February 6, 2017
Earnings Highlights for 2017/3-3Q
Mitsubishi Estate Co., Ltd.
Earnings for 2017/3-3Q
2017/3-3Q
Results

2016/3-3Q
Results

Change(%)

ChangeMillions of yen (rounded down)
2017/3 Estimates(Announced on Feb 6, 2017)

Building Business

370,656

316,368

54,28717.2%

481,000

Lifestyle Property Business

66,79465,640

1,154

1.8%

89,000Residential Business

276,947

220,01256,93525.9%

414,000

International Business

54,07955,571

1,491

2.7%

65,000Re ve nue fro m O pe rations

824,111

711,965

112,14515.8%

1,125,000

Building Business103,625

84,986

18,63821.9%

128,000

Lifestyle Property Business

19,855

19,690165

0.8%

25,000Residential Business

13,899

7,750

6,149

79.3%

22,00023,157

14,939

8,217

55.0%

24,000Op erating Income

International Business

150,444

121,239

29,20524.1%

185,000

Inco me Before Taxes and Spe cial Ite ms

136,612109,191

27,42025.1%

162,000

Profit Attributable to Ow ners o f Parent

89,38478,434

10,95014.0%

95,000EBITD A

216,443

186,499

29,944

16.1%

273,500

Summary【Overview】
There is a considerable increase in income and profits compared with 2016/3-3Q. Main factors include theincrease of rental income and profits in the Building Business and an increase of property sales in theBuilding Business and Residential Business. Factors affecting the individual segments compared with
2016/3-3Q are detailed below.
【Building Business】
Despite a reduction in rental income and profits as a result of buildings being closed for redevelopment, anincrease of rental income and profits from the existing portfolio and an increase in property sales resulted inan overall increase in income and profits.
(Vacancy rates)
A change in tenants had already been taken into consideration, so the Japan (all purpose) vacancy rates forthe end of December 2016 were relatively stable (an increase for Japan by 0.15%, and a decrease inMarunouchi by 0.33%) when compared with the end of September 2016.
Japan (all purpose)

3.08%(2016/9: 2.93%, 2017/3 Estimate: 3.5%)

Marunouchi (offices)1.64%(2016/9: 1.97%)(Average rents)
As a result of tenant movement due to the completion of new buildings and an increase in rents in theexisting portfolio particularly in Marunouchi, as well as the effect of an increase of sales-linked rent fromretail property tenants, the average rents for Japan (all purpose) at the end of December 2016 rose by¥433/tsubo.month compared with the end of September 2016. While figures are progressing favorably, they
are within the range of estimations and so revisions have not been made.
Japan (all purpose)¥25,862/tsubo.month(2016/9: ¥25,429/tsubo.month, 2017/3 Estimate： ¥25,500/tsubo.month)【 Lifestyle Property Business】
The effect of a newly consolidated subsidiary resulted in an increase in income and profits.
【Residential Business】A factor for the increase in income and profits is the increase of property sales. Of expectations for the salesof condominiums (¥230 billion), 92.1% of contracts had been finalized by the end of December 2016, whichis at the same level as previous year.
【International Business】
There was a decrease in income and increase in profits as a result of a temporary increase in profits onproperty sales and the effects of the exchange rate.
Earnings Estimates for 2017/3
2017/3 Estimates（Current）
Building Business

481,000

483,000

2,000

0.4%

Lifestyle Property Business

89,00089,00000.0%Residential Business

414,000

417,000

3,0000.7%

International Business

65,00065,00000.0%

1,125,000

1,129,000

4,000

0.4%

Building Business

128,000

126,000

2,000

1.6%

Lifestyle Property Business

25,00024,000

1,000

4.2%

Residential Business

22,00022,00000.0%International Business

24,00024,00000.0%

O pe rating Income

185,000

180,000

5,000

2.8%

Inco me Be fore Taxe s and Spe cial Ite ms

162,000

157,000

5,000

3.2%

Profit Attributable to Owne rs of Pare nt

95,00090,000

5,000

5.6%

EBITD A

273,500

268,500

5,000

1.9%

Reve nue fro m Op eratio ns.

Millions of yen (rounded down)
2017/3 Estimates
ChangeChange（Previous）(%)

Summary【Overview】
There was a ¥4 billion downward revision to income for the 2017/3 earnings estimates, however the effectof cost reductions in the Building Business and Lifestyle Property Business led to a ¥5 billion upwardrevision to profits and Profit Attributable to Owners of Parent respectively.
【Building Business】
There was a downward revision of income by ¥2 billion as the result of a revision on contracted work, but
an upward revision of profits by ¥2 billion due to cost reductions.
Disclaimer
This data contains predictions and aims which relate to our future economic performance and projections ofrevenue and other financial items. These predictions are inherently subject to risks and uncertainties, due tounforeseeable events or external factors. Future events and actual results, financial and otherwise, maydiffer materially.
The Summary of Financial Statements and Fact Book can be found on the homepage.

◇ Summary of Financial Statements(http://www.mec.co.jp/e/investor/irlibrary/tanshin/index.html)◇ Fact Book
(http://www.mec.co.jp/e/investor/irlibrary/fact/index.html)