August 3, 2018
Earnings Highlights for FY2019 – 1Q
(The Fiscal Year Ending March 31, 2019)
Mitsubishi Estate Co., Ltd.
●Earnings for FY 2019 – 1Q (Consolidated)
Millions of yen (rounded down)

FY2019-1Q
Results

FY2018-1Q
Results

149,551

110,344

Office Building BusinessChange(%)

Change39,206FY2019 Estimates（Announced on May 14, 2018)

35.5%

545,000

Lifestyle Property Business

23,07522,570504

2.2%

113,000

Residential Business

68,966

72,135(3,169)(4.4)%

440,000

International Business

11,22910,827401

3.7%

74,000

Revenue from Operations

272,660

234,217

38,44216.4%

1,290,000

Office Building Business

37,32332,016

5,306

16.6%

148,000

Lifestyle Property Business

7,056

6,422

633

9.9%

31,000Residential Business

1,238(1,022)

2,260

221.1%

23,000International Business

3,780

2,346

1,433

61.1%

25,000Operating Income

45,32235,843

9,479

26.4%

215,000

Income Before Taxes and Special Items

39,87731,645

8,231

26.0%

191,000

Profit Attributable to Owners of Parent

25,297

17,933

7,363

41.1%

123,000

EBITDA

68,46158,708

9,753

16.6%

303,000＜Summary＞【Overview】
There is an increase in income and profits compared with FY2018-1Q. Main factors include an increase ofincome and profits both on property sales and rental in the Office Building Business as well as an increaseof property sales profits in the Residential Business. Factors affecting individual segments compared withFY2018-1Q are detailed below.
【Office Building Business】
An increase of income and profits on property sales as well as an increase in rental income and profits fromboth new and existing buildings resulted in an overall increase.
(Vacancy Rate)
The temporary increase in vacany due to a change in tenants in Marunouchi led to the vacancy rates
for Japan (all uses) and Marunouchi (offices) increasing compared with the end of March 2018. This
had already been taken into consideration at the beginning of the period, and with leasing underway,
figures are in line with estimates.
(Average Rents)
The average rents increased as a result of rents from new buildings in Marunouchi as well as anincrease in rents from existing buildings mainly in Marunouchi.

(yen/tsubo.month)

Vacancy rates

2018/3Results

2018/6
Results

FY2019 Estimates(Announced on May 14, 2018)

Japan (all uses)

1.87%

2.08%

2.5%Marunouchi (offices)

1.65%

2.03%

¥26,193¥26,280

Average rents (Japan, all uses)¥26,800

【Lifestyle Property Business】
An increase in rental income and profits from Tokyo Ryutsu Center Distribution B Building completed inJune 2017 as well as a favorable performance in outlet mall business resulted in an overall increase.
【Residential Business】
A decrease in sales from condominiums, etc. led to a decrease in income; however, an increase in property
sales profits led to an increase in profits.
【International Business】
An increase in income and profits related to the Hybrid Investment Business Model* resulted in an overall
Increase.
* Hybrid Investment Business Model: Funds structured by the Group companies that combine Mitsubishi
Estate’s and third-party equity. They support portfolio diversificationand increased investment scale while concurrently earning management
fees from investors for providing services to them.
●Earnings Estimates for FY2019 (Consolidated)
There is no change in the earnings estimates announced on May 14, 2018.

Disclaimer
The forecasts contained in this report, the Summary of Consolidated Financial Statements, and FACTBOOK are based on information available to the Company at the time of disclosure. Therefore, actual
performance may differ from such forecasts due to various factors.
The summary of Financial Statements and Fact Book can be found on the homepage.
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