November 7, 2018
Earnings Highlights for FY2019 – 2Q
(The Fiscal Year Ending March 31, 2019)
Mitsubishi Estate Co., Ltd.
●Earnings for FY 2019 – 2Q (Consolidated)＜Summary＞
Millions of yen (rounded down)

Office Building Business

FY2019-2Q
Results

FY2018-2Q
Results

274,266

226,054

Change(%)

Change48,211FY2019 Estimates（Announced on May 14, 2018)

21.3%

545,000

Lifestyle Property Business

51,62650,242

1,384

2.8%

113,000

Residential Business

182,005

131,628

50,37638.3%

440,000

International Business

27,77838,963(11,184)(28.7)%

74,000

Revenue from Operations

577,289

485,838

91,45118.8%

1,290,000

Office Building Business

76,77867,962

8,815

13.0%

148,000

Lifestyle Property Business

14,694

14,373320

2.2%

31,000Residential Business

13,442(1,760)15,202863.8%

23,000International Business

10,76010,649110

1.0%

25,000Operating Income

106,891

84,27822,61226.8%

215,000

Income Before Taxes and Special Items

94,00773,961

20,04527.1%

191,000

Profit Attributable to Owners of Parent

61,812

41,72920,08248.1%

123,000

EBITDA

151,179

128,586

22,59317.6%

303,000【Overview】
There is an increase in income and profits compared with FY2018 -2Q. Main factors include an increase ofincome and profits both on property sales and on rental in the Office Building Business as well as anincrease of income and profits from sales of condominiums and rental apartment buildings in the Residential
Business. Factors affecting individual segments compared with FY2018-2Q 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 fromnew buildings resulted in an overall increase.
(Vacancy Rate)
The vacancy rate for Japan (all uses) had improved as leasing progressed well in overall portfolio.
On the other hand, the temporary increase in vacancy due to a change in tenants in Marunouchi led to
the vacancy rates for Marunouchi (offices) increasing. 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 buildin gs in Marunouchi as well as anincrease in rents from existing buildings mainly in Marunouchi.
(yen/tsubo.month)
2018/3Results

2018/6
Results

2018/9Results

FY2019 Estimates(Announced on May 14, 2018)

Japan (all purpose)

1.87%

2.08%

2.06%

2.5%

Marunouchi (offices)

1.65%

2.03%

2.17%

Average rents (Japan, all purpose)¥26,193¥26,280¥26,389

Vacancy rates¥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】
An increase both in sold units of condominiums and in sold properties of rental apartment resulted in anoverall increase.
【International Business】
A decrease in income from property sales led to an overall decrease in income. However, an increase inincome and profits related to the Hybrid Investment Business Model* resulted in stable profits.
* 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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