February 8, 2019
Earnings Highlights for FY2019 – 3Q
(The Fiscal Year Ending March 31, 2019)
Mitsubishi Estate Co., Ltd.
●Earnings for FY 2019 – 3Q (Consolidated)＜Summary＞
Millions of yen (rounded down)

Office Building Business

FY2019-3Q
Results

FY2018-3Q
Results

403,525

344,209

Change(%)

ChangeFY2019 Estimates（Announced on May 14, 2018)59,31617.2%

545,000

Lifestyle Property Business

79,04873,675

5,373

7.3%

113,000

Residential Business

279,660

258,296

21,3638.3%

440,000

International Business

47,104

55,142(8,038)(14.6)%

74,000

Revenue from Operations874,357

790,456

83,90010.6%

1,290,000

Office Building Business

113,478

106,486

6,992

6.6%

148,000

Lifestyle Property Business

23,591

21,422

2,168

10.1%

31,000Residential Business

20,358

12,202

8,155

66.8%

23,000International Business

16,201

13,507

2,693

19.9%

25,000Operating Income

162,939

143,354

19,58513.7%

215,000

Income Before Taxes and Special Items

148,648

128,572

20,07615.6%

191,000

Profit Attributable to Owners of Parent

96,726

84,953

11,77313.9%

123,000

EBITDA

231,606

211,257

20,3499.6%

303,000【Overview】
There is an increase in income and profits compared with FY2018 -3Q. Main factors include an increase ofincome and profits both on property sales and on rental in the Office Building Business as well as an increaseof income and profits from sales of rental apartment buildings in the Residential Business. Factors affecting
individual segments compared with FY2018-3Q are detailed below.
【Office Building Business】
An increase of income and profits on property sales as well as an increase in rental income and profits fromnew buildings resulted in an overall increase.
(Vacancy Rates)
The vacancy rates for Japan (all uses) and Marunouchi (offices) had improved as leasing progressed
well in overall portfolio. It is expected that the temporary increase in vacancy due to a change in tenantsin Marunouchi could lead to an increase of the vacancy rates by the end of March 2019. However, withleasing well underway, the vacancy rates for Japan (all uses) is expected to improve by 0.5% from theprevious estimate.
(The vacancy rates for the end of March 2019 (Japan, all uses) is expected to be 2.0%, previously 2.5%.)(Average Rents)
The average rents increased as a result of rents from new buildings in Marunouchi as well as an increase
in rents from existing buildings mainly in Marunouchi.
(yen/tsubo.month)

Vacancy rates

2018/3Results

2018/9Results

2018/12Results

FY2019 Estimates(Announced on Feb 8, 2019)Japan (all uses)

1.87%

2.06%

1.56%

2.0%

Marunouchi (offices)

1.65%

2.17%

1.27%

¥26,193¥26,389¥26,664

Average rents (Japan, all uses)¥26,800

【Lifestyle Property Business】
An increase in rental income and profits from Tokyo Ryutsu Center Distribution B Building completed inJune 2017 as well as a favorable performance in outlet mall business resulted in an overall increase.
【Residential Business】
An increase in sold properties of rental apartment resulted in an overall increase.
【International Business】
A decrease in income from property sales led to an overall decrease in income. However, an increase inincome and profits related to the Hybrid Investment Business Model* as well as an increase in profits fromsales of condominiums in China resulted in an increase in profits.
* Hybrid Investment Business Model: Funds structured by the Group companies that combine Mitsubishi
Estate’s and third-party equity. They support portfolio diversificationand increased investment scale while concurrently earning management
fees from investors for providing services to them.
●Earnings Estimates for FY2019 (Consolidated)
There is no change in the earnings estimates announced on May 14, 2018.

Disclaimer
The forecasts contained in this report, the Summary of Consolidated Financial Statements, and FACT BOOK
are based on information available to the Company at the time of disclosure. Therefore, actual performance
may differ from such forecasts due to various factors.
The summary of Financial Statements and Fact Book can be found on the homepage.
◇http://www.mec.co.jp/j/investor/irlibrary/materials/index.html(End)