February 10, 2020
Earnings Highlights for FY2020 – 3Q
(The Fiscal Year Ending March 31, 2020)
Mitsubishi Estate Co., Ltd.
●Earnings for FY 2020 – 3Q (Consolidated)
Millions of yen (rounded down)

Office Building Business

FY2020-3Q
Results

FY2019-3Q
Results

374,220

403,525

ChangeChange(%)(29,305)

FY2020 Estimates（Announced on May 14, 2019)(7.3)%

590,000

Lifestyle Property Business

89,526

79,048

10,47813.3%

120,000

Residential Business

217,309279,660(62,350)(22.3)%

402,000

International Business

82,84047,10435,73675.9%

137,000

Revenue from Operations

827,231874,357(47,126)(5.4)%

1,360,000

Office Building Business

105,335

113,478(8,142)(7.2)%

153,000

Lifestyle Property Business

24,857

23,591

1,265

5.4%

35,000Residential Business

3,641

20,358(16,716)(82.1)%

20,000International Business

31,821

16,201

15,62096.4%

37,000Operating Income

149,515

162,939(13,424)(8.2)%

230,000

Income Before Taxes and Special Items

134,227

148,648(14,421)(9.7)%

207,000

Profit Attributable to Owners of Parent

86,64696,726(10,079)(10.4)%

137,000

EBITDA

222,042

231,606(9,564)(4.1)%

324,000＜Summary＞【Overview】
There is a decrease both in income and profits compared with FY2019-3Q. Figures are in line with estimate,thus expecting an overall increase for the full year.
There is an increase in rental income and profits in the Office Building Business, the Lifestyle Property
Business and the International Business as well as an increase in income and profits from property sales in
the International Business. However, the following factors led to an overall decrease: a decrease in income
and profits from property sales in the Office Building Business and the Residential Business because thegreater part of property sales for this FY is expected to be recognized in 4Q; a decrease in sold units ofdomestic condominiums because the greater part of unit delivery for this FY is also expected in 4Q.
Factors affecting individual segments compared with FY2019-3Q are detailed below.
【Office Building Business】
There is an increase in rental income and profits from new buildings. However, a decrease in income andprofits from property sales because the greater part of unit delivery for this FY is expected in 4Q resulted inan overall decrease.
(Vacancy Rate)
With the leasing performing well in overall portfolio, the vacancy rates for Japan (all uses) andMarunouchi (offices) had improved.
(Average Rents)
The average rents increased as a result of rents from new buildings in Marunouchi as well as anincrease in rents from existing buildings mainly in Marunouchi.

(yen/tsubo.month)

Vacancy rates

2019/3Results

2019/9Results

2019/12Results

2020/3 Estimates(Announced on Nov 7, 2019)Japan (all uses)

1.80%

1.98%

1.47%

1.5%

Marunouchi (offices)

2.19%

2.51%

1.76%

¥26,702¥27,177¥27,493

Average rents (Japan, all uses)¥27,300【Lifestyle Property Business】
Mainly, an increase in income and profits from property sales resulted in an overall increase.
【Residential Business】
The greater part of condominium delivery and rental apartment sales for this FY is expected in 4Q

indomestic condominiums and property sales in rental apartments are expected in 4Q. Thus, a decrease both insold units of condominiums and in income and profits from property sales of rental apartments led to anoverall decrease.
【International Business】
An increase in occupancy rates of the office building in the U.S. that has been partially completed under alarge-scale renovation as well as an increase in income and profits from property sales in the U.K. resulted
in an overall increase.
●Earnings Estimates for FY2020 (Consolidated)
There is no change in the earnings estimates announced on May 14, 2019.
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.
◇https://www.mec.co.jp/j/investor/irlibrary/materials/index.html(End)