November 7, 2019
Earnings Highlights for FY2020 – 2Q
(The Fiscal Year Ending March 31, 2020)
Mitsubishi Estate Co., Ltd.
●Earnings for FY 2020 – 2Q (Consolidated)
Millions of yen (rounded down)

Office Building Business

FY2020-2Q
Results

FY2019-2Q
Results

250,427

274,266

Change(%)

Change(23,839)

FY2020 Estimates（Announced on May 14, 2019)(8.7)%

590,000

Lifestyle Property Business

64,61551,626

12,98825.2%

120,000

Residential Business

151,091

182,005(30,913)(17.0)%

402,000

International Business

28,45027,778671

2.4%

137,000

Revenue from Operations

535,226577,289(42,062)(7.3)%

1,360,000

Office Building Business

71,414

76,778(5,363)(7.0)%

153,000

Lifestyle Property Business

18,163

14,694

3,469

23.6%

35,000Residential Business

4,741

13,442(8,700)(64.7)%

20,000International Business

9,181

10,760(1,578)(14.7)%

37,000Operating Income

92,276

106,891(14,614)(13.7)%

230,000

Income Before Taxes and Special Items

81,08394,007(12,923)(13.7)%

207,000

Profit Attributable to Owners of Parent

48,07861,812(13,734)(22.2)%

137,000

EBITDA

139,820

151,179(11,359)(7.5)%

324,000＜Summary＞【Overview】
There is a decrease both in income and profits compared with FY2019-2Q. Despite an increase in rental
income and profits in the Office Building Business, the Lifestyle Property Business and the International
Business, a decrease in income and profits from property sales in the Office Building Business, theResidential Business and the International Business as well as a decrease in domestic condominiums units
sold resulted in an overall decrease. However, figures are in line with estimates.
Factors affecting individual segments compared with FY2019-2Q are detailed below.
【Office Building Business】
Despite an increase in rental income and profits from new buildings, a decrease in income and profits
from property sales resulted in an overall decrease.
(Vacancy Rate)
With the leasing performing well in overall portfolio, the vacancy rates for Japan (all uses) andMarunouchi (offices) had improved.
(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

2019/3Results

2019/6
Results

2019/9Results

2020/3 Estimates(Announced on Nov 7, 2019)Japan (all uses)

1.80%

2.29%

1.98%

1.5%

Marunouchi (offices)

2.19%

2.69%

2.51%

¥26,702¥26,910¥27,177

Average rents (Japan, all uses)¥27,300

【Lifestyle Property Business】
An increase of income and profits from property sales and a favorable performance in outlet mall businessresulted in an overall increase.
【Residential Business】
A decrease both in sold units of condominiums and in sold properties of rental apartment in the domestic
residential business led to an overall decrease.
【International Business】
An increase in occupancy rates of the office building in the U.S. that has been partially completed under alarge-scale renovation resulted in an increase in income. However, a decrease in income and profits fromproperty sales led to a decrease in profits.
●Earnings Estimates for FY2020 (Consolidated)
There is no change in the earnings estimates announced on May 14, 2019.
Disclaimer
The forecasts contained in this report, the Summary of Consolidated Financial Statements, and FACT BOOK
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.
◇https://www.mec.co.jp/j/investor/irlibrary/materials/index.html(End)