demands will evolve in
response to the changing conditions in the operating environment. Going forward,
further efforts will be required to address these changes. However, as I have alreadystated, Mitsubishi Estate’s unwavering commitment to self-transformation meansthat it will not hesitate to conduct reforms as necessary. Accordingly, the Company
will take steps to further enhance its governance system.

9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
77 Message from the Chairperson of the Board
78 Corporate Governance System nsuring that Committees Fulfill Their Respective Missions with an
E
Awareness of Their Duty and Authority

83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration

The Mitsubishi Estate Group shall reform itself in response to the changing
times by harnessing its strong commitment to self-transformation that it hasforged over its history.
 overnance Reform Driven by an Unwavering Commitment toG
Self-Transformation
Mitsubishi Estate has steadily reformed its corporate governance system by continuously
taking a variety of steps in the right direction, including the transition to a Company
with Nominating Committee, etc., in 2016; changes to the composition of committees
and the proportion of inside and outside directors who comprise their membership;revision of the remuneration system; and the adoption of flexible capital policies, suchas share buybacks and cancellations of treasury stock. I believe that the Company’s
deeply rooted commitment to self-transformation has played a major part in driving
these reforms.
The Board of Directors continues to be expected to bolster its monitoring functions
and enhance its diversity and independence, and I am confident that the Company’s
current governance system is more than capable of addressing such demands. For
example, in its monitoring of the long-term management plan, the Board of Directors
receives detailed explanations continuously on individual strategies from those incharge of business execution, and these explanations form the basis for rigorous

The Company currently has three committees—namely, the Nominating, Audit, andRemuneration committees. Each contributes directly to management supervisionand monitoring by comprehensively fulfilling its respective roles. In particular, thefact that the Nominating and Remuneration committees are both membered solely
by outside independent directors ensures that they have a higher level of independence and a greater degree of objectivity in their discussions.
Meanwhile, the committees fulfill their own duties while reporting to the Board of
Directors on matters including the details of committee meeting discussions. The
contents of Board meeting discussions based on these reports are then shared withthe committees. I believe that this loop strengthens the relationship between the
Board of Directors and the committees, further enhancing the effectiveness ofmanagement supervision.
I serve as the chairperson of the Nominating Committee, which has the onerous
duty of, and authority for, deciding on director nomination proposals. Matters decided
by the Nominating Committee must therefore both receive approval at the General
Meeting of Shareholders and satisfy all stakeholders. Assessing candidates fromwithin the Company is no easy task and necessitates considerable effort from theNominating Committee, which is composed solely of outside directors. Although they
do not have the same amount of information available to them as inside directors,
members of the Nominating Committee resolutely endeavor to collect the necessary
information under such preconditions and make nominations while defining themost important qualities in directors from their objective and independent positionas outside directors.
A skills matrix is a valuable indicator and highly useful for making these nominations. The Nominating Committee configures the Board of Directors with members
who possess the skills necessary to enable the Board to exercise management
supervision and monitoring functions properly. The committee engages in repeated88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes
91 Directors
92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers
93 Message from an Outside Director
95 Risk Management

98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Message from an Outside Director

94

Index

Corporate Governance
3 CEO Message

discussions on this topic, examining candidates’ skills while ensuring consistency
with the existing Appointment Standards for Candidates for Directors. Choosing theskills to include in the matrix is of great importance, and the committee must also
remain conscious of diversity. Given that the participation of members with a variety
of standpoints and approaches invigorates and deepens discussions at meetings ofthe Board of Directors and at those of the committees, the Nominating Committee
will strive to study optimal solutions from many perspectives.

9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
77 Message from the Chairperson of the Board

Reviewing and Updating the Long-Term Management Plan
Today, the ability of companies to adapt to change is being tested as never before
due to the monumental changes seen in global affairs in the last few years.
Mitsubishi Estate must be prepared for rapid change to remain as a constant featureof its business environment and take action without delay, developing businesses
with an eye on what lies ahead. The Board of Directors must also promote the longterm management plan from this perspective while conducting monitoring to ensurethat the plan can be revised in a timely and appropriate manner.
In FY2023, Mitsubishi Estate thoroughly reviewed Long-Term Management Plan
2030, updating it to clarify the significance of the plan’s contents and narrow down
its themes without overhauling the mutually necessary strategies for increasingsocial and shareholder value. In strategies for increasing shareholder value, thereview revised the road map toward achieving the plan’s key performance indicators(KPIs) and other metrics, a portion of the strategies, and shareholder return policies
pertaining to dividends and share buybacks. Meanwhile, in strategies for increasingsocial value, the review untangled the Group’s businesses from a sustainability perspective and reorganized its material issues. In doing so, the review clarified that
promoting both tangible and intangible businesses related to real estate, the Group’s
core business, helps increase the social value it provides. I believe that this is a very
important and significant conclusion. Employees can therefore have confidence that
promoting and accomplishing their own work contributes to sustainability. I will aim
to help further update and achieve the goals of the long-term management plan
through continued and repeated dialogue with the management team, employees,
others within the Company, the Group at large, and external stakeholders.

Outside Directors’ Contribution toward Enhancing Corporate ValueAs stated previously, the pace of change in the business environment is becoming
ever faster. Since there are no exceptions to the rule of evolution that only those who

78 Corporate Governance System
83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration
88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes
91 Directors

can adapt to change will survive, questioning whether change can be navigated toproceed to the next step is vital.
Mitsubishi Estate has a solid business base underpinned by a long tradition in the
Otemachi, Marunouchi, and Yurakucho areas. Rather than depending solely on thisstrength, the Company must leverage it to spearhead major transformation in the
coming era. Doing so will require a broad perspective to anticipate and addresschanging trends in Japan and overseas. Nevertheless, I am convinced that theCompany has the ability to develop measures to inspire new trends with this spirit.
I believe that managing the risks that emerge in this process while building the optimal business portfolio is exactly the fundamental role that outside directors should
aim to fulfill.
I have had numerous interactions with leaders at many companies through mylong involvement in the management of an energy company with diverse operationsin Japan and overseas as well as in my six years serving as an officer of Keidanren(Japan Business Federation). During these interactions, I have offered many opinions
on the state of the economy and society in both Japan and globally. Needless to say,there is a limit to my knowledge of the real estate business. However, I can help
enhance the Group’s corporate value by leveraging the knowledge that I have gained
from my extensive experience and the ways of thinking I have learned over theyears. I believe that that is my role and duty.

92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers
93 Message from an Outside Director
95 Risk Management

98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Risk Management

95

Index

Corporate Governance

The Mitsubishi Estate Group has established the Mitsubishi Estate Group Risk Management Rules and has set up a risk management system to manage risks in all of its business activities.
Mitsubishi Estate has also established the Risk Management & Compliance Committee to oversee the Group’s risk management and formed the Risk Management & Compliance Subcommittee as aworking-level consulting body responsible for such matters as the collection of risk management-related information. The corporate officer in charge of risk management and compliance isappointed by resolution of the Board of Directors to take responsibility for overseeing risk management, and general managers of business groups and general managers from Group departments
have been designated as risk management officers. We promote risk management activities through the Mitsubishi Estate Legal & Compliance Department, which serves as the secretariat.
We have also established and implemented action guidelines, contact and initial response systems, and business continuity plans for use in times of crisis.

3 CEO Message
9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
76 Corporate GovernanceRisk Management and Compliance System
Appointment

Reporting

Risk Management & Compliance Committee

Overall management

Risk Management Activities of Each Individual Businessand Functional Group and Group Company

ReportingVice-Chairperson

Chairperson

Mitsubishi Estate
Corporate Officer in Charge of Risk
Management and ComplianceIndividual Group companies and functional and business groups
identify important risks based on a risk analysis and carry out
activities throughout the year to reduce the risks identified.
In addition, the general managers of each functional andbusiness group ascertain the status of risk management
activities of different business companies under the jurisdictionof each business and functional group and provide coordinationand support.

Mitsubishi Estate
Directions
through eachduty

Risk Management
Promotion Officers(Line and Staff Departments,
Others)Compliance Promotion
Officers(General Managers)

Committee Members

Mitsubishi Estate Directors, Representatives from Main Group Companies

ReportMitsubishi Estate
Chairperson of the Board
Full-Time Members of the Audit Committee
General Manager of Internal Audit
Department

Risk Management
Promotion Personnel

Compliance Promotion
Personnel

Outside Experts

83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration
88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes
91 Directors
92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers
93 Message from an Outside Director

Guidance Assistance95 Risk Management(Invited as necessary)

98 Financial Section

Group Company

Risk Management Officer

Compliance Officer

Corporate Officer in Charge of Risk Management
and Compliance

General Managers of and Other Management
Personnel in Corporate Group Departments

People Designated by Presidentsof Main Group Companies

100 Corporate Data

That Need Particular Attention from the Group

Risk Management and Compliance-Related Deliberation and Reporting Bodies
General Managers of Line and Staff
Departments for Functionaland Business Groups2
Identification and Monitoring of Key Risks

Risk Management & Compliance Subcommittee

General Manager of Internal Audit Department
General Manager of Mitsubishi Estate Audit
Committee Office

77 Message from the Chairperson of the Board
78 Corporate Governance System

1= Responsible for overseeing risk management= Responsible for overseeing compliance

Risk Management and Compliance-Related Deliberation and Decision-Making Bodies

Mitsubishi Estate President &Chief Executive Officer

Risk Management Activities

Corporate Officer in Charge of Risk Management and Compliance

Board of Directors
Decision of basic policy
Supervision(As of April 2024)

Consultation

AdviceRisk Management Promotion Secretariat / Compliance Promotion Secretariat
Executive
Committee(Mitsubishi Estate Legal & Compliance Department)

To accurately grasp the risks facing the Group as a whole, andby selecting and mapping key risks that require measures to betaken, the risks that must be addressed and their level ofpriority are brought to light. While monitoring risks throughout
the year, particularly key risks, support is provided as necessary.

Mitsubishi Estate’s Website

Note: Other individuals nominated by the corporate officer in charge of compliance may
also participate.

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Risk Management

96

Index

Corporate Governance
3 CEO Message

Risk Map
Moderate

Risks that are appropriately dealt with by continuing
existing measures

9 Value Creation Story
35 Business Review

Status of Control

Risks that necessitate the improvement of existingmeasures or introduction of new measures

High

Risk Impact

Candidates for risks needing countermeasures in the future

Key risks requiring countermeasures during the fiscal year

55 Sustainability (ESG) Section
76 Corporate GovernanceOngoing risks requiring countermeasures (moderate impact)

Ongoing risks requiring countermeasures (high impact)

77 Message from the Chairperson of the Board
78 Corporate Governance System
83	Evaluation of the Effectiveness of theBoard of Directors

Risk Management Related to Investment Projects

Strategic Investment Committee

Among the various risks recognized by the Mitsubishi Estate Group, risks related to investment

In its deliberations, in addition to assessing the economic viability of a given project using multiple

projects are identified by the Strategic Investment Office, which is responsible for investment deci-

indicators, the Strategic Investment Committee verifies the appropriateness of various aspects ofsion rules, through assessments to verify business viability. Prior to the deliberation of important

premises, such as rents, unit selling prices, and construction costs. For risks, in particular, simula-investment projects by the Executive Committee, which is chaired by the president & chief execu-

tions of upside and downside scenarios are incorporated into investment decision rules. The differ-tive officer and is responsible for strategy planning for the entire Group and monitoring of the prog-

ence between the scenario set by the responsible business group in charge of the project and the

91 Directors

ress of each business toward realizing their strategies, the Strategic Investment Committee

downside scenario is recognized as risk. The Strategic Investment Committee holds discussions on

deliberates and evaluates profitability, the nature of risks and related countermeasures, and otherthe acceptable limits of that risk.

92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers

85 Remuneration
88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes

matters. At each phase, risk assessments are also conducted from legal and financial aspects in

93 Message from an Outside Director

order to grasp an overall picture of the abovementioned risks.

95 Risk Management

Risk Evaluation Process for Individual Projects
Business Groups erification of individual investment projects
V• Verification of consistency with strategies ofeach business group• Verification of economic viability reparation of the responsible businessPgroup’s anticipated scenarios with importantinvestment projects and submission thereof to
the Strategic Investment Committee

98 Financial Section

Scenarios anticipated by business units

Strategic Investment Committee
Presentation of scenarios anticipated by business units
with major investment projects

Strategic Investment Office• Information gathering and analysis forinvestment strategy planning• Preparation and use of investment
decision rules

Role:
Discussion on and verification of the appropriateness of importantinvestment projects
 erification of the responsible business group’s anticipatedV
scenarios• Verification of consistency with Companywide strategies• Verification of consistency with business group strategies• Verification of economic viability• Verification of appropriateness of assumptions (such as rents
and construction costs)
 here necessary, the Strategic Investment Office preparesWseparate anticipated scenarios and submits them to the
Executive Committee.

Jurisdiction
Sharing of visualized risks and areas of concern for business viability

Executive Committee

100 Corporate Data

Role:
Investment decisions regarding important
projects
Verification of important investment projects• Verification of consistency with Companywide
strategies• Verification of consistency with business group
strategies• Verification of economic viability

Mitsubishi Estate’s Website

Anticipation of scenarios by Strategic Investment Office

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Risk Management

97

Index

Corporate Governance
3 CEO Message

Dealing with Major Risks
Below are some examples of major risks that have come to light in the Mitsubishi Estate Group through risk management activities and various business activities and countermeasures that havebeen taken.
Risks

Countermeasures

Risks of Natural and Man-MadeDisasters, etc.

Amid growing social interest in the way companies respond in the event of pandemics and natural disasters, such as typhoons, in the unlikely event of shortcomings ina response deemed appropriate by the Group, safety management, reputational, andother risks could emerge, which might affect the Group’s business promotion andperformance.

At facilities that it owns or operates, the Mitsubishi Estate Group prepares business continuity plans for use in the event of a natural or man-made disaster. In
addition, redevelopment projects promoted by the Group put in place advanced
disaster-management functions and adopt disaster countermeasures througharea management.

Risks of a Deterioration in Real
Estate Market Conditions

The Group’s performance may be adversely affected if real estate market conditions
were to deteriorate in accordance with an economic downturn caused by domestic
and overseas factors. In such circumstances, the Group would need to pay particular attention to the progress of occupancy rates in the Tokyo office leasing market
and to multi-use development, redevelopment, and other plans, as these entail
large-scale investments over long-term development time frames.

The basic policy of the Group is to conclude relatively long-term lease contracts
with customers in its office building leasing business. The resultant prospect ofstable lease revenues mitigates to a certain degree the risk of sharp economic
fluctuations.

If material prices rose in conjunction with a steep increase in raw material andcrude oil prices due to domestic and overseas factors, the Group may not necessarily be able to offset this through increased sales prices and rental fees in its realestate development business, which may have an adverse effect on performance.

The Group implements cost control measures, such as the early placement ofconstruction material orders, and will monitor trends in material prices in atimely manner going forward while adopting a multifaceted response that encompasses adjusting investment and development plans and consulting with its
partners.

The Group’s business operations are affected by fluctuations in exchange rates.
Appreciation of the yen reduces the yen conversion amount in foreign currencydenominated transactions. In addition, a portion of the Group’s assets and liabilities
are converted into Japanese yen for the preparation of consolidated financial statements. Accordingly, even if there was no change in the value of said assets and liabilities in local currency terms, their value may be affected after yen conversion.

The Group strives to minimize risks of fluctuations in exchange rates throughsuch efforts as procuring funds in the relevant foreign currency when acquiring
foreign currency-denominated assets.

Based on its target of achieving price stability, the Bank of Japan (BOJ) has maintained an extremely low short-term policy interest rate and set forth a policy ofoperating monetary policy appropriately in accordance with economic activity,
prices, and monetary conditions. A rise in interest rates due to a change in the BOJ’s
policy or a deterioration in the demand–supply balance for Japanese government
bonds (JGBs) caused by growth in the issuance of JGBs may negatively affect theperformance, financial position, or other aspects of the Group’s business.

The Group hedges interest rate risk on a portion of its variable interest ratefinancing through interest rate swaps to convert its interest rate payments into
fixed payments. The Group plans to continue procuring funds in consideration of
the balance between outstanding borrowings and corporate bonds with fixed andvariable interest rates.

The Group’s performance could be affected in the unlikely event of external leaks ofconfidential information or the materialization of system risks due to unforeseen
circumstances, such as information security incidents resulting from cyberattacks,
computer viruses, or the like.

The Group has established regulations in relation to information management, basedon which it implements a rigorous information management system, and complies
appropriately with revisions to laws, such as the Act on the Protection of Personal
Information. Moreover, in order to raise the IT security level Groupwide, the Grouphas positioned its DX Promotion Department at the center of efforts to standardize its
IT systems and make them more secure. The Group is also enhancing collaboration
among DX Promotion Department IT security personnel and between the department
and external security companies, thereby providing Groupwide support.

Risks of Substantial Rises inMaterial Prices

Risks of Fluctuations in
Exchange Rates

Risks of Increases in Interest
Rates

Information Security Risks, Suchas Cyberattacks, Including
Leaks of Personal Information

9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
77 Message from the Chairperson of the Board
78 Corporate Governance System
83	Evaluation of the Effectiveness of theBoard of Directors
85 Remuneration
88	Dialogues with Shareholders and Investors(ESG Meetings)
90 Shares Held for Strategic Purposes
91 Directors
92	Corporate Executive Officers, Executive Officers,
and Group Executive Officers
93 Message from an Outside Director
95 Risk Management

98 Financial Section
100 Corporate Data

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Status of Shareholdings
Stocks held for purposes other than pure investment, thenumber of shares, and their total value as of March 31, 2024,
recorded on the balance sheet are as follows.
Number of shares

Unlisted Shares

96

Shares Other Than Unlisted Shares

59

Total amountbooked on balance
sheet (¥ million)

9,084
366,5113 CEO Message
Mitsubishi HC Capital Inc.

3,760,000

4,023

Mitsubishi Kakoki Kaisha, Ltd.

66,586274

794,100

3,929

GS Yuasa Corporation

73,670231

THE HACHIJUNI BANK, LTD.

3,441,500

3,579

P.S. Mitsubishi Construction Co., Ltd.

152,700

161

SHIMIZU CORPORATION

2,738,650

2,740

NANTO BANK, LTD.

50,440154

Seino Holdings Co., Ltd.

1,275,900

2,698

Nikki Co., Ltd.

49,300138

Nissui Corporation

2,789,900

2,678

HOTEL NEWGRAND CO., LTD.

24,200111

621,600

2,514

Concordia Financial Group, Ltd.

120,000

92

1,852,000

2,336

Mitsubishi Steel Mfg. Co., Ltd.

56,272

83

Mitsubishi Research Institute, Inc.

447,500

2,219

gooddays Holdings, Inc.

114,000

72

PIA Corporation

680,200

2,197

ELEMENTS, Inc.

75,00071

Odakyu Electric Railway Co., Ltd.

901,000

1,870

Slogan Inc.

43,10529

Mitsubishi Materials Corporation

625,300

1,824

FURUKAWA CO., LTD.

12,200

22

T&D Holdings, Inc.

660,500

1,715

Chiyoda Corporation

41,00016

Number of shares

Amount booked onbalance sheet(¥ million)

TOHO CO., LTD.

Chiba Bank, Ltd.

Specific Investment Shares
Number of shares

Amount booked onbalance sheet(¥ million)

Mitsubishi Corporation

39,265,371

136,918SHINAGAWA REFRACTORIES CO., LTD.

690,750

1,331

Mitsubishi Heavy Industries, Ltd.

1,848,097

26,769Shizuoka Financial Group, Inc.

886,750

1,283

Mitsubishi UFJ Financial Group, Inc.

16,866,642

26,261

Mebuki Financial Group, Inc.

2,340,000

1,197Japan Airport Terminal Co., Ltd.

3,111,400

18,450Mitsubishi Gas Chemical Company, Inc.

431,405

1,117

Mitsubishi Logistics Corporation

3,665,554

18,236

Nippon Yusen Kabushiki Kaisha

258,363

1,052

HEIWA REAL ESTATE CO., LTD.

4,274,100

17,438

THE HYAKUGO BANK, LTD.

1,509,000

979

Mitsubishi Electric Corporation

5,577,294

14,010KUBOTA Corporation

359,000

855

Taisei Corporation

2,426,690

13,637

NOHMI BOSAI LTD.

345,000

791

Shin-Etsu Chemical Co., Ltd.

1,541,060

10,146NIPPON EXPRESS HOLDINGS, INC.

89,483691

East Japan Railway Company

857,300

7,507

Matsuya Co., Ltd.

545,300

618

Central Japan Railway Company

1,839,500

6,853

TOKAI CARBON CO., LTD.

588,250586

TOYOTA MOTOR CORPORATION

1,749,810

6,635Tokyo Kaikan Co., Ltd.

131,140541

AGC Inc.

1,079,906

5,969

Kodensha Co., Ltd.

58,500384

NIKON CORPORATION

3,510,000

5,373

The 77 Bank, Ltd.

70,687292

Please refer to the Company’s website for information on the
purpose of holding shares and on business alliances.

Obayashi Corporation

2,404,961

4,479

Kyushu Financial Group, Inc.

256,410292

https://www.mec.co.jp/en/ir/governance/others/

Company

Index

Financial Section

Fukuoka Financial Group, Inc.

Information on the number of shares for each company andamounts shown on the balance sheet for specific investment
shares and deemed holdings of equity shares are as follows.

98

9 Value Creation Story
35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance
98 Financial Section
98 Status of Shareholdings
99	Eleven-Year Summary of Selected Financial Data
(Consolidated)

100 Corporate Data

Deemed Holdings of Equity SharesCompany

Tokio Marine Holdings, Inc.

20,788,500

97,768Mitsubishi Electric Corporation

10,656,000

26,767

Mitsubishi UFJ Financial Group, Inc.

4,306,400

6,705

MITSUBISHI MOTORS CORPORATION

700,000

353

Note: With regard to the largest shares in terms of the amounts recorded on the balance
sheet, specific investment shares and deemed holdings of equity shares for investment
purposes are not included in aggregate totals.

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Eleven-Year Summary of Selected Financial Data (Consolidated)
FY2014FY2015FY2016FY2017FY2018FY2019Index

Financial Section

Years ended March 31

FY201399

FY2020

FY2021

FY2022

FY2023Financial Results (Millions of yen)

3 CEO Message
9 Value Creation Story

Operating revenue¥1,075,285¥1,110,259¥1,009,408¥1,125,405¥1,194,049¥1,263,283¥1,302,196¥1,207,594¥1,349,489¥1,377,827¥1,504,687

Operating profit

161,271

156,332

166,199

192,495

213,047

229,178

240,768

224,394

278,977

296,702

278,627

Ordinary profit

139,638

133,113

144,851

169,851

190,506

206,587

219,572

210,965

253,710

271,819

241,158

Profit attributable to owners of parent

64,29773,33883,426102,681

120,443

134,608

148,451

135,655

155,171

165,343

168,432

35 Business Review
55 Sustainability (ESG) Section
76 Corporate Governance

Financial Position (Millions of yen)

Total assets¥4,765,368¥4,901,526¥5,311,840¥5,484,115¥5,801,450¥5,774,193¥5,858,236¥6,072,519¥6,493,917¥6,871,959¥7,583,748

Total equity*1

1,329,057

1,495,838

1,509,680

1,592,777

1,698,348

1,770,643

1,734,462

1,851,899

2,003,225

2,157,561

2,401,106Interest-bearing debt

1,973,042

1,929,355

2,291,038

2,396,994

2,481,675

2,319,597

2,429,883

2,526,142

2,738,632

2,871,677

3,138,195

98 Status of Shareholdings¥   336,489¥   200,078¥   135,821¥   168,527¥   293,338¥   345,954¥   341,766¥   207,414¥   280,090¥   269,914¥   307,249

99	Eleven-Year Summary of Selected Financial Data
(Consolidated)

74,80572,696

74,24575,97477,54580,336

84,941

89,107

91,581

93,45998,301

Cash flows from investing activities(133,537)(46,568)(231,003)(327,292)(286,841)(271,083)(277,440)(297,303)(313,778)(312,046)(362,017)

Cash Flows (Millions of yen)

Cash flows from operating activities
Of which, depreciation and amortization
Of which, capital expenditures(159,677)(177,331)(275,316)(275,372)(289,570)(285,089)(331,857)(319,841)(329,115)(286,523)(451,402)

Cash flows from financing activities(177,514)(189,109)309,237(4,921)

37,203(192,473)(28,886)

50,42590,97330,457

100,433

Cash and cash equivalents at the end of year

224,739

198,489

412,392

243,341

286,859

179,308

213,008

172,307234,244

225,772

275,965¥46.34¥52.85¥60.13¥74.00¥86.78¥96.97¥108.64¥101.34¥116.45¥125.54¥131.96

12

14

16

20

26

30

33

31

36

38

40

¥240,998¥224,701¥279,310¥296,962¥278,935¥246,332¥239,934¥252,034¥279,718¥302,424¥320,641¥336,784¥331,821¥381,434¥402,221¥391,625

3.4%

3.2%

3.3%

3.6%

3.8%

4.0%

4.1%

3.8%

4.4%

4.4%

3.9%

7.5

7.7

8.5

8.7

9.5

10.1

11.3

11.2

13.9

12.2

8.0

ROE

5.0%

5.2%

5.6%

6.6%

7.3%

7.8%

8.5%

7.6%

8.1%

7.9%

7.4%

Payout ratio

25.9%

26.5%

26.6%

27.0%

30.0%

30.9%

30.4%

30.6%

30.9%

30.3%

30.3%

¥2,446¥2,787¥2,090.5¥2,030¥1,798.5¥2,005.5¥1,595¥1,932.5¥1,819¥1,576.5¥2,784.5

1,390,397

1,390,397

1,390,397

1,390,685

1,390,908

1,391,038

1,391,174

1,391,328

1,391,478

1,324,288

1,324,288

98 Financial Section

100 Corporate Data

Per-Share Amounts (Yen)

Earnings
Cash dividends
Principal Financial Indicators

Business profit*2 (Millions of yen)
EBITDA*3 (Millions of yen)
ROA*4
Interest coverage ratio (ICR)*5 (Times)

Stock Information

Stock price*6 (Yen)
Number of shares issued and outstanding(Thousands of shares)*1 Total equity is calculated by deducting non-controlling interests and stock acquisition rights from total net assets.
*2 Business profit is calculated as operating profit + equity in earnings of unconsolidated subsidiaries and affiliates.
*3 EBITDA is calculated as the sum total of operating profit, interest and dividend income, equity in earnings of unconsolidated subsidiaries and affiliates, depreciation and amortization, and goodwill.
*4 ROA was calculated as operating profit ÷ total assets (average of the amount at the beginning and end of the fiscal period) until FY2018. However, since FY2019, ROA has been calculated as business profit ÷ total assets(average of the amount at the beginning and end of the fiscal period).
*5 The interest coverage ratio (ICR) is calculated by dividing the sum total of operating profit, interest and dividend income, and equity in earnings of unconsolidated subsidiaries and affiliates by the sum total of interest expenses and commercial paper interest.
*6 As of the last trading day in March

Mitsubishi Estate’s Website

CONTENTSMITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Principal Mitsubishi Estate Group Companies
Business activities

Share of voting
rights (%)

Building Development and Leasing BusinessToshima-ku,
TokyoManagement of Sunshine City and other buildings

Yokohama Sky Building Co., Ltd.

Yokohama,
Kanagawa

63.2

Mitsubishi Jisho House Net Co., Ltd.

Management of the Sky Building and the Yokohama
Shintoshi Building

62.0

Custom-Built Housing

Operation and management of building garages andChiyoda-ku, Tokyo
sale of various gasoline products

54.9

Toshima-ku,
Tokyo

Cooling and heating supply business in the
Higashi-Ikebukuro district

68.0

Chiyoda-ku,
TokyoManagement of outlet malls

60.0

Ota-ku, Tokyo

Leasing, operation, and management of logistics andoffice buildings

Chiyoda-ku,
TokyoManagement, overall supervision, and operation of thehotel business

64.7

Hotel Business

Higashi-Fuji Green Co., Ltd.

MEC Eco LIFE Co., Ltd.

100.0

Mitsubishi Estate London Limited
Mitsubishi Estate Asia Pte. Ltd.

Building Development and Leasing BusinessTokyo Kotsu Kaikan Co., Ltd.

Chiyoda-ku, Tokyo Management of Tokyo Kotsu Kaikan and other buildings

50.0Japan Regus Co., Ltd.

Shinjuku-ku,
Tokyo

100.0

Operation of rental offices, coworking spaces,
virtual offices, and hourly meeting rooms

Office Building Management Business

Sunto-gun,Management and landscaping of the
Shizuoka Prefecture Higashi Fuji Country Club
Shinagawa-ku,
Tokyo
Setagaya-ku,
Tokyo

New York City,
United States
London,United Kingdom
Singapore

55 Sustainability (ESG) Section

100.0

100.0

Research and proposals on the environment and design

100.0Operation of commercial nursing homes

100.0

Real estate operations in the United States

100.0

Real estate operations in Europe

100.0

Mitsubishi Estate Asia Pte. Ltd.

100.0

Specialist real estate investment management services(real estate investment advisory and other services)

100.0

Mitsubishi Jisho Investment Advisors, Inc.

Chiyoda-ku, TokyoJapan Real Estate Asset Management Co., Ltd.

Chiyoda-ku, Tokyo Investment management

100.0

TA Realty

Boston,United States

73.2

Investment management business in the United States

Chiyoda-ku, Tokyo

Cooling and heating supply business in the Marunouchi,
Otemachi, Yurakucho, and other districts

65.6

Architectural Design & Engineering BusinessChiyoda-ku, Tokyo

Dark fiber leasing and data center housing businesses
in the Marunouchi and Otemachi districts

51.0

Mitsubishi Jisho Design Inc.

Chiyoda-ku, Tokyo

Renovations concerning architectural design andengineering—such as construction and civilengineering—urban and regional development, andvarious consulting services

100.0

MEC Design International

Chuo-ku, Tokyo

Interior design administration and construction,
manufacture, and sale of furniture and household items

100.0

Real Estate Sales
Real estate development, sales, leasing, management,
real estate ownership, and management

100.0

Mitsubishi Real Estate Services Co., Ltd.

Chiyoda-ku, Tokyo

Purchase, sale, and leasing brokerage of corporate real estate,leasing management, real estate appraisal, and parking business

100.0

Osaka, Osaka

Leasing business in the Kansai area and real estate sales(sale of renovated condominiums)

100.0

Mitsubishi Estate Parks Co., Ltd.

Minato-ku, Tokyo

Operation and management of parking lots and parking-lot
consulting

100.0

Residence Management Business
Mitsubishi Jisho Community Holdings Co., Ltd.

Chiyoda-ku, Tokyo

Business management and operations related to thecondominium management business

71.5

OthersMitsubishi Jisho Community Co., Ltd.

Chiyoda-ku, Tokyo

Overall condominium and building management, renovations, and related businesses

100.0

MEC Human Resources, Inc.

Chiyoda-ku, Tokyo Human resource-related services

100.0

Mitsubishi Jisho IT Solutions Co., Ltd.

System planning, development, maintenance, and operation in
Chiyoda-ku, Tokyo
addition to services providing support for customer businesses

100.0

Comprehensive management of Izumi Park Town

100 Corporate Data
100	Principal Mitsubishi Estate Group
Companies
101 Corporate Information

Real Estate Services BusinessChiyoda-ku, Tokyo

Sendai, Miyagi
Prefecture

98 Financial Section

Architectural Design & Engineering Business and Real Estate Services BusinessResidential BusinessIzumi Park Town Service Co., Ltd.

76 Corporate Governance

Investment Management Business

OthersURBAN LIFE Co., Ltd.

100.0

100.0

District Heating and Cooling Business

Mitsubishi Estate Residence Co., Ltd.

35 Business Review

Comprehensive operation and management of officebuildings and retail properties

Mitsubishi Jisho Property Management Co., Ltd. Chiyoda-ku, Tokyo

Marunouchi Direct Access Limited

Design and construction of single-unit homes and housing
complexes, renovation of homes and retail shops, etc.
Manufacture, processing, and sale of construction
materials

100.0International Business
Rockefeller Group International, Inc.

Marunouchi Property Business

Marunouchi Heat Supply Co., Ltd.

Purchase, sale, and leasing brokerage of homes forindividuals and leasing management

Shinjuku-ku,
TokyoChiba,
Mitsubishi Estate Housing Components Co., Ltd.
Chiba Prefecture

Ryoei Life Service Co., Ltd.

Logistics Facility Business

Mitsubishi Estate Hotels & Resorts Co., Ltd.

Shinjuku-ku,
Tokyo

9 Value Creation Story

OthersRetail Property BusinessTokyo Ryutsu Center Inc.

Business activities

Share of voting
rights (%)

Recreational Facilities

District Heating and Cooling Business

Mitsubishi Estate • Simon Co., Ltd.

Location

Mitsubishi Estate Home Co., Ltd.

Parking Business

Ikebukuro District Heating and Cooling Co., Ltd.

Corporate Data

Real Estate Brokerage Business

Sunshine City Corporation

Tokyo Garage Co., Ltd.

Index

3 CEO Message

Commercial Property Business
Location

100

100.0

Note: Share of voting rights held is as of March 31, 2024. Figures stated are from the Company’s securities report for FY2023.

Mitsubishi Estate’s Website

CONTENTS

Corporate Information

MITSUBISHI ESTATE CO., LTD. Integrated Report 2024

Corporate Data
3 CEO Message

Major Shareholders 
Number of shares held(Thousands of shares)

Percentage ofequity held (%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

220,501

17.41

35 Business Review

Custody Bank of Japan, Ltd. (Trust Account)

77,4296.11

55 Sustainability (ESG) Section

Meiji Yasuda Life Insurance Company

42,194

3.33

76 Corporate Governance

STATE STREET BANK WEST CLIENT – TREATY 505234

24,244

1.91

98 Financial Section

SSBTC CLIENT OMNIBUS ACCOUNT

21,8281.72

100 Corporate Data

Takenaka Corporation

18,1501.43100	Principal Mitsubishi Estate Group
Companies

Obayashi Corporation

16,422

1.29

SHIMIZU CORPORATION

16,367

1.29

JP MORGAN CHASE BANK 385781

16,165

1.27

JP MORGAN CHASE BANK 385632

14,645

1.15

Stock Details
Number of authorized shares:

1,980,000,000 shares

Number of shares issued and outstanding:

1,324,288,306 shares

91,127	(Decrease of 8,254 shareholders compared with theend of the previous fiscal year)
Number of shareholders:Shareholder Composition (Percentage of number of shares to total)
Government and local public authorities
0.00%

Financial institutions
35.28%
Overseas individuals
and companies
43.40%Index

As of March 31, 2024

Stock Information 

Individuals and others
10.52%

101

Compositionof Shareholders
Financial instruments
business operators
1.96%
Operating and other companies
8.84%

9 Value Creation Story

101 Corporate Information

Note: The percentage of equity held is calculated after deducting the shares of treasury stock from the issued shares of the Company.

Company Name 
Mitsubishi Estate Co., Ltd.
Date of Establishment 

May 7, 1937
Paid-in Capital ¥142,414,266,891
Organization Chart https://www.mec.co.jp/assets/img/
organization/eng_org.pdf

Business Activities • Development and leasing of office buildings,
retail properties, hotels, logistics facilities, etc.
• Development and sale of real estate for capital gains in Japan and overseas• Development and sale of land for housing,industrial use, etc.
• Operation of airports, leisure facilities, etc.
• Real estate brokerage and consulting• Asset management businesses
Number of Employees (excluding temporary staff) 
Non-consolidated: 1,093
Consolidated: 11,045

Website https://www.mec.co.jp/en

Offices in Japan 
Head Office

Otemachi Park Building, 1-1, Otemachi 1-chome, Chiyoda-ku,
Tokyo 100-8133

Phone:+81-3-3287-5100

Hokkaido Branch

New Hokkaido Building, 3-1, Kitashichijo Nishi 4-chome, Kita-ku,
Sapporo, Hokkaido 060-0807

Phone:+81-11-728-2170

Tohoku Branch

Sendai Park Building, 6-1, Kokubun-cho 3-chome, Aoba-ku,
Sendai, Miyagi Prefecture 980-0803

Phone:+81-22-261-1361

Yokohama Branch

Yokohama Landmark Tower, 2-1, Minato Mirai 2-chome,
Nishi-ku, Yokohama, Kanagawa Prefecture 220-8115

Phone:+81-45-224-2211

Chubu Branch

Nagoya Hirokoji Building, 3-1, Sakae 2-chome, Naka-ku,
Nagoya, Aichi Prefecture 460-0008

Phone:+81-52-218-7755

Kansai Branch

OAP Tower, 8-30, Tenmabashi 1-chome, Kita-ku,
Osaka, Osaka Prefecture 530-6009

Phone:+81-6-6881-5160

Chushikoku
BranchHiroshima Park Building, 7-5, Otemachi 3-chome, Naka-ku,
Hiroshima, Hiroshima Prefecture 730-0051

Phone:+81-82-245-1241

Kyushu Branch

Tenjin Twin Building, 6-8, Tenjin 1-chome, Chuo-ku, Fukuoka,
Fukuoka Prefecture 810-0001

Phone:+81-92-731-2211

Mitsubishi Estate’s Website

CONTENTS

“A Love for People A Love for the City”

Otemachi Park Building, 1-1, Otemachi 1-chome, Chiyoda-ku, Tokyo 100-8133, Japan
https://www.mec.co.jp/en