FY2022

IR Presentation

For details of the "Long-Term Management Plan 2030", which began from April 2020, please refer to the following link.
https://www.mec.co.jp/e/investor/plan/pdf/plan200124_e.pdf

Contents
Financial Overview

3

Summary of FY2022 Results

4

Summary of FY2023 Forecasts

7

Progress of Long-Term Management Plan

11

ESG Initiatives (Sustainability Initiatives)

23

Financial Supplemental Data

32

Business Overview

40

Commercial Property Business
Office Building

43

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

58

Residential Business

65

International Business

71

Investment Management Business75

Investment/Financial Data, etc.

80

Overview of the "Long-Term Management Plan 2030"

84

MITSUBISHI ESTATE CO., LTD.

2

Financial Overview

Financial Overview＜FY2022 Results＞• Operating profit increased significantly YoY due to the following factors (historical high).

【Main factors】 Capital gain increase, Tokiwabashi Tower operation, decrease in COVID-19 impact on retails and hotels, and fee
revenue* increase in IM business.

• Profit attributable to owners of parent also marked historical high.

*See page 78 for details.

*See page● for details.
＜FY2023
Forecasts＞• Expect to increase YoY due to significant capital gains in international businesses, etc.
• Operating profit and net profit attributable to owners of the parent company are expected to reachrecord highs for the second consecutive year, at ¥291 bn and ¥165 bn.
• Expect record-high DPS（forecast) of ¥38 FY(up ¥2 YoY).

＜ Recent Highlights ＞• Domestic assets: Tokiwabashi Tower -Almost fully leased.
• International assets: Capital Place (Hanoi, Vietnam) and Central St. Giles (London, UK) were sold.
• Non-asset: Investment Management business -Significant increase in profit due to AuM expansion (4.5tn) and incentive fees associated with market value increase, etc.
• ESG: Declaration of “the setting of GHG emissions reduction new targets and 2050 Net-Zero based on
the new SBTi standards".
MITSUBISHI ESTATE CO., LTD.

3

Summary of FY2022 Results

MITSUBISHI ESTATE CO., LTD.

4

Summary of FY2022 Results

1. Income Statement Results for FY2022
Record profits led by higher capital gains, condominiums sales, investment management fees etc.
<New Segment>
Operating revenue
Commercial Property BusinessResidential Business
International Business
Investment Management Business
Other*
Elimination
Operating profit
Commercial Property BusinessResidential Business
International Business
Investment Management Business
Other*
Eliminations or corporate
Non-operating income(Share of profit of entities accounted forusing equity method)
Non-operating expenses
Ordinary profit
Extraordinary income
Extraordinary losses
Total income taxes

Profit attributable to noncontrolling interests

Profit attributable to owners of parent

Millions of yen (rounded down)

FY2022
1,349,489
760,658
380,959
121,234
46,702
67,914- 27,979
278,977
189,90930,17355,816
26,537
1,119- 24,578
16,319FY2021
1,207,594
672,441
362,755
114,457
22,19965,119- 29,378
224,394
180,775
24,06837,9325,966- 130- 24,219
26,292

Change141,894
88,21618,204
6,776
24,503
2,793
1,398
54,5839,113
6,104
17,884
20,5701,250- 359- 9,973

332

307

25

41,586
253,710
20,18920,12070,88927,718
155,571

39,720210,965
16,603
26,30454,195
11,414
135,655

1,865
42,744
3,585- 6,183
16,693
16,603
19,516

Capital Gains included in Operating Profit
Total

Commercial Property BusinessResidential Business
International Business
Investment Management Business
Other
Eliminations or corporate

Business profits
EBITDA
Interest-bearing debt

279,310
381,434
2,738,632

FY2021

224,701
331,8212,526,142

Commercial
Property
9,113-

Change25,00010,000- 2,000
17,000-Residential
6,104International
17,884

Others21,461

Increase in profit fromthe Investment
Management (p78)

Increase in capital gains

278,977

Increase in profit fromcondominiums for sale

224,394

Increase in capital gains
Profit contribution from new buildings
Reversal of extraordinary losses due to
COVID-19

Change54,60849,613
212,490-

FY202151,00032,000
7,000
12,000Major Factors for Changes in
Operating Profit by BusinessMillions of yen (rounded down)

FY2022

FY202276,00042,0005,000
29,000Millions of yen (rounded off
to the nearest billion)

FY2021

Commercial

Results

Property

Residential

International

Others

FY2022
Results*Architectural Design & Engineering / Real Estate Service Business and Other businesses
MITSUBISHI ESTATE CO., LTD.

5

Summary of FY2022 Results

2. Changes in Revenue from Operations by Asset Type (Japan)
For retail properties and hotels, operating profit is recovering YoY, but limited recovery in 4Q due
to the impact of the Omicron strain.
Office buildings*1

Retail properties, outlet malls, hotels, etc.

(Billions of yen)(Billions of yen)

80

14

69.2

*2

70

60.7 60.1 60.4 62.2 61.1

62.5 62.5 61.9 62.1

64.2

61.2

12

Closure of retail properties
and hotels under SOEs

11.6

11.3

10

50

30.9

33.5 33.6
31.6 32.7

37.0 37.4 37.3 37.5
35.1 36.1 35.5

15.6 16.0 16.1 16.8 14.3 15.1 15.3 14.6 14.8 15.1 15.0 15.3

10
0

8

10.8 10.9

11.3

6.4

7.2

4th

12.5
11.5

10.9

10.3
9.1

7.2

4

10.6
9.3

8.7

6.2

9.1

2.3

20/3
2Q

20/3
3Q

Marunouchi

20/3
4Q

21/3
1Q

21/3
2Q

21/3
3Q

21/3
4Q

22/3
1Q

22/3
2Q

Tokyo (excl. Marunouchi)*1 Incl. revenue from office complexes and retail properties*2 One-time income from receipt of restoration construction costs, etc.

MITSUBISHI ESTATE CO., LTD.

22/3
3Q

22/3
4Q

Outside Tokyo

0

8.9

8.4

4.8

4.2

5.7

preemergency
measures

No

11.9

9.4

8.9

4.2

2
20/3
1Q

11.4

Yes*3
3rd

6

30
20

1st

10.1

60

40

12.0

No
2nd

Yes

2.3

2.7

3.3

3.4

0.8

20/3 20/3 20/3 20/3 21/3 21/3 21/3 21/3 22/3 22/3 22/3 22/3
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
1Q
2Q
3Q
4Q
Outlet malls
Others (stand-alone SC, logistics facilities, etc.)
Royal Park Hotels and Resorts

SOE declaration period(Areas and requests
differ each time)*3 Some outlet malls and retail properties only.

6

Summary of FY2023 Forecasts

MITSUBISHI ESTATE CO., LTD.

7

Summary of FY2023 Forecasts

1. FY2023 Income Statement Forecasts（vs FY2022 Results）
Record-high profits expected from significant increases in capital gains in the International Business.
<New Segment>
Operating revenue
Commercial Property BusinessResidential Business
International Business
Investment Management Business
Other※
Elimination
Operating profit
Commercial Property BusinessResidential Business
International Business
Investment Management Business
Other※
Elimination or corporate
Non-operating income（Share of profit of entities accounted
for using equity method）
Non-operating expenses
Ordinary profit
Extraordinary income
Extraordinary losses
Total income taxes
Profitable attributable to non-controllinginterests
Profit attributable to owners of parent

2023/3
Forecast

1,416,000
788,000
345,000
205,000
35,00073,000- 30,000
291,000
182,000
27,00094,00013,0002,000- 27,000
12,000Millions of yen (rounded down)

2022/3Results

Change1,349,489
760,658
380,959
121,234
46,702
67,914- 27,979
278,977
189,90930,17355,816
26,537
1,119- 24,578
16,31966,511
27,342- 35,959
83,766- 11,702
5,086- 2,021
12,023- 7,909- 3,173
38,184- 13,537881- 2,422- 4,319

332

68

400
32,000271,000
6,000
22,00076,00041,586
253,710
20,18920,12070,889- 9,586
17,290- 14,189
1,880
5,111

14,00027,718- 13,718

165,000

2023/3
Forecast

155,171
9,829
Millions of yen (rounded down)

2022/3Results

MITSUBISHI ESTATE CO., LTD.

2023/3
Forecast

122,000

Total
Commercial Property BusinessResidential Business
International Business
Investment Management Business
Other
Eliminations or corporate

2022/3Results

Change76,00046,00035,00042,000- 7,000

22,0005,000

17,00065,00029,00036,000

-

-

-

-

-

-

-

-

-

Major Factors for Changes in
Operating Profit by Business
OthersInternational
Property-7,909278,977-15,078

38,184

Commercial
Residential-3,173IM Business
Rebound of incentive fee
291,000

Increase in capital gains
Decrease in profit fromcondominiums
Decrease in capital gains
Decrease in profits frombuildings closure

Change291,400
279,310
12,090Business profits
395,000
381,434
13,566
EBITDA
2,820,000
2,738,632
81,368Interest-bearing debt
※ Architectural Design & Engineering / Real Estate Service Business and Other businesses

Millions of yen (rounded off to thenearest billion)

Capital Gains included in Operating Profit

FY2022
Results

Commercial
Property

Residential International

Others

FY2023
Forecasts

8

Summary of FY2023 Forecasts

2. FY2023 Business Profits Breakdown (vs FY2022)
Record-high profits expected, mainly from significant increase in capital gains andbusiness recovery from COVID-19.
FY2023 Forecasts
Business profits 291.4(Billions of yen)

FY2022 Results
Business profits 279.3
Capital
gains

Excl.
Residential

Capital
gains

71.0

76.0

Residential capital gains

Domestic
condominiums, etc.*

5.0

30.2

25.3

IM business

26.5
Income gains

178.0

Excl. IMBusiness

151.6

100.0

Domestic Condominiums, etc.
Breakdown of change

Residential capital gains

Residential

Domestic
condominiums, etc.

5.0

22.0

Income
gains

164.4

Residential

IM business

13.0

Excl. IMBusiness

151.4

76.0 → 122.0（+46.0）【Breakdown】
・Commercial ：-7.0
・Residential：+17.0・International ：＋36.0

Excl. Residential

122.0

Capital gains Breakdown of change

27.0

25.3 → 5.0（-20.3）【Main Factor】- Substantial decrease in sales volume

Income Gains Breakdown of change

178.0 → 164.4（-13.6）【Main Factor】＋Gains from new buildings＋Improved business environment for commercial
and hotel business- Rebound of investment management incentive
fees- Decrease in profits from the buildings ofredevelopment projects- Decrease in rental profits due to property sales* Excluding capital gains, etc. from the Mitsubishi Estate Residence's operating income

MITSUBISHI ESTATE CO., LTD.

9

Summary of FY2023 Forecasts

3. Shareholders Returns
The dividend forecast is ¥38 (up ¥2 YoY). Expect record-high DPS for the second consecutive year.
(Yen)

40

36.00

35

33.00
30.00

30

38.00

43.0%

31.00

41.0%
39.0%

26.00

25

15

12.00

14.00

0

25.9%
FY2014

35.0%

16.00
30.0%

10
5

37.0%

20.00

20

26.5%

26.6%

FY2015FY2016

30.9%

30.4%

30.6%

30.9%

33.0%
30.5%

31.0%
29.0%

27.0%

27.0%
FY2017FY2018Amount of
Share
Buyback

FY2019FY2020

FY2021¥ 100 billion
Dividends per share

MITSUBISHI ESTATE CO., LTD.

45.0%

FY2022

FY2023(Revised
forecast)

25.0%¥ 30 billion

Payout ratio (right axis)
10Progress of the Long-Term Management Plan

For details of the "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.

11

Progress of the Long-Term Management Plan

1. Changes in ROA/ROE/EPSFor FY2023, EPS is expected to reach record high with ROE maintaining the 8% level.
10%

10.0%

200

9.0%

8.1%

7.8%

7.6%

7.3%

5.2%

124.75

5.6%

108.6496.97

5.0%

116.45101.34

86.78
74.00

4.0%
52.85

60.13

3.3%

3.3%

FY2015FY2016

8.0%
150

6.6%

7.0%

3.0%

200

8.5%

8.0%

6.0%

(yen)

3.8%

4.4%

4.1%

4.0%

5%

100

4.4%

3.8%

3.6%

50

2.0%
1.0%

FY2017FY2018FY2019FY2020EPS(right axis)
MITSUBISHI ESTATE CO., LTD.

FY2021*ROA

ROE

FY2022

FY2023(Forecast)* ROA = Business

2030 Target

0

Profit / Total assets (average)

12

Progress of the Long-Term Management Plan

2. Capital Policy #1: Cashflow of FY2022 (Results)
Despite some cash-out period slippage, steady investment opportunities being acquired
to realize LT management plan 2030.
Cash in(Initial assumption)(810)

Results

710

Financing arrangements（Increase in liabilities)
(180)

80

Strategic returns*4
20（20）

Cash out(Initial assumption)(810)

Strategic
allocation(150)

Results

710

Growthinvestments
50

Share buybacks

（30）

30

(Billions of yen)

Large-scale residential land acquisition and delivery timing delays（Completein 2022/4）

Capturing investment opportunities for the Long-Term goals(See table below for the breakdown.)【Major investments in FY2022 (current forecasts includes growthinvestments)】
Marunouchi

Returns*1
(380)

380

PlannedInvestments*2
(580)

580

230

Initialassumption

Change600Outlet Mall, etc.

20

20

Domestic condominium

140

240

0

Domestic capital recycling and others

220

220

0

Overseas

190

190

0

Total

630

730

- 100

-

100

* The difference between FACTBOOK's capital investments and equity investments is the
exclusion of inventories on FACTBOOK and the delay in reflecting it in the consolidated financial
statements due to the timing of the settlement of consolidated SPCs

Cash flows fromoperating activities*3(230)

Current
forecasts
60

Dividends(50)

50

Payout ratio: Approx. 30%
DPS: ¥36 (¥3 increase from initial assumption）*1 Collection amount of book values from sale proceeds of properties *2 Investment amount for approved investment projects (partly incl. expected approvals)*3 Operating chashflows, excl. Change in inventories and change in equity investments *4 Sale of low-performing assets to improve capital efficiency
MITSUBISHI ESTATE CO., LTD.

13

Progress of the Long-Term Management Plan

3. Capital Policy #2: FY2023 Cashflow Forecast
Increased cash inflows from profit growth and increased collections.
Aiming for accumulating solid planned investments and new investment opportunities.
Cash in
870～920

Healthy financial level allows newinvestments

Cash out
870～920
Financing arrangements（Increase in liabilities)
150～200

Strategic
allocation
100～150(Billions of yen)

Continue planning to pursue strategic
investment opportunities, esp. in
capital recycling in Japan and overseas
Large-scale residential land acquisition anddelivery timing delays（Complete in 2022/4）

Steady Investment opportunities
acquisition, mainly in Japan
Increased collection from capital gains（+50 YoY）

Returns*1
450

PlannedInvestments*2
720【 Major investments in FY2022 】
Marunouchi
Outlet Mall, etc.
Domestic condominium
Domestic capital recycling andothersOverseas

Increased operating CF due to growthin business profit (+40 YoY)

Cash flows fromoperatingactivities*3
270

Dividends
50

60
30
230
250
150

Payout ratio: Approx. 30%
DPS: ¥38（up ¥2 YoY）
(Expected to reach record high).

*1 Collection amount of book values from sale proceeds of properties *2 Investment amount for approved investment projects (partly incl. expected approvals)*3 Operating chashflows, excl. Change in inventories and change in equity investments *4 Sale of low-performing assets to improve capital efficiency

MITSUBISHI ESTATE CO., LTD.

14

Progress of the Long-Term Management Plan

4. Capital Policy #３: Investments and Returns FY21 to FY23 (Results, Forecasts)
Obtained more opportunities in both Japan and overseas.
Accelerate capital recycling through increased and portfolio strategy-based collections.
3-yearinvestments

Original

Current

2,100

2,140~2,190

Strategic
Allocation(investments/shareholders return/suppression of debt)

600

PlannedInvestments
1,500

3-yearreturns

Strategic Allocation(FY2023)
FY2022100~150
Sharebuyback
30

PlannedFY2021,FY2022 Investments
Investments
1,900
110

（Breakdown）
FY2021・FY2022
1,180
FY2023 Forecast
720

1,200~1,300

1,330

Return1,100

Return1,210Strategic Return

Strategic Return*100～200

MITSUBISHI ESTATE CO., LTD.

(Billions of yen)120

FY2021・FY2022
Results
FY2023
Basic Investments
Total Investments
2,010【FY2023Forecasts】
Steady build-up of planned investments
therefore aiming to capture new investment
opportunities.*See p. 14.
【FY2021・FY2022 Results】
Achieving steady investment opportunities in Japanand oversea【Major investments】

Marunouchi
Outlet Mall, etc.
Domestic condominium
Domestic capital
recycling and others
Overseas

Total

Changes from
InitialAssumption
110
-10
60
-20
310
-20

Total of
FY21 and FY22

500

+110

310
1,290

+50
+110

・Base collection increase with higher capital gains
・As a portfolio strategy-based collection, partial
ownership in Grand Front Osaka is sold following
Otemachi Park Building.
Incl. the sale of the Otemachi Park Building, after the release of the FY2020 LongTerm Plan.

15

Progress of the Long-Term Management Plan

5. Domestic Asset Business #1 : Profit Trends
Capital gain returns exceeded expectations in each asset, while income gain growth
was affected by COVID-19.
（vs FY2020 Forecast (¥201 billion）

250.0+50 bn

200.0

33.0
150.0

14.7

39.0
16.7

47.0
57.0
25.3

 Continuous capital gains mainly from offices, logistics facilities, andrental apartment.

FY2021￥39 billion

5.0

Office：¥ 24.0 bn
Logistics： ¥ 8.0 bn
Residential：¥ 7.0 bn

153.8

145.9

143.4

141.4

FY2022¥47 billion

Office：¥ 35.0 bn
Logistics： ¥ 7.0 bn
Residential： ¥ 5.0 bn

Main Properties for Sale

Main Properties for Sale
■Link Square Shinjuku（partial ownership）

Use : OfficeTotal floor area：Approx. 44,000㎡■Toyosu Front（partial ownership）■LOGIPORT KAWASAKI BAY

Use：OfficeTotal floor area：
Approx. 107,000㎡【Residential Business】
Sold 6 properties【Residential Business】
Sold 4 properties

Use : Logistics facilities
Total floor area：Approx. 297,000㎡

100.0

 Steadily disposed of inefficient assets
FY2020: Otemachi Park Building (partial ownership), Atagawa Villa Project
FY2021: Corowa Koshien, FY2022: Grand Front Osaka (partial equity interest)

50.0

0.0

Capital gains

Business profit(LT plan) +50.0bn(Billions of yen)

Income gains
FY2020

Income gains

MITSUBISHI ESTATE CO., LTD.

FY2021

FY2022

Domestic Condminium for sale

FY2023(F) Goals of 2030  New building operations contributed to profit, whereas profit loss derived from
Capital gains

redevelopment of buildings, etc.
 Outlets and commercial facilities significantly affected by COVID-19 from FY2021,
but gradually recovering

16

Progress of the Long-Term Management Plan

６. Domestic Asset Business #2
Progress in capital recycling business investment further expands pipeline.
Property Name(including tentative name)*1

Total Floor
Area※2

Tokiwabashi Tower (Building A）

146,000㎡ ●Uchikanda 1-chome Project

85,200㎡

Marunouchi Yurakucho Building ・Shin-Yurakucho
Building reconstruction project※3★

Minami-Aoyama 3-chome project

14,700㎡★

Osaka Mitsubishi Building
reconstruction project

67,000㎡★

Toyosu 4-2 development project

136,500㎡

Akasaka 2・6-chome Development
Project

210,000㎡

FUKAYA HANAZONO PREMIUM
Outlet Mall OUTLETS®
KYOTO JOYO PREMIUM OUTLETS®

※3

245,000㎡

Tokyo Ryutsu Center Distribution A
Building※4205,000㎡

Logicross Zama

Large-scale
Sagamihara-shi Chuo-ku Fuchinobe
Logistics
project
Misato-shi Hikoito Project
Kyoto Joyo Next-Generation Core
Logistics Facilities Project★

Retail Properties
Rental

11.1%

64.1%

Approx.
Approx.
\65-70 bn \1-1.1 tn

Under consideration★
★

Logistics
Facilities
Other

Gradual completion andopening●【Logistics Facility
Total Assets】【Rental Apartment
Total Assets】

Approx. ¥ 84.0 billion Approx. ¥ 140 billion●
Under consideration★

●

173,000㎡★

●

development Assets in
Operation45%(10 buildings)

Under consideration

54,000㎡★

277,000㎡

Assets under

Assets under●55%（7 buildings)●★・・・Start Construction●・・・Completion… Project added this quarter

MITSUBISHI ESTATE CO., LTD.

Office

7.6%

Under consideration★

※１ Includes properties expected to be sold by 2030

（vs. FY2020 (+¥0.25 tn)）

11.3%
●

…Project announces after the Long-term Management Plan
Red

2.7%

●

★

178,700㎡※3■Book value of domestic assets*
in capital recycling business
3.3%●

6,600㎡

34,500㎡

Estimated
Investment●

378,450㎡※3

Estimated NOI(Stable operation)

Approx.¥1.25 tn at the end FY2022★

4,600㎡

Former Hotel Grand Palace site
redevelopment project

2030

Under consideration

544,000㎡※3～●

10,700㎡

Torch Tower（Building B）

Mixed Use・ IMS Reconstruction Project
OfficeUmekita Second Zone Development
Project (Rental Property)(100,000㎡+)

FY2022 FY2023 FY2024 FY2025 FY2026※2 Total floor area unless otherwise noted.

（End of March 2022）*Ratio by value*Excl. Tokyo Ryutsu Center*Includes equity investment balance

development
39%

Assets inOperation（45 buildings） 61%(35 buildings)（End of March 2022）*Ratio by value※3 Site area17

Progress of the Long-Term Management Plan

7. International Asset Business #1 :Profit Trends

Steady profit growth in both income and capital gains. +¥58.0 bn growth expected in
FY2023 compared to FY2020 forecast (¥36.0 bn), driven by large capital gains.
Business profit(long-term target) +¥50.0 bn(vs. initial forecast
for FY2020 (¥36.0 bn))

(Billions of yen)

94.0
80.0

Capital Gains Basis on U.S. capital recycling business (¥10-20
bn/year) Continued contribution from capital recycling inEurope and portfolio expansion in Asia to achieve
capital gains growth.
■ Breakdown of Capital Gains by region

55.8

60.0

65.0

+¥ 50 bn

46.1
37.9

40.0

28.0

29.0

18.1
FY2020

25.9

28

20

16

12

11

12

12

18

24

FY2020

FY2021

FY2022

FY2023(F)29EuropeAsia

Income Gains

29.0

 Achieved ¥10.0 billion growth in FY2020 through area
strategies
FY2021
Income gains

MITSUBISHI ESTATE CO., LTD.

26.8

38

40

US

20.0

0.0

3

60

0

12.0

65

FY2022
Capital gains

FY2023(F)Goals of 2030

U.S.A
Renewal of 1271AoA, hybrid model investment contribution
Europe Rich pipeline despite of reductions from sales and renovations
Asia
Expansion of residential business and development promotionin each area18

Progress of the Long-Term Management Plan

8. International Asset Business #2■Results of capital gains

Besides U.S.capital recycling business (¥10-20 billion/Y),
capital gains in Asia and Europe also contribute to profit■Pipelines in International BusinessRich pipelines in each area. Turn into profit at the right timeType

Mainly U.S. ￥Trinity Tower（Indonesia）

Office, Commercial

143,200㎡●

ALPHA PARK（China）

Office233,600㎡●

LIV North Valley
EdisonLocation : Arizona
Location：New Jersey
Use : Rental apartment
Use：Logistics
Building Scale：385 units Building Scale：Approx. 83,600㎡
EIRR：Over 30%*
EIRR：Over 50%*

Capita Spring（Singapore）

Mixed Use

93,400㎡●

Suzhou New District Business
Park (China)

Office220,400㎡

Yoma Central（Myanmar）

Mixed Use

12.0 bn

FY2021Results

US logistics facilities
And Asian office etc. ¥Forecasts

180 George Street（Australia）

116,000㎡

Office, Commercial

65,900㎡

Mixed Use

307,000㎡

Warwick Court（London）

Renovation

29,000㎡

8 Bishopsgate （London）

Office, Commercial

dMoura1（Spain）

OfficeFyrkanten 11（Sweden）

Renovation

Stateline 77 Building1・2

Middlesex
Location：New Jersey
Use：Logistics
Building Scale：Approx. 37,200㎡
EIRR：Over 50%
Capital Place
Locations：Hanoi, Vietnam
Use：Office
Building Scale：Approx.151,600㎡
EIRR：Over 30％

Virginia Data Center Building¥

65.0 bn

Central St. Giles
Location : London
Use：Office
Building Scale：Approx.66,000㎡
EIRR：Over 10％

MITSUBISHI ESTATE CO., LTD.

Hanover（Pennsylvania）

55 Paradise（New York）

Virginia Data Center Building（Buiiding1）

US（Buiiding2）

Liv Crossroads（Arizona）

Liv Laveen（Arizona）

1158 Delaware（コロラド州）

1072 West Peachtree（Georgia）

600 Fifth Street NW（Washington, D.C.）

10,400㎡

Logistics※3

93,600㎡

Logistics※3

42,200㎡

Logistics※3

16,700㎡※551,000㎡

Data Center

★

●

●
●
●
★

●
●

●

★

★

●

●

Rental Apartment

360 Units

Rental Apartment

250 Units

★

●

★

●

37,000㎡

Approx.
\400 bn●

356 Units※3

Approx.
\30 bn●Rental Apartment

OfficeEstimated Estimated I
NOI (Stable nvestment●★

49,300㎡

2030●★

Data Center

※3

～

●

★

Mixed Use

FY2026

Under consideration

7,800㎡※4

FY2025●

11,000㎡※3

FY2024★

85,000㎡※360-72 Upper Ground（London） Office Commercial

FY202360,000㎡

Office, Commercial（Indonesia）

FY2022

212,700㎡※3

Parkline Place （Australia）
Oasis Central Sudirman

EuropeOffice, Commercial

One City Centre （Thailand）（South Carolina）

In Europe andother areas

FY2023Asia

29.0 bn

Harvill
Location：California
Use : Logistics
Building Scale：Approx. 31,000㎡
EIRR：Over 100%

FY2022
Results

Total Floor
Area※2

Property Name＋Country※1

●

★

●

★

●

●・・・Completion★・・・Start Construction…Project announced after the Long-Term Management Plan
Red…Project added this quarter*１ Includes properties expected to be sold by 2030
*3 Leasable area

*4 Site area

*2 Total floor area unless otherwise noted.

*5 Total of two buildings

19

Progress of the Long-Term Management Plan

9. Non-asset (Fee-based) Business
Significant growth led by increased profits from investment management businessdespite the large impact of COVID-19 to hotel business.
Business profit(long-term target) +¥50.0 bn(vs. initial forecast
for FY2020 (¥16.0 bn))

(Billions of yen)

60.0

12.3

30.0

0.0
-10.0

+¥ 50.0 bn

32.3

40.0

10.0

■Base income increase from AuM expansion

・AuM expansion leads to ¥10 bn level business profit with increase inbase fees revenue.

(Trillions of yen）

50.0

20.0

Investment Management Business

15.7

9.3

12.2

10.7

4.4

5.9

-0.9

-7.3

-6.7

FY2020

FY2021

FY2022IM Business
MITSUBISHI ESTATE CO., LTD.

21.0

3.7

5.0

2.4

Domes
tic

2.0

2.1

InternationalAt the annoucement
FY2021of the Long-Term Management Plan
(January 2020)

FY2022

1.4
1.7

1.7

Target AuMs
(Mid-2020s)■■Includes incentive fees to receive in the future from valueadded funds

13.0

・A ¥18.5 bn incentive fees associated with real estate market valuation increase ofvalue-added funds in the U.S. etc. in FY2022 (details on p.78)
・Certain amount of incentive fees for FY2023 and beyond.

-3.0
FY2023(F) Goals of 2030
Other

3.1

4.5

11.0
26.5

Hotel

5
4
3
2
1
0

Hotels Business Heavily impacted by COVID-19 but gradual recovery is expected,
though it takes time.
Increased deficit in FY2021-FY2022 due to COVID-19 Management reforms
and a certain level of domestic demand recovery expected in FY2023.

20

Progress of the Long-Term Management Plan

10. Efforts to Improve Social Value #1
Raised reduction targets for GHG emissions in line with SBTi's new net-zero standards.
Substantially accelerated RE100 achievement timeline.
Before#1 Reduce CO2 emissions

#2
R
E
1
0
0

2030 Plan

2050 Target
SBT scenario

After Review

35％ Reduction（From 2017）87％
Reduction（from 2017）

MITSUBISHI ESTATE CO., LTD.

（2030 Target：25％）

70％+ Reduction

50％+ Reduction

Net zero declaration
Tighter scenarios(All reduction in VC※1 ）Net Zero

Reduction in VC※1 ：Over 90％
Neutralization※2 ：10％ or lessLess than 1.5℃
ScenarioLess than 2℃

2050< Scope3 >(All reduction in VC※1 ）scenario

RE100
achievement
timeline< Scope1,2 >(New Standard “Net Zero”）

Significant
acceleration

FY2025※1 All reduction in the Group’s Value Chain※2 Neutralize "residual emissions" that cannot be fully reduced by using forest-

derived absorption and carbon removal technologies, etc.

21Progress of the Long-Term Management Plan

11. Efforts to Improve Social Value #2

Set new GHG emission reduction targets(Declaration of Net Zero)
Substantially accelerated RE100 achievement timeline.
Overview of GHG reduction targets◆Meet the 1.5°C scenario of SBTi (The Science Based Targets
initiative) and review in accordance with the new net-zero standard
announced by SBTi (application for reduction target certification by
SBTi is in process).
“New Mid- and Long-Term Reduction Targets: relative to base year
(FY 2019) emissions,
FY2030: Reduce the sum of Scope 1 and 2 by at least 70% andScope 3 by at least 50%.
2050: Achieving Net Zero."Compliant with new SBT net zero standard (1.5°C scenario)
New Mid- and Long-Term
Reduction Targets / Scope 1, 2

475,000
tons

By FY2030

By FY2030

Reduction
within thevalue chain(VC)
More than70%

Reduction
within VC

RE100
Aiming toAchieve

FY2025

FY2050Net Zero

3,540,000
tons

More than50%

VC reduction
Over 90%【Measures】 Expectations for new energy and new technologies(e.g., Carbon neutral gas)”

Scope2：Indirect emissions from the use of electricity,heat, and steam supplied by other companies”
82.9%【Emissions】 Use of electricity (Approx. 96.5%)【Measures】 Switch to renewable electricity”

Scope3：Indirect emissions other than Scope 1 and 2【Emissions】①Future emissions by asset sales*3（48.5％, Category 11）②Emissions by capital investment（43.3％, Category 2）【Measures】 ①Reduction through reduction of Scope2②Identification of GHG emissions during the production of construction
materials, and reduction through the use of low-carbon materials”* Calculation: Floor space sold x Emissions per m2 in the previous year (Scope 1+2) X 50 years

FY2050Net Zero
VC reduction
Over 90%
NeutralizationLess
than10%

Neutralization
Less than10%

FY2025FY2019

New Mid- and Long-Term
Reduction Targets / Scope 3◆Breakdown of GHG emissions and major reduction policies (FY21 Actual)
3.3%
Scope1：Direct emissions by companies themselves
13.8%【Emissions】 Use of gas（Approx. 96.6％）

Accelerate introduction of renewable energy to achieve RE100◆Following Otemachi, Marunouchi, andYurakucho areas, switch to renewableenergy-derived power for officebuildings and retail properties, owned inTokyo and Yokohama (including plans).
◆Introduced in approximately 50
buildings by FY2022.

FY2030

Neutralization
FY2025

MITSUBISHI ESTATE CO., LTD.

FY2019FY2030◆Renewable electricity rate is expected
Neutralization to increase to 50% by FY2022. Aiming
to achieve RE100 by 2025.
FY2025

Renewable electricity rate and targets
100％
100%
80%
60%
Approx.
30％

40%
20%
0%

Approx.
50％

1.1% 3.1%
FY20

FY21

FY22(F)

FY23
（F）

FY26
(Target)22

ESG Initiatives (Sustainability Initiatives)

For details of ESG initiatives in the "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.

23

ESG Initiatives (Sustainability Initiatives)

1. Materialities / Material Issues for Sustainability Management
Mitsubishi Estate Group
Sustainability Vision 2050

Be the Ecosystem Engineers
We aspire to be a corporate group (=engineers) that provides spaces andinfrastructure (=ecosystems) where all actors (individual, corporations, andmore) are able to coexist sustainably and thrive together economically,
environmentally, and socially.

Mitsubishi Estate Group 2030 Goals for SDGs

‘Materialities’

Globality
Community
Diversity
Declining Birthrate/
Aging Population
Leveraging Existing
Population

Digital Innovation

MITSUBISHI ESTATE CO., LTD.

Formulation of key themes and KPIs based on our materiality

Environment

Backcasting①

Environment②

Diversity&
Inclusion③

Innovation④

Resilience

Sustainable urban development that proactively addresses climatechange and environmental issues

•

•
•
•

CO2 emissions reduction (compared to FY2020)
2030 : Reduce Scope 1+2 by at least 70% and Scope 3 by at least 50%(2050 : Net zero achieved (SBTi certification in process))
Renewable electricity rate: 25% (100% by 2025) (joined RE100 in January 2020)
Waste recycling rate: 90%, Waste disposal: 20% reduction (compared with FY2020 /㎡)
Promote sustainable timber use

Urban development that responds to lifestyle and human resource
trends and facilitates active participation for all•••

Over 20% female managers
Strengthen hospitality and realize stress-free cities
Respect different lifestyles, local customs, religions, and sexual orientation
Establish traceability of timber to be used in business activities

Innovative urban development that continuously renews society••

Innovate business models and maximize performance
Support the creation of new ideas and businesses from the perspective of
urban development and contribute to the growth of cities and industries

Dynamic, flexible urban development that builds disaster-resilient
communities and prioritizes safety and security••

Enhance disaster preparedness to minimize functional stagnation during disasters
Enhance BCP function through hardware measures and strengthen neighborhood
communication

24

ESG Initiatives (Sustainability Initiatives)

2. 2030 KPIs and Progress (The “E” & “S” in ESG)

1

Environment

Benchmarks

GHG emissions

2030 KPIs

FY2021 Actual

Scope1,2：70% or more
Scope3：50％ or more（vs FY2020)*

3,533 thousand t(Reference value:
3,336 thousand t)

Renewable
electricity rate

(FY2026)*

per m2
Waste disposal

vs. FY2019
20% reduction

5.0kg(Reference value:
7.1kg)

Waste recycling
rate

90%

60.5%

3

100%

3.1%

Innovation

Benchmarks

Initiatives• Maximize performance by innovating
business models• Support the creation of new ideas andbusinesses from the perspective of urban
development and contribute to thegrowth of cities and industries
See page 28 for details.

2*New targets due to KPI review in FY2022

Diversity & Inclusion
Benchmarks

2030 KPIs

FY2021 Actual

Percentage of female
managers

Over 20%*

7.1%

Percentage of female newgraduate hires

30% every
year

37.8%

Rate of use of male
employees taking childcare
leave of absence

100%

42.4%

Benchmarks

2030 KPIs

FY2021 Actual

Percentage of employeeswith first aid provider
qualification

100%

63.0%

Percentage of buildingsthat are to take instranded commuters *

ー

92.3%

4

Resilience*Large properties completed in 2002 or later are eligible
MITSUBISHI ESTATE CO., LTD.

25

ESG Initiatives (Sustainability Initiatives)

3. Recent Highlights (The “E” in ESG)

1

Environment

GRESB Real Estate Assessment Awarded highest “5-Star” rating
and named as a sector leader for the first time

 Received a “5 Star rating*1” in the “GRESB Standing Investments Benchmark,” anevaluation of the existing property portfolio (for the second consecutive year).

 Obtained a “5 Star rating*1” in the “GRESB Development Benchmark,” anevaluation of the new development and major renovation portfolio for the firsttime. In addition, the company was selected as a “Sector Leader” for the first timein the Asia region and office buildings.

*1 The highest rating given to the top 20% of the global ranking of the overall score.

*2 The title given to the participant with the highest overall score (and the participant whose score

difference is within one point) in each region and property use.

All electricity at owned buildings in Tokyo, Yokohama to
be derived from renewables.
In FY2023, all of our office buildings
and commercial facilities* in Tokyoand Yokohama will be powered byrenewables. Annual estimated CO2
reduction is approx. 340,000 tons
(equiv. about 120,000 average
households).

▲MARK IS Minatomirai*Over 50% owned buildings andcommercial facilities excluding
turnover-type and redeveloping
properties.
▲Toyosu Foresia▲Tokiwabashi Tower

First The Park House to meet "ZEH-M Ready" standards

GRESB

An organization that provides and operates annual benchmark assessments tomeasure the ESG considerations of real estate companies and funds. It is the only
ESG survey that specializes in the real estate sector, and is also unique in that it
conducts ESG assessments on a company/fund basis, rather than certifying
individual properties.

MITSUBISHI ESTATE CO., LTD.

The Park House Shin-Urayasu Marine Villa
completed its first section in October 2021,
the first The Park House to meet "ZEH-M(Zetch Mansion) Ready" standards.
Improving building "energy-saving" together
with "energy creation" by solar power etc.
aiming 50% reduction of primary energy
consumption.
▲The Park House Shin-Urayasu Marine Villa

26

ESG Initiatives (Sustainability Initiatives)

4. Recent Highlights (The “E” & “S” in ESG)

2

Diversity ＆ Inclusion
Changes in targets and numbers for
improvements in female participation rate
Female new graduate hires (%) *2

Female employees at
assistant manager level (%) *2

Female managers (%) *1(Ref) Female employees
in all employees (%) *2

37.8%

40.0%
31.4%
30.0%
20.0%

22.9%

24.3%

19.7%

21.2%

5.9%

5.8%

FY2019FY2020

37.8%
27.3%
24.5%

10.0%
0.0%

7.1%
FY2021

KPI ①

Percentage of female managers*1: Over 20% by FY2031② Ratio of female employees at the assistant manager level (candidates
for management positions)*2: 30% by FY2026③ Ratio of female new graduate hires*2: 30% annually■Initiatives••••

Enhancing personnel systems to create a better working environment for womenStrengthening mid-career recruitment of female employees at the assistant manager
level and candidates for assistant manager level
Increasing the dissemination of information on the activities of female employees andtheir working environment
Holding in-house roundtable discussions with female employees and having employees
speak at seminars for women*1 Average of Mitsubishi Estate, Mitsubishi Jisho Property Management, Mitsubishi Estate Residence,
Mitsubishi Jisho Sekkei, Mitsubishi Real Estate Service*2 Mitsubishi Estate
MITSUBISHI ESTATE CO., LTD.

Supplier Code of Conduct
Established the Mitsubishi Estate Group Supplier Code of
Conduct on April 1, 2022 to promote sustainability and ESGrelated initiatives throughout our supply chain.
As challenges like human rights, labor and climate change
grow serious, the code clearly states compliance requirements
in our group's operations toward our mission "Realizing
Sustainable and Profound Valuable Society.“
Conducting a survey using interview sheets to check thestatus of Supplier Code of Conduct compliance.
For time being, the survey will cover "contractors" and"cleaning companies" which tend having higher sustainability
risks* in our supply chain," and will be extended further in the
future.
Conduct surveys not only of primary suppliers (direct
suppliers) but also of secondary and subsequent suppliers(subcontractors of suppliers), identify potential risks, andinvite relevant suppliers for improvement initiatives.
*Criteria for determining that there is a strong tendency to increasesustainability risk
1. The employment of foreign workers, technical intern trainees, andother workers whose positions tend to be weak is assumed.
2. Businesses with high environmental impact
3. There are cases where it is difficult to identify and identify risks dueto the multiple outsourcing structure.
27

ESG Initiatives (Sustainability Initiatives)

5. Recent Highlights (The “E” and “S” in ESG)

3

Innovation
New business creation through open
innovation with startups■Promoting Accelerator Program

The program aims to create innovation and innovate businessmodels since 2017. In FY2022, the fifth year of the program, 13
themes, including "food tech" and "resort tech," have been set andstartups are invited to submit collaboration proposals. About 700
applications over the five terms and 33 companies were selected.

■New startup investment fund launch
Launched "BRICKS FUND TOKYO by Mitsubishi Estate" to invest in
startups working to create a mid-to-long term social impact bysolving social challenges and industrial restructuring. About ¥10 bn
investment in the next 5 years with an expected cumulative total
investment in startups and venture capital to reach ¥50 bn (including
confirmed investment) by mid-2020s.

*Combined offline and online events with countermeasures against COVID-19
MITSUBISHI ESTATE CO., LTD.

4

Resilience
Conducting disaster prevention drills anddemonstration tests■Emergency drills through public and private sector
cooperation
Conducted every year and all Mitsubishi Estate executives andemployees, Group companies, and relevant external entities participate.
In FY2021 and FY2022, consideration was given to avoidance of theinfection risk of COVID-19. Initial response, collecting andcommunicating information using tools such as the safety confirmation
system and web conferencing, in line with the actual conditions of thework system with limited personnel under infectious disease
countermeasures were conducted.
■Disaster drills using advanced communication technologies
From November 2021, "Disaster Dashboard Beta" for sharing
information with disaster response agencies and providing information
for stranded people, was tested with Chiyoda Ward, railroad companies,
bus operators, building companies, etc. for 4 months.

Disaster response drills (FY2020)
Conducting drills to simulate the use of
security robots in the event of anearthquake

Disaster Dashboard Beta
(Digital Signage version)

28

ESG Initiatives (Sustainability Initiatives)

6. Corporate Governance (The “G" in ESG) #1
Establish effective governance that ensures long-term enhancement of corporate values.
（as of Mar. 2022)

Corporate Structure• Transitioned to a “Company with Nominating Committee, etc.” in June 2016
• In 2020, an independent evaluation of the effectiveness of the Board was undertaken
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• 6 of 7 independent outside directors are male and 1 is female

Board Structure

Composition of Male/Female
As of March 31, 2022

5

7
3

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

MITSUBISHI ESTATE CO., LTD.

• Remuneration and Nominating Committees comprised ofindependent outside directors only
• With regards to the Audit Committee, two non-executive internal
directors, who are familiar with the company's business, wereappointed to ensure the effectiveness of audits

From June 29, 2022
(to be determined*)

1

2

14
Male

Nominating
Committee

Audit
Committee

Exclusively
outside directors

Chairperson is an
outside director

Remuneration
Committee
Exclusively
outside directors

13
Female*Subject to approval of the director election
proposal at the annual shareholders'meeting on June 29, 2022.

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

29

ESG Initiatives (Sustainability Initiatives)

7. Corporate Governance (The “G" in ESG) #2
Strategic-Holding Stock Policies• Sold 25 *entities with a total value of approx. ¥29.1 bn in thepast four years (FY2019-FY2022)• Approx. ¥244.2 bn (market value) of listed stock as of March 31,
2022. Routinely review strategic objectives and dispose of stocks
as necessary* Stocks of listed companies only. Including partial sale

170
160
150
140
130
120
110
100

Holdings of Shares Held Strategic Purposes(Total for Listed and Non-Listed Companies)
0
166

2
164

4

8

152

148

16

22

30

34

138

134

133

129

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022
Non-new business-related holdings

New business-related holdings

The Executive Compensation Plan Aims to Align Shareholders and Executives’ Interests*Revised as of April 1, 2022.

Composition ofCompensation

Short-term Incentive(40%)(Expansion of evaluation items linked to LT management plan 2030.）

Base Salary40％

Single-year Performancebased Incentive

Fixed Component<Single-Year Performance-Based Incentives : 30%>
 Form: Cash Calculation: "KPIs" : Business profit, EPS, ROA, ROE etc., of previous year (quantitative evaluation)
as well as levels of contribution to medium- to long-term business results, efforts in ESGs, andother elements (qualitative evaluation)<Phantom Stock Incentives : 10%>
 Form: Cash Performance evaluation period: About 3 years
 Calculation: Based on stock price and total shareholder return (TSR) relative to *peer companies

30％

Medium- to
Long-term Incentive (30%)
RS Incentive
20％

Variable
portion10%

Fixed
portion10%

PS Incentive

10％

Variable Component<Restricted Stock Incentives : 20%>
■Form : Stock■Lock-up period：Up to the time of retirementof a director or officer*The evaluation method for the variable
portion is the same as for performance-linked
cash compensation.

* Nomura Real Estate Holdings, Inc., Tokyu Fudosan Holdings Corporation, Mitsui Fudosan Co., Ltd., Tokyo Tatemono Co., Ltd., and Sumitomo Realty & Development Co., Ltd

MITSUBISHI ESTATE CO., LTD.

30

ESG Initiatives

8. External Evaluations
As of May 12, 2022

― Not selected

Category

Benchmarks

2019

2020

2021

Remarks

ESG in General

FTSE4Good Global Index

●

●

●

20 years in a row

ESG in General

FTSE Blossom Japan Index (Adopted by GPIF)

●

●

●

5 years in a row

ESG in General

MSCI Japan ESG Select Leaders Index (Adopted by GPIF)

●

●

●

5 years in a row

ESG in General

Dow Jones Sustainability Asia Pacific Index

―

●

●

2 years in a row

ESG in General

Member of the "S&P Global Sustainability Yearbook"

―

●

●

2 years in a row

ESG in General

SOMPO Sustainability Index

●

●

●

10 years in a row

ESG in General

GRESB Public Disclosure

A

A

A

ESG in General

GRESB Standing Investment Benchmark

3 Star *1

5 Star

5 Star

ESG in General

GRESB Development Benchmark_*2

4 Star

5 StarE (Environment)

S&P/JPX Carbon Efficient Index (Adopted by GPIF)

●

●

●

E (Environment)

CDP Climate Change

A-

A

A-

E (Environment)

CDP Water Security

―

―

A-

S (Society)

MSCI Japan Empowering Women Select Index (Adopted by
GPIF)

●

●

●

4 years in a row

4 years in a row

For GRESB, the evaluation system differs between before 2019 and after 2020.
*1 Evaluation results in the Real Estate Assessment*2 Started assigning ratings from 2020

MITSUBISHI ESTATE CO., LTD.

31

Financial Supplemental Data

MITSUBISHI ESTATE CO., LTD.

32

Financial Supplemental Data

1. Management Index, etc.
①KPI for 2030 Target
2019/32020/32021/32022/32023/3（F）

2030(Target)

ROA*1

4.0%

4.1%

3.8%

4.4%

4.4%

5％

ROE

7.8%

8.5%

7.6%

8.1%

8.0%

10％

EPS

¥ 96.97¥ 108.64¥ 101.34¥ 116.45¥ 124.75¥ 200②Business
Profits

2019/32020/32021/32022/32023/3（F）

Business
profits*2¥ 229.4 bn¥ 240.9 bn¥ 224.7 bn¥ 279.3 bn¥ 291.4 bn¥ 350.0～
400.0 bn

2030
(Target)Domestic AssetBusiness-¥ 201.5 bn¥ 201.6 bn¥ 215.8 bn¥ 203.4 bn

Approx. ¥50 bn+*3

International
Assets Business-¥ 46.1 bn¥ 37.9 bn¥ 55.8 bn¥ 94.0 bn

Approx. ¥50 bn+*3

Non-asset
Bussines-¥ 15.7 bn¥ 9.3 bn

¥ 32.2 bn¥ 21.0 bn

Approx. ¥50 bn+*3

Eliminations or
corporate-(¥ 22.4 bn)(¥ 24.2 bn)(¥ 24.5 bn)(¥ 27.0 bn)-*1 ROA = BusinessProfit / Total assets (average)

MITSUBISHI ESTATE CO., LTD.

*2 BusinessProfit = Operating Income + Equity in Net Earnings/Loss (for unconsolidated subsidiaries and affiliates)*3 vs FY2020

33

Financial Supplemental Data

2. Balance Sheet As of March 31, 2022
Millions of yen (rounded down)

Current assets
Cash and deposits
Trade notes and accounts
receivable, and contract assets

As of March As of March
31, 2022
31,2021
1,356,789
1,164,037
233,117
170,040

Real estate for sale
Real estate for sale in progress
Real estate for development
Equity investments
Other
Non-current assets
Total property, plant and equipment
Total intangible assets

Investment securities
Other

Total assets

Total Assets

192,752
63,07760,64552,031

8,613

41,239299,532724
624,52197,0095,137,127
4,345,989
108,092
299,617

88,116
267,563975
496,182
89,126
4,908,481
4,179,893
101,095
281,996(46,876)
31,968(250)
128,339
7,881
228,645
166,096
6,997
17,620383,426
6,493,917

345,494
6,072,519

37,930421,398（End of March 2022）

Lease Obligations
1,754

Others422,729
International Business
1,130,973

6,493,917

Residential Business
666,928

Commercial Property Business
4,273,287

MITSUBISHI ESTATE CO., LTD.

ChangeConsolidated Interest-Bearing Debt

（End of March 2022）

Millions of yen (rounded down)

Bonds
876,335

2,738,632
Loans
1,860,543

Liabilities
Current liabilities
Trade notes and accounts payable
Short-term borrowings
Current portion of long-termborrowings
Commercial Papers
Current portion of bonds payable
Other
Non-current liabilities
Bonds payable
Long-term borrowings
Other
Net assets
Shareholders’ equity

Accumulated other comprehensive income

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

Consolidated Interest-Bearing Debt
Fixed/Floating Rate Ratio（End of March 2022）

As of March
As of March
31, 2022
31,2021
4,257,484
4,011,071
631,043
662,437
60,51660,507
182,052
141,785

Change246,413(31,394)940,26679,928

127,643(47,714)90,000218,5443,626,441
786,335
1,598,562
1,241,539
2,236,432
1,335,024
668,200
201
233,005
6,493,917

50,00065,000217,500
3,348,634
745,759
1,393,858
1,209,011
2,061,447
1,259,887
592,011231
209,316
6,072,519(50,000)
25,0001,044
277,807
40,576
204,703
32,528
174,984
75,13776,189(30)
23,689421,398

Consolidated Interest-Bearing Debt
Long-term/Short-term Ratio（End of March 2022）

Short-term
6.7%

Floating
13.5%

2,738,632

2,738,632

Fixed
86.5%

Long-term
93.3%

34

Financial Supplemental Data

3. Asset Compositions(End of March 2022)

Inventories

Equity Investments

Property, plant andequipment
5%

9%
28%

3%

29%

¥

347.3 billion

0%

12%

¥
69%

11%

624.5 billion

3%
4%
2%
3%

¥

4,345.9 billion

10%

72%
40%

Domestic Condominiums
US
Asia
OthersDomestic (office buildings)
Domestic (others)
US
EuropeOffice Buildings
Logistics Facilities
Rental Apartments
OthersOutlet Malls*Retail Properties
Overseas* Excluding outlet malls

MITSUBISHI ESTATE CO., LTD.

35

Financial Supplemental Data

4. Consolidated Cash FlowMillions of yen (rounded down)①FY2021
Results
Cash Flows From
Operating Activities②FY2022
Results

Change（②－①）③FY2023（Forecasts）

Change（③－②）

207,414280,090

72,676370,000

89,910Depreciation

89,107

91,581

2,474

94,0002,419

Decrease (increase) in inventories

56,443116,993

60,549102,000(14,993)(21,048)(30,267)(9,218)(66,000)(35,733)(297,303)(313,778)(16,474)(480,000)(166,222)

14,186

9,562(4,624)2,000(7,562)(319,841)(329,115)(9,273)(459,000)(129,885)

50,42590,97340,54815,000(75,973)

Cash and Cash Equivalents
at End of Period

172,307234,244

61,937(140,000)(94,244)

Free Cash Flow

(89,889)(33,687)

56,201(110,000)(76,313)

Decrease (Increase) in equity
investments

Cash Flows From
Investing Activities
Proceeds from sales ofinvestment securities
Purchase of property, plant andequipment

Cash Flows From
Financing Activities

MITSUBISHI ESTATE CO., LTD.

36

Financial Supplemental Data

5. Investment Data
Major Breakdown of Purchase of Property,
Plant and Equipment(Billions of yen)(Billions of yen)

500.0

459.0

450.0

70.0

400.0
350.0
300.0

331.8
10.7

285.0
6.5
13.0

250.0

9.0

74.7

200.0
150.0
100.0
50.0
0.0

Major Breakdown of Equity Investments

12.3
113.8

319.8
4.3

4.3
6.1

8.1
25.2
47.4

38.4
36.9
16.8
21.3

47.8
15.6
23.9

19.2

68.4

63.5

72.4

FY2020

FY2021

20.0
16.0
105.0

112.5
51.0

76.9

77.4
14.2

450.0
400.0
350.0
300.0
250.0

70.0

70.6
39.9

FY2019

329.1

500.0

84.0
23.0

63.6

71.0

FY2022

FY2023(F)

200.0

140.0

150.0

99.4

100.0
50.0

75.1

0.0

13.2
FY20192.3
8.8

FY2020

93.7

83.9

2.1

49.0

60.7 19.3
2.8

42.6
FY2021*

1.1

FY2022

25.0

4.0

57.0
42.0 12.0
FY2023(F)*Classifications have been changed below from FY2021<Legend for FY2018 – FY2020>
Office Building (MEC: New/Redevelopment)

Office Building (MEC: Refubishment)

Office Building (Subsidiaries)

Lifestyle Property

Residential

International

Hotel & Airport

Special Purpose Vehicle

Other (includind consolidated eliminations)

New Investment

MITSUBISHI ESTATE CO., LTD.

<Legend for FY2021 - >Office(MEC: New / Redevelopment)

Office(MEC: Refurbishment)

Commercial Property(excluding MEC office)

Residential

International

Special Purpose Vehicle

Others(including consolidated eliminations)

New Investments

37

Financial Supplemental Data

6. Income Generating Assets Unrealized Gains: Current Status #1
Increased unrealized gains from new buildings, lower cap rates for overseas assets
and domestic rental housing, and foreign exchange rates.
Income Generating Assets Unrealized Gain
(Billions of yen)Book value

Unrealized gain

9,000
7,941.1

8,000

5,000

8,361.2

2,963.5

3,422.8

3,898.4

4,222.5

4,250.2

4,573.2

3,935

2,569.0

3,504

3,606

3,241

3,300
2,800

4,000

2,950
2,643
2,384

2,300

3,000
2,000

Adjusted BPS

3,800

6,791.9
6,079.0

BPS

(Yen)
4,300

7,383.4

7,000
6,000

8,270.8

8,840.4*BPS and Adjusted BPS

1,800
3,509.9

3,828.4

3,960.5

4,042.7

4,048.3

4,110.9

4,267.1
1,300

1,088

1,148

FY2016FY2017

1,224

1,276

1,269

FY2018FY2019FY2020

1,383

1,515

1,000
0

800
FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2021

FY2022＊ BPS including unrealized gains (after tax)

MITSUBISHI ESTATE CO., LTD.

38

Financial Supplemental Data

7. Income Generating Assets #2

Unrealized Gain Breakdown

Profit Trends(Billion of yen)
190

International
11%

180

Marunouchi
Existing Building*19%

FY2020

FY2021

184.3

168.3
160.7

160

Marunouchi
New building*
52%

180.2

174.8

170

Domestic(Outside of Marunouchi)
18%

180.5

150
140

136.2

130
120
110
100

FY2016FY2017FY2018FY2019FY2022*Redeveloped properties after the completion of Marunouchi Building
Since the fiscal year ended March 2022, the entire TOKYO TORCH PJ has
been counted as a new Marunouchi building.
(FY2022 Results)
MITSUBISHI ESTATE CO., LTD.

39

Business Overview

MITSUBISHI ESTATE CO., LTD.

40

Business Overview

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

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

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

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

Residential Business

International Business

Investment Management
Business

Architectural Design &Engineering and Real Estate
Service Business＜Domestic Residential＞
Operate residential condominium
business under "The
Parkhouse" brand and rental
apartments business under "The
Parkhabio" brand.

Undertakes office building
development andleasing businesses in the UnitedStates and the United Kingdom, as
well as projects in Asia

Provides 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.

41

Business Overview

2. Business Scale

Investment
Management
Business
9%*Other5%

Investment
Management
Business
3%
International
Business
9%International
Business
18%

Revenue fromOperations

Residential
Business
28%¥1,349.4
billionInternational
Business
18%

Total Assets

Operating Income

Approx.

Approx.

Commercial
Property
Business
55%

Residential
Business
10%*Other1%

Investment
Management
Business2%*Other0%¥278.9billionCommercial
Property
Business
63%

Residential
Business
11%

Approx.

¥6,493.9
billionCommercial
Property
Business
68%*Architectural Design & Engineering Business and Real Estate Services Business, Other Business（FY2022 Results）

MITSUBISHI ESTATE CO., LTD.

42

Commercial Property Business
Office Buildings

MITSUBISHI ESTATE CO., LTD.

43

Commercial Property Business (Office Buildings)

1. Marunouchi Area Map

MITSUBISHI ESTATE CO., LTD.

44

Commercial Property Business (Office Buildings)

Marunouchi Area

2. Pipeline
Tokiwabashi Tower
Bldg. A

Uchikanda 1-chome
Project

Torch Tower Bldg. B

Total Floor Area: 180,900㎡
Completion: Sep. 2020

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

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

Total Floor Area: 544,000㎡
Completion: FY2028

FY2020

FY2021

FY2022

FY2023

FY2024(Tentative name)Yurakucho
Redevelopment(TBD)

FY2028(Tentative name)

Link Square Shinjuku

CO･MO･RE YOTSUYA

the ARGYLE aoyama

Toyosu 4-2 Project

Akasaka 2 ・ 6-chome
Development Plan

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

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

Total Floor Area: 23,100㎡
Completion: Jun. 2020

Total Floor Area: 136,500㎡
Completion: Jul. 2025

Total Floor Area：210,000㎡
Completion：FY2029

Tokyo(Outside of Marunouchi)(Tentative name)

Mizuho Marunouchi Tower,
Ginko Kaikan,
Marunouchi Terrace

MITSUBISHI ESTATE CO., LTD.

45

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
4,500
4,000 3,684 3,696

3,825 3,907

4,175

4,347

4,660

4,896

5,580 5,670

5,038

5,174

5,385

5,570

5,745

3,000

2,000

1,677

1,798

1,946 2,024 1,897

2,195 2,258

2,565 2,565

1,500
1,000
500

256

256

355

5,991 6,040 5,913

3,769

3,500

2,500

5,869

489

489

743

743

2,687 2,758 2,755

1,022 1,022

1,174

2,583 2,531

2,727 2,784

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

2,915 2,915 2,952 3,026

1,705 1,705

1,836 1,836 1,872

1,987

0

Total (Domestic)

Marunouchi

Marunouchi Redeveloped Buildings*Excluding floor space in Lifestyle Property Business from 16/3

MITSUBISHI ESTATE CO., LTD.

46

Commercial Property Business (Office Buildings)

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

30,00029,000Vacancy rate (Marunouchi offices)

28,000Vacancy rate (All uses in Japan)

27,000

Average rent (All uses in Japan)

26,00024,86425,00023,56024,00023,00022,00021,00022,213

21,733
21,902
21,711
4.82%

20,00019,00015,00014,0001.74%

13,00012,000

3.40%

1.68%
2.77%

0.55%

23,8619%
8%
7%

23,587

6%

3.98%
3.58% 3.58%
4.32%

2.42% 2.26%

2.80%

2.93%

2.22%

2.42%

2.06%
0.19%

3.66%

3.33% 3.5%

1.09%

2.19%
1.87%
2.42%

1.82%

1.37%

1.07%

1.65% 1.80%

2.50%

3.29%

2.35%

4%
3%
2%
1%

0.69%

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 22/3 23/3
(F)

MITSUBISHI ESTATE CO., LTD.

10%

5%

2.86%

17,00016,00023,85025,842

26,702

28,228

5.29%

2.77%

18,00023,97422,602

3.59%

4.36%

24,42325,234

26,193

27,177

27,79329,0000%47Commercial Property Business (Office Buildings)

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

FY2021Results

FY2022(Previous
forecast)

FY2022
Results

FY2023
Forecasts

Rent revenue from *1office buildings

418.0

434.4

435.2

423.7

Changes from the previous period+ 11.3+ 16.4+ 17.1(11.4)

Rent revenue from new buildings+ 12.2+ 16.0+ 16.0+ 6.2

Rent revenue from existing buildings

+ 7.2

(6.5)

(6.7)

(6.7)

Termination of master lease,closure of building for redevelopment

(0.7)

(3.5)

(3.4)

(8.4)

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

+ 8.0

(3.0)

(3.3)

+ 1.7

+ 7.0

+ 7.8

(10.9)

Impact of COVID-19

Offices(0.5)*2Mixed-use retail(5.0)

Supplementary revenue, incl. common area
charge(2.4)*1 Office buildings,

incl. those with retail areas, etc.

*2 Retail properties in office buildings

MITSUBISHI ESTATE CO., LTD.

48

Commercial Property Business (Office Buildings)

6. Earnings Related Data: Trends in Rent Revenue From Office Buildings*1(Unconsolidated)
Increase/Decrease of Rent Revenue from Office Buildings*1(From the Previous Fiscal Year)(Billions of yen)

30
25
20

■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 COVID-19(office buildings, *2mixed-use retails)

0.3

15

+15.3

10
5

+13.0

0
-5

+15.3
+8.7
-4.9

-10.7

-10
-15

0.3

-1.1
-5.9

-5.4

+7.3
1.9

+14.7

+27.2

+23.9

+6.0

+7.3

-1.5

-1.5

-10.5

+12.5

-4.0
-2.5

-4.6
-5.6

+9.5

-5.2
-6.0

+6.6
-3.4

-0.7
-7.5

+22.6
+18.5 +13.2

+2.4
-9.0

-8.3

+4.9

-10.5

-5.0

0.7

+17.9
+10.8

+9.8

+4.0

+4.7

+12.2
+16.0

+5.9

+6.5

+8.0
-0.7
-5.5

-8.1

*1 Office buildings,

+6.2

-3.3
-3.4

+1.7
-8.40

incl. those with retail areas, etc.

*2 Retail properties in office buildings

-20

04/3

05/3

06/3

07/3

Total

-2.7

-1.6

+8.3

-1.3

MITSUBISHI ESTATE CO., LTD.

08/3

09/3

10/3

+19.8 +20.5 +17.4

11/3

12/3

13/3

+2.3

-1.7

-5.1

14/3

15/3

16/3

+19.0 +11.9

+7.6

17/3

18/3

19/3

20/3

21/3

22/3

23/3
（F）

+18.5 +15.2 +24.1 +17.6 +14.0 ＋9.3

-0.5

49

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

1.79

1.75
1.54
1.5
1.25

1.19

0.72

0.77

1.09
0.87

0.86 0.85
0.65

1.45

1.41

1.17

0.91

1

0.5

1.21

Historical average supply
Approx. 1.07 million ㎡/year(1999-2020)

Projected average supply
over the next 5 years
0.94 million ㎡/year

0.58

1.2
0.97

0.93

0.85
0.69

0.61

0.49

0.36

0

*Forecast*Research subject buildings: Buildings with a total office floor area exceeding 10,000㎡
Source: Mori Building (as of May 2021)
MITSUBISHI ESTATE CO., LTD.

50

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

28,00026,00024,000

8.75%

10%
8.56%

7.98%
22,57422,0005.51%

20,0646.05%

16,0003.41%

19,6995.30%

18,73018,264
17,973
17,495
17,195
16,71616,504
16,325
4.34%

18,09517,75817,593

14,00022,594
21,541
21,134
20,366

6.70%

21,29520,00018,0009.19% 9.04%

3.60%

6.37%

4%
2.80%

2.72% 2.89%

2%
1.78%

04/3

05/3

06/3

07/3

08/3

6%

5.42%

12,00010,000

8%

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

1.50%
20/3

21/3

22/3

0%

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

51

Commercial Property Business (Office Buildings)

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

10%

8.75%

9%

9.19% 9.04%

8.56%

7.98%
8%
6.70%

7%
6.05%

6%

5.42%

5.51%
5%

4.36%

4.32%

5.30%

3.66%

4%
3.41%

3%

2.72%

2.77%

1.74%

1%

0.55%
04/3

05/3

06/3

07/3

4.34%

2.42%
2.89%

2%

0%

6.37%

0.19%
08/3

2.42%

3.33%
2.80%

2.50%

2.19%
1.50%

2.26% 2.42%

1.82%

1.09%
09/3

3.60%

1.65% 1.78%

1.37%

0.69%
10/3

11/3

12/3

5 Central Wards of Tokyo (Market)

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3

21/3

22/3

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

MITSUBISHI ESTATE CO., LTD.

52

Commercial Property Business (Office Buildings)

10. Competitive Edge of Marunouchi: Area/Number of Railway Lines

Marunouchi

Nihonbashi

ShinagawaShibuya

Toranomon

2,400m
1,500m

Area:

120ha

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.

53

Commercial Property Business (Office Buildings)

11. Competitive Edge of Marunouchi: Number of Headquarters and Offices(as of March 2021)① Fortune Global 500 company headquarters

21

3

2

0

③ Top 100 law firm headquarters and offices0

MARUNOUCHI33

NIHONBASHI

8
6

TORANOMONMARUNOUCHINIHONBASHISHINAGAWA

SHIBUYATORANOMONSHINAGAWA② Top 50 company headquarters in terms ofmarket capitalization

2

SHIBUYA

0④ Foreign financial company offices

67

MARUNOUCHI

13

MARUNOUCHI6NIHONBASHI

1SHINAGAWA

1TORANOMON0SHIBUYA13

TORANOMON5SHIBUYASHINAGAWA

MITSUBISHI ESTATE CO., LTD.

16

NIHONBASHI

054

Commercial Property Business (Office Buildings)

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

Type of Business

Area ratio

March 2022

Type of Business

Area ratio

1

Manufacturing

42.5%

1

Finance23.7%

2

Finance22.2%

2

Manufacturing

22.9%

3

Trading

10.4%

3

Professional Firm

19.7%

4

Information

6.3%

4

Trading

9.2%

5Professional Firm

4.4%

5

Information

9.0%

Others

14.2%

Others15.5%

Others
15.5%

Professional Firm
4.4%
Others14.2%
Information
6.3%

Information
9.0%
Trading
9.2%

Trading
10.4%
Finance
22.2%

MITSUBISHI ESTATE CO., LTD.

Manufacturing
42.5%

Finance
23.7%

Manufacturing
22.9%

Professional Firm
19.7%

55

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 regulations: 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 exemption of urban planning
Example: International business bases (Global Business Hub Tokyo etc.)
Development of fine urban environment (improvement of water quality of ditch
around the Imperial Palace, etc.)
BCP functions (self-reliant electric power, 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: Consolidate office and hotel usages

Non-office ─◆Example: Transfer unused floor-area at Tokyo station to other buildings
around the station

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

Hotels56

Commercial Property Business (Office Buildings)

14. Initiatives Looking Ahead to Post-COVID-19
Enhancing value in the office by sophisticating the core functions of the central office andadapting to diversified workstyles.
Previous workstyles

Sophistication of the Central OfficeTOKYO TORCH (Tokiwabashi PJ)• 2ha outdoor space• Communal space for workers• Implementation of contactlesssecurities• Large hall (2,000 seats)• World-class hotel (100 rooms)• Eco-friendly city development (e.g.
green bonds)

Work at a predeterminedplace and time.

New workstyles
Central office as the core hub of acompany in order to maintain asense of belonging and trust
among employees with diversified
values.

FINOLAB (renewal)• Financial support for startups(investing in FINOLAB FUND)• Renewal and expansion• Support services for businessexpansion

Approaches to diversified workstyles
WORK × ation Site
(Workation)

Telecubes• Increase
installment
numbers• Expandinstallation spots
to condominiums
etc.

• Establishment of a
new hub

NINJA SPACE
・To locate
workspaces

MITSUBISHI ESTATE CO., LTD.

CIRCLES（Compact office）•

Aim is to develop 30
buildings by 2024

57

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

MITSUBISHI ESTATE CO., LTD.

58

Commercial Property Business (Outlet Malls)

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

Changes in sales-linked & fixed ratio(average for all facilities)(㎡)

50,000400,000

50%

45,000300,000

35,00030,000250,000

38%
Sales-linked rent

50%

50%

53%

62%

62%

FY2018FY2019FY2020

FY2021

FY2022

Fixed rent

Changes in ROA・Total Assets

25,000200,000

20,000150,000

15,000(Billions of yen)

20.0%

17.9%

18.0%

150

17.3%
12.6%

15.0%

13.6%
100

10.0%
17/3

18/3

19/3

20/3

21/3

22/3

Store area

308,500 308,500 314,600 315,300 345,500 345,500

Revenue fromOperations

43,642

45,462

46,65946,39340,03044,177

Operating Income 17,359

18,94019,673

18,963

14,61916,789MITSUBISHI ESTATE CO., LTD.

38%

47%

350,000

40,00010,00050%

100,000

50

5.0%
0.0%

FY2018FY2019FY2020

FY2021

FY20220Total Asset (right axis)
59

Commercial Property Business (Outlet Malls)

2. Outlet Mall Business #2

KYOTO JOYO
Tosu

Kobe-Sanda
Rinku

GOTEMBA PREMIUM OUTLETS®

Name

FUKAYA HANAZONO PREMIUM OUTLETS® (Image)

Location

Site Area

Total Floor Area Store Floor Area Number of Stores

Sendai-Izumi

HANAZONO Sano
Toki

Ami
Gotemba Shisui

Schedule

GOTEMBA PREMIUM OUTLETS®

Gotemba, Shizuoka

419,200㎡

70,400㎡

61,000㎡

290

Open: Jul. 2000, Phase2 expansion: Jul. 2003, Phase3 expansion: Mar. 2008,
Phase4 expansion: Jun. 2020

RINKU PREMIUM OUTLETS®

Izumisano, Osaka

130,300㎡

64,900㎡

50,100㎡

250

Open: Nov. 2000, Phase2 expansion: Mar. 2002, Phase3 expansion: Dec. 2004,
Phase4 expansion: Jul. 2012, Phase5 expansion: Aug. 2020

SANO PREMIUM OUTLETS®

Sano, Tochigi

174,600㎡

39,900㎡

37,300㎡

180

Open: Mar. 2003, Phase2 expansion: Jul. 2004, Phase3 expansion: Mar. 2006,
Phase4 expansion: Jul. 2008

TOSU PREMIUM OUTLETS®

Tosu, Saga

134,200㎡

36,800㎡

31,800㎡

170

Open: Mar. 2004, Phase2 expansion: Dec. 2007, Phase3 expansion: Jul. 2011,
Phase4 expansion: Nov. 2019

TOKI PREMIUM OUTLETS®

Toki, Gifu

284,600㎡

41,300㎡

35,200㎡

180

Open: Mar. 2005, Phase2 expansion: Oct. 2006, Phase3 expansion: Jul. 2010,
Phase4 expansion: Nov. 2014

KOBE-SANDA PREMIUM OUTLETS®

Kobe, Hyogo

316,800㎡

49,600㎡

42,200㎡

210

Open: Jul. 2007, Phase2 expansion: Dec. 2009, Phase3 expansion: Dec. 2012

SENDAI-IZUMI PREMIUM OUTLETS®

Sendai, Miyagi

43,700㎡

20,300㎡

15,300㎡

80

Open: Oct. 2008

AMI PREMIUM OUTLETS®

Inashiki, Ibaraki

211,100㎡

34,700㎡

30,700㎡

160

Open: Jul. 2009, Phase2 expansion in Dec. 2011

SHISUI PREMIUM OUTLETS®

Inba, Chiba

421,000㎡

47,300㎡

41,900㎡

220

Open: Apr. 2013, Phase2 expansion: Apr. 2015,
Phase3 expansion: Sep. 2018

FUKAYA HANAZONO PREMIUM OUTLETS® Project

Fukaya, Saitama

176,800㎡

34,500㎡

27,000㎡

120

Open: Fall 2022

(Tentative name) KYOTO JOYO PREMIUM
OUTLETS® Project

Joyo, Kyoto

245,000㎡--

MITSUBISHI ESTATE CO., LTD.

-

Scheduled to open at the same time as the opening of the neighboring roads.

60

Commercial Property Business (Logistics Facilities)

3. Logistics Facility Business #1
Trends in Gain on Sales

Total Assets＜End of March 2020＞(Billions of yen)
8.0

8.0

8.0

Assets inOperation
36%
Assets under

4.0

development
64%

2.0
0.0

27 billion

Approx. ¥84 billion

7.0

6.0
4.0

Approx. ¥＜End of March 2022＞（2 buildings)(8 buildings)
FY2019FY2020Tokyo Ryutsu Center Distribution Building B
MITSUBISHI ESTATE CO., LTD.

FY2021

FY2022

Assets underdevelopment
45%(10 buildings)

Assets inOperation
55%（7 buildings)*Ratio by value*Excl. Tokyo Ryutsu Center

Logicross Zama Komatsubara

Logicross Zama

61

Commercial Property Business (Logistics Facilities)

4. Logistics Facility Business #2
Completed properties
Name

Total Floor Area

Construction
Start Date

Completion
Date

171,300㎡
61,900㎡
78,600㎡
116,000㎡
31,200㎡
39,300㎡
23,700㎡
44,300㎡

Nov. 2019Feb. 2020Feb. 2020
May 2020
May 2020
Oct. 2020
Nov. 2020

Jun. 2017
Nov. 2020
Mar. 2021
May 2021
May 2021
May 2021
Dec. 2021
Mar. 2022

Total Floor Area

Construction
Start Date

Completion
Date-

205,000㎡

Dec. 2021

Aug. 2023

Katano, Osaka
Zama, Kanagawa

10,200㎡
80,900㎡

20,800㎡
178,700㎡

Nov. 2021
Apr. 2022

Nov. 2022
Nov. 2023

Sagamihara, Kanagawa

78,100㎡

173,000㎡

Jun 2022

Nov. 2023

Joyo, Kyoto

119,000㎡

277,000㎡

2025

2026

Location

Tokyo Ryutsu Center Distribution B Building
Logicross Ebina
Logicross Hasuda
Logista・ Logicross Ibaraki Saito A Building
Logista・ Logicross Ibaraki Saito B Building
Logicross Kasukabe
Logicross Funabashi
Logicross Zama Komatsubara

Ota, Tokyo
Ebina, Kanagawa
Hasuda, Saitama
Ibaraki, Osaka
Ibaraki, Osaka
Kasukabe, Saitama
Funabashi, Chiba
Zama, Kanagawa

Site Area
30,100㎡
49,500㎡
51,000㎡
15,800㎡
19,100㎡
11,700㎡
21,900㎡

Projects under development
Name

Location

Tokyo Ryutsu Center Distribution Building New Bldg. A Ota, Tokyo
Logicross Osaka Katano
Logicross Zama Project(Tentative name) Sagamihara-shi Chuo-ku Fuchinobe
project(Tentative name) Kyoto Joyo Core Logistics Facility

Tokyo Ryutsu Center Distribution Building
New Bldg. A
MITSUBISHI ESTATE CO., LTD.

Site Area(Tentative name) Sagamihara-shi
Chuo-ku Fuchinobe project62

Commercial Property Business (Hotels)

5. Hotel (Development/Operations) Business #1 (Non-asset Business)
Royal Park Hotels and Resorts
Changes in operating profit

Royal Park Hotels Number of Rooms(published projects)（rooms）

3,399
2,434

2,434

3,815

4,129

4,414

（Billions of yen）

8
6
4
2

2,809

1.4

0.5

0.5

0
-2

-0.9

-4
-6
FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023-8FY2017FY2018FY2019FY2020-7.3
FY2021-6.7
FY2022

Hotels opened in each period

The Royal Park Canvas Sapporo Odori Park

MITSUBISHI ESTATE CO., LTD.

The Royal Park Hotel Iconic Kyoto

FY2017FY2018FY2019FY2020

FY2021

FY20220 bldgs

0 bldgs

3 bldgs

2 bldgs

2 bldgs

2 bldgs

Kyoto
Shijo
Hiroshima
RS
Ginza 8

Kyoto Nijo
Kobe
Osaka
Kitahama Sannomiya Sapporo
Odori Park
Kyoto
Osaka
Umekoji
Midosuji63Commercial Property Business (Hotels)

6. Hotel (Development/Operations) Business #2
Hotel Management Business （Non-asset Business）
Name

Number of Rooms

Open

Chuo, Tokyo

419

Jun. 1989

Yokohama, Kanagawa

603

Sep. 1993

Sendai, Miyagi

110

Apr. 1995

The Royal Park Hotel Iconic Tokyo Shiodome

Minato, Tokyo

490

Jul. 2003

Marunouchi Hotel
The Royal Park Hotel Fukuoka

Chiyoda, Tokyo

205

Oct. 2004

The Royal Park Hotel Kyoto Sanjo

Fukuoka, Fukuoka

174

Jul. 2011

Kyoto, Kyoto

172

Oct. 2011

The Royal Park Canvas Nagoya
The Royal Park Hotel Tokyo Haneda

Nagoya, Aichi

153

Nov. 2013

The Royal Park Hotel Kyoto Shijo

Ota, Tokyo

313

Sep. 2014

Kyoto, Kyoto

127

Apr. 2018

Hiroshima, Hiroshima

127

Chuo, Tokyo

121

Oct. 2018
Mar. 2019

Royal Park Hotel
Yokohama Royal Park Hotel
Sendai Royal Park Hotel

The Royal Park Hotel Hiroshima Riverside
The Royal Park Canvas Ginza 8

Location

アセットブック更新後、更新内容を貼り付け

The Royal Park Canvas Osaka Kitahama

The Royal Park Canvas Sapporo Odori Park

Osaka, Osaka

238

Jun. 2019

The Royal Park Hotel Iconic Osaka Midosuji

Osaka, Osaka

352

Mar. 2020

The Royal Park Canvas Kobe Sannomiya

Kobe, Hyogo

170

Jan. 2021

The Royal Park Hotel Kyoto Umekoji

Kyoto, Kyoto

246

Mar. 2021

The Royal Park Canvas Kyoto Nijo

Kyoto, Kyoto

180Jun. 2021

The Royal Park Canvas Sapporo Odori Park

Sapporo, Hokkaido

134

Oct. 2021

The Royal Park Hotel Iconic Kyoto

Kyoto, Kyoto

125

Apr. 2022

The Royal Park Hotel Canvas Ginza Corridor

Chuo, Tokyo

160

Autumn 2022

Nagoya Sakae Hotel Project

Nagoya, Aichi

250

FY2025

Hotel Development Business （Domestic Asset Business）
Number of Rooms

Construction Begins

Open

The Royal Park Hotel Kyoto Shijo (MJ HOTEL Kyoto Shijo)

Name

Kyoto, Kyoto

127

Jul. 2016

Apr. 2018

MJ HOTEL Asakusa
The Royal Park Hotel Canvas Kobe Sannnomiya (MJ HOTEL
Kobe Sannomiya)
The Royal Park Hotel Kyoto Umekoji (MJ HOTEL Kyoto Umekoji)
MIMARU TOKYO ASAKUSA STATION (MJ HOTEL Asakusa
Kaminarimon)
The Royal Park Canvas Sapporo Odori Park (MJ HOTEL Sapporo
Odori Park)
Hotel Okura Kyoto Okazaki Bettei (MJ HOTEL Kyoto Okazaki)

Taito, Tokyo

166

Mar. 2017

To be determined

Kobe, Hyogo

170

Sep. 2019

Jan. 2021

Kyoto, Kyoto

246

Jun. 2019

Mar. 2021

Taito, Tokyo

51

Dec. 2019

Apr. 2021

Sapporo, Hokkaido

134

Mar. 2020

Oct. 2021

Kyoto, Kyoto

60

Feb. 2020

Jan. 2022

Naha, Okinawa

143

Sep. 2020

March. 2022

Sendai, Miyagi

224

Oct. 2020

Summer 2022

Miyakojima, Okinawa
Miyakojima, Okinawa

329
55

Feb. 2021
Mar. 2022

FY2023
FY2024

Nest Hotel Nara Nishi (MJ HOTEL Naha Nishi)

Hotel Okura Kyoto Okazaki Bettei

MITSUBISHI ESTATE CO., LTD.

Sotetsu FRESA INN Sendai (MJ HOTEL Sendai Chuo)
Hilton Okinawa Miyakojima Resort
Rosewood Miyakojima

Location

64

Residential Business

MITSUBISHI ESTATE CO., LTD.

65

Residential Business1. Condominium Business Data #1
Due to a decline in the land bank, sales and profits in FY23/3 were significantly lower YoY. Shiftthe immediate profit focus of the Residential Business to capital gains (e.g., rental apartments.).
FY2021(Results)
Condominiums Sold(millions of yen) *1 *3

Land Bank
Breakdown in ReportingTerm

FY2023(Forecasts)

FY2022(Results)

207,004

216,231

115,000

Condominiums Sold
(units)

3,476

3,046

1,600

Gross Margin *2 *3

20.1%

22.5%

23.1%

Inventory (units)
New Supply of
Condominiums(units)

213
2,350

62
2,131

1,900

(As of March31, 2022)

4,200

5,600

5,000

Total: 14,800 units
FY2023 - FY2025
FY2026 - FY2028

FY2029 *1 Sales= Sales of new condominiums + supplementary revenue relating to condominiums*2 Gross profit= Sales - COGS (land acquisition and development costs, building construction costs, etc.)
Gross profit margin = Gross profit ÷ Sales*3 From FY2022, the definition of sales has been changed (supplementary revenue relating to condominiums is added), and the changed figures are shown,including the results of previous years.
MITSUBISHI ESTATE CO., LTD.

66

Residential Business

2. Condominium Business Data #2
Scheduled for delivery in FY2022
Name (Project Name)

Location

Site Area

Total Units

Scheduled
Delivery

The Parkhouse Jiyugaoka Diana Garden

Meguro, Tokyo

3,600㎡

44Aug. 2022

The Parkhouse Shin-Urayasu Marine Villa (2 construction areas)

Urayasu, Chiba

47,100㎡*294

Nov. 2022

The Parkhouse Nagoya (2 construction areas)

Nishi, Nagoya

18,100㎡*

148

Feb. 2023

The Parkhouse Takanawa Matsugaoka

Minato, Tokyo

2,300㎡

73

Mar. 2023

The Parkhouse Fuchu

Fuchu, Tokyo

2,800㎡

182

Mar. 2023*Total occupying area

The Parkhouse Jiyugaoka Diana Garden
MITSUBISHI ESTATE CO., LTD.

The Parkhouse Nagoya

67

Residential Business3. Condominium Business Data #3
Quarterly Distribution of Sales by Agreement Date
(Millions of yen)

260,000
240,000
220,000
200,000
180,000
160,000
140,000
120,000

242,859

91.5%
83.3%
71.9%
58.2%

100,000

216,231207,004

206,684

97.7%
93.1%

90.9%

91.1%

83.5%

84.6%

79.8%
68.8%

69.4%

64.5%

62.9%

115,000 (F)50.4%

80,00060,00061.1%

40,00020,0000FY2019FY2020Full-Year sales

MITSUBISHI ESTATE CO., LTD.

FY2021
End of 3Q

End of 2Q

FY2022End of 1Q

FY2023

Beginning of FY

68

Residential Business4. Condominium Market Data
Number of New Supplies/Average Prices (the Greater Tokyo Area)(Unit)(Average price/Millions of yen)

120,000

62.6

60

100,000

50

80,00040

60,00030
34,00040,00033,63620,000020

101999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
(F)

Number of new supplies

0

Average priceSource: Real Estate Economic Institute Co., Ltd.
MITSUBISHI ESTATE CO., LTD.

69

Residential Business

5. Rental apartments businessTotal Assets
Approx. ¥140 billion

25

development

15

39%

10

(45 buildings)

Name(Billions of yen)

20

Assets under

Assets in Operation
61%

5

22

11

10

7

5

(35 buildings)

0(End of March 2022)*Ratio by value*Trends in capital gains for Residential Business

Parkhabio Akasaka Tower

Property list

Trends in Gain on Sale

FY2019FY2020

FY2021

FY2022 FY2023(F)The Parkhabio Kiba

Location

Total Units

Parkhabio Monzen Nakacho
Parkhabio Iidabashi
Parkhabio Akasaka Tower
Parkhabio Akihabara Est
The Parkhabio Ueno Okachimachi
The Parkhabio Shinagawa Togoshi
The Parkhabio Nihonbashi Kodenmacho
The Parkhabio Nihonbashi Hakozakicho
The Parkhabio Waseda
The Parkhabio Sugamo
The Parkhabio Ebisu PlaceThe Parkhabio Nishiyokohama
The Parkhabio Meguro Fort
The Parkhabio Kiba
The Parkhabio Nihonbashi Bakurocho
The Parkhabio Kagurazaka Kazuki
The Parkhabio Sangenjaya
The Parkhabio Akabane
The Parkhabio Kamata
The Parkhabio Komagome
The Parkhabio Sumiyoshi
The Parkhabio Kagurazaka
The Parkhabio Himonya
The Parkhabio Nishiooi
The Parkhabio Shin-okachimachi
The Parkhabio Yoyogi Hatsudai

Koto, Tokyo
Chiyoda, Tokyo
Minato, Tokyo
Taito, Tokyo
Taito, Tokyo
Shinagawa, Tokyo
Chuo, Tokyo
Chuo, Tokyo
Shinjuku, Tokyo
Toshima, Tokyo
Shibuya, Tokyo
Yokohama, Kanagawa
Meguro, Tokyo
Koto, Tokyo
Chuo, Tokyo
Shinjuku, Tokyo
Setagaya, Tokyo
Kita, Tokyo
Ota, Tokyo
Kita, Tokyo
Sumida, Tokyo
Shinjuku, Tokyo
Meguro, Tokyo
Shinagawa, Tokyo
Taito, Tokyo
Shibuya, Tokyo

129
113
212
54
72
36
44
50
99
188
71
81
27
223
110
77
63
39
60
42
63
54
44
85
93
78

Completion
Date
Mar. 2014
Feb. 2015
Mar. 2015
Mar. 2015
Sep. 2016
Nov. 2016
Nov. 2017
Feb. 2018
Mar. 2018
May 2018
Sep. 2018
Nov. 2018
Jan. 2019Feb. 2019
May 2019
May 2019
Jun. 2019
Sep. 2019Feb. 2020Feb. 2020
Mar. 2020
Mar. 2020
Mar. 2020
Apr. 2020
Oct. 2020
Mar. 2021

The Parkhabio Nakano Shinbashi

Nakano, Tokyo66

May 2021

The Parkhabio Shinsen

Meguro, Tokyo102

May 2021

The Parkhabio Minamiooi

Shinagawa, Tokyo109

May 2021

The Parkhabio Meguro Residence

Shinagawa, Tokyo66

May 2021

The Parkhabio Hongo Kikuzaka

Bunkyo, Tokyo65

Jun 2021

The Parkhabio Koenji Residence

Suginami, Tokyo

140

Aug. 2021

The Parkhabio Azabujuban

Minato, Tokyo

106

Oct. 2021

The Parkhabio Shin-Koenji

Suginami, Tokyo

58

Oct. 2021

The Parkhabio Koishikawa

Bunkyo, Tokyo

56

Dec. 2021

In addition to the listed above, there are approximately 45 projects under development
MITSUBISHI ESTATE CO., LTD.

70

International Business

MITSUBISHI ESTATE CO., LTD.

71

International Business1. International Business Strategy
FY2022Asia

28%2030 Target

US

Towards 2030 Target

30%

2%

Europe Expand Asia development businessBusiness Profit:¥55.8 bn Annual investment: Approx. ¥200–250

Total Asset:¥1,130.9 bn

 1st half of 2020s: Profit increase with

68%

23%

bn

49%

asset 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. 6%

ROA：5.4%
Strategies①Asia②Europe Increase investments, build capital
recycling portfolio
 Two approaches:①Development with major stakes②Joint businesses with local partners＜Expected Return from Investment＞
IRR

Developed countries
Developing countries

MITSUBISHI ESTATE CO., LTD.

8-10%
10+%

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 andcapitalize on RGII* know-how
 Promote joint ventures with local partners*Rockefeller Group International, Inc.

＜Expected Return from Investment＞
IRR

8-10%

72

International Business2. International Assets/Ongoing Projects #1
Many ongoing developments (rentals and for-sale housing) are expected to make early profit
contributions.
International Assets

Major Ongoing Projects(at the end FY2022)*Book Value:¥986 bn24%
US (Manhattan)

Asia

14%

29%

33%

US (Other)

Location

Use

CompletionArea / Units*1

Suzhou Business Park

Jiangsu, Suzhou, China

Office2024

220,400㎡※1

Savya Financial Center North Tower

Manila, Philippines

Office2021

29,700㎡※2

Yoma Central (4 bldg.)

Yangon, Myanmar

To bedetermined

212,700㎡※2

Oasis Central Sudirman

Jakarta, Indonesia

2028

307,000㎡※1

180 George Street

Sydney, Australia

Mixed Use
Development
Office-Rental

2022

60,000㎡

Parkline Place

Sydney, Australia

Office-Rental

2024

One City Centre

Bangkok, Thailand

Office2022

61,000㎡

Warwick Court (Large-scale redevelopment)

UK (London)

Office2022

19,000㎡

UK (London)

Office2022

53,000㎡

UK (London)

Rental apartment2022

195 units

UK (London)

Multi-use

Property Name

EuropeAsia*Inventories + Equity Investments + Tangible Fixed Assets

Europe (Tentative name) 8 Bishopsgate
The Lark (Nine Elms Park)

60-72 Upper Ground (ITV The London

Television Centre)

US1271 Avenue of the Americas

CapitaSpring(Tentative name)
8 Bishopsgate project
MITSUBISHI ESTATE CO., LTD.

Office・Residence・
Hotel・Serviced
Apartment・Retail2020s 2ndhalf

49,100㎡※1

TBD

Stateline 77

US (South Carolina)

Logistics facilities

2022

93,600㎡

Hanover

US (Pennsylvania)

Logistics facilities

2022

42,200㎡

55 Paradise

US（New York）

Logistics facilities

2023

16,700㎡

Virginia Data Center (Bldg.1 & Bldg.2)

US (Virginia)

Data center

2023・2024

51,000㎡

Liv Crossroads

US (Arizona)

Rental apartment

2022

356unit

Liv Laveen

US (Arizona)

Rental apartment

2024

360unit200 East 83rd

US（Arizona）

Condominium

2023

86unit1158 Delaware

US（New York）

Condominium

2024

250unit1072 West Peachtree

US（Colorado）

Rental apartment

2025

49,300㎡

US（Georgia）

Multi-use

2025

37,000㎡

600 Fifth Street NW*1Leasable area or # of units *2Total floor area

*3Area for sale

* # of units MEC owns

73

International Business3. International Assets/Ongoing Projects #2
In Asia, the land bank has been built up and deliveries are strong in the for-salehousing market.
(At the end of FY2022)■Major Ongoing Project
Property NameLand Bank of For-Sale Housing in Asia
350

350

*Based on MEC's shares

50

Location

Total units

MEC's shareCompletion

Southeast Asia
RHYTHM Ekkamai Estate

Thailand (Bangkok)

303

49%

2022

Life Sathorn Sierra

Thailand (Bangkok)

1,971

49%

2022

Malaysia

RHYTHM Charoenkrung Pavillion

Thailand (Bangkok)

421

49%

2022

OthersThe Address Siam-Ratchathewi

Thailand (Bangkok)

880

49%

2023

Life Rama 4

Thailand (Bangkok)

1,237

49%

2024

GEMS

Malaysia (Selangor)

676

45％

2023

Oasia(Previously:L34)

Vietnam (Dong Nai Province)

489

49%

2023

Number of Housing Units for Sale by Completion YearDAISAN

Indonasia (Kota Tngerang)

1,767

49%

2027

Units

Kizuna Heights

Philippines (Manila)

1,036

40%

2026

Vanke・Metropolis Seasons

Changzhou, Jiangsu

1,408

20%

2022

Zhongnan・Southern Shore
MansionHuainan, Anhui

1,665

30%

2023

Taiwan・De you xiu chuan

Taoyuan, Taiwan

124

30%

2024

Weifeng・Elegant Residence

Changchun, Jilin

1,016

14%

2024

Weifeng・Sunrise Building

Changchu, Jilin

1,782

13%

2024

Vanke・Halo Space

Yantai, Shandong

1,441

40%

2024

Australia (Sydney)

R1 : 315
R2 : 322

R1 : 25%
R2 : 25%

2024

400
300
1,400

5,450

1,800

ThailandChina

Indonesia

VietnamPhilippines
Australia

Total: 10,100 units*Based on MEC's shares

5,000

4,281

3,742

4,000
3,000
2,000

664

1,000
0

FY2023-2024
Thailand

MITSUBISHI ESTATE CO., LTD.

China

FY2025-2026
Indonesia

East Asia

FY2027-

Oceania

OthersOne Sydney Harbour R1/R2

74

Investment Management Business

MITSUBISHI ESTATE CO., LTD.

75

Investment Management Business1. Investment Management Business：Global Platform
Japan Real Estate Asset Management Co., Ltd.

EuropeUnited States

TA Realty

Europe Capital

Asia-Pacific
MEC Global
Partners Asia

CLSA Real Estate

Carry out marketing and research and establish funds worldwide

Provide global opportunities to worldwide investors

Japan
Groupwide
Synergy

Japan Real Estate AssetManagement Co., Ltd.
Mitsubishi Jisho
Investment Advisors, Inc.

Established in 2000. Entrusted with asset management of"Japan Real Estate Investment Corporation," the first J-REIT
listed in Japan in September 2001. Mainly invests in office bldgs.

Mitsubishi Jisho Investment Advisors, Inc.
Established in 2001. Provides a wide range of real estate
investment products to institutional investors in Japan andoverseas based on the know-how and resources accumulatedby the Mitsubishi Estate Group. Manages listed REITs, private
REITs, and private funds.

TA Realty (North America)
Established in 1982. A leading real estate investment
management company in the U.S. with funds that invest in adiverse range of real estate, including office, logistics,
residential and retail properties in major cities across the U.S.
Acquired in 2015 and became a subsidiary.

Europa Capital (Europe)
Established in 1995. Based in the U.K., manages funds thatinvest in office, residential, commercial and logistics properties
throughout Europe. Acquired a stake in the company in 2010,
making it a subsidiary.

MEC Global Partners Asia (Asia, Oceania)
Established in 2017 (name changed in 2021). Based in
Singapore, manages core-plus private funds that invest in panAsia.

Mitsubishi Estate Group's network
for investment & development and management & services

MITSUBISHI ESTATE CO., LTD.

CLSA Real Estate (Asia, Oceania)
Managed pan-Asian value-add private funds since 2004;
acquired and became a subsidiary in 2019.

76

Investment Management Business2. Investment Management Business：Increase in Assets under Management (AUM)
Stable increase in AUM
As of the end of FY2022, AuM expanded to a total of ¥4.5 trillion in Japan and abroad(+¥1.4 trillion as of the announcement of the LT Mgmt Plan).
At the time of the announcementof the Long-Term Management Plan

As of end of FY2022(Announced Jan 2020）

Domestic: As of end of Mar. 2022, Overseas: As of end of Dec. 2021

Mid-2020s(Billions of yen)

Asia & Oceania
130
Asia & Oceania
Europe500
Europe
JRE

Overseas

Total:US ¥Approx. 3.1 tn

Overseas
Japan

JRE
1,100

Total:¥Approx. 4.5 tn
US
1,800

Japan

Overseas

Targeting ¥5 tn
by the mid-2020s

Japan

MJIA
1,000

MJIA

MITSUBISHI ESTATE CO., LTD.

77

Investment Management Business3. Investment Management Business：Changes in Operating Profit
Increased in profit from AUM expansion.
Significant profit increase in FY2022 due to incentive fee resulting from increased fairmarket value of U.S. funds.
(Billions of yen)【*Recognition of future fees associated with increased market
value of real estate in funds in the U.S. and other countries】

30

26.5

• For some funds, incentive fees are established in which the managementcompany receives a portion of the excess over expected returns.

25• Such fees are received near the end of the fund as returns are determined, but inaccounting, the company updates returns as needed using market valuations ofreal estate and records the fees it expects to earn as operating revenue eachperiod (no cash inflows at this time).

20

Approx. 18.5

15

13.0

【Accounting procedures】

End ofFY
AUM

FY2020

FY2021

FY2022

FY2023(F)¥ 3.6 tn

¥ 3.7 tn

¥ 4.5 tn-

MITSUBISHI ESTATE CO., LTD.

*This is a general description and may differ
from the design of our funds.

ExcessExpected returns

0

4.4

5.9

Returns calculatedusing market valuations

10
5• Although it will contribute fully to operating revenue and operating profit, its
contribution to profit attributable to owners of parent will be limited (no cash
outflow at this time) because a portion will be posted as profit attributable to noncontrolling interests in the form of contingency fees to the officers and employeesof the asset management company.

Dividends to investors

Excess dividends toinvestors

Revenues received byasset managementcompany
Recorded in operating revenue as
future fees associated withincreased market valuation

78

Investment Management Business4. Investment Management Business：（Reference）Classification of Funds
Classification by Asset Liquidity
Open-end

Closed-end

A type of REIT or fund that allows investors to withdraw their investment in REIT units or funds upon request.
Examples： Private REITs

A type of REIT or fund that does not allows investors to withdraw their investment in REIT units or funds uponrequest.
Examples： Listed REITs… Secure liquidity by trading in the market

Private funds … Acquire and manage real estate with a set investment and management period of several years,
and eventually sell it to distribute returns to investors

Classification by Fund Strategy (Source: Website of the Association for Real Estate Securitization)Core

The fund aims to generate a target return mainly from rental income returns by income-producing property
investments.

Core-plus

Same as Core Fund, the fund aims to generate a target return mainly from rental income returns, but somefrom capital returns.

Value-added*Capital return is not considered as a main target return, but the fund takes a low to medium market risk.

The fund aims to generate a target return mainly from rental income returns as well as capital returns byincreasing the yield and value of undervalued properties.
*Generally, the value-added strategy has a higher risk than the Core and Core-plus strategy because the fund often invests
in low yield properties with some physical obsolescence.

Opportunistic

MITSUBISHI ESTATE CO., LTD.

The fund aims to generate a target return mainly from capital returns by trading properties based on themarket forecast.
*This is a higher risk strategy including adaptive reuse, bulk trade and M&As.

79

Investment/Financial Data, etc.

MITSUBISHI ESTATE CO., LTD.

80

Investment/Financial Data, etc.

1. Net Interest-Bearing Debt/EBITDA Ratio(Billions of yen)

11.0

2,500.0(Times)10.0
9.0

2,000.0
6.7

6.6

1,500.0

1,000.0

6.1

6.1

2,140.2
1,965.2

2,216.8
2,041.8

7.1

6.6
2,353.8
2,196.3

8.0
6.6

6.2
2,504.3

6.8

6.4
2,680.0
2,522.5

2,346.8

7.0
6.0
5.0
4.0
3.0

500.0

2.0
1.0

0.0

FY2019FY2020Net interest-bearing debt
Debt/EBITDA ratio (right axis)

MITSUBISHI ESTATE CO., LTD.

FY2021

FY2022

FY2023(F)0.0

Net interest-bearing debt
*after hybrid debt deductions
Debt/EBITDA ratio (right axis)*after hybrid debt deductions

81

Investment/Financial Data, etc.

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

3,000

95.0%

96.1%

93.7%

96.4%

95.1%

93.4%

2,500

6.8 100.0

10.2

2,000

35.0

61.8%

8.3

1,500

53.1%
1,292.9

28.0
60.1%

54.0%
1,261.9

1,072.3

69.7%

93.2%
50.0
4.5

4.7

5.6 100.0

7.2

9.5

95.4%

93.6%

100.0
76.2%

73.2%

1.9
100.0

92.4%
50.0
2.0
100.0
83.2%

1,428.5

86.5%

1,760.5

1,523.0

1,406.0

1,450.7

1,563.2

1,208.8

0

Total

250.0

250.0

250.0

250.0

215.0

215.0

701.5

685.2

653.0

612.7

603.8

558.9

577.1

595.7

661.3

FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

2,085.4

1,973.0

2,526.1

2,738.6

Straight bond

MITSUBISHI ESTATE CO., LTD.

Subordinated bond60%

2,291.0
Bank Loan

2,396.9

2,481.6

Subordinated loan

2,319.5
CP2,429.8

Lease liability

Fixed ratio

30%
20%

747.2

1,929.3

80%

40%

250.0

636.2

90%

50%

1,000

500

100%

70%

76.4%

64.1%
1,381.2

93.3%
1.7
0.0
100.0

10%
0%

Long-term ratio82

Investment/Financial Data, etc.

3. Interest-Bearing Debt: Procurement Interest Rates/
Average Duration of Interest-Bearing Debt (Unconsolidated)(Year)

10

2.5%

9

8.16

8
7

1.88%
1.72%

6

5.45

5

1.40%
1.27%

4
3

5.55

5.58

5.45

1.54%

1.55%

0.96%

0.72%

0.70%

1
0

FY2011FY2012FY2013
FY2014
Average duration of interest-bearing debt

MITSUBISHI ESTATE CO., LTD.

1.38%

1.52%

1.32%

7.23

0.62%

0.96%

1.5%
1.24%
1.14%

0.61%

0.95%

0.66%

FY2015FY2016FY2017
Bonds/Average interest

0.97%
0.75%

2.0%

6.69

1.07%

0.87%

2

6.18

1.41%
1.05%

1.01%

5.71

6.36

6.79

8.20

0.92%
0.71%

1.09%
0.96%

0.84%
0.68%

FY2018FY2019FY2020Bank loans/Average interest

0.78%
0.63%

1.0%

0.74%
0.60%
0.5%

FY2021
FY2022
Total/Average interest

83

Overview of the "Long-Term Management
Plan 2030"

MITSUBISHI ESTATE CO., LTD.

84

Overview of the "Long-Term Management Plan 2030"

1. New Management Plan: Objectives*Repost from the "Long-Term Management Plan 2030"

Mitsubishi Estate Group’s Mission:
Creation of a truly meaningful society through urban development
2030 Target
Address Four key themes*
to realize a sustainable
society*「Environment」「Diversity & Inclusion」「Innovation」「Resilience」

Fundamental Approach

Increasing
SocialValue

Increasing
Shareholder
Value

Create value for every
stakeholder including visitorsand employees

2030 Target

A pair of driving wheels

Synergy

ROA

ROE

5%

10%

EPS
¥

200

Fundamental Approach
Transformational
improvements to thebusiness portfolio's efficiency
and market resilience

Realize our mission and sustainable growthby increasing both social value and shareholder value
MITSUBISHI ESTATE CO., LTD.

85

Overview of the "Long-Term Management Plan 2030"

2. Quantitative Target - 2030 Target*Repost from the "Long-Term Management Plan 2030"

2030 Target
ROA*1

ROE

EPS

5％

10％

¥200

*1 ROA ＝ Business Profits*2 / Total Asset (average of opening/closing balances)

Key Assumptions
Profit Growth

Shareholders Returns

Financial Stability

Current framework*

Maintain

Business Profit*2• Payout ratio:
Approx. 30%¥350–400 bn• Share buybacks+(when determined to be an
optimal use of funds)

current level ofcredit ratings【Reference】
R＆I：AAS＆P：A＋
Moody‘s：A2* Will adjust to business conditions*2 Business Profit= Operating Income + Equity in earnings (loss) unconsolidated subsidiaries and affiliates

MITSUBISHI ESTATE CO., LTD.

86

Overview of the "Long-Term Management Plan 2030"

3. 2030 Targets: Realization Plan (ROA・ROE・EPS)
Current (FY20)*Repost from the "Long-Term
Management Plan 2030"

2030 Target

Business Profits

Increase of ¥120–170 bn¥350-400 bn¥230.5 bn

Approx. ¥50bn growth from each of: domestic
asset, international asset, non-asset business(EPS: ¥200)<Assumption of total asset changes>(EPS: ¥100.2)

Total Assets【 Flexible capital policy 】

Business Profits

Total Assets¥5.9 tn

Approx. ¥7-8 tn

Optimize investments, assets sales, shareholder
return and financing according to market
conditions

Expected net increase: ¥1-2 tn＝

ROA: 3.9%

ROA: 5%
With current leverage

ROE: 7.8％
MITSUBISHI ESTATE CO., LTD.

Increase Net investment: Approx. ¥2–3 tn
Decrease Depreciation: Approx. ¥1 tn

ROE: 10％87

Overview of the "Long-Term Management Plan 2030"

4. Capital Allocation Policy
Cash inFinancialcapacity*Repost from the "Long-Term Management Plan 2030"

Cash out
Strategic
Allocation
investments/
shareholder
return/suppression ofdebt

Strategic allocation to improve medium- to longterm capital efficiency
 Allocate capitals based on market conditions
 Select projects which help to increase shareholder value

Capital recycling business expected returns (pre-tax IRR)

Domestic: 6-8％
International (developed countries) : 8-10％
International (developing countries) : 10+％
*Expected return from total investment in each business

Cash flowfromoperatingactivities

Plannedinvestment &return* Including undetermined projects. See p. 40 for the next three-year forecastBaseshareholders
returnMITSUBISHI ESTATE CO., LTD.

Planned projects – return through asset sales (book value)

Payout ratio: Approx. 30％* Shareholder return method and scale will be adjustedwith real estate and financial market conditions, stock price, and ROE/EPS

88

Overview of the "Long-Term Management Plan 2030"

5. Profit Growth Strategy - 2030 Vision
Profit changes vs FY2020*① Domestic AssetBusiness

Approx. +¥50 bn(FY20E*: Approx. ¥ 201.0 bn)② International AssetBusiness

Approx. +¥50 bn(FY20E*: Approx. ¥ 36 bn)③ Non-asset BusinessApprox. +¥50 bn(FY20E*: Approx. ¥ 16 bn)④ Fluctuation Factors
Approx. ±¥20–30 bn* Composition of FY20 Business(round number)

MITSUBISHI ESTATE CO., LTD.

*Repost from the "Long-Term Management Plan 2030"

Growth Strategy① Advance “Marunouchi NEXT Stage” project② Increase NOI with development projects③ Optimize capital recycling business to market conditions④ Optimize residential business profit structure① Expand development business in Asia
② Enhance development business and revenue base in Europe③ Enhance and diversify US capital recycling business① Steady profit growth in existing businesses② Utilization of technology③ Provision of service contents focusing on B2C/B2B2C・Asset sales control in response to market conditions
・Capital gain and rental profit fluctuation due to investment opportunities

Profits = ① Domestic Asset + ② International Asset + ③ Non-asset Business + Eliminations or corporate(¥ 201.0 bn)(¥ 36 bn)(¥ 16 bn)(- ¥ 23 bn)

89

Overview of the "Long-Term Management Plan 2030"

6. Roadmap for Profit Growth
Early stage

Domestic
Asset
Business

International
Asset
Business

Non-asset
Business

MITSUBISHI ESTATE CO., LTD.

*Repost from the "Long-Term Management Plan 2030"

Middle stage

Advanceredevelopment projects

Late stage

Redevelopment Projects’ Contribution• Complete Tokiwabashi A Bldg.
• Open & expand outlet mall
• Asset sales and reconstruction of existing buildings (willlower rental profits)• Temporary decline in the condominium units sold

• Long-term developments, e.g. Tokiwabashi B Bldg.
• Residential redevelopments

Profits scale with asset accumulation

Stabilize profits via capital recycling• 1271 Ave. of the Americas renewal, 8 Bishopsgate
completion• Stabilize Asia condominium business• Expand assets in Asia capital recycling business

Promoting commercialization in new domains• Stable growth in existing businesses• Promoting commercialization in new domains• Shift from asset expansion to recycling• Stabilize capital recycling business in Asia

Accelerate profits in new domains• Stable growth in existing businesses• Accelerate profits in new domains

90

Contact Information
Investor Relations Office,Corporate Communications Department
Mitsubishi Estate Co., LTD.
+81-3-3287-5200
https://www.mec.co.jp/<Disclaimer>
Information on the properties of this material is based on the judgments made 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.