FY 2020(For the Year Ended March 31, 2020)

IR Presentation

For details of “Long-Term Management Plan 2030”, which began from April 2020, please refer to the following link.
https://www.mec.co.jp/j/investor/plan/pdf/plan200124.pdf

Contents
Summary of FY2020 Results and FY2021 Estimates

2

Financial Supplemental Data

16

Business Overview

24

Commercial Property Business

MITSUBISHI ESTATE CO., LTD.

Office Building

27

Outlet Malls, Retail Properties,
Logistics Facilities, Hotels, and Airports

41

Residential Business46

International Business

51

Other business54

Investment / Financial Data etc.

56

ESG Initiatives

60
1

Summary of FY2020 Results and
FY2021 Estimates

MITSUBISHI ESTATE CO., LTD.

2

Summary of FY2020 Financial Highlights and FY2021 Estimates

1. Summary of Financial Statements<FY2020 Financial Results>• Resulted in overall increase from building rental profits and overseas capital gains, etc. compared to the previous fiscal
year• KPIs of the previous medium-term management plan (FY2018 to FY2020) were all achieved• Although the Coronavirus (COVID-19) affected hotel, retail property and outlet mall businesses in the 4th quarter, theimpact on company-wide performance was limited.

<FY2021 Estimates>• Sales and profits will both decease compared to the previous fiscal year as a decrease of ￥45 billion (business profits) is
estimated due to the impact of Coronavirus.

<Topics>
FY2020-4Q (January to March 2020）• Announced Mitsubishi Estate Group “Long-term Management Plan 2030” (January 2020)( https://www.mec.co.jp/e/investor/plan/pdf/plan200124_e.pdf )• Completed a large-scale mixed-use redevelopment "CO･MO･RE YOTSUYA" (January 2020)• Ownership interest in Otemachi Park Building was sold as a part of the portfolio strategy (March 2020)
MITSUBISHI ESTATE CO., LTD.

3

Summary of FY2020 Financial Highlights and FY2021 Estimates

2. Income Statement Results for FY2020
Resulted in overall increase from building rental profits and international business, with growth inoverseas capital gains.
Millions of yen (rounded off
Millions of yen (rounded down)

Extraordinary Income
Extraordinary Loss
Profit Attributable to Owners of Parent

FY2020FY2019Results
Results
1,302,196 1,263,283
565,501
529,695
127,205
106,182
389,008
420,405
130,718
81,844
21,31649,588102,189
110,534△ 33,745△ 34,969
240,768
229,178
152,886
147,691
35,741
32,56025,94630,42844,54426,927
4,467
9,231
△ 392
6,799
△ 22,426△ 24,459
12,377
12,391229
263
33,57434,983
219,572
206,587
26,251
8,170
21,874
3,818
148,451
134,608

Business profits
EBITDA
Interest-bearing debt

FY2020FY2019Results
Results
240,998
229,442
336,784
320,6412,429,883 2,319,597

Revenue from Operations
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management Business
Other*
Elimination
Operating Income
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management Business
Other*
Eliminations or corporate
Non-Operating Revenue(of affiliates' equity in earnings)
Non-Operating Expense
Income before Taxes and Special Items

Change38,91235,80621,023△ 31,396
48,874△ 28,271△ 8,346
1,223
11,5905,194
3,181△ 4,481
17,617△ 4,763△ 7,189
2,033
△ 14
△ 33
△ 1,409
12,98518,08018,056
13,843

Capital Gains included in Operating Income
FY2020Results
Total
61,000
Office Building Business
15,000Lifestyle Property Business
8,000
Residential Business
10,000International Business
28,000Investment Management Business
Hotel & Airport Business
Other
Eliminations or corporate-

OfficeBuilding
5,194

MITSUBISHI ESTATE CO., LTD.

13,0003,000
4,000△ 1,000
14,000△ 5,000△ 2,000-

Lifestyle
Property
3,181

ResidentialInternational Others△ 9,919△ 4,481
17,617

Increase inrental profitsand capital gains
Increase in capital gains

229,178

240,768

Decrease in condominium profits andrental apartments' capital gains
Increase in rental profits and capital gains

Change*Hotel・Airport Business, Architectural Design & Engineering, Real Estate Services, Other

ChangeMajor Factors for Changes in
Operating Income by BusinessMillions of yen (rounded down)

11,55616,143
110,286

to the nearest billion)

FY2019Results
48,00012,0004,000
11,00014,000
5,000
2,000
-

Decrease in capital gains,
Low hotel occupancy etc. due to the impact of Coronavirus
FY2019Results

OfficeBuilding

Lifestyle
Property

Residential International

Others

FY2020Results

4

Summary of FY2020 Financial Highlights and FY2021 Estimates

3. Income Statement Estimates for FY2021
Estimated decrease in revenue and profits considering the impact of the Coronavirus.
An increase in domestic and overseas office rental profits is estimated.
Millions of yen (rounded off
Millions of yen (rounded down)

Extraordinary Income
Extraordinary Loss
Profit Attributable to Owners of Parent

FY2021
FY2020ChangeEstimates
Results
1,142,000 1,302,196 △ 160,196
674,000
723,712 △ 49,712
320,000
385,538 △ 65,538
88,000134,175 △ 46,175
20,00021,316△ 1,316
66,00065,871129△ 26,000 △ 28,418
2,418
185,000
240,768 △ 55,768
163,000
187,855 △ 24,855
12,00024,320 △ 12,320
29,00046,156 △ 17,156
4,000
4,467
△ 467
1,000
389
611
△ 24,000 △ 22,420△ 1,580
18,00012,377
5,623
300
229
71
34,00033,574426
169,000
219,572 △ 50,572
15,00026,251 △ 11,251
22,00021,874126
110,000
148,451 △ 38,451

Business profits
EBITDA
Interest-bearing debt

FY2021
FY2020Estimates
Results
185,300
240,998
289,800
336,784
2,610,000 2,429,883<New Segment>
Revenue from Operations
Commercial Property BusinessResidential Business
International Business
Investment Management Business
Other*
Elimination
Operating Income
Commercial Property BusinessResidential Business
International Business
Investment Management Business
Other*
Eliminations or corporate
Non-Operating Revenue(of affiliates' equity in earnings)
Non-Operating Expense
Income before Taxes and Special Items

Capital Gains included in Operating Income
FY2021
Estimates
Total
31,000Commercial Property Business
22,000Residential Business
6,000International Business
3,000
Investment Management Business
Other
Eliminations or corporate-

Commercial
Property△ 24,855

240,768

Change*Architectural Design & Engineering / Real Estate Service Business and Other businesses
MITSUBISHI ESTATE CO., LTD.

Change△ 30,000△ 1,000△ 4,000△ 25,000-

Major Factors for Changes in
Operating Income by BusinessMillions of yen (rounded down)△ 55,698△ 46,984
180,117to the nearest billion)

FY2020Results
61,00023,00010,00028,000-

Increase in rental profits
Decrease in capital gains

Residential△ 12,320 International△ 17,156

Others△ 1,436

Decrease in capital gains fromrental apartments
Decrease in condominium profits
from impact of Coronavirus

185,000

Increase in office rental profits;decrease in profits from retail properties andhotels due to the impact of Coronavirus
FY2020ResultCommercial
Property

Residential

International

Others

FY2021
Estimates

5

Summary of FY2020 Financial Highlights and FY2021 Estimates

4. FY2020 results highlights
Composition of business profits*1(compared to FY2019)
240.9

250.0

(Billions of Yen)

229.4

Capital gains: +¥ 13 billion【Major Factors】＋Accelerated property sales, taking advantage of the seller's market＋Sales of large scale properties in UK (8 Finsbury Circus)▲Decline of capital gains in the Investment Management Business (y-y)

61.0

48.0

200.0

Domestic Condominiums, etc.*2: ▲¥ 500 million

15.2

14.7

150.0

【Major Factors】▲Decrease in condominiums sold (▲793 units)

Income gain: ▲¥ 1 billion【Major Factors】
Increase in rental profits from office building and international

100.0

businesses: Approx. +¥ 6 billion
166.2

165.2

▲Decrease in profits from hotel and outlet mall businesses: Approx.
▲￥3 billion▲Others (including a decrease in profits from overseas residential

50.0

business): Approx. ▲￥4 billion

0.0【Impact of Coronavirus】▲Decrease in the visitors to and sales in retail properties andoutlet malls (Feb to Mar)
▲Decrease in guests of hotels and voluntary ban of parties andceremonies (Feb to Mar)
▲Temporary closing of certain facilities following stay-at-homerequests (late March)

FY2019
Income gain

FY2020

Domestic Condominiums, etc.*²

Capital gains*1 Business Profit = Operating Income + Equity in earnings (loss) from unconsolidated subsidiaries and affiliates

MITSUBISHI ESTATE CO., LTD.

*2 Excluding capital gains, etc. from the Mitsubishi Estate Residence's operating income

6Summary of FY2020 Financial Highlights and FY2021 Estimates

5. FY2020 results highlights (situation of each business)
Topics concerning income gain

Topics concerning capital gains and asset sales

Office Building BusinessChange in capital gains

New buildings◆ Average contract rate of buildings completed in
FY2020 to FY2022*: Over 90%* Link Square Shinjuku, CO･MO･RE YOTSUYA,

the ARGYLE aoyama, Tamachi N Bldg, Marunouchi 1-3
Project, Tokiwabashi Bldg. A

Existing buildings◆ Secondary vacancies in the existing building arealmost fully leased, including Hibiya Kokusai
Building and Sunshine 60◆ Increase in rent revenue due to tenants moving
in/out and rent revisions: ¥ 6.5 billion

Vacancy rate at the ◆ All uses in Japan: 1.07%
end of the fiscal year ◆ Offices in Marunouchi: 0.69%

International Business◆ Completion of major renovation of 1271
Avenue of the Americas (US)◆ Full-scale contribution to profits from FY2021◆ Beginning of new
construction in 8 Bishopsgate(UK)◆ Will be completed at the endof 2022

MITSUBISHI ESTATE CO., LTD.

Establishment of a system to stably post
capital gains by sales to group funds(Billions of Yen)

60.0
40.0
20.0
0.0

61.0

48.0
14.0

39.0
15.0

28.0

24.0

34.0

33.0

FY2018FY2019FY2020

Domestic

Great increase by
the sale of 8
Finsbury Circus(UK)

Overseas

Sale of ownership interests in the Otemachi Park Building◆ Implemented as a part of the portfolio
strategy◆ Sale price: ¥ 99.8 billion◆ Cap rate: mid-2％◆ Actualized unrealized gains: Approx.
¥ 20 billion**Total of profit from asset sales and profit
from amortization of negative goodwill◆ Project-related fee business after theasset sales: AM, property
management

7

Summary of FY2020 Financial Highlights and FY2021 Estimates

6. Measures to prevent Coronavirus spread (as of May 14)
Key measures in retail properties / outlet malls

Key measures for hotels◆ Implemented various measures to prevent spread of infection◆ Reduction of operating hours and certain facility closures on
weekends (before the state of emergency declaration)◆ Facility and store closures with some exceptions* (after state of
emergency declaration)【Main closed facilities (as of May 14)】
Marunouchi Bldg, Shin-Marunouchi Bldg, Yokohama Landmark
Plaza, AQUA CITY ODAIBA, MARK IS Minatomirai, MARK IS
Fukuoka Momochi, SUNAMO, Ponteporta Senju, Premium
Outlets® malls◆ Implemented various measures to prevent spread of infection◆ Temporary suspension of new bookings (from Apr. 13)◆ Facility closures and booking transfers to other nearby facilities【Main closed hotels (as of May 14)】The Royal Park Hotel Kyoto Shijo (transferred to Kyoto Sanjo)

The Royal Park Canvas Ginza 8 (transferred to Tokyo Shiodome)
The Royal Park Canvas Osaka Kitahama(transferred to Osaka Midosuji)*Some stores that sell basic necessities and some facilities with eased
restrictions will open partially

Key measures for Mitsubishi Estate employees◆ Introducing systematic changes for flexible workstyle frommid-February (flexible hours, unlimited frequency intelecommuting, and childcare telecommuting)◆ Gradual switch to mainly telecommuting from Mar. 27 (alllocations from Apr. 17)◆ Nearly 85% of head office and branch employees are working
from home◆ Creation of headquarters for measures against Coronavirus◆ Moving face-to-face meetings to online meetings (including
Board of Directors and management meetings)◆ Holding of online wellness events for employees and theirfamilies
MITSUBISHI ESTATE CO., LTD.

Other key measures◆ Live concerts moved online◆ Sendai Royal Park Hotel donated nearly 10,000 surgical masks
to neighboring medical facilities as well as to Miyagi and Sendai

8Summary of FY2020 Financial Highlights and FY2021 Estimates

7. Impact of Coronavirus (COVID-19) ① (estimates for FY2021)
Breakdown of business profits vs FY2020 and estimated impact of Coronavirus
It is assumed that the state of emergency will continue until the end of May, and that business will recovergradually toward the end of September.
Approx. ￥45 billion reduction (business profits) is estimated against income gain and domestic condominiums, etc.
(Billions of Yen)FY2020 results

FY2021 estimates

Business Profits：240.9

Business Profits：185.3
Incorporating①delivered, ②contracted③and highly-saleable properties
into FY2021 estimate

61.0

Capital Gains

＋20.0
14.7
Domestic
Condominiums＋
Income Gain

165.2

FY2020 results

▲1.0

▲5.0
▲40.0

【Major Factors】
・Increase in building rental profits：＋¥ 7 billion
・Increase in overseas income gain：＋¥ 5 billion
・Increase in Asia condominium business profits：＋¥ 3 billion
・Others：＋¥ 5 billion

Fluctuation before factoringin the impact of Coronavirus

31.0

Estimated impact ofCoronavirus

Further details
on P108.7

145.6

FY2021 estimates■Income Gain ■Domestic Condominiums ■Capital Gains* Excluding capital gains, etc. from the Mitsubishi Estate Residence's operating income
MITSUBISHI ESTATE CO., LTD.

9

Summary of FY2020 Financial Highlights and FY2021 Estimates

8. Impact of Coronavirus (COVID-19) ②(key assumption for FY2021 estimates)
Assuming that the state of emergency will continue until the end of May,business is expected to recover gradually toward the end of September
Categories
Capital Gains-

Domestic Condominiums,
etc.*

Income Gain

Total

Estimated Impact(Business profit)▲￥5 billion

Key assumptions for FY2021 estimates and Coronavirus impact• Budgeted from delivered, contracted, and highly-saleable properties(60%+ of the planned properties for this fiscal year have already been delivered)• Approximately 60% of the condominiums estimated to be sold before including the impact ofCoronavirus have been contracted• No new contracts assumed during the state of emergency (assuming it lasts until the end of May)
• A decline in new contracts after June is expected considering the anti-Coronavirus measures that limit
visitor numbers• Incorporating delays in delivery of some residential units due to construction delays, etc.

RetailProperty▲￥16 billion• Incorporating the general closure of most facility/stores, with some exceptions, during the state of
emergency (assuming it lasts until the end of May)
• Business environment recovery is assumed for the end of the first half of FY2021

Hotels▲￥15 billion• The impact on the hotel management business is assumed to continue until the end of the fiscal year

Offices▲￥0.5 billion• A set vacancy period for all vacant floors is incorporated (no contracting tenant; including futurevacancies)

Others▲￥8.5 billion• Partial revision of residential sales schedule for international business• Incorporating the risk of market stagnation in the investment management and real estate service
businesses• Slowdown in project orders received in architectural design & engineering businesses

Subtotal▲ ¥ 40 billion▲ ¥ 45 billion* Excluding capital gains, etc. from the Mitsubishi Estate Residence's operating income

MITSUBISHI ESTATE CO., LTD.

10

Summary of FY2020 Financial Highlights and FY2021 Estimates

9. Impact of Coronavirus (COVID-19) ③(revenue stream)
Expanding office leasing business that generates stable cash flow through long-term tenant relationships inprominent locations in Japan and around the world.
Providing offices that give the valuable asset of a place for people to meet in person by understanding the needs
for the office that can adjust to changes in workstyle

Operating Revenue Breakdown

Commercial Property Business Breakdown(FY2020 results, new segment)

Breakdown bybusiness models

Breakdown by assets(real estate leasing)Operating Revenue

Operating Revenue

Operating Revenue

1,302.1 billion

Approx. ￥Investment
Management
2%

MITSUBISHI ESTATE CO., LTD.

524.4 billion

Approx. ￥Others5%
Others15%

International
10%

Residential
29%

723.7 billion

Approx. ￥Commercial Property
Business
54%

Outlet malls
9%

Others8%

Property Sales
13%

Real Estate Leasing
73%

Offices83%

11

Summary of FY2020 Financial Highlights and FY2021 Estimates

10. Changes in ROA / ROE / EPS
Continued efficiency improvements resulted in ROA: 4.1%, ROE: 8.5%, EPS: ¥ 108
All indicators are forecast to fall in FY2021 due to the impact of Coronavirus
10%

10.0%

(Yen)

200

200

9.0%

8.5%
7.8%

8.0%

7.3%

7.0%

150

6.6%
6.2%

6.0%

5.6%

108.64

5.2%

96.97

5.0%

86.78
74.00

4.0%

100

82.18
4.1%

4.0%

3.8%

60.13

52.85
3.0%

5%

3.3%

3.3%

FY2015FY2016

3.6%

50
3.1%

2.0%

1.0%

0
FY2017FY2018FY2019EPS(right axis)

FY2020ROA

FY2021(E)2030 Target

ROE* ROA=Business Profit / Total assets (average)

MITSUBISHI ESTATE CO., LTD.

12

Summary of FY2020 Financial Highlights and FY2021 Estimates

11. Cashflow forecast for FY2021
Decrease in profits due to Coronavirus and decrease in cash-in due to selection of timing of asset sales
Cash-out will tend to increase due to steady acquisition of new investment opportunities
Cash-in
730.0～780.0

Soundness level for new investments(Considering possibility to expand investment
opportunities)

Decrease in collected amount compared tothe previous year due to the impact ofCoronavirus

Decrease in profit due to the impact ofCoronavirus

Cash-out
730.0～780.0

Financing arrangement(Increase in liabilities)
190.0～240.0

Return*1
370.0

Operatingcashflow*2
170.0*1 Collected amount (in book value) from asset sales

MITSUBISHI ESTATE CO., LTD.

Strategic
allocation
100.0～150.0

Plannedinvestments
600.0

Dividends
30.0(Billions of Yen)

Continue plans of seeking strategic
investment opportunities, mainly overseas(especially in Asia) (Considering possibility to
expand investment opportunities)

Recently, investment opportunities weresteadily obtained【Breakdown】
Marunouchi

60.0

Outlet Mall, etc.

50.0

Domestic condominium

170.0

Domestic capital recycling and others

200.0

Overseas

120.0

Payout ratio: Approx. 30％*² Cash flows from operating activities, excluding change in inventories and change in equity investment

13

Summary of FY2020 Financial Highlights and FY2021 Estimates

12. Shareholder returns
Policy for increasing dividends continues with support of a strong real estate market. ¥ 100 billion sharebuyback was executed during FY2020. Dividends are planned based on a payout ratio of approx. 30% during
FY2021. Preparation for financial risks and expansion of investment opportunities.
(Yen)

40

45.0%

35

43.0%

33.00

41.0%

30.00

30
26.00

25.00

25

37.0%

20.00

20

35.0%

16.00
15

33.0%

14.00
12.00

30.0%

30.9%
30.4%

10
5

39.0%

30.4%
25.9%

26.5%

26.6%

FY2015FY2016

31.0%
29.0%

27.0%
27.0%

0

25.0%
FY2014FY2017FY2018FY2019Amount of
Share
Buyback

FY2021(E)¥ 100 billion
Dividends per share

MITSUBISHI ESTATE CO., LTD.

FY2020

Payout ratio (right axis)
14

Summary of FY2020 Financial Highlights and FY2021 Estimates

13. Progress of strategies to improve efficiency and increase shareholder value
Implementation of strategies to improve efficiency and governance in the previous medium-term management
plan (from FY2018 to FY2020). Strategies to achieve the targets in the long-term management plan have begun inadvance and will be steadily implemented.
2030 Target

In FY2020, the quantitative targets in the mediumterm management plan were all achieved
Type

TargetOperating Income¥ 220 billion¥ 240.7 billion

Approx. 3.5%

4.1%

Nearly 8.5 times

6.6 times

ROA
Net interest-bearing
debt / EBITDA

FY2018Result

FY2019

ROA

ROE

EPS

5%

10%

¥ 200

March 2020
Sale of ownership interest in Otemachi Park Building

February 2020
Transfer of vacation home business in Izu-Atagawa

In and after FY2021 (Long-termManagement Plan 2030)

FY2020

September 2017

March 2018

First half of FY2019

May 2019

Listing of
REIT Logistics

US hybrid model
investment changing
to open-end fundM&A in Non-asset domains
・PMO (parking lot
management business)
・Urban Life (housebrokerage)

Refinement of
capital policy
Decision of sharebuyback
No renewal of antitakeovermeasures【Plan to increase shareholder value】
Build a more efficient and marketresilient portfolio
Expand revenue streams resilient
to change of real estate market
conditions(Non-asset-based business)✕
Flexible capital policy

MITSUBISHI ESTATE CO., LTD.

15

Financial Supplemental Data

MITSUBISHI ESTATE CO., LTD.

16

Financial Supplemental Data

1. Management Indicator

Previous management
plan period
FY2018FY2019Current management
plan period

FY2020

FY2021(Estimates)2030 Target¥ 213.4
billion¥ 229.4
billion¥ 240.9billion¥ 185.3
billion¥ 350-400
billion

ROA*2

3.8%

4.0%

4.1%

3.1%

5％

ROE

7.3%

7.8%

8.5%

6.2%

10％

EPS

¥ 86.78¥ 96.97¥ 108.64¥ 82.18¥ 200

Business Profit*1*1 Business Profit = Operating Income + Equity in earnings (loss), unconsolidated subsidiaries and affiliates*2 ROA = Business Profit / Total Asset (average of opening / closing balances)

MITSUBISHI ESTATE CO., LTD.

17

Financial Supplemental Data

2. Balance Sheet
Millions of yen (rounded down)

Current assets
Cash
Notes and accounts receivable-trade
Property for sale
Property for sale in progress
Property for development
Equity investments
Other
Fixed assets
Tangible assets
Intangible assets

Investment securities
Other
Total assets

At March 31,
2020
1,115,634
207,896
50,34072,256247,677975
450,52085,966
4,742,602
4,107,252
96,767
236,969

At March 31,
2019
1,072,869
176,81462,603
84,104
268,152996
387,385
92,8114,701,323
4,088,084
95,128258,527

301,6115,858,236

259,5815,774,193

Millions of yen (rounded down)

Change42,76531,081△ 12,262△ 11,847△ 20,475△ 20
63,135△ 6,846
41,278
19,168
1,638△ 21,557
42,02784,043Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term debt
Commercial Papers
Bonds due within one year
Other
Long-term liabilities
Bonds
Long-term debt
Other
Net assets
Shareholders’ equity
Other accumulated comprehensive income

Stock acquisition rights
Non-controlling interests
Total liabilities and net assets

Total Assets(as of March, 2020)

International
Business
887,179
Residential
Business570,282

Other
265,684

Commercial
Property Business
4,135,091

MITSUBISHI ESTATE CO., LTD.

Change99,942△ 24,940
8,401
29,150△ 74,287
50,000△ 23,450△ 14,755
124,883
41,667
89,812△ 6,596△ 15,898
5,922△ 42,102△ 13
20,294
84,043

Consolidated interest-bearing debt Consolidated interest-bearing debt Consolidated interest-bearing debt
(as of March, 2020)
Fixed / Floating rate ratio
Long-term / Short-term ratio
Commercial Papers
50,000

Lease obligations
1,985(as of March, 2020)

2,429,883
Loans
1,550,764(as of March, 2020)
Short-term
6.8%

Floating
23.6%

Bonds
827,134

5,858,236

At March 31, At March 31,
2020
2019
3,917,030
3,817,088
664,001
688,942
66,36857,967
115,306
86,156
156,778
231,065
50,00051,55075,000223,998
238,753
3,253,028
3,128,145
775,584
733,916
1,278,678
1,188,866
1,198,762
1,205,357
1,941,206
1,957,105
1,163,746
1,157,824
570,716
612,819288
302
206,454
186,1595,858,236
5,774,193

2,429,883
Fixed
76.4%

2,429,883

Long-term
93.2%

18

Financial Supplemental Data

3. Asset composition(FY2020 Results)

Inventory

Equity investment

14%

20%
33%

329.3 billion¥

US450.5 billion

2%
3%
2%
3%

¥

4%

4,107.2 billion

7%

79%

Domestic Condominiums

10%
8%

1%

¥

Tangible fixed asset

76%

38%

OthersDomestic (office buildings)
Domestic (others)
US
EuropeAsia

Office Buildings

Outlet Malls

Logistics Facilities

Retail Properties*

Rental Apartments

Overseas

Others* Excluding outlet malls

MITSUBISHI ESTATE CO., LTD.

19

Financial Supplemental Data

4. Consolidated Cash FlowMillions of yen (rounded down)①FY2019
Results
Cash flows fromoperating activities②FY2020
Results

Change(②－①)③FY2021
Estimates

Change(③－②)

345,954341,766△ 4,187

42,000△ 299,766

Depreciation and amortization

80,336

84,941

4,605

87,0002,058

Change in Inventories

132,337

148,161

15,82318,000△ 130,161

Change in Equity Investment△ 9,124△ 43,217△ 34,092△ 146,000△ 102,783△ 271,083△ 277,440△ 6,356△ 299,000△ 21,560

13,8715,275△ 8,596

12,0006,725

Capital Investment△ 285,089△ 331,857△ 46,768△ 350,000△ 18,143

Cash flow fromfinancing activities△ 192,473△ 28,886

163,586

194,000

222,886

Cash and cash equivalents
at end of year

179,308

213,008

33,699147,000△ 66,008

Free cash flow

74,87164,326△ 10,544△ 257,000△ 321,326

Cash flows frominvesting activities
Proceeds from sales ofinvestment securities

MITSUBISHI ESTATE CO., LTD.

20

Financial Supplemental Data

5. Investment Data
Major Breakdown of Capital Investment
350.0(Billions of Yen)

331.8

350.0

300.0

275.3

250.0

27.6

289.5
2.4

200.0

11.8
7.1

2.7

25.1

285.0

93.4

13.0

12.3

6.5

17.2
15.2

9.0

126.1

50.0

(Billions of Yen)

350.0

8.0

4.3

300.0
250.0

113.8

40.0

74.7

200.0
22.1
36.0

39.9

38.4
6.5

15.9

100.0

14.0

87.0

58.6

150.0

10.7

Major Breakdown of Equity Investments

96.3

36.9

47.8

16.8
21.3

15.6
23.9

68.4

63.5

91.0

150.0

20.0

100.0

168.0

99.4

90.0

FY2017FY2018FY2019FY2020

FY2021(E)*

2.3
167.0

75.1

50.0

8.8
13.2

0.0

0.0

1.0

FY2017FY2018FY2019FY2020

FY2021(E)**Classifications have been changed below from FY2021<Legend for FY2021><Legend for FY2017 - FY2020>
Office Building(MEC: New/Redevelopment)

Office Building(MEC: Refurbishment)

Office Building(Subsidiaries)

Office(MEC: New / Redevelopment)

Office(MEC: Refurbishment)

Lifestyle Property

Commercial Property(excluding MEC office)

Residential

Residential

International

International

Special Purpose Vehicle

Hotel & Airport

Special Purpose Vehicle

Others(including consolidated eliminations)

Other(including consolidated eliminations)

MITSUBISHI ESTATE CO., LTD.

21

Financial Supplemental Data

6. Income Generating Assets Unrealized Gain : Current Status ①
Unrealized gain rose approx. ¥300 billion (y-y), supported by declines in cap rates andcash flow improvement
Income Generating Assets Unrealized Gain
Book value(Billions of Yen)
9,000

Unrealized gain

6,791.9

5,395.6

5,498.9
2,963.5

5,000
4,000

2,096.4

2,180.7

3,800
3,432
3,241
2,950

3,422.8

3,898.4

4,222.5

2,643

2,800
2,384

2,569.0

2,300

3,000
2,000

Adjusted BPS

3,300

6,079.0
6,000

8,270.8

7,383.4

7,000

BPS

(Yen)
7,941.1

8,000

BPS and Adjusted BPS*

2,178
2,015

1,800

3,299.2

3,318.1

3,509.9

3,828.4

3,960.5

4,042.7

4,048.3
1,300

1,000

958

0
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

1,078

1,088

FY2015FY2016

1,148

1,224

1,276

1,269

FY2018FY2019FY2020800

FY2014FY2017＊ BPS including unrealized gain (after tax)

MITSUBISHI ESTATE CO., LTD.

22

Financial Supplemental Data

7. Income Generating Assets Unrealized Gain : Current Status ②

Unrealized Gain Breakdown

Rental Profits(Billions of Yen)
190

International
9%

180.5

180

174.8
168.3

170

Domestic(Outside of Marunouchi)
17%

160.7

160

Marunouchi
New Building*
44%

150
140

131.7

136.2

130

Marunouchi
Existing Building
30%

120

116.9

110
100
FY2014FY2015FY2016FY2017FY2018FY2019FY2020*Redeveloped properties after the completion of Marunouchi Building
FY2020 Results

MITSUBISHI ESTATE CO., LTD.

23

Business Overview

MITSUBISHI ESTATE CO., LTD.

24

Business Overview

1. Mitsubishi Estate Group’s Business Segment
Commercial Property Business＜Office Buildings＞
Engages in the development,
leasing, and operation
management of office buildings,
mainly in Marunouchi area andother major Japanese cities.

＜Retail Properties＞
Developing retail properties andoutlet malls nationwide, mainly inthe major metropolitan areas.

Residential Business

International Business＜Domestic Residential＞
Operating residential condominium
business under “The Parkhouse”
brand and rental apartments
business under “The Parkhabio”
brand.

Undertaking office building
development and leasing
businesses in the United States andthe United Kingdom, as well as
projects in Asia.

＜Logistics Facilities＞
Development, leasing, andmanagement of the “Logicross”
series as a foundation of logistics
facilities.

＜Hotels / Airports＞
Undertaking hotel management
nationwide as the Royal Park Hotels
group. Begun private airport
management business.

Investment Management
Business

Architectural Design &Engineering and Real Estate
Service Business

Providing a wide range of services
regarding real estate investment
for investors.

＜Architectural Design &Engineering Business＞
Mitsubishi Jisho Sekkei Inc.
provides architectural design andengineering services of construction
and civil engineering.
＜Real Estate Services Business＞
Mitsubishi Real Estate Services Co.,
Ltd. offers real estate brokerage,parking lot management support,
and other services.

MITSUBISHI ESTATE CO., LTD.

25

Business Overview

2. Business Scale

Other*
5%

Investment
Management
Business
2%

Revenue fromOperations

Operating Income

Approx.

Residential
Business
9%¥1,302.1
billionCommercial
Property
Business
54%

Other*
2%

Investment
Management
Business
1%
International
Business
15%

International
Business
18%

International
Business
10%

Residential
Business
29%

Other*
0%Investment
Management
Business
2%

Approx.

¥240.7billionTotal Assets
Residential
Business
10%

Commercial
Property
Business
71%

Approx.

¥5,858.2
billionCommercial
Property
Business
72%*Hotel / Airport Business, Architectural Design & Engineering, Real Estate Services, Other Business(FY2020 Results)

MITSUBISHI ESTATE CO., LTD.

26

Commercial Property Business
Office Buildings

MITSUBISHI ESTATE CO., LTD.

27

Commercial Property Business (Office Buildings)

1. Marunouchi Area Map

MITSUBISHI ESTATE CO., LTD.

28

Commercial Property Business (Office Buildings)

2. Pipeline
Marunouchi 1-3
Project

Tokiwabashi Project
Building A

Uchikanda 1-chome
Project

Tokiwabashi Project
Building B

Total Floor Area: 174,100㎡
Completion: Oct. 2018

Total Floor Area: 181,000㎡
Completion: Sep. 2020

Total Floor Area: 146,000㎡
Completion: Jun. 2021

Total Floor Area: 84,500㎡
Completion: Around 2025

Total Floor Area: 490,000㎡
Completion: FY2028

Yurakucho
Redevelopment(TBD)

Marunouchi Area

Marunouchi
Nijubashi Building

FY2019FY2020Tokyo(Outside of Marunouchi)

msb Tamachi(musubu Tamachi)

Total Floor Area: 138,300㎡*
Partial Completion: May 2018*

FY2021

FY2022

FY2023

FY2024

Link Square Shinjuku

CO･MO･RE YOTSUYA

the ARGYLE aoyama

Total Floor Area: 43,800㎡
Completion: Aug. 2019

Total Floor Area: 139,600㎡
Completion: Jan. 2020

Total Floor Area: 23,100㎡
Completion: May 2020

FY2028*Tower S
MITSUBISHI ESTATE CO., LTD.

29

Commercial Property Business (Office Buildings)

3. Earnings Related Data: Total operating floor space (Unconsolidated)
Total (Domestic) / Marunouchi / Marunouchi Redevelopment Buildings(Thousand ㎡)

6,500
6,000
5,444

5,500
5,000

4,660

4,500
4,000

3,825 3,907 3,769
3,684 3,696

4,175

4,896

5,580 5,670
5,174

5,038

5,385

5,570

5,745

5,869

6,031

4,347

3,500
2,727 2,784
2,687 2,758 2,755 2,583
2,565 2,565
2,531

3,000
2,500
2,000

1,677

1,946 2,024 1,897
1,798

2,195 2,258
1,705 1,705

1,500

1,022 1,022

1,000
500

256

256

355

03/3

04/3

05/3

489

489

06/3

07/3

2,915 2,915

743

743

08/3

09/3

1,174

1,836 1,836

1,383 1,365 1,360 1,345

0

Total (Domestic)

10/3

11/3

Marunouchi

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3 21/3(E)Marunouchi Redeveloped Buildings*Excluding floor space in Lifestyle Property Business from 16/3

MITSUBISHI ESTATE CO., LTD.

30

Commercial Property Business (Office Buildings)

4. Earnings Related Data: Vacancy Rates / Average Rents (Unconsolidated)
Vacancy Rates (Marunouchi offices / All uses in Japan) /Average Rents (All uses in Japan)(yen / tsubo-month)

29,00028,000Vacancy rate(Marunouchi offices)27,000Vacancy rate(All uses in Japan)

28,00025,842Average rent(All uses in Japan)

26,00024,86425,00024,00023,00022,00021,00020,00019,0005.64%

9%25,234
24,42323,56022,817
6.06% 22,213

26,193

26,702 27,177

23,974 23,850 23,861

8%

23,587

7%

22,602
21,902 21,711 21,733

6%

5.29%

4.82%

5%

4.36%

18,000

3.59%

3.40%

2.77%

3.98%
3.58% 3.58%

2.42%
1.68% 2.06%

16,000

2.26%

2.77%

15,000

4%

4.32%
3.66%

2.86%

17,00014,00013,000

2.80%

2.93%

2.22%
2.42%

1.87%

1.82%
0.55%

0.19%

1.09%

2.0%

2%
1.65%

1.37%

3%

2.19%

2.42%

1.74%

1.80%

1.07%

1%
0.69%

12,000
03/3

MITSUBISHI ESTATE CO., LTD.

04/3

10%

05/3

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

0%
21/3
(E)

31

Commercial Property Business (Office Buildings)

5. Earnings Related Data: Office Building*¹ Business, Revenue Breakdown(Unconsolidated)(Billions of Yen)FY2019(Results)

FY2020(Previous
Estimates)

FY2020(Results)

FY2021(Estimates)

Rent revenue from office building*¹

388.6

400.7

406.6

418.6

Changes from Previous Period+ 27.3+ 12.0+ 17.9+ 11.9+ 17.9+ 10.5+ 10.8+ 11.9

+ 6.2

+ 3.7

+ 6.8

+ 6.1

Termination of master lease,closure of building for redevelopment

+ 0.3

△ 0.1

+ 0.3

△ 1.3

Moving in/out of tenants,
Rent revisions at lease renewal

+ 5.9

+ 3.8

+ 6.5

+ 7.5

Impact ofCoronavirus

Offices△ 0.5

Mixed-use
retail*2

△ 5.0

+ 0.0

△ 0.6

Rent revenue from new buildings
Rent revenue from existing buildings

Supplementary Revenue, including common
area charge

+ 3.3

△ 1.8

*1 Office buildings, including those with retail areas, etc.
*2 Retail properties in office buildings

MITSUBISHI ESTATE CO., LTD.

32

Commercial Property Business (Office Buildings)

6. Earnings Related Data: Trends in rent revenue from office building*1(Unconsolidated)
Increase / decrease of rent revenue from office building*1(from the previous fiscal year)(Billions of Yen)

30
25

■New buildings■Existing buildings (Moving in/out of tenants, Rent revisions at lease renewal)■Existing Buildings (Termination of master lease, closure of building for redevelopment)■Impact of Coronavirus (Office building, Mixed-use retail*2)

+0.3

20

+0.3

15

+15.3

+14.7
+23.9

10

0

+4.3

-2.5

-4.9
-10.7

+12.5

+7.3

+8.7
-3.9

-5

+15.3

+13.0

5

-1.1
-5.9

+1.9

+27.2

+6.0

+7.3

-1.5

-1.5

-10.5

-4.0

-4.6
-5.6

-10

-3.4

-7.5

-6.0

+2.4
-9.0

+4.9

+11.9

+9.8

+4.0

+4.7

+5.9

+6.5

+7.5
-1.3

-10.5

-8.1

-5.5

-8.3

-5.0

-15

Total

-5.2

-0.7

+10.8

+18.5 +13.2

+6.6

-2.5

-5.4

-20

+9.5

+22.6 +0.7 +17.9*1 Office buildings, including those with retail areas, etc.
*2 Retail properties in office buildings

03/3

04/3

05/3

06/3

07/3

08/3

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(E)

-2.1

-2.7

-1.6

+8.3

-1.3

+19.8

+20.5

+17.4

+2.3

-1.7

-5.1

+19.0

+11.9

+7.6

+18.5

+15.2

+24.1

+17.6

+12.6

MITSUBISHI ESTATE CO., LTD.

33

Commercial Property Business (Office Buildings)

7. Office Building Market Data: New Supply of Large-Scale Office Buildings(23 Wards of Tokyo)(Millions of ㎡)

2.5
2.16
2
1.75

1.72

1.54
1.41

1.5

1.25

1

1.19 Past average supply 1.17
approx. 1.05 million ㎡/year(1998～2018)

0.99

0.91
0.72

0.5

1.21

1.09

0.65

0.99

0.97

Average estimate supply
for next 5 years
1.02 million ㎡/year

0.87

0.86 0.85

0.77

1.32

0.69
0.58

0.57

0.50

0.36

0

*Estimate※Research subject buildings: Buildings with total office floor area exceeding 10,000㎡
Source: Mori Building
MITSUBISHI ESTATE CO., LTD.

34

Commercial Property Business (Office Buildings)

8. Office Building Market Data: Average Rents / Vacancy Rates(5 Central Wards of Tokyo)(yen / tsubo-month)

30,00012%
Average Rent

Vacancy Rate

28,00026,0008.75%

20,000

10%
8.56%

7.98%

24,00022,0009.19% 9.04%

22,594

22,574
8.18%

5.51%

19,17517,758 17,593

18,0006.70%

21,295

21,13420,064
6.05%

19,6995.30%

18,26418,0958%

6%18,73017,973

17,495
16,716 16,504

17,195
16,325

3.60%

4%

4.34%

16,0003.41%

14,0002.72% 2.89%

2.80%

12,000

2%
1.78%

1.50%

10,000

0%
03/3

04/3

05/3

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

Source: Miki Shoji Co., Ltd.
MITSUBISHI ESTATE CO., LTD.

35

Commercial Property Business (Office Buildings)

9. Competitive Edge of Marunouchi: Vacancy Rates
5 Central Wards of Tokyo(Market) vs. Marunouchi(Unconsolidated)
10%
9%

8.75%
8.18%

9.19% 9.04%
8.56%

7.98%

8%
6.70%

7%
6.06%
6.05%

6%
5.51%

5.30%

5%
4%

4.32%
4.36%

3.66%

4.34%
3.41%

3%

3.60%
2.80%

2.72%

2.42%

2.77%

2.42%

2.19%

2.89%

2%

1.50%

2.26% 2.42%
1.82%

1.74%

1%

0.19%

0.55%

1.65% 1.78%

1.37%

1.09%

0.69%

0%
03/3

04/3

05/3

06/3

07/3

08/3

09/3

10/3

11/3

5 Central Wards of Tokyo(Market)

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

Marunouchi(Unconsolidated)
Source: Miki Shoji Co., Ltd.

MITSUBISHI ESTATE CO., LTD.

36

Commercial Property Business (Office Buildings)

10. Competitive Edge of Marunouchi: Area / number of railway lines

Marunouchi

Nihonbashi

ShinagawaShibuya

Toranomon

2,400m
1,500m

Area:

123ha

Area:

76ha

Area:

49ha

Area:

86ha

Area:

58ha

Railway lines:

28 lines

Railway lines:

5 lines

Railway lines:

9 lines

Railway lines:

8 lines

Railway lines:

2 lines©Open Street Map

MITSUBISHI ESTATE CO., LTD.

37

Commercial Property Business (Office Buildings)

11. Competitive Edge of Marunouchi: Number of headquarters and offices(as of March, 2019)① Fortune Global 500 company headquarters③ Top 100 law firm headquarters and offices

32

MARUNOUCHI

18

3

1

0

0

5

TORANOMON1NIHONBASHISHINAGAWAMARUNOUCHISHINAGAWANIHONBASHISHIBUYATORANOMON

01SHIBUYA② Top 50 company headquarters in terms ofmarket capitalization④ Foreign financial company offices

72

MARUNOUCHI

12
3
MARUNOUCHINIHONBASHI

1

1

TORANOMONSHINAGAWA

0SHIBUYANIHONBASHI

11SHIBUYA

3

SHINAGAWA

MITSUBISHI ESTATE CO., LTD.

21

TORANOMON

038

Commercial Property Business (Office Buildings)

12. Marunouchi Data: Marunouchi Tenant Mix (Unconsolidated)
March 2000

Type of Business

Area ratio

March 2020

Type of Business

Area ratio

1

Manufacturing

42.5%

1

Finance22.4%

2

Finance22.2%

2

Manufacturing

20.1%

3

Trading

10.4%

3

Professional Firm

19.5%

4

Information

6.3%

4

Trading

10.7%

5

Professional Firm

4.4%

5

Information

6.4%

Others

14.2%

Others

20.9%

Professional Firm
4.4%

Others14.2%

Information
6.3%
Trading
10.4%

Manufacturing
42.5%

Manufacturing
20.1%

Information
6.4%

Trading
10.7%
Finance
22.2%

MITSUBISHI ESTATE CO., LTD.

Others
20.9%

Finance
22.4%

Professional Firm
19.5%

39

Commercial Property Business (Office Buildings)

13. Marunouchi Data: Approaches for Marunouchi Area Development
Improvement of floor-area-ratio
Improving plot ratio in Marunouchi area by reviewing the use
area

1,000% → 1,300% (June, 2004)※1,200% for limited areas

Transfer of plot ratio:
Exceptional plot ratio district system
Possible to transfer floor area among several areas meeting acertain conditions“Exceptional floor-arearatio district” Area

Relaxation of plot ratio regulation: Special
Urban Renaissance Districts
Possible to be permitted for relaxation of floor-area ratio
regulation depending on levels of contribution to city
regeneration as an exception of urban planning
Example: International business bases (Global Business Hub Tokyo etc.)
Development of fine urban environment (improvement on water quality ofditch around the Imperial Palace etc.)
BCP function(self-reliant of electric power and water supply, etc.)

Change of building uses:
Consolidation of non-office use
Possible to consolidate and allocate mandated non-officeuse floor-areas when running several projects
simultaneously◆Example: Consolidation between offices and hotels
Non-office ─◆Example: Transfer unused floor-area at Tokyo station to other buildings
around the station

Office ─Consolidate non-office uses in
offices into hotels to expand
office areas in office buildings
Offices
MITSUBISHI ESTATE CO., LTD.

Hotels40

Commercial Property Business
Outlet Malls, Retail Properties, Logistics
Facilities, Hotels, and Airports

MITSUBISHI ESTATE CO., LTD.

41

Commercial Property Business (Outlet Malls)

1. Outlet Mall BusinessChange in Store Area, Revenue fromOperations, and Operating Income(Millions of yen)

Average of all facilities Sales-linked &fixed ratio (Rent revenue basis)(㎡)

50,000320,000

45,000

FY2020Results

53%

47%

315,000
Fixed rent

40,000310,000

35,000305,000

30,000300,000

25,000295,000
Tosu

Sendai-Izumi
KYOTO JOYOHANAZONO Sano
Kobe-Sanda
Rinku

20,000290,000

15,000285,000

Sales-linked rent

Ami

Toki

Gotemba Shisui

GOTEMBA PREMIUM OUTLETS®

10,000

15/3

16/3

17/3

18/3

19/3

20/3

280,000

Name

Open

Store Floor Area

Gotemba (Phase 4)

Apr. 2020(postponed)

Currently: Approx. 44,600㎡
After expansion: Approx. 60,000㎡ (+36%)

Rinku (Phase 5)

Summer, 2020

Currently: Approx. 39,400㎡
After expansion: Approx. 49,600㎡ (+26%)

Store area

294,700 308,500 308,500 308,500 314,600 315,300

Revenue fromOperation

39,95443,946

43,642

45,462

46,65946,393

Fukaya Hanazono (New)Fall, 2022

Operating Income 14,292

16,301

17,35918,94019,673

18,963

Kyoto Joyo (New)

Spring, 2024

MITSUBISHI ESTATE CO., LTD.

Approx. 25,000㎡

42Commercial Property Business (Logistics Facilities)

2. Logistics Facility Business
Trends in gain on sale

Total assets
Approx. ¥(Billions of Yen)

Operational logistics facilities

27 billion

Total number of developed facilities

assets in operation
36%

Number of facilities in operation

13

8.0

8.0
6.0

(2 buildings)
4.0

4.0

assets under development
64%

2.0

0.0

0.0
17/3

18/3

19/3

Tokyo Ryutsu Center Distribution Building B
MITSUBISHI ESTATE CO., LTD.

Total floor area of facilities in operation

51,000㎡(8 buildings)

2.0
20/3

(End of March 2020)*Ratio by value*Excluding Tokyo Ryutsu Center

Logicross Yokohama Kohoku

2

Logicross AtsugiⅡ(End of March 2020)*Excluding Tokyo Ryutsu Center

Saito Moegi Logistics Facility Project43

Commercial Property Business (Retail Properties / Logistics Facilities)

3. Outlet Malls and Logistics Facility Pipelines
RINKU PREMIUM
OUTLETS® Expansion
Phase 5FUKAYA HANAZONOPREMIUM OUTLETS®

KYOTO JOYOPREMIUM OUTLETS®

Floor Area Expanded: +15,400㎡
Open: Apr. 2020(postponed)

Floor Area Expanded: +10,200㎡
Open: Summer 2020

Store floor area: 25,000㎡
Open: Fall 2022

Open: Spring 2024

Outlet Malls

GOTEMBA PREMIUM
OUTLETS® Expansion Phase 4

Logistics Facility

FY2020

FY2021

FY2022LOGIPORT Kawasaki Bay

Logicross Hasuda

Total Floor Area: 296,800㎡
Completion: May 2019

Total Floor Area: 79,100㎡
Completion: Mar. 2021

FY2023
Saito Moegi Logistics
Facility Project

Total Floor Area: 157,000㎡ (2 Blocks)
Block B Completion: Apr. 2021
Block A Completion: May 2021

FY2024
Logicross Zama

Total Floor Area: 183,900㎡
Completion: Jun. 2023

Logicross
Yokohama Kohoku

Logicross AtsugiⅡ

Logicross Ebina

Logicross Kasukabe

Logicross Funabashi

Total Floor Area: 16,000㎡
Completion: Jun. 2019

Total Floor Area: 34,700㎡
Completion: Jul. 2019

Total Floor Area: 62,200㎡
Completion: Nov. 2020

Total Floor Area: 38,000㎡
Completion: May. 2021

Total Floor Area: 23,600㎡
Completion: Nov. 2021

MITSUBISHI ESTATE CO., LTD.

44

Commercial Property Business (Hotels)

4. Hotel (Development / Operation) Business
Hotel Management Business
Name

The Royal Park Hotel Iconic Osaka Midosuji

Number of Rooms

Open

Royal Park HotelChuo, Tokyo

Location

419

Jun. 1989

Yokohama Royal Park Hotel

Yokohama, Kanagawa

603

Sep. 1993

Sendai Royal Park Hotel

Sendai, Miyagi

110

Apr. 1995

The Royal Park Hotel Tokyo Shiodome

Minato, Tokyo

490

Jul. 2003

Marunouchi Hotel

Chiyoda, Tokyo205

Oct.2004

The Royal Park Hotel Kyoto Sanjo

Kyoto, Kyoto

172

Jul. 2011

The Royal Park Hotel Fukuoka

Fukuoka, Fukuoka

174

Oct. 2011

The Royal Park Canvas Nagoya

Nagoya, Aichi

153

Nov. 2013

The Royal Park Hotel Tokyo Haneda

Ota, Tokyo

313

Sep. 2014

The Royal Park Hotel Kyoto Shijo

Kyoto, Kyoto

127

Apr. 2018

The Royal Park Hotel Hiroshima Riverside

Hiroshima, Hiroshima

127

Oct. 2018

The Royal Park Canvas Ginza 8

Chuo, Tokyo

121

Mar. 2019

The Royal Park Canvas Osaka Kitahama

Osaka, Osaka

238

Jun. 2019

The Royal Park Hotel Osaka Iconic Midosuji

Osaka, Osaka

352

Mar. 2020

The Royal Park Hotel Kyoto Umekoji

Kyoto, Kyoto

250

Fall 2020

The Royal Park Canvas Kobe Sannomiya

Kobe, Hyogo

170

Beginning of 2021

The Royal Park Canvas Kyoto Nijo

Kyoto, Kyoto

180

Spring 2021

Odori Nishi 1-chome Project

Sapporo, Hokkaido

130

Fall 2021

The Royal Park Hotel Kyoto Karasumaoike

Kyoto, Kyoto

200

Spring 2022

Ginza 6-chome Hotel ProjectChuo, Tokyo

160

Fall 2022

Nagoya Sakae Hotel Project

Nagoya, Aichi

250

FY2024

Hotel Development Business
Name

Odori Nishi 1-chome Project

MITSUBISHI ESTATE CO., LTD.

Number of Rooms

Construction Begins

Open

The Royal Park Hotel Kyoto Shijo

Kyoto, Kyoto

Location

127-

Apr. 2018

MJ HOTEL Asakusa

Taito, Tokyo

166

Mar. 2017

To be determined

The Royal Park Hotel Kyoto Umekoji

Kyoto, Kyoto

250

Jun. 2019

Fall 2020

The Royal Park Canvas Kobe Sannomiya

Kobe, Hyogo

170

Sep. 2019

Beginning of
2021

Asakusa Kaminarimon 2-chome Hotel Project

Taito, Tokyo

51

Dec. 2019

Spring 2021

Kyoto Okazaki Hotel Project

Kyoto, Kyoto

60

Feb. 2020

Fall 2021

Odori Nishi 1-chome Project

Sapporo, Hokkaido

130Mar. 2020

Fall 2021

Hilton Okinawa Miyakojima Resort

Miyakojima, Okinawa

329-

FY202445

Residential Business

MITSUBISHI ESTATE CO., LTD.

46

Residential Business1. Condominium Business Data

FY2019(Results)

FY2020(Results)

FY2021(Estimates)

Condominiums Sold(millions of yen)

238,924

202,876-

Condominiums Sold
(units)

4,007

3,214

-

Gross margin

17.0%

17.8%

-

Land Bank
Breakdown in reporting term(as of March, 2020)

6,200

6,500

4,200
Inventory (units)

542

373

-

Total: 16,900 units
New Supply of
Condominiums(units)MITSUBISHI ESTATE CO., LTD.

3,966

2,924

-

FY2021 - FY2022
FY2023 - FY2025

FY2026 -47

Residential Business

2. Condominium Business Data②
Quarterly Distribution of Sales by Agreement Date
(Millions of yen)

254,140

260,000
240,000
220,000

238,924
215,762200,000

95.8%

180,000

89.3%

160,000

79.4%

223,266

96.5%

94.8%
88.7%

77.9%

89.3%

93.0%

80.7%

84.7%

66.1%

60.6%

63.0%

94.8%

73.1%

85.0%

59.2%

70.7%

140,000
120,000

202,876

100,000

51.4%

80,00060,00040,00020,000
0
16/3

17/3

Full-year sales

MITSUBISHI ESTATE CO., LTD.

18/3

End of 3Q

End of 2Q

19/3

End of 1Q

20/3

Beginning of FY

48

Residential Business3. Condominium Market Data
Number of New Supply / Average Prices (the Greater Tokyo Area)(Unit)(Average price / Millions of yen)

120,000

60
59.8

100,000

50

80,00040

60,00030

32,00031,23840,00020,000

20

10

0

0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
(E)
Number of new supply

Average priceSource: Real Estate Economic Institute Co., Ltd.

MITSUBISHI ESTATE CO., LTD.

49

Residential Business

4. Redevelopment Projects andLarge-scale Development Projects

5. Rental Apartment Business

Redevelopment Projects and Large-scale Development Projects

Trends in gain on sale

Scheduled
Delivery

Location

Project Name

Total Units(Billions of Yen)FY2021

Narashino, Chiba

Tsudanuma The Tower

759

FY2021Adachi,Tokyo

Senju The Tower

184

FY2021

Atsugi, Kanagawa

The Parkhouse Hon-Atsugi Tower

163

10.0

FY2021

Kawaguchi,
Saitama

The Parkhouse Kawaguchi Honcho

162

8.0

FY2021

Chiba, Chiba

Makuhari Bay Park Sky Grand Tower

826

Kagoshima,
Kagoshima

6.0

FY2021The Parkhouse Kagoshima Chuo Tower

210

4.0

FY2021

Shinjuku, Tokyo

The Residence Yotsuya Avenue/Garden

60

FY2021

Shinagawa, Tokyo

Crevia Tower Oimachi THE RESIDENCE

136

FY2022

Bunkyo, Tokyo

Park Court Bunkyo Koishikawa The Tower

571

FY2022

Koto, Tokyo

Proud Tower Kameido Cross

934

FY2023

Nagasaki, Nagasaki

Shin-daikumachi District Redevelopment Project

240

FY2023

Yokohama,
Kanagawa

Land Readjustment Project (H block) in West District
around Kawawa-cho Station

183

FY2024

Shinagawa, Tokyo

Togoshi 5-chome, 19 District Redevelopment Project

241

The Greater Tokyo
From FY2025
Area
Outside of theGreater Tokyo Area

Hamamatsucho 2-chome District Redevelopment
Project, etc.*¹

Total 18,550*2

Minatomachi 3-chome C Block District Area
Redevelopment Project, etc.*¹

Total 3,380*2

Approx. ¥

12.0

11.0
9.0

10.0

88 billion

assets under development
33%(25 buildings)
assets in operation

2.0
0.0

Total assets

67%(28 buildings)

1.0
17/3

18/3

19/3

20/3

(End of March 2020)*Ratio by value*1 There are approx. 25 ongoing projects scheduled

for delivery in FY2024 onward*2 Total of several planned projects

The Parkhouse Hon-Atsugi Tower
MITSUBISHI ESTATE CO., LTD.

The Parkhabio Kiba

Parkhabio Akasaka Tower

50

International Business

MITSUBISHI ESTATE CO., LTD.

51

International Business1. International Business Strategy
FY2020Asia

7%Business Profit:¥46.1 bn49%
Total Asset:¥887.1 bn

2030 Target

US

Towards 2030 Target

30%

44%

Europe48%

22%◆ Expand Asia development business◆ Annual investment: approx. ¥200–250

bn◆ 1st half of 2020s : Profit increase withasset accumulation

Business Profit:
Approx. ¥90 bn

35%

40%
45%
45% Total Asset:
Approx. ¥1.5 tn(2030 target)(2030 forecast)◆ 2nd half of 2020s:

15%
20%

Balance investment and return

ROA：Approx. 5%

ROA：Approx. 6%
Strategy①Asia②Europe◆ Increase investment, build capital recycling
portfolio◆ Two approaches:①Development with major stake②Joint businesses with local partners＜Expected Return from Investment＞
IRR

Developed countries 8～10%
Developing countries
10+%

MITSUBISHI ESTATE CO., LTD.

③US

◆ Investment and return to optimize profit
stability and capital efficiency◆ Advance mainly large-scale** 8 Bishopsgate, 60-72 Upper Ground＜Expected Return from Investment＞
IRR

8～10%

◆ Strengthen capital recycling business,making the most of RGII* know-how◆ Joint venture with local partners* Rockefeller Group International, Inc.

＜Expected Return from Investment＞
IRR

8～10%

52

International Business2. International Asset/Ongoing Projects
Many ongoing developments (rentals and condos) are expected to make early profit contribution
International Asset

Major Ongoing Projects(Mar. 2020)

Book Value*:¥750 bn

Property Name
Phase 3 of Singapore-Hangzhou
Science & Technology Park
CapitaSpring

18%

32%

Asia

22%

Completion

Area / Units*1

China (Hangzhou)

Office2020

172,300㎡

Singapore
China (Hangzhou)
Daswin ProjectIndonesia (Jakarta)
Yoma Central (4 buildings total)
Myanmar (Yangon)
Savya Financial Center North Tower The Philippines (Manila)
180 George Street
Australia (Sydney)
One City Centre
Thailand (Bangkok)
8 Bishopsgate

US (Other)

Use

Mixed Use Development in Hangzhou

28%

US (Manhattan)

Location

EuropeAsia

Europe*Inventories + Equity Investments + Tangible Fixed Assets

US

Nine Elms Park

UK (London)

OfficeUK (London)

Rentalapartment

60-72 Upper Ground (ITV The
London Television Centre)

UK (London)

1271 Avenue of the Americas
Edison
Lehigh Valley (4 buildings total)

US (Pennsylvania)

2021 93,400㎡*2
2021
69,800㎡
2021
75,000㎡
2021 212,700㎡*2
2021 24,600㎡*3
2022
55,000㎡
2022
66,000㎡

Multi-use
OfficeOfficeMulti-use
OfficeOfficeOffice2022

53,000㎡

2022

196 units

TBD

2020s 2nd
half

TBD

US (Manhattan)

OfficeDec. 2019

195,000㎡

US (New Jersey)

Logistics
facilities
Logistics
facilities

2020

87,200㎡

2021*1 Leasable area or # of units *2 Total floor area

325,200㎡*3 Area for saleLand Bank in Asia
1271 Avenue of the Americas(Condominiums)

Daswin Project

200

100

400

Total: 10,900 units

400
500

1,900

7,400
8 Bishopsgate project

Thailand

China

Australia

Malaysia

Philippines

VietnamIndonesia

Yoma Central* # of unit MEC owns

MITSUBISHI ESTATE CO., LTD.

53

Other business

MITSUBISHI ESTATE CO., LTD.

54

Other business1. Investment Management Business: Global Platform
Globally, we have combined assets under management of approximately ¥ 3.6 trillion.

AuM Area Breakdown(Billions of Yen)

Asia & Oceania
120

Europe450

Carry out marketing and research and establish funds worldwide
Overseas

Provide global opportunities to worldwide investors
Japan Real Estate AssetManagement Co., Ltd.

Group-wide
Synergy

Mitsubishi Jisho
Investment Advisors, Inc.

Mitsubishi Estate Group’s network
for investment & development and management & services
MITSUBISHI ESTATE CO., LTD.

JREA
1,050

Total:
approximately¥ 3.6 trillion.

United States
1,200

Domestic

MJIA
840(end of March 2020)

Goal: reach ¥ 5 trillion in
the mid-2020s
55

Investment / Financial Data etc.

MITSUBISHI ESTATE CO., LTD.

56

Investment / Financial Data etc.

1. Net Interest-bearing debt/EBITDA Ratio(Billions of Yen)

(Times)2,500.0

10.0
8.5

2,000.0

7.7

9.0
8.0

7.3
6.7

6.6

6.1

6.1

7.9

7.0

7.1
6.7

1,500.0

1,000.0

2,153.6
1,978.6

2,194.8
2,019.8

6.0

2,140.2
1,965.2

2,216.8
2,041.8

2,460.0
2,285.0

5.0
4.0
3.0

500.0

2.0
1.0

0.0

0.0
FY2017FY2018Net Interest-bearing debt
Debt/EBITDA Ratio (right axis)

MITSUBISHI ESTATE CO., LTD.

FY2019FY2020

FY2021(E)Net Interest-bearing debt
*after hybrid debt deductions
Debt/EBITDA Ratio (right axis)*after hybrid debt deductions
57

Investment / Financial Data etc.

2. Interest-Bearing Debt Breakdown(Billions of Yen)

3,000

95.0%

95.0%

96.1%

93.7%

96.4%

95.1%

93.4%

95.4%

93.6%

93.2%

100%
90%

2,500
6.8

10.2

2,000

35.0

53.1%

1,500

1,292.9
1,065.4

28.0
60.1%

1,261.9

69.7%

5.6

100.0

73.2%

100.0
76.2%

1.9
100.0

76.4%

1,381.2

1,428.5

1,523.0

1,406.0

1,450.7

1,208.8

70%

50%
40%

1,072.3

30%
250.0

250.0

250.0

250.0

250.0

558.9

577.1

500
566.3

636.2

747.2

701.5

685.2

653.0

612.7

603.8

0

Total

80%

60%

64.1%

54.0%

8.3

100.0

7.2

9.5

61.8%

61.7%
7.2

1,000

50.0
4.5

4.7

20%
10%
0%

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY20201,693.0

1,716.8

2,085.4

1,973.0

1,929.3

2,291.0

2,396.9

2,481.6

2,319.5

2,429.8

Straight BondMITSUBISHI ESTATE CO., LTD.

Subordinated bondBank Loan

Subordinated loan

CP

Lease liability

Fixed ratio

Long-term ratio

58

Investment / Financial Data etc.

3. Interest-bearing debt: Procurement Interest rates /Average Duration of Interest-bearing debt (Unconsolidated)(Year)

10

2.5%

9
8
1.90%
7
6

6.20
1.58%

1.88%

5

5.45

5.55

5.58

5.45

1.54%

1.55%

1.05%

1.07%

1.01%

0.70%

1

2.0%

1.32%

1.5%
1.24%
1.14%

0.96%
0.72%

1.38%

1.52%

0.96%

0.87%

2

6.36

6.69

5.71
1.41%

1.27%

4
1.05%

6.18

1.40%

1.29%

3

6.79
1.72%

5.91
1.42%

7.23

1.88%

0.95%

0.97%
0.75%

0.62%

0.61%

FY2015FY2016

0.66%

0.92%

0.84%

0.71%

0.68%

FY2019FY2020

0

1.0%

0.5%
FY2009FY2010FY2011FY2012Average Duration of Interest-bearing debt

MITSUBISHI ESTATE CO., LTD.

FY2013

FY2014

Bonds/Average interest

FY2017FY2018Bank Loans/Average interest

Total/Average interest

59

ESG Initiatives

For details of ESG initiatives in "Long-term Management Plan 2030“, please refer to the following link.
https://www.mec.co.jp/e/investor/plan/pdf/plan200124_e.pdf
MITSUBISHI ESTATE CO., LTD.

60

ESG Initiatives

1. Materialities (Important Issues for Sustainable Management)
Identifying 7 Materialities’ Opportunities and Risks

Opportunities

Materialities

Real estate with lower environmental impact and natural

Environmental regulations' impact on development

disaster resilience

opportunities

Response to foreign workers and foreign visitors needs

Increased country, compliance, and supply chain risks

Real estate / development that protects against terrorism
and crime

Aging and vacant buildings causing security issues

Growing demand for facilities or services which meet

New work styles (e.g. telecommuting) reducing demandvarious styles of life, work and consumption

for fixed offices

Facilities that best serve the aging population

Redevelopment and renovation of existing stock in major
citiesSmart-city/home/office technology

MITSUBISHI ESTATE CO., LTD.

Risks

Working age population decline changes demand for
fixed offices

New condominium needs changing

Reduced demand for physical facilities

61

ESG Initiatives

2. Initiatives to Protect Environment (ESG's "E")Key KPIs and Targets■ CO₂ emissions ■ Waste disposal ■ Renewable energy rate ■ Waste recycle rate
■ Water recycle rate ■ # of renovated buildings and condos ■ Domestic lumber usage rate

CO₂ Emissions⁃ Increase electricity storage facilities⁃ Optimize thermal circulation⁃ Employ demand response system

2030 Target

35％ reduction (vs. FY2018)

2050 Target

Waste Recycle Ratetenants, visitors, and guests⁃ System/measures to facilitate waste
separation⚫

⚫

2030 Target

87％ reduction (vs. FY2018)*These targets were approved by
SBT Initiative in April 2019

CO2 Reduction
Case Study⁃ Raise awareness and distribute information for

90％⚫

Use of a fuel cell system manufactured by
Mitsubishi Hitachi Power Systems

Installed in the Marunouchi Building
Mar. 2019
CO2 emission reduced by 50% vs grid
power【Actual : 45.5％ (FY2019)】【Actual: 3,336,000t (FY2018)】

Renewable Energy Rate
2030 Target
2050 Target

25％
100％

【Actual : 1.3％ (FY2019)】

MITSUBISHI ESTATE CO., LTD.

Waste Disposal
2030 Target

20％ reduction(vs. FY2020)【Referential figures: 0.01t/sq m. (FY2019)】

Marunouchi Bldg.

Fuel Cell System installed

62

ESG Initiatives

3. Initiatives to Human Resources and Resilience (ESG's “S”)
＜Human Resource＞Key KPIs and Targets＜Resilience＞Key KPIs and Targets■ PTO utilization■ Rate of buildings that are to take in stranded commuters■ Paternity leave utilization■ Rate of people with first aid training course qualifications■ Retention post-parental-leave
Rate of Buildings That are
to Take in Stranded Commuters

PTO Utilization
FY2021 Goal

5％ increase

Actual (FY2019)(VS FY2018)

Rate of such facilities*3【Actual*1：66.0％ (FY2018)】

Paternity Leave Utilization
FY2030 Goal

Rate of People with First Aid
Training Course Qqualifications

FY2030 Goal

100％

【 Actual*2：12.6％ (FY2019)

100％【Actual*4 ：64.0％ (FY2019)】

Retention Post-parental-Leave
FY2030 Goal

100％

*2 Average of 5 companies (Mitsubishi Estate, Mitsubishi Estate Residence,

Mitsubishi Jisho Property Management, Mitsubishi Jisho Sekkei, Mitsubishi Real Estate Services)
MITSUBISHI ESTATE CO., LTD.

Seismic Performance of New
Building (Marunouchi Area)

1.5×of a standard skyscraper(=withstand a level 7 earthquake)

Emergency Generator for BCP in
New Buildings (Marunouchi Area)

72 hr【Actual*2：96.7％ (FY2019)*1 Mitsubishi Estate only

92％

*5

*3 Office building: Large buildings completed in 2002 onward. Retail properties: Large facilities completed in 2008 onward*4 Average of 3 companies (Mitsubishi Estate, Mitsubishi Jisho Property Management, Mitsubishi Jisho Retail Property

Management)*5 There are certain exceptions

63

ESG Initiatives

4. Corporate Governance (ESG’s “G”) -1
Establish effective governance that ensures long-term enhancement of corporate value(as of Jan 2020)

Corporate Structure• Transitioned to a “Company with Nominating Committee, etc.” in June 2016

Structure of the Board of Directors

Committee Members• 15 directors: 8 company directors and 7 independent outside
directors (10 of which are non-executive directors)• Chairpersons of all committees are independent outside directors• Remuneration and Nominating Committees comprised ofindependent outside directors only
Nominating Committee
Exclusively outside directors• 6 of 7 independent outside directors are male and 1 is female.

Board Structure

Composition of male/female
1

5

7
3

Company Director(Executive)
Company Director(Non-executive)
Independent/Outside Director (Non-executive)

MITSUBISHI ESTATE CO., LTD.

Audit Committee
Chairperson is outside director

Remuneration Committee
Exclusively outside directors

14
Male

Femal
: Outside Director: Company Director(Non-executive): Chairperson

64

ESG Initiatives

5. Corporate Governance (ESG’s “G”) -2
Non-Renewal of Anti-takeover Measure• The Board of Directors did not renew the anti-takeover program which would provide countermeasures against hostile
takeover attempts. It expired in June 2019.

The Executive Compensation Plan Aims to Align Shareholders and Executives’ Interests
Composition of Compensation
Base Salary50％
Fixed Component

Short-term Incentive

Singe-year
Performance-based
Incentive

25％

Medium- to
Long-term Incentive

RS
Incentive

PS
Incentive

12.5％

12.5％

Variable Component<Single-year Performance-based Incentive>
・Form : cash
・Calculation: "KPIs" : Operating Profit, ROE etc. of previous year
<New Long-term Performance-based Incentive Plan (PS Incentive) >・Form : cash
・Performance evaluation period: 3 years
・Calculation: Based on stock price and total shareholder returns relative to peer companies*<Restricted Stock Plan (RS Incentive) >・Form : stock
・Lock-up period: 3 years* Nomura Real Estate Holdings, Inc., Tokyu Fudosan Holdings Corporation, Mitsui Fudosan Co., Ltd., Tokyo Tatemono Co., Ltd., and Sumitomo Realty & Development Co., Ltd

Strategic-holding Stock Policies• Sold 28 entities* with total value of approx. ￥31.5 bn in the past four years (FY16–19).
• Current market value of the holdings is approx. ￥230 bn; routinely review strategic objectives and dispose of stocks asnecessary as of January 2020.
* Including partial sale

MITSUBISHI ESTATE CO., LTD.

65

ESG Initiatives

6. External Evaluation
As of January 2020, reputations or ratings below have been given.
• FTSE4Good Global Index (18 years in a row)
• FTSE Blossom Japan Index (Adopted by GPIF)(3 years in a row)
• MSCI Japan ESG Select Leaders Index (Adopted by GPIF) (3 years in a row)
• MSCI Japan Empowering Women Select Index (Adopted by GPIF)• S&P/JPX Carbon Efficient Index (Adopted by GPIF)• SNAM Sustainability Index (8 years in a row)
• GRESB Public Disclosure (3 years in a row)
• GRESB Real Estate 2019: Three Stars/Green Star
• CDP Climate Change 2019 Questionnaire: A- rating

MITSUBISHI ESTATE CO., LTD.

66

Contact Information
Investor Relations Office,Corporate Communications Department
Mitsubishi Estate Co., LTD.

+81-3-3287-5200
https://www.mec.co.jp/<Disclaimer>
Regarding information on the properties of this material, it is based on judgment obtained from information available at thepresentation date of this material.
Please be aware that actual information can result in different results depending on various factors.

MITSUBISHI ESTATE CO., LTD.