May 11, 2016
Earnings Highlights for FY2016
Mitsubishi Estate Co., Ltd.
●Earnings for FY2016
Millions of yen (rounded down)
FY2016
Building Business

FY2015

ChangeChange(%)

FY2016 Estimates（Announced on Feb 4, 2016）

422,349484,816(62,467)(12.9)%

Lifestyle Property Business

86,569105,706(19,137)(18.1)%

87,000Residential Business

345,226

383,887(38,661)(10.1)%

356,000

International Business

422,000

75,956

71,176

4,779

6.7%

76,0001,009,408

1,110,259(100,851)(9.1)%

1,017,000

Building Business

108,940

102,820

6,120

6.0%

105,000

Lifestyle Property Business

25,842

26,162(319)(1.2)%

25,000Residential Business

18,035

11,532

6,502

56.4%

14,000International Business

19,421

25,901(6,479)(25.0)%

18,000

Revenue from Operations

Operating Income

166,199

156,332

9,866

6.3%

155,000

Income Before Taxes and Special Items

144,851

133,113

11,7388.8%

130,000

Profit Attributable to Owners of Parent

83,42673,33810,08813.8%

75,000EBITDA

252,034

239,934

12,1005.0%

239,000

Summary【Overview】
There is a decrease in income and an increase profits compared with FY2015. Main factors for thedecrease in income are due to selling off large-scale property in the previous period in the Building
Business, and a decrease in condominiums sold in the Residential Business. Main factors for the increasein profits include an improvement of rental profits and an increase in profits from property sales in theBuilding Business. Factors affecting the individual segments compared with FY2015 are detailed below.
【Building Business】
There is a decrease in income due to selling off large-scale property in the previous period. However,an increase of rental income from existing buildings, an improvement of rental profits as a result of cost
reductions, and an increase in profits from property sales led to an increase in profits.
(Vacancy rates)
The Japan (all purpose) vacancy rate at the end of March 2016 saw the leasing in Marunouchi performing
above expectations, and this was one factor for the vacancy rate being above estimate.
Japan (all purpose)

2.22%(Feb 4, 2016 Estimate: 2.5%, 2015/3: 2.8%)

Marunouchi (offices)1.37%(2015/3: 1.82%)

(Average rents)
Due to factors such as the leasing in Marunouchi performing above expectations and the effect of rent
increases, rent at the end of March 2016 is above estimate.
Japan (all purpose)¥25,234/tsubo.month(Feb 4, 2016 Estimate： ¥25,000/tsubo.month)【Lifestyle Property Business】
Although there was a decrease in income due to the effects of property sold off in the previous period, anincrease in rental profits in the outlet mall business led to stabilization of profits.
【Residential Business】
A factor for the decrease in income was the decrease in the number of condominiums sold. However, theeffects of a write down in the previous period and an improvement of gross margin on condominiums
resulted in an increase in profits.
【International Business】
An increase in income occurred as factors such as the decrease in income from property sales in the same
period of the previous year were offset by the effects of the exchange rate. A factor for the decrease inprofits was a decrease in profits from property sales.
●Earnings Estimates for FY2017
Millions of yen (rounded down)
FY2017
Estimates

FY2016
Results

ChangeChange(%)

Building Business

443,000

422,349

20,651

4.9%

Lifestyle Property Business

85,00086,569(1,569)(1.8)%

Residential Business

426,000

345,226

80,774

23.4%

International Business

65,00075,956(10,956)(14.4)%

Revenue from Operations

1,102,000

1,009,408

92,592

9.2%

Building Business

112,000

108,940

3,060

2.8%

Lifestyle Property Business

24,00025,842(1,842)(7.1)%

Residential Business

28,00018,035

9,965

55.3%

International Business

22,00019,421

2,579

13.3%

Operating Income

175,000

166,199

8,801

5.3%

Income Before Taxes and Special Items

150,000

144,851

5,149

3.6%

Profit Attributable to Owners of Parent

86,00083,426

2,574

3.1%

EBITDA

262,500

252,034

10,466

4.2%【Overview】
An increase is expected in income and profits for FY2017, due to an increase in rental income and profits
in the Building Business, and the sale of property in the Residential Business.
Factors affecting the individual segments compared with FY2016 are detailed below.

【Building Business】
The effects of Otemon Tower･JX Building and Dai Nagoya Building completed in the previous period,
and an increase of rental profits on existing building etc. are estimated to result in an increase in incomeand profits.
(Vacancy rate)
Factoring in short-term vacancy due to tenant changeover, the vacancy rate for the end of March 2017
(Japan, all purpose) is expected to temporarily rise to 3.5%.
(Average rent)
Average rent (Japan, all purpose) is expected to reach ¥25,500/tsubo.month due to rent increases and theresult of the leasing of new buildings performing well.
【Lifestyle Property Business】
A decrease in income and profits is estimated as an effect of properties sold in the previous period.
【Residential Business】
An increase in income and profits is expected due to an increase in condominiums for sale and the sale ofproperties.
【International Business】
A decrease in income from property sales and the effects of the exchange rate is expected to result in adecrease in income. An increase in profits is expected due to a increase in profits from property sales.
●Dividends
In FY2016, interim dividends were ¥7 yen per share. However, upon balancing the accounts, profit
attributable to owners of parent had considerably increased compared with FY2015 with the year-end
dividend scheduled to be increased by ¥2, up to ¥9 per share (annual dividend payout is ¥16 per share).
After taking into deep consideration the above dividend objectives as well as future prospects, both theinterim dividend and year-end dividend will be set at ¥8 and annual dividend payout will be ¥16 per share
for FY2017.
Disclaimer
This data contains predictions and aims which relate to our future economic performance and projectionsof revenue and other financial items. These predictions are inherently subject to risks and uncertainties,
due to unforeseeable events or external factors. Future events and actual results, financial and otherwise,
may differ materially.

The Summary of Financial Statements and Fact Book can be found on the homepage.
◇Summary of Financial Statements(http://www.mec.co.jp/e/investor/irlibrary/tanshin/index.html)◇Fact Book
(http://www.mec.co.jp/e/investor/irlibrary/fact/index.html)