May 12 2015
Earnings Highlights for FY 2015
Mitsubishi Estate Co., Ltd.
●Earnings for FY2015
Millions of yen (rounded down)

FY2015FY2014

ChangeChange(%)

FY2015 Estimates（Announced 15/2/5）

Building Business

587,660

525,829

61,831

11.8

579,000

Residential Business

377,736

403,259(25,523)(6.3)

393,000

International Business

77,79480,366(2,571)(3.2)

66,000

Revenue from Operations

1,110,259

1,075,285

34,974

3.3

1,108,000

Building Business

128,982

116,277

12,70510.9

121,000

Residential Business

11,60527,778(16,172)(58.2)

17,000International Business26,068

25,579489

1.922,000Operating Income

156,332

161,271(4,938)(3.1)

150,000

Income Before Taxes andSpecial Items

133,113

139,638(6,524)(4.7)

113,000

Net Income

73,33864,297

9,040

14.1

67,000EBITDA

239,934

246,332(6,398)(2.6)

231,500

Summary【Overview】
There is an increase in income and a decrease in profits compared with FY2014. Major factors for theincrease in income are the effects of buildings completed in 2012 and an increase in income due to selling
off property in the Building Business. Major factors for the decrease in profits are the decrease of
condominiums sold and a write-down in the Residential Business. Factors affecting the individual
segments compared with FY2014 are detailed below.
【Building Business】
Major factors for the increase of income and profits include the effects of buildings completed in 2012, anincrease of rental income and profits from the existing portfolio and an increase in income and profits
from the sale of property.
(Vacancy rate)
The Japan (all purpose) vacancy rate at the end of March 2015 saw the leasing in Marunouchi performing
above expectations, and this was one factor for the vacancy rate being above estimate.
Japan (all purpose)

2.80％（15/2/5 Estimate : 3.5％, 2014/3 : 5.29％）

Marunouchi (offices)1.82％（2014/3 : 4.32％）(Average rent)
Due to factors such as leasing in Marunouchi resulting in the appropriations of rent alongside the effects
of rent increases, rent at the end of March 2015 is above estimate.
Japan (all purpose)¥23,587/tsubo.month（15/2/5 Estimate : ¥23,500/tsubo.month）

【Residential Business】
Despite appropriations of income and profits from the sale of leasing property and consolidating withMitsubishi Jisho Marubeni Residence Services Co., Ltd, a decrease of condominiums sold and awrite-down were major factors for the decrease in income and profits.
【International Business】
Despite a slight decline in income, appropriations of a temporary increase in profits from sales etc.
(similar to that in the previous period) and the effects of the exchange rate resulted in an increase inprofits.
●Earnings Estimates for FY2016
Millions of yen (rounded down)

FY2016
Estimates

FY2015ResultsChangeChange(%)(New Segment *1)
Building Business

415,000

484,816(69,816)(14.4)

Lifestyle Property Business

81,000105,706(24,706)(23.4)

Residential Business

356,000

390,491(34,491)(8.8)

International Business

69,00071,176(2,176)(3.1)

Revenue from Operations

995,000

1,110,259(115,259)(10.4)

Building Business

100,000

102,820(2,820)(2.7)

Lifestyle Property Business

18,00026,162(8,162)(31.2)

Residential Business

14,00012,114

1,886

15.6

International Business

13,00025,901(12,901)(49.8)

Operating Income

135,000

156,332(21,332)(13.6)

Income Before Taxes and Special Items

113,000

133,113(20,113)(15.1)

Profit Attributable to Owners of Parent *2

70,00073,338(3,338)(4.6)

EBITDA

220,500

239,934(19,434)(8.1)(New Segment *1)*1 As of April 2015, the following segment changes have occurred.
・ Domestic retail & logistics property businesses (not including some multi-use facilities） no longer feature in the Building
Business, now featuring in the newly created Lifestyle Property Business.
・ Overseas investment management business has been moved from the International Business to the Investment ManagementBusiness.
・ Mitsubishi Jisho House Net Co., Ltd has been moved from the Real Estate Service Business to the Residential Business.
*2 In accordance with amendments to the Accounting Standard for Business Combinations etc., changes in titles appearing in theconsolidated financial statement have been applied as of FY2016.

Summary【Overview】
A decrease is expected in income and profits for FY2016, due to the effect of the sale of large-scale
property in FY2015. Factors affecting the individual segments compared with FY2015 are detailed below.

【Building Business】
The sale of large-scale property in the previous period is expected to contribute to a decrease in income.
Despite an increase in profits due to factors including the effects of buildings completed in 2012 andprofits from the existing portfolio, a decrease in rental profits as a result of buildings being closed forredevelopment is expected to result in an overall decrease in profits.
(Vacancy rate)
Due to emphasis placed on rent levels , the expected vacancy rate at the end of March 2016 (Japan, allpurpose) are a stable 2.5%.
(Average rent)
Average rent (Japan, all purpose) are expected to reach ¥24,500/tsubo.month due to rent increases and theeffect of movement within the segments.
*As of April 2015, the figures for vacancy rate and average rent do not include the floor space and rents of properties under theLifestyle Property Business.

【Lifestyle Property Business】
The sale of a large-scale property in the previous period is expected to contribute to a decrease in incomeand profits.
【Residential Business】
Major factors for an estimated decrease in income include a decrease of condominiums sold and the effectof leasing property sold in the previous period. The effects of a write-down in the previous period factor
towards an estimated increase in profits.As of the beginning of the period, 58.7% of contracts for the ¥223
billion estimated condominium annual sales have been acquired, putting figures in line with estimates.
【International Business】
A major factor contributing to the decrease in estimated income and profits is appropriations of atemporary increase in income and profits from sales etc. in the previous period.
●Dividends
In FY2015, interim dividends were ¥6 yen per share. However, upon balancing the accounts bothconsolidated and unconsolidated Net Income had considerably increased compared with FY2014 with theyear-end dividend scheduled to be increased by ¥2, up to ¥8 per share (annual dividend payout is ¥14 pershare). After taking into deep consideration the above dividend objectives as well as future prospects,
both the interim dividend and year-end dividend will be set at ¥7 and annual dividend payout will be ¥14
per share for FY2016.

Disclaimer
This data contains predictions and aims which relate to our future economic performance and projectionsof revenue and other financial items. These predictions are inherently subject to risks and uncertainties,
due to unforeseeable events or external factors. Future events and actual results, financial and otherwise,
may differ 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)