November 9, 2023
Financial Highlights for FY2023 – 2Q
(The Fiscal Year Ending March 31, 2024)
Mitsubishi Estate Co., Ltd.
● Highlights
・ Record operating revenue of ¥587.9 billion, operating profit of ¥90.3 billion, ordinary profit of ¥75.2
billion, and profit attributable to owners of parent of ¥41.5 billion.
・A decrease in operating profit owing to a decline in significant overseas capital gains recorded in FY2022.
・ The deliverly of condominiums and property sales are scheduled toward the second half of the year.
Contracts are progressing smoothly towards achieving the full-year forecasts.
・ Maintain low vacancy rates (Marunouchi Offices: 2.47% as of the end of September, 2023).
・ No change in full-year operating profit and profit attributable to owners of parent forecasts. As a
breakdown, while profits of commercial property business are strong, profits in the investment
management business are lower than initially expected, so the full-year forecasts for each segment arerevised and offset each other consequently.

● Earnings for FY2023-2Q (Consolidated)
FY2022-2Q
Results
333,109

Residential Business121,270

120,633636

0.5%

381,000

International Business

58,991

94,033(35,042)(37.3%)

158,000

Commercial Property Business

Investment Management BusinessOp er at in g Reven u e
Commercial Property BusinessResidential Business
International Business
Investment Management BusinessChange39,072

Percentage
Change
11.7%

Millions of yen (rounded down)
FY2023 Forecasts(November 9, 2023 Disclosed)
843,000

FY2023-2Q
Results
372,181

13,951

29,480(15,528)(52.7%)

36,000587,933

594,565(6,631)(1.1%)

1,469,000

87,985

77,91910,065

12.9%

195,000(985)

3,339(4,325)(129.5%)36,00018,01960,786(42,766)(70.4%)

54,000(2,386)

14,608(16,995)(116.3%)5,000

Op er at in g Pro fit

90,314142,078(51,764)(36.4%)

264,000

Ord in ar y Pr o fit

75,224

130,534(55,309)(42.4%)

232,000

To t al in co me t axes

35,952

31,528

4,423

14.0%

79,000Pr o fit A tt rib u tab le t o No n Co n t r o llin g I n t er ests

5,071

15,314(10,243)(66.9%)

13,000Pr o fit A tt rib u tab le t o Own ers o fParen t

41,546

76,342(34,796)(45.6%)

166,000

E BITDA

145,000

194,350(49,350)(25.4%)

374,500

＜Summary＞【Overview】
There is a decrease in operating revenue and operating profit YoY. A decline in significant overseas capitalgains recorded in FY2022 is a major factor. Despite a low progress rate overall, the performance is insteady progress toward achieving our full-year forecasts due to the deliverly and property sales schedueledin the second half of the year.
【Commercial Property Business】
There is an increase in revenue and profits YoY due to the increase in office building rental profits and thefavorable performance of hotels and retail properties.
＜Office Buildings＞
Despite a decrease in rental profits from closed buildings for redevelopment, leasing is progressing
smoothly, and the continuing low vacancy rates in existing buildings contributed to an increase in revenue
and profits YoY.
(Vacancy Rates) The vacancy rates remained almost the same level.
(Average Rents) Average rents remained almost the same level.
(Changes in Vcancy Rate)

Vacancy rates

2022/12Results

2023/03
Results

2023/06
Results

2023/09
Resu lts

2024/03
Forecasts

Japan (all uses)

4.37%

3.73%

3.91%

4 .0 7 %3.50%

Marunouchi (offices)

3.62%

2.43%

2.68%

2 .4 7 %―＜Retail Properties (e.g. outlet malls)＞
There is an increase in revenue and profits YoY followed by the improvement of business conditions.
＜Hotels＞
There is an increase in revenue and profits YoY followed by the improvement of business conditions.
【Residential Business】
There is a decrease in revenue and profits YoY. Approximately 96.7% of the sales scheduled for full-year
have already been contracted, and the performance is in steady progress toward achieving our full-year
forecasts.
【International Business】
There is a decrease in revenue and profits due to a decline of capital gains associated with the sale ofCentral St. Giles, an office building in London, recorded in FY2022.
【Investment Management Business】
There is a decrease in revenue and profits YoY mainly due to a decline of incentive fees（Non cash）
in FY2022 and previous years.
【Architectural Design & Engineering Business and Real Estate Services Business】
There is an increase in revenue and profits YoY mainly due to a favorable performance in the enterprise
brokerage business.

Earnings Estimates for FY2023 (Consolidated)
Previous estimates announced on May 11, 2023.
Millions of yen (rounded down)
Percentage
ChangeChangeFY2023
Revised Forecasts

FY2023
Previous Forecasts

843,000
381,000
158,000
36,000
1 ,469,000
195,000
36,00054,0005,000
2 64, 000
2 32, 000
79,000836,000
381,000
158,000
43,0001,46 9, 000
188,000
36,00054,00012,000264,0 00
232,0 00
7 9,0 00

Pro fit A tt rib u t ab le t o N o n Co n t ro llin g In t erest s

13,000

1 3,0 0000%

Pro fit A tt rib u t ab le t o Own ers o f
Par en t

1 66, 000

166,0 00

00%

E BITDA

3 74, 500

374,5 00

00%

Commercial Property BusinessResidential Business
International Business
Investment Management BusinessOp er at in g Revenu e
Commercial Property BusinessResidential Business
International Business
Investment Management BusinessOp er at in g Pro fit
Or d in ary Pr o fit
To tal in co me t axes

7,000
00(7,000)0
7,000
00(7,000)
00
0

0.8%
0%0%
(16.3%)
0%
3.7%
0%0%
(58.3%)
0%0%0%＜Summary＞
・ There is no change in operating profit and profit attributable to owners of parent.
・ The commercial property business has improved due to the strong performance of hotels and retailproperties, rental profits from office buildings, as well as improvements in domestic capital gains.
・ On the other hand, there is a decline of the profit in the investment management business due to thecancellation of previously recorded incentive fees（Non cash）, resulted from market value decrease ofmanaged assets in the United States.
・The full-year dividend forecast of 40 yen (up approximately 5.3% from FY2022) is also unchanged.
Disclaimer
The forecasts contained in this report, the Summary of Consolidated Financial Statements, and other financial
materials 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 other financial materials can be found on the homepage.
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