FY2024 – 1Q
(The Fiscal Year Ending March 31, 2025)

Mitsubishi Estate
IR Presentation
Copyright @ MITSUBISHI ESTATE Co., Ltd. All Rights Reserved

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Financial Overview

FY2024
1Q Results

Operating Profit was ¥51.7 billion (up ¥3.3 billion YoY) and Profit Attributable to Owners of Parent
was ¥25.9 billion (up ¥6.6 billion YoY).
Office, retail (outlet malls) and hotels are all performing well and making steady progress toward
the full-year forecasts. Capital Gains are expected to be recorded in the second half.
Office leasing continued to perform well, with vacancy rates 1.83％ as of June 30, 2024.

FY2024
Forecasts（Unrevised）

Shareholder
Return Policy（Repost）

Operating profit is expected to reach a new historical high, ¥300 billion (up ¥21.3 billion YoY).
Profit Attributable to Owners of Parent is expected to reach a record high, ¥173 billion (up ¥4.5
billion YoY) for four consecutive years.
(Dividends)
Dividend forecast for FY2024: ¥43 per share.
Progressive dividend payments of ¥3 for every fiscal year is implemented (until FY2030).
(Share buyback)¥50 billion share buyback is decided in FY2024.
Until FY2026, around ¥50 billion share buyback is expected every fiscal year.
Treasury stock shares will be canceled. Treasury stocks to be decided this time are also planned
to be canceled after completion of share buybacks.
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FY2024-1Q Overview

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FY2024-1Q Overview

1. Income Statement Summary
Operating Profit: ¥51.7 bn (up ¥3.3 billion YoY) , Profit Attributable to Owners of Parent: ¥25.9 bn (up ¥6.6 billion YoY)
Millions of yen (rounded down)

FY2024-1Q
Results

FY2023-1Q
Results

ChangeMain Factors

328,239
51,798292,465
48,400Commercial Property Business

21,647

18,783+ 2,864 +Strong performance of hotels and retail(outlet malls)

Marunouchi Property Business

23,997

27,242(3,245) -Decreased due to building closures, lack of one-off revenue/+Improving vacancy rate

Residential Business

2,922(1,813)+ 4,735 +Increased profit of condominiums business

International Business

6,444

8,860

(2,415) -Decreased capital gains

837

1,214

(376) -Decreased due to one-off expenses

Architectural Design & Engineering
Business and Real Estate Services Business

2,518

1,576

+ 942

Other

(658)

(683)

+ 25

(5,911)(6,779)+ 867

Operating revenue
Operating profit

Investment Management BusinessEliminations or corporate+ 35,774+ 3,397

Non-operating income

6,812

6,010

Non-operating expenses

14,816

10,78043,794

43,630

5,563

2,710

Extraordinary losses

-

-

-

Total income taxes

18,507

22,953(4,446)

Profit attributable to non-controlling interests

4,908

4,118

+ 790

25,941

19,269+ 6,672

Ordinary profit
Extraordinary income

Profit attributable to owners of parent+Good performance of Architectural Design & Engineering Business and Real Estate
Services Business+ 802+ 4,036 Increase in interest expenses+ 163

Millions of yen
Capital Gains included(rounded off to the nearest billion)
in Operating Profit
FY2024-1Q FY2023-1Q
Change(before G&A)
Results
Results
4,000
5,000(1,000)Commercial Property

Residential
International
Total

3,000
7,000

4,000
6,000
15,000(1,000)(6,000)(8,000)+ 2,852 Increase in gain on sales of investment securities

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FY2024-1Q Overview

2. Balance Sheet Summary(Billions of yen)

As of June30, 2024

Assets

As of March
31, 2024

ChangeInventories

518.7

513.8

+4.9

Property, plant andequipment

4,703.7

4,597.1+106.6Equity investments

1,005.6

962.1

+43.5

Other

1,456.6

1,510.6(54.0)

Total assets

7,684.7

7,583.7+101.0

As of June30, 2024

Liabilities and net assets

As of March
31, 2024

ChangeInterest-bearing debt

3,271.8

3,138.1+133.6

Other

1,761.9

1,820.9(59.0)

Liabilities

5,033.8

4,959.1+74.6

Net assets

2,650.9

2,624.5+26.3

Total liabilities and net assets

7,684.7

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PPE/equity investments
etc. increased due toprogress in selected
investments

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FY2024-1Q Overview

3. Interest-Bearing Debt
(as of end of June 2024)

Consolidated Interest-Bearing Debt
Lease obligations 1.6(Billions of yen)Fixed/Floating Rates

Long/Short Terms

Foreign currencies ¥724.0bn

Short-term 6.6%

Floating 16.0%

Yen/Foreign Currency(Floating ¥483.1bn)

Bonds 880.5
FixedLong-term

84.0%

93.4%

Yen

¥2,547.7bn

3,271.8bn¥+¥133.6bn

Average Remaining Maturity (Unconsolidated)(vs. End of March 2024)

7.0years

Amount to be Repaid(Consolidated) Credit Rating
Billions of yen

Borrowings 2,389.5(as of end of June 2024)

Credit Rating Agency(From October 23, 2023)

Long-term Rating

FY2024

174.3

Moody’s

A2

FY2025

247.7

Standard and Poor’s (S&P)

A+

FY2026267.6

Rating and Investment
Information (R&I)

FY2027284.1

Japan Credit Raging Agency

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AA- (Positive)AA+
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FY2024 Forecasts

There are no updates from this page to the IR presentation for FY2023 disclosed on May 10, 2024.
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FY2024 Forecasts

1. Income Statement Forecast - FY2024 Forecasts vs. FY2023 Results
Operating Profit is expected to reach ¥300 billion for the first time. Operating Profit and Profit
Attributable to Owners of Parent(for the fourth consecutive year) are expected to reach new highs.
FY2024
Forecasts

FY2023Results

1,596,000
300,000

1,504,687
278,627

Commercial Property Business

110,000

114,730

Marunouchi Property Business

90,00097,082

Residential Business

40,00038,888(4,730) -Decrease gain on sale of properties-Decrease rental profit due to closure of buildings planned for(7,082)
redevelopment/property sale, and increase expenses such as applicable taxes+1,112 +Increase profit of condominium business

International Business

70,00051,448+18,552 +Increase gain on sale of properties, increase profit of condominium business

Investment Management Business

13,000(1,619)+14,619 +Rebound of adjustment of incentive fees

Architectural Design & Engineering
Business and Real Estate Services
Business

7,000

9,021

(2,021)Other(2,000)(1,577)(423)

Eliminations or corporate(28,000)(29,346)+1,346

Non-operating income

12,00015,809Non-operating expenses

60,00053,278252,000

241,158+10,842

Extraordinary income/losses

26,00033,374(7,374)

Total income taxes

92,00098,131(6,131)

Profit attributable to non-controlling interests

13,0007,968+5,032 Rebound of adjustment of incentive fees in investment management

173,000

168,432

Millions of yen (rounded down)

Operating revenue
Operating profit

Ordinary profit

Profit attributable to owners of parent

ChangeMain factors+91,313+21,373

Millions of yen
Capital Gains included(rounded off to the nearest billion)
in Operating Profit
FY2024FY2023(before G&A)
ChangeForecasts
Results

Commercial Property

45,00052,000(7,000)Residential

20,00023,000(3,000)(3,809)International

45,00032,000+13,000+6,722 Increase in interest expenses

Total

110,000

107,000+3,000+4,568

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BS・Debt・CF

4. Cash Flow Forecast For FY2024
New investment of ¥216 billion is set mainly overseas for profit growth.
(Billions of yen)

Operating Cash Flow

Investing Cash Flow

Investment assumption (Billions of yen)

FCF

Decrease (Increase) in
equity investments

Initial Plan
Capital Investments

投資

Capitalinvestments(246.0)Operating Cash Flow: +279.0

572.0

Equity Investments

323.0

Total

895.0

(Of which, newinvestment)

216.0

Investing CF: (525.0)

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Shareholders Returns

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Shareholder Return Policy [extracted from Long-Term Management Plan 2030 Review]

Progressive dividend of ¥3 every fiscal year
Shareholder Return (Dividends)

Business Strength

Shareholder Value

Reflect upward growth prospect and implement ¥3
progressive dividend every fiscal year (¥60 or more in FY2030)
From Marunouchi/Outlets/flagship buildings (Yen)in the US/UK

Stable rental CF

65

Dividend per share

60

Increase dividend by¥3 every fiscal year

55

After completion of Torch Tower,
8 Bishopsgate, etc.,

Further growth ofrental CF

50
45
40

36
33

35
30

By monitoring the Market

40

30

43

38

31

26

¥60 or more

Continuous/Stableshareholder return
Improved
foreseeability

25

Maximize profits on sale 20
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Shareholder Return Policy [extracted from Long-Term Management Plan 2030 Review]

Continuous Share Buyback
Business Strength/
Management Strategy

High-level gains
on sale of property

Shareholder Return (Share Buyback)¥50 billion share buyback decided in FY2024¥50 billion/year buyback estimated also in FY2025/FY2026

Based on market insight,

Consider additional Share Buyback depending
on share price/CF, etc.

Maximize profits on saleOccasionally consider
addition

Including Marunouchi assets,

Strategic return
Sale of crossshareholdings, etc.

Shareholder Value

Base
Annually around¥50 billion

Improved stability/
foreseeability
Occasionallyadditional return
Cancel after
completing acquisition

FY2024 FY2025 FY2026
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Strategy and Progress

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Strategy and Progress

1. Summary of Segment Changes
Old Segment

New Segment

Commercial Property Business Group

Commercial Property Business Group

Marunouchi Property Business Group

Residential Business Group

Residential Business GroupInternational Business GroupInternational Business Group

Investment Management Business Group

Investment Management Business Group

Architectural Design & Engineering
Business Group

Architectural Design & Engineering
Business Group

Real Estate Services Business Group

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Strategy and Progress

2. FY2023 Operating Profit (breakdown)(Reference)
Millions of yen

Operating Profit
Commercial Property BusinessLeasing
Sales of assets
Other(fees, etc.)

Marunouchi Business

FY2023 Results

278,627
114,730
59,00047,0008,730
89,0008,082

Residential Business

38,888

Condominiums Sales
Sales of assets
Other

21,00015,0002,888International Business

51,448

Leasing
Condominiums Sales
Sales of assets
Other

21,0009,000
26,000(4,552)
9,900

Incentive fee(11,519)

Eliminations or corporate

Rental profit mainly form Marunouchi office buildings
Profit on property management and flexible workspace businesses
Profit on new condominiums and renovated condominiums businesses
Gain on sale of properties such as rental apartments

Rental profit of major properties in the US and Europe
Profit on new condominium business
Gain on sale of overseas asset properties(1,619)Base fee etc.

Architectural Design & Engineering
Business and Real Estate Services Business
Other

Rental profit of office, logistics facility, retail property (including outlet), hotel, etc., in Japan (excluding Marunouchi)
Gain on sale of properties, such as office, logistics facility, retail property, and hotel
Fee income from hotel management, project management, etc.

97,082

Leasing
Other(fees, etc.)

Investment Management Business

Main components

Profit on asset management business in both Japan and overseas (excluding incentive fees associated with market
value change)
Incentive fees associated with market value change (non-cash)

9,021(1,577)(29,346)* Rounded the amount to the nearest billion yen. To be consistent with total value, rounding adjustment was made in the item at the bottom of each segment. G&A was appropriated for each profit on a pro-rata basis.
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Strategy and Progress (Commercial Property Business)

3. Commercial Property Business
Operating Profit

Business Overview
Office Buildings

Retail Properties

Engages in the development, leasing, andproperty management of office buildings,
mainly in major cities in Japan excluding

Develops retail properties and outlet malls
across Japan, mainly in the major metropolitan
areas.

Marunouchi area.

(Billions of yen)
120

114.7
8.7

100

47.0

80

Logistics Facilities

Hotels/Airports

Development, leasing, and management of the“Logicross” series as a foundation of logistics
facilities.

Undertakes hotel management nationwide as
the Royal Park Hotels group. Began private
airport management business.

60

40

59.0
20

Main Indicators→See IR Databook P.20-22

Capital Recycling Assets

NOI Yield of Assets under
Operation

Over ¥1.0tn

Approx. 7%0High Capital Gains¥52 billion

FY2023

Rental profit
Fees

Sales of assets* G&A was appropriated for each profit on a pro-rata basis.

Before G&A*FY2023 results and at the end of March 2024 unless otherwise described
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Strategy and Progress (Marunouchi Business)

4. Marunouchi Property Business
Operating Profit

Business Overview

Development, leasing, and property management of mainly office buildings in
Otemachi, Marunouchi, and Yurakucho (DaiMaruYu district). Maximize profits
through area development and area management in the DaiMaruYu district.

(Billions of yen)
120

100

97.0
8.0

Torch Tower

80

60

Tokiwabashi
Tower
40

Marunouchi Building
Shin-Marunouchi Bldg.

©Mitsubishi Jisho Design Inc.

Marunouchi Park Building

Main Indicators: Advancing Marunouchi Redevelopment
Redeveloped

19buildings / 35 in total
2million ㎡

Vacancy Rate of
Marunouchi/Office

New Projects*

89.0

20

0
FY2023

Rental profit

1.1 - 1.3million ㎡

2.33%→See IR Databook P.33

Fees

* G&A was appropriated for each profit on a pro-rata basis.
*Total area to be supplied at the Marunouchi NEXT stage announced in 2020**FY2023 results and at the end of March 2024 unless otherwise described; the area represents total floor area

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Strategy and Progress (Residential Business)

5. Residential Business
Operating Profit

Business Overview
Operates residential condominium business under "The Parkhouse" brand andrental apartments business under "The Parkhabio" brand.

(Billions of yen)
50

38.8

40

2.8
30

15.0

20

The Parkhouse
Takanawa Place

Main Indicators

The Parkhouse
Gran Sanbancho26

The Parkhabio
SOHO Yutenji(53units)

The Parkhabio Minamioi(109units)→See IR Databook P.50-55

21.0

10

0

Land Bank

Gross Profit Margin

Owned Rental
Apartments, etc.

16,600units

25.9%

111buildings

FY2023

Condominiums
Other

Sales of assets* G&A was appropriated for each profit on a pro-rata basis.

*FY2023 results and at the end of March 2024 unless otherwise described
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Strategy and Progress (International Business)

6. International Business
Operating Profit

Business Overview
Undertakes office building development and leasing businesses mainly in the UnitedStates and the United Kingdom, as well as projects in the cities of the Asia andOceania regions.

Capital Gains
USEuropeLogistics,
Rental apartments

OfficesSize of ¥20bn per year

Rental apartments

Asia/Oceania
Focus on investment
efficiency

Rental profit

Mainly in Europe and US; Stable
Hybrid-model investment profit

In US; Logistics, Rental apartments

80
70
60

51.4

50

9.0

40

26.0

30

Condominiums Sales

Mainly in Asia/Oceania
for actual demand(Billions of yen)

20

Business overview /Reference for details
Overall international
business strategy→See IR Databook P.57-59
US→See IR Databook P.60-62
Europe→See IR Databook P.63-65
Asia/Oceania→See IR Databook P.66-68

21.0

10
0

-4.6
FY2023(10)

Rental profit

Sales of assets

Condominiums

Other* G&A was appropriated for each profit on a pro-rata basis.

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Strategy and Progress (Investment Management Business)

7. Investment Management Business
Operating Profit

Business Overview
Asset management companies in Japan, US, Europe, and Asia address global needsof asset management of real estates. Entrusted from over 650 institutional investors,
general business corporations, and retail investors in 25 countries worldwide.

(Billions of yen)

-1.6

15.0

Japan

Asia

US

10.0

9.9

5.0

Europe0.0

Main Indicators-5.0→See IR Databook P.69-73

Global Platform-11.5

Growing AuM
-10.0

Japan

EuropeGlobalPlatform
Asia

US¥3.1tnAs of Jan. 2020,
release of LT Plan

5.7tn

-15.0

¥

FY2023

Base fee

Incentive fee* G&A was appropriated for each profit on a pro-rata basis.
As of Mar. 2024

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Strategy and Progress (Long-term Management Plan 2030)

8. Progress in Long-term Management Plan 2030
Changes in Business Profit(Billions of yen)

Goals of FY2030

400
350
300
250

296.9

279.3
240.9

19.0

278.9

9.3
37.9

55.8

201.5

201.6

215.8

215.2

(22.4)(24.2)(24.5)(26.6)(29.3)FY2019FY2020

FY2021

FY2022

FY2023

200

89.4

300.3

17.7

224.7

32.2

15.7
46.1

¥350.0 - 400.0bn

51.4

150
100

239.0

50
0
-50

Domestic asset

International asset

FY2024(F)Non-asset

FY2030Eliminations or Corporate※Business proﬁt: Operating proﬁt + Share of proﬁt of entities accounted for using equity method
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Strategy and Progress (Shareholders Returns)

9. Shareholders Returns (Dividends)
DPS increase due to steady profit growth, and progressive dividend payments(+¥3) is introduced from FY2024.
(Billions of yen)

Profit200+¥３(+7.5%) increase in dividend

Dividends per share

(Yen)
50

43

180
160

36
33

140

30
120

38

40
40
35

31

30

26

100

25

20
80
60
40

12

64.2

20
0

45

FY20101256.5

FY20111245.5
FY2012

12

64.2

14

73.3

16

83.4

102.6

120.4

134.6

148.4

155.1

165.3

168.4

173.0

135.6

20
15
10
5

FY2013

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FY2020

FY2021

FY2022

FY2023

FY2024(F)0IR Presentation

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Strategy and Progress (Shareholders Returns)

10. Shareholders Returns (Share Buyback)Implement ¥280billion share buyback in 6 years. Continued high-level and stable shareholder return.

(Billions of yen)

97.4%

Dividend

160¥280bnShare Buyback
140

100.0%
90.0%

Share Buybacks

Total Return Rate (Single year)

80.0%

120

62.4%
100

60.0%

57.8%

100.0

70.0%
60.0%

50.1%
80
45.8
60

25.8%

26.5%

26.5%

27.0%

29.9%

30.9%

54.2

50.0

40.0%

30.0

30.6%

50.0%

30.0%

40

20

16.6

19.4

22.1

FY2013

FY2014FY2015

27.7

36.0

41.6

44.6

41.4

FY2018FY2019FY2020

47.7

49.7

50.7

53.8

10.0%

0
FY2016FY201720.0%

FY2021

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FY2022

FY2023

FY2024(F)0.0%

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Strategy and Progress (Shareholders Returns)

11. ROA・ROE・EPSFY2023 results: ROA 3.9%, ROE 7.4%, EPS ¥131.96
12%

ROA*

10%

10%

ROE
8.5%
7.8%

8%

8.1%
7.6%

7.3%

7.9%
7.4%

7.2%

6.6%
6%

4%

5.2%

5.6%
5%

3.3%

3.3%

FY2014FY2015

3.6%

3.8%

4.0%

4.1%

FY2018FY2019

4.4%

4.4%

3.8%

3.9%

3.9%

FY2023

FY2024(F)2%

0%

FY2016FY2017

FY2020

FY2021

FY20222030
Target* ROA = Business Profit / Total assets (average)

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Strategy and Progress (Shareholders Returns)

12. ROA・ROE・EPS
EPS is expected to hit 4th straight record-high in FY2024.

EPS

¥200
¥200

EPS ¥137.93(4th straight record
high, YoY+4.5%)
¥150

200

¥100

¥50

52.85

¥0

FY201460.13

FY201574.00

FY201686.78

FY201796.97

FY2018108.64FY2019116.45125.54131.96137.93101.34FY2020

FY2021

FY2022

FY2023

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2030 Target
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Disclaimer

Contact Information
Investor Relations Office,Corporate Communications
Department
Mitsubishi Estate Co., LTD.
+81-3-3287-5200
https://www.mec.co.jp/en/

This material is provided for information purposes only. Nothing herein is
intended to constitute an offer to sell, a solicitation of an offer to buy, or arecommendation of any specific products by Mitsubishi Estate Co., Ltd. (the“Company”)
The contents of this material involve judgements based on the information
available to the Company as of the releasing date. Although the information
expressed is obtained or compiled from sources that the Company believes
to be reliable, the Company cannot and does not guarantee the accuracy,
certainty or completeness of the information.
Forward-looking statements contained herein involve known and unknown
risks, uncertainties and other factors that may affect future results or events
expressed in those statements, and therefore should not be read as aguarantee by the Company that such results or events will be achieved asstated.
Further, the Company undertakes no obligation to update any of suchforward-looking statements, whether as a result of new information, future
events or otherwise. This material may also be changed or removed without
prior notice. The contents of this material may not be copied, reproduced, or
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