FY2023 - 3Q
(The Fiscal Year Ending March 31, 2024)

Mitsubishi Estate
IR Presentation
For details of the "Long-Term Management Plan 2030", which began from
April 2020, please see to the following link.
https://www.mec.co.jp/en/ir/plan2030/

Copyright @ MITSUBISHI ESTATE Co., Ltd. All Rights Reserved

Copyright © MITSUBISHI ESTATE Co., Ltd. All Rights Reserved.

Summary

FY2023
Forecasts
RevisedFY2023
3Q Results

Upwardly operating profit to ¥267.0 billion (+¥3.0 billion vs. previous forecast)(+¥10.0 bn. for Commercial Property and -¥7.0 bn. for Investment Management)

Ordinary profit and profit attributable to owners of parent are not revised.



Due to strong office leasing, the vacancy rate for Marunouchi is expected to
improve to mid-2% by the end of FY2023.

Operating Profit down YoY due to a rebound from the overseas capital gains andadjustment of incentive fees（non-cash）in Investment Management.



Domestic and overseas capital gains are progressing well toward the full-year
forecast.

*Definition of Term
“FY2023” means the Group’s fiscal year ending March 31, 2024, and other fiscal years mean in a corresponding manner

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FY2023 Forecasts (Revised)

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FY2023 Forecasts

１. Income Statement Forecasts - Current vs Previous Forecasts (as of Nov. 9, 2023)
Upwardly revised operating profit by +¥3.0 billion.
Millions of yen (rounded down)

FY2023Current
Forecasts【Commercial Property Business Forecast Revision 】（Billions of yen）

FY2023
Previous
Forecasts

ChangeMain factors

1,469,000

1,469,000－

267,000

264,000＋3,000Commercial Property Business

205,000

195,000＋10,000

Residential Business

36,00036,000－International Business

54,00054,000－Investment Management Business(2,000)

5,000

5,000

5,000

Operating revenue
Operating profit

Architectural Design & Engineering Business andReal Estate Services Business－(1,000)(1,000)－Eliminations or corporate(30,000)(30,000)－

Non-operating income

11,00011,000InitialForecasts

Previous
Forecast

Current
Forecasts

48.0
157.0

+10%

since initial（ Billions of yen ）

0.0

4.4

-10.0

43,000＋3,000－Extraordinary income

31,00031,000－Extraordinary losses

5,000

5,000

－

Total income taxes

89,00079,000

Profit attributable to non-controlling interests

3,000

13,000166,000

166,000

26.5

5.9

20.0

－

232,000

Incentive fee

30.0

4.4

46,000

Profit attributable to owners of parent

47.0
148.0

205.0

45.0
143.0

+Increase in rental profit from office, hotels, commercial
properties, and flexible office business, etc.
Income Gains

10.0

232,000

Non-operating expenses

0

Income Gains

195.0(7,000) -Adjustment of previously recorded incentive fees (non-cash)

Other

Ordinary profit

200

Capital Gains

188.0

FY20191.6
4.3
FY202018.5
8.0
FY2021

Base fee etc.

8.0

(2.0)

10.2

10.0

(2.2)

(12.0)FY2022

FY2023(F)

Base fee isstable.

＋10,000 Specific tax effects (tax period slippage)
Decrease in incentive fees also decreases distributions to(10,000)
non-controlling interests－

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FY2023 Forecasts

2. Income Statement Forecast - Current Forecasts vs. FY2022 Results
Profit attributable to owners of parent is expected to hit another high for three years straight.
Millions of yen (rounded down)

FY2023
Forecasts

FY2022
Results

Change1,469,000

1,377,827+91,173

Operating profit

267,000

296,702(29,702)

Commercial Property Business

205,000

188,852

Residential Business

36,00035,037

International Business

54,00089,400(35,400) -In reaction to large capital gains in the previous year

Investment Management Business(2,000)

8,054(10,054) -Adjustment of previously recorded incentive fees (non-cash)

5,000

4,176

+824

Other

(1,000)(2,121)+1,121Eliminations or corporate(30,000)(26,696)(3,304)Non-operating income

11,00014,361(3,361)Non-operating expenses

46,00039,244+6,756 - Increase in interest expense

Operating revenue

Architectural Design & Engineering Business andReal Estate Services Business

Main factors+Increase in rental profit from office, hotels, commercial+16,148 properties, and flexible office business, increase in capital gains+963

232,000

271,819

Extraordinary income

31,00012,224+18,776

Extraordinary losses

5,000

31,141(26,141)

Total income taxes

89,00070,634+18,366 Specific tax effects (tax period slippage)

Profit attributable to non-controlling interests

3,000

16,924(13,924)

166,000

165,343

657

Ordinary profit

Profit attributable to owners of parent(39,819)＋Improvements of extraordinary profit and loss

Decrease in incentive fees also decreases distributions to
non-controlling interests

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FY2023 Forecasts

3. Cash Flow Forecast※Unchanged from the previous forecast announced on Nov. 9, 2023

Continued investment for profit growth. FCF to be managed through returns for controlling balance sheet.
（ Billions of yen ）Operating Cash Flow

Investing Cash Flow

FCF

Investment
assumption（ Billions of yen ）Initial Plan

投資

Decrease (Increase) in
equity investments+10.0

Capital Investments

424.0

Equity Investments

201.0

Total

625.0

Capitalinvestments

Operating Cash Flow:＋328.0
Profitbeforeincometaxes andothersDecrease(Increase) ininventories

Increasein equity
investments

Decreasein equity
investments

Depreciation

Investing CF:(318.0)
Other

Investments(Japan andOverseas)

Other

FCF

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FY2023-3Q Overview

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FY2023-3Q Overview

1. Income Statement Summary
Operating Profit: ¥146.8 bn, Profit Attributable to Owners of Parent: ¥77.5 bn
Millions of yen (rounded down)

FY2023-3Q
Results

FY2022-3Q
Results

ChangeOperating revenue

926,448906,324＋20,124

Operating profit

146,821200,012(53,191)

134,215

121,913＋12,301

Residential Business

7,049

10,137(3,087) -Sales of rental apartments centered in 4Q

International Business

26,781

69,178(42,396) -In reaction to large capital gains in FY’22; capital gains in FY’23 are centered in 4Q

Investment Management Business(3,593)

19,382(22,975) -Decline of incentive fees (non-cash)

4,568

420

Other

(1,129)(1,514)＋384

Eliminations or corporate(21,070)(19,506)(1,564)

Commercial Property BusinessArchitectural Design & Engineering Businessand Real Estate Services Business

Main Factors+Increase in office building rental profits; Business environment improvements in
Hotels/Commercial properties＋4,147 +Design and real estate brokerage in good shape■Capital Gains includedin Operating Profit

FY2023
3Q Results

Commercial Property

Non-operating income

13,278

11,771＋1,506

Non-operating expenses

36,81528,779＋8,036 - Increase in interest expense

123,284

183,004

16,2958,860＋7,434 Increase in gain on sales of investment securities

Extraordinary losses－

23,430(23,430) Decrease in loss related to retirement of non-current assets

Total income taxes

54,66245,458＋9,204 Specific tax effects (tax period slippage)

Ordinary profit
Extraordinary income

Profit attributable to non-controlling interests

7,369

20,167

Profit attributable to owners of parent

77,547

102,809(59,720)

Millions of yen(rounded off to the nearest billion)

Residential

11,0007,000

FY2022
3Q Results

Change11,00012,0000(5,000)International

11,00047,000(36,000)

Total

29,00070,000(41,000)

Contracts and deliveries
are on schedule.

(12,798) Decrease in incentive fees also decreases distributions to non-controlling interests(25,262)

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FY2023-3Q Overview

2. Financial Highlights - 3Q
Income Gains progressed well. Capital Gains & Domestic Condos are centered in 4Q, and contracts are progressing.
Operating Profit / Progress vs. Forecast（ Billions of yen ）FY2023 Forecast (3Q progress %)
267.0
55％

Overall
Capital Gains

Breakdown30％

Income Gains

97.0

75％
153.0

15％
Domestic Condos, etc.*

17.0

Capital Gains: 30%

Contracts are progressing well.
<Breakdown>•Commercial: 23％•Residential : 37％•International: 37％

Income Gains: 75%

Domestic Condos, etc.* : 15%<Main Factors><Main Factors>

Office leasing, hotel/commercial
properties and flexible office businessare performing well, while adjustment ofDeliveries are heavily focused in 4Q.

incentive fees.

(97％ of annual plan has been
contracted)* The Mitsubishi Estate Residence's standalone figure excluding gains on sales rental apartments, etc.
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FY2023-3Q Overview

3. Balance Sheet Summary
Assets（ Billions of yen ）As of December
31, 2023

As of March
31, 2023

ChangeInventories

634.5

493.5

+141.0Property, plant andEquipment

4,558.4

4,416.2+142.2Equity investments

935.1

716.4

+218.7

Other

1,427.0

1,245.7+181.2

Total assets

7,555.2

6,871.9+683.3Liabilities and net assets

As of December
31, 2023

As of March
31, 2023

ChangeInterest-bearing debt

3,348.3

2,871.6+476.7

Other

1,713.0

1,620.3+92.7

Liabilities

5,061.4

4,492.0+569.4

Net assets

2,493.7

2,379.9+113.8

Total liabilities and net
assets7,555.2

6,871.9+683.3Copyright © MITSUBISHI ESTATE Co., Ltd. All Rights Reserved.

PPE/equity investments
etc. increased due toprogress in selected
investments

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FY2023-3Q Overview

4. Interest-Bearing Debt
(as of end of December 2023)

Consolidated Interest-Bearing Debt
（ Billions of yen ）Fixed/Floating Rates*

Lease Obligations 1.5

Short-term
8.6%

Floating
14.7%

Commercial paper

200.0Long/Short Terms*

Bonds

888.0

Yen/Foreign Currency*
Foreign currencies ¥624.9 bn（Floating ¥419.6bn）

Long-term

Fixed

91.4%

85.3%

Yen

¥2,521.9bn

3 348.3¥ ,bn+¥476.7 bn

Credit Rating(vs. End of March 2023)

Average
Remaining Maturity
Borrowings

2,258.8(as of end of December 2023)(MEC standalone)

7.4yearsCredit Rating Agency（From October 23, 2023）
Long-term Rating

Moody’s

A2Standard and Poor’s（S&P）

A＋Rating and Investment
AA-（Positive）
Information（R&I）
Outlook upgraded from Stable to Positive(Oct. 2023)
Japan Credit Raging Agency

AA＋* Excluding commercial papers and lease obligations
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FY2023-3Q Overview

5. Cash Flow Summary
Acquired selected investment opportunities well in Japan and overseas. Capital gains to be in 4Q.
（ Billions of yen ）Operating Cash Flow

Investing Cash Flow

FCF

Investment Progress

CapitalInvestments

Capital investments(219.7)

EquityInvestments

Decrease (Increase)in equity investments

Total
Operating Cash Flow:＋58.2

Profitbeforeincometaxes andothersDecrease(Increase) ininventories

Increasein equity
investments（ Billions of yen ）InitialPlan

3Q YTD
Act

%

424.0

286.0

67%

Japan

201.7

－

Overseas

84.2

－

201.0

197.8

98%

Japan

52.1

－

Overseas

145.7

－

625.0

483.8

77%

Investing Cash Flow:(278.0)

Decrease
Depreciationin equity
investments

Other

Investments(Japan)Investments(Overseas)

Other

FCF

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Strategy and Progress
For details of the "Long-Term Management Plan 2030", please refer to the following link.
https://www.mec.co.jp/en/ir/plan2030/

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Strategy and Progress

Environment Analysis and Our Strengths
Environment Changes
Japan

Surging construction cost
Inflation

Higher energy cost

Overseas

Anticipated pay/rent increases
Monetary Policy
Office Demand

Financial Env.

Rising interest rates
The impact on Real Estate market

Anxiety over the policy change
Office Demand

Being resilient

Current Status  Laggard stocks, NAV discount in Real Estate industry stock

Concerns due to changing workstyles

 Uncertainty about Real Estate market overseas

Our Strengths

1 Domestic Asset Business• Office rental profits centered Marunouchi• Capital recycling profits in Prime Areas

2 International Asset Business• US: Flagship buildings’ rental profit• UK: New buildings’ rental profit

3 Non-asset Business• Globally growing Investment Management• Hotels backed by higher demand• Development gains from various areas/assets

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Strategy and Progress (Domestic Asset Business)

1. Domestic Asset : Operating Profit
Advancing Marunouchi Redevelopment/ Rental Profit

Operating Profit
Goals of 2030

（ Billions of yen ）+¥50.0bn

Redeveloped

19buildings/35 in total

250

200

201.3
33.0

150

14.7

201.3
39.0
16.7

215.4
47.0
25.3

214.8
66.0
9.8

227.0

2million ㎡

New Projects*

1.1~1.3million ㎡

Vacancy Rate of
Marunouchi / Office

2.88%
As of end of Dec. 2023

Capital Gains
67.0

Capital Recycling Assets

NOI Yield of Assets
under Operation

Over ¥1.2tn

Approx. 7.0%

17.0High Capital Gains¥66 bn

100

153.6

145.6

143.1

139.0

143.0

50

0

FY2019
Income Gains

FY2020

FY2021

FY2022

Domestic condominiums etc.

FY2023(F)Capital Gains

Residential BusinessLand Bank

Gross Profit Margin

Owned Rental Apartments
etc.

16,500 units

26.1%

120 buildings* Total area to be supplied at the Marunouchi NEXT stage announced in 2020**FY2022 results and at the end of March 2023 unless otherwise described; the area represents total floor area

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Strategy and Progress (Domestic Asset Business)

2. Domestic Asset : Vacancy Rates
Tokyo Central 5 Wards（Market） vs. Marunouchi Offices (MEC standalone)
10.0%
8.75%

9.0%

9.19% 9.04%

Marunouchi Offices (MEC standalone)
8.56%
Tokyo central 5 wards (Market average)

8.0%
6.70%

7.0%

6.37% 6.41% 6.48%

6.05%
6.0%

5.51%

5.30%

5.0%
3.41%

3.66%

2.89%
2.72%

3.0%
2.77%

2.42%
1.82%
1.37%

1.09%

0.55%

1.0%

3.60%

2.42% 2.26% 2.42%

1.74%
2.0%

5.42%
4.34%

4.32%

4.0%

3.33%
2.80%

1.65%

2.19%
1.50%

07/3

08/3

2.47%

2.43%

2.88%

0.69%

0.0%
06/3

2.50%

2.68%

1.78%

0.19%
05/3

6.15% 6.03%

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

23/6

23/9 23/12

Source: Miki Shoji Co., Ltd. and MECʼs property data

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IR Presentation

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Strategy and Progress (Domestic Asset Business)

3. Domestic Asset︓Growth in Income Gain
Rental Profit

Rental Profit etc. (Income Gain)

Approx. +¥40.0bn（ Billions of yen ）
190
180
170
160
150
140
130
120

145.6

143.1

139.0

143.0

FY2020

FY2021

FY2022

FY2023(F)110
100
FY2030(F)Upcoming Projects
FY2023

Tokyo Ryutsu Center A
Building

GRAND GREEN
OsaakaFY2024

Uchikanda 1-Chome
Project

FY2025

FY2026

Nishiki 3-Chome
Tenjin 1-7 Project
25th City Block Project

FY2027
Torch Tower

FY2029FY2028
Akasaka 2・6-chome
Development Plan

FY2030

Yurakucho Area Redevelopment Projects*Plan details under consideration.

Location︓Ota, Tokyo
Total Floor Area︓202,000㎡
Completion︓Aug. 2023

Location︓Osaka, Osaka
Partial Opening︓Sep. 2024
Full Completion︓FY2027

Total Floor Area︓
85,200㎡
Completion︓
Nov. 2025

Location︓Nagoya, Aichi
Total Floor Area︓
109,700㎡
Completion︓Mar. 2026

Location︓
Fukuoka, Fukuoka
Total Floor Area︓
74,000㎡
Completion︓Mar. 2026

Total Floor Area︓
553,000㎡
Completion︓
Mar. 2028

Location︓Minato, Tokyo
Total Floor Area︓210,000㎡
Completion︓FY2028

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Strategy and Progress (Domestic Asset Business)

4. Domestic Asset︓Capital Recycling Business (Capital Gains)
Commercial Property’s
Capital Recycling Asset︓¥1.035 tn

Non-operating
Assets
34%
Hotel
2%

Office54%

OperatingAssets66%*

Retail9%

NOI Yield

7%

Domestic rental etc. real estate excluding
Marunouchi, outlets and assets owned bya part of consolidated subsidiaries

As of end of
March 2023

Recent Developed / Developing Projects
FY2022

FY2023

FY2024FY2025

FY2027

FY2026

Total
Investments indeveloping PJ

approx.
¥
Logicross Zama
3rd MINAMI AOYAMA
Location︓Zama, Kanagawa
Location︓Minato, Tokyo
Total Floor Area︓14,700㎡ Total Floor Area︓178,500㎡
Completion︓Nov. 2023
Completion︓Feb. 2023

Logicross Sagamihara
Location︓Sagamihara, Kanagawa
Total Floor Area︓170,900㎡
Completion︓Dec. 2023

Osaka Dojimahama Tower
Location︓Osaka, Osaka
Total Floor Area︓67,000㎡
Completion︓Apr. 2024

(Tentative name)(Tentative name)

Akasaka 2・6-chomeTenjin 1-7 ProjectToyosu 4-2 Development Project
Location︓Fukuoka, Fukuoka Development Project
Location︓Koto, Tokyo
Total Floor Area︓74,000㎡ Location︓Minato, Tokyo
Total Floor Area︓136,000㎡
Total Floor Area︓
Completion︓Mar. 2026
Completion︓Jun. 2025
210,000㎡
Completion︓FY2028(Tentative name)

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500 bn*Including otherthan on the left

IR Presentation

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Strategy and Progress (Domestic Asset Business)

5. Domestic Asset︓Capital Gain Results
Performance (Major properties sold)Capital Gain by Asset（ Billions of yen ）OfficeLogistics

FY2022

Residential

66.0■Logista・Logicross Ibaraki Saito（Buildings A, B）
Usage︓Logistics / Total floor area︓139,600㎡（sum of two bldgs.）■【Residential Business】 Disposed of 19 properties,

60.0

47.0
40.0

20.0

39.0
33.0

7.0

10.0

8.0

24.0

5.0
7.0

¥66 bn■the ARGYLE aoyama
Usage︓Office / Total floor area︓23,100㎡

The ARGYLE aoyama

such as residential apartments and elderly homes.

¥47 bnFY2021■Toyosu Front（partial ownership）
Usage︓Office / Total floor area︓107,000㎡

14.0■【Residential Business】 Disposed of 4 properties,
mainly rental apartments.
Toyosu Front

8.0

35.0
24.0

28.0

FY2020¥39 bn15.0
0.0
FY2019FY2020

FY2021

FY2022
Logiport Kawasaki Bay■Link Square Shinjuku（partial ownership）
Usage︓OfficeTotal floor area︓44,000㎡■Logiport Kawasaki Bay
Usage︓Logistics
Total floor area︓297,000㎡
Total floor area include approximate figures.

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Strategy and Progress (Domestic Asset Business)

NEW

6. Recent Notable Projects

3rd MINAMI AOYAMA
Total Floor Area ︓ 14,700㎡

Completion

︓ Feb. 2023

Hilton Okinawa
Miyakojima Resort
Rooms ︓ 329
Open ︓ Jun. 2023

Osaka Dojimahama Tower GRAND GREEN OSAKA
Total Floor Area ︓ 67,000㎡

Completion

︓ Apr. 2024

(Umekita Second Project)
Partial opening︓ Sep. 2024

Tokyo Ryutsu Center Distribution A Building
Total Floor Area ︓ 202,000㎡

Completion

︓ Aug. 2023

Uchikanda 1-Chome Project
Total Floor Area ︓ 85,200㎡

Completion

︓ Nov. 2025

Logicross Zama
Total Floor Area ︓ 178,500㎡

Completion

︓ Nov. 2023

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TOKYO TORCH Project
Torch Tower
Total Floor Area

Completion︓ 553,000㎡
︓ Mar. 2028
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20

Strategy and Progress (Domestic Asset Business)

7. Domestic Asset︓Rental Apartments, etc. (Capital Gain)
Capital Gain in Residential Business

Assets（ Billions of yen ）Rental Apartments

Other Income Property(Assisted living residence, student apartment)

25
20
15

24.0

10
5

10.0

7.0

0
FY2019FY2020

19.0

Under development48%（20 buildings）¥60.0¥155.05.0
FY2021

Under development
39%（50 buildings）

FY2022bn

bn

FY2023(F)In operation
61%

In operation52%(11 buildings)(39 buildings)

Major Sales Cases
The Parkhabio Shinjuku

The Parkhabio
Yokohama-Kannai

SaleperiodFY2019

Sale
periodFY2020Location

Shinjuku,
Tokyo

Location

Yokohama,
Kanagawa

Size

219unitsSize

85units（End of March 2023）*Ratio based by value

Total Assets

120 properties/approx. ¥215.0bn

The Parkhabio Sugamo

The Parkhabio Kiba

Unrealized Gain

SaleperiodFY2022

Sale
periodFY2022

approx.

Location

Toshima,Tokyo

Location

Koto, Tokyo

Size

188units

Size

223units
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¥90bn（End of March 2023）*In-house calculation

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Strategy and Progress (International Asset Business)

1. International Asset : Business Strategies
Late 2020s

BS / PL Outline

Results over last 3 yrs.
（FY’20-FY’22 average）

As of the release of
LT Management Plan

¥1.1tn22%

Investment Strategies
Area（US, Europe, Australia, etc.）

Developing countries（Mainly Asia）

Total Assets¥1.5tnTotal Assets

Total Assets

Developed countries¥90.0bn¥61.0bn（FY’17-’19 avarage）（FY2018）

Operating Profit

Operating Profit¥30.4bn¥713bn51%

27%

Business Profit

Aims to reach 2030 target faster

Assets by Area

US
EuropeAsia

ROA︓6%

Investment Policy
・Expands capital recycling assets to ensure constant gains on sales

Active・Actively invests in growing areas and new assets
・Earns revenue through Hybrid Model Investment mainly in the US

Diversified
Efficiency-seeking

・Selects areas/asset-types by the market and business practices
・Grows opportunities through partnering with leading local businesses

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Strategy and Progress (International Asset Business)

2. International Asset : Operating Profit
Operating Profit（ Billions of yen ）Goals of 2030

Capital Gains+¥50.0bn
89.4

90

US

EuropeAsia

Logistics, Rental
apartments

Offices

Focus on investment
efficiency

Size of ¥20 bn per year

80

Rental apartments

70

55.8

60
50

54.0

46.1
37.9

40
30

61.0

28.0

29.0

Condominiums Sales
over ¥several-10bn

30.0

12.0

approx. ¥20bn

10

18.1

26.8

28.4

24.0

0
FY2019FY2020

FY2021

FY2022

Rental profit

Mainly in Europe and US; Stable

20

25.9

Mainly in Asia; For actual demand

FY2023(F)over ¥several-10bn

Capital Gains
Income Gains

Hybrid-model investment profit

In US; Logistics, Rental apartments
General admin expenses, developing costs etc.

Copyright © MITSUBISHI ESTATE Co., Ltd. All Rights Reserved.

IR Presentation

23

Strategy and Progress (International Asset Business)

3. International Asset︓Growth in Rental Profit（Income Gain）
Rental Profit Forecasts of Major Properties to Be Held Long-Term

Rental Profit（ Billions of yen ）*Rounded down

approx.

35+¥10.0 bn

30
25
20
15
10

18.0

19.0

21.0

23.0

FY2020

FY2021

FY2022

FY2023(F)50
FY2030(F)Recent Developed/Developing Projects
FY2022

Manhattan, NY Flagship Buildings

FY2023

Warwick Court

FY2024・・・

8 Bishopsgate

60-72 Upper Ground

Rental Profit

approx.¥20 bn
Average Remaining
Lease Period

1221 Avenue of theAmericas1271 Avenue of theAmericasover 10 years
Copyright © MITSUBISHI ESTATE Co., Ltd. All Rights Reserved.

Leasing completed（As of Dec. 2023）

Over 80%

IR Presentation

24

Strategy and Progress (International Asset Business)

4. International Asset︓Capital Recycling Business (Capital Gain)
Name (Including tentative names)*1

Capital Recycling Assets

Trinity Tower（Indonesia・Office・Retail）
Hangzhou ALPHA PARK（China・Office）

Book Value of the Overseas Assets*

CapitaSpring（Singapore・Mixed use）
180 George Street（Australia・Office・Retail）

US

One City Centre（Thailand・Office・Retail）

46%

Asia

Europe 27%
Asia¥950.0 bn

Suzhou ALPHA PARK（China・Office）

27%

One Circular Quay（Australia・Hotel, etc.)
Oasis Central Sudirman（Indonesia・Mixed Use）
Crystal Brige（Shanghai・Mixed Use）
The Blossoms（London・Rental Apartment）* Sum of Inventory, Equity Investment, and PPE,
excluding CORE Assets (Manhattan) to be held

EuropeStateline 77 Building1/2（South Carolina・Logistics）
55 Paradise （New York・Logistics）
Virginia Data Center（Buiiding1・Data center）
Virginia Data Center（Buiiding2・Data center）
sol38 （Arizona・Rental Apartment）
PATTEN GRAY （Colorado・Rental Apartment）

Limited investment in Offices
7%US¥433.0bn

40%

12%

5%

1072 West Peachtree （Georgia・Mixed Use）
600 Fifth Street NW （Washington, D.C.・Office）

7%

10%
20%

dMoura1（Spain・Office）
Grace（Sweden・Large-scale Renovation）

Asset Type by Area
2%

Parkline Place（Australia・Office・Retail）
International Tech Park Chennai Radial Road（India・Office）

Book Valueas of Mar. 2023

9%

The Grand Outlet（Indonesia・Outlet mall）

Europe¥262.0bn

41%

Asia¥263.0bn

US

Heritage, Chula Vista (California・Logistics）
Spotswood（New Jersey・Logistics）
Paradigm RiNo (Colorado・Office）
10 Constitution Ave（New Jersey・Logistics）
Spartanburg 221（South Carolina・Logistics）
Nellis Logistics Center（Nevada・Logistics）

57%

78%

12%

3102 N Lamb（Nevada・Logistics）
16 Dupont（New York・Rental Apartment）
Vista（Alabama・Rental Apartment）

Offices, Mixed use

Logistics, Data center

Rental apartments

Hybrid model investment

Condominiums

Others*Most of the US Hybrid Model Investments are in logistics, data centers, and rental apartment

E 2nd Martin（Colorado・Rental Apartment）…Projects announced after the Long-Term
Plan

Copyright © MITSUBISHI ESTATE Co., Ltd. All Rights Reserved.

Size*2

143,200㎡
233,600㎡
93,400㎡*355,000㎡
116,000㎡
49,000㎡
65,900㎡
220,400㎡*3240,000㎡
86,800㎡
307,000㎡
246,300㎡
338 units*3
11,000㎡*37,800㎡*3
93,600㎡*3
16,700㎡*551,000㎡

Investment
AmountExpected NOI

approx.

around¥300bn¥30bn

360 units
250 units*349,300㎡*337,000㎡
60,800㎡
28,200㎡
28,200㎡
13,600㎡
94,600㎡
12,600㎡
13,500㎡
43,100㎡
23,000㎡
23,600㎡*1 Includes properties expected to be sold by 2030
*2 Total floor area unless otherwise noted*3 Leasable Area

*4 Site Area
*5 Total of twobuildings

IR Presentation

25

Strategy and Progress (International Asset Business)

5. International Asset︓Capital Gain Results
Performance

Capital Gain by Area
（ Billions of yen ）FY2022

US

Europe

Asia

61.0

60

39.0

40

29.0

28.0
16.0

12.0

Hanover

Location
Usage
Size
EIRR

Location
Usage
Size
EIRR

Lonndon
Office66,000㎡
Over 10％

Liv Crossroads

Location
Usage
Size
EIRR

Location
Usage
Size
EIRR

California
Logistics
26,900㎡
100％

12.0

18.0

22.0

FY2020

FY2021

FY2022

Arizona
Rental apartment
356 units
30%

In US logistics, Asia offices etc.¥29bn
Capital Place

Location
Usage
Size
EIRR

12.0

Pennsylvania
Logistics
42,100㎡
100％

Val VerdeHarvill0
FY2019Central St. Giles

FY2021

11.0
20

In Europe and other areas ¥61bn

California
Logistics
31,000㎡
Over 100%

FY2020Location
Usage
Size
EIRR

Hanoi, Vietnam
Office151,600㎡
Over 30%

Mainly in US ¥12bn

LIV North Valley

EdisonLocation
Usage
Size
EIRR

Location
Usage
Size
EIRR

Arizona
Rental apartment
385 units
Over 30%

New Jersey
Logistics
83,600㎡
Over 50%Size and EIRR include approximate figures.

Copyright © MITSUBISHI ESTATE Co., Ltd. All Rights Reserved.

IR Presentation

26

Strategy and Progress (International Asset Business)

6. Recent Notable Projects

NEW【Sydney, Australia】【London, UK】①③②

8 Bishopsgate
Total Floor Area︓ 85,000㎡

Completion ︓ Jun. 2023

【Thailand】

③

②

①

One City Centre
Total Floor Area ︓ 116,000㎡

Completion

One Circular Quay

︓ Mar. 2023

180 George Street Total Floor Area︓ 62,710㎡

Completion ︓ Sep. 2022

Copyright © MITSUBISHI ESTATE Co., Ltd. All Rights Reserved.

Total Floor Area ︓ 86,800㎡

Completion ︓ 2027

One Sydney Harbour
Units ︓ R1/315 R2/322
Completion ︓ 2024
IR Presentation

27

Strategy and Progress (Non-Asset Business)

1. Non-Asset’s Progress : Operating Profit
Operating Profit（ Billions of yen ）Goals of 2030

Investment Management Business+¥50.0 bn

Global Platform

Japan

60

Europe50

US¥5.7tnAs of Jan. 2020,
release of LT Plan

¥3.1tn

Asia
12.3

30

15.7

9.3

10

12.2

10.7

0

4.4
(0.9)

5.9

-10

GlobalPlatform

Sep. 2023

32.2

40

20

Growing AuM

FY2019

26.5

19.0

16.0

11.7

12.7

8.0

(7.3)

(6.7)

(0.6)

5.3
(2.0)

FY2020

FY2021

FY2022

FY2023(F)Investment Management

Hotel

Hotel Business
Improved EnvironmentDomestic demand
recovery

Inbound tourism
expansion

Enhancing Performance

ADR/RevPAR recover
to pre-Covid levels

Other

Copyright © MITSUBISHI ESTATE Co., Ltd. All Rights Reserved.

IR Presentation

28

Strategy and Progress (Non-Asset Business)

2. Non-Asset’s Progress︓Investment Management
Released new targets for FY2030, AuM ¥10 trillion and Operating Profit ¥30 billion
JRE

MJIA

（ Billions of yen ）EuropeUS

Asia/Oceania

Overseas200

Domestic

1,100

450

Target¥10 tn

Total

Total

5.4tn

3.1tn

¥

¥

1,100
2,550

As of the release ofLong-Term Management Plan

End of FY2022

AuM ¥5.4tn
Operating Profit ¥8bn

End of FY2030

AuM ¥10tn (target)
Operating Profit ¥30bn (target)

Amortization of TA Realty goodwill ends
（Operating Profit +¥2.5 bn）
Copyright © MITSUBISHI ESTATE Co., Ltd. All Rights Reserved.

IR Presentation

29

Strategy and Progress (Non-Asset Business)

3. Non-Asset’s Progress︓Hotel Management
Business Status of Royal Park Hotels（Yen）
25,000ADR

RevPar

Ocupancy Rate

20,000

53.1%

49.5%

73.8%

78.8%

70.0%

61.1%

60.0%

49.9%

48.9%

90.0%
80.0%

74.1%

65.9%

63.7%

15,000

74.5%

78.4%

50.0%

42.8%

40.0%
10,000
30.0%

5,000

4.7%

22.4%

20.0%
10.0%
0.0%

0

1Q

2Q

3Q

FY2020

4Q

1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

FY2022

Copyright © MITSUBISHI ESTATE Co., Ltd. All Rights Reserved.

4Q

1Q

2Q

3Q

FY2023

IR Presentation

30

Shareholders Returns

Copyright © MITSUBISHI ESTATE Co., Ltd. All Rights Reserved.

IR Presentation

31Strategy and Progress (Shareholders Returns)

1. Shareholders Returns (Dividend）
Steadily raised DPS by profit growth and share buybacks.
Plan to increase
dividend by ¥2（+5.3%)（ Billion of yen ）180

ProfitDividends per share

160

36
33

140
30

120

60
40

148.4

12

12

12

56.5

45.5

FY2011FY2012

64.2

20

12
64.2

14

134.6

16
102.6

73.3

40
35
30

100
80

45
40

31

26
20

38

（Yen）

155.1

165.3

166.0
25

135.6

20
15

120.4

10

83.4

5
0

0
FY2010FY2013

FY2014FY2015FY2016FY2017FY2018FY2019Copyright © MITSUBISHI ESTATE Co., Ltd. All Rights Reserved.

FY2020

FY2021

FY2022

FY2023(F)IR Presentation

32

Strategy and Progress (Shareholders Returns)

2. Shareholders Returns (Share Buyback)
Visibly lifted the total return by ¥230 billion of share buybacks.
Total Return Ratio(moving avg of themost recent 3 years)（ Billion of yen ）
160

59.3%

120

52.7%

52.9%

80

29.3%

29.6%
26.3%

40
20
0

16.6

19.4

22.1

FY2013

FY2014FY201526.6%

27.7
FY2016

57.0%
46.1%

100

60

80.0%
70.0%

Total Return Rate（Last 3-yr average）

30.6%

50%

Share Buybacks

Share Buyback

140

Over

¥230bnDividend

45.8

100.0

60.0%
50.0%

54.2

30.0

40.0%
30.0%

27.8%
20.0%

36.0
FY2017

41.6

44.6

41.4

FY2018FY2019FY2020

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47.7

49.7

50.6

FY2021

FY2022

FY2023(F)

10.0%
0.0%

IR Presentation

33

Strategy and Progress (Shareholders Returns)

3. ROA/ROE/EPS
FY2022 actuals: ROA 4.4%, ROE 7.9%, EPS ¥125.54
ROA*

12%

ROE

10%

10%
8.5%
7.8%

8%

8.1%
7.6%

7.3%

7.9%

7.7%

6.6%

6%

4%

5.2%

5.6%

3.3%

3.3%

FY2014FY2015

5%
3.6%

3.8%

4.0%

4.1%

FY2018FY2019

4.4%

4.4%

3.8%

3.8%

2%

0%

FY2016FY2017

FY2020

FY2021

FY2022

FY2023(F)2030
Target* ROA = Business Profit / Total assets (average)

Copyright © MITSUBISHI ESTATE Co., Ltd. All Rights Reserved.

IR Presentation

34

Strategy and Progress (Shareholders Returns)

4. ROA/ROE/EPS
Foreseeing 3rd straight record-high in EPS.
200
¥200

EPS

180

EPS ¥130.08

160(3rd straight record
high, YoY+3.6%)

140
120
100

200

80
60
40
20
0

52.85

FY201460.13

FY201574.00

FY201686.78

FY201796.97

FY2018108.64FY2019101.34FY2020116.45

FY2021125.54130.08FY2022

FY2023(F)Copyright © MITSUBISHI ESTATE Co., Ltd. All Rights Reserved.

2030
TargetIR Presentation

35

Disclaimer

Contact Information
Investor Relations Office,Corporate Communications
Department
Mitsubishi Estate Co., LTD.
+81-3-3287-5200
https://www.mec.co.jp/en/

This material is provided for information purposes only. Nothing herein is intended
to constitute an offer to sell, a solicitation of an offer to buy, or arecommendation of any specific products by Mitsubishi Estate Co., Ltd. (the“Company”)
The contents of this material involve judgements based on the information
available to the Company as of the releasing date. Although the information
expressed is obtained or compiled from sources that the Company believes tobe reliable, the Company cannot and does not guarantee the accuracy,
certainty or completeness of the information.
Forward-looking statements contained herein involve known and unknown risks,
uncertainties and other factors that may affect future results or events expressedin those statements, and therefore should not be read as a guarantee by theCompany that such results or events will be achieved as stated.
Further, the Company undertakes no obligation to update any of such forwardlooking statements, whether as a result of new information, future events orotherwise. This material may also be changed or removed without prior notice.
The contents of this material may not be copied, reproduced, or distributed inany way without prior consent from the Company.

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