February 7, 2018
Earnings Highlights for FY2018-3Q(The Fiscal Year Ending on March 31, 2018)
Mitsubishi Estate Co., Ltd.
●Earnings for FY2018-3Q (Consolidated)
Millions of yen (rounded down)

Change(%)

FY2018-3Q
Results

FY2017-3Q
Results

Office Building Business

344,209

370,656(26,446)(7.1)%

Lifestyle Property Business

73,691

66,794

6,896

10.3%

108,000

Residential Business

258,296

276,947(18,651)(6.7)%

426,000

ChangeFY2018 Estimates（Announced on Feb 7, 2018)
501,000

International Business

55,14254,079

1,062

2.0%

82,000

Revenue from Operations

790,456

824,111(33,654)(4.1)%

1,202,000

Office Building Business

106,486

103,625

2,860

2.8%

143,000

Lifestyle Property Business

21,321

19,855

1,465

7.4%

30,000Residential Business

12,202

13,899(1,697)(12.2)%

20,00013,50723,157(9,649)(41.7)%

24,000Operating Income

International Business

143,354

150,444(7,090)(4.7)%

205,000

Income Before Taxes and Special Items

128,572

136,612(8,040)(5.9)%

179,000

Profit Attributable to Owners of Parent

84,95389,384(4,431)(5.0)%

112,000

EBITDA

211,257

216,443(5,186)(2.4)%

293,000

Summary【Overview】
There is a decrease in income and profits compared with FY2017-3Q. Despite an increase in rental incomeand profits in the Office Buiding Business, there is a decrease in property sales in the Office Building
Business, Residential Business and International Business. Factors affecting the individual segments
compared with FY2017-3Q are detailed below.
【Office Building Business】
There is a decrease in income due to a decrease in property sales. However, an increase of rental profits of
new buildings and existing buildings led to an increase in profits.
(Vacancy rates)With leasing is underway for properties within and outside of Marunouchi, the Japan (all purpose) andMarunouchi (offices) vacancy rates for the end of December 2017 improved when compared with the endof September 2017.
(Average rents)
As a result of higher rents from new buildings in Marunouchi coming into effect and an increase in rents
in the existing portfolio particularly in Marunouchi, as well as the effect of an increase of sales-linked
rent from retail property tenants, the average rent for Japan (all purpose) at the end of December 2017rose by ¥317/tsubo.month compared with the end of September 2017.
(yen/tsubo.month)
2017/3Results

2017/9Results

2017/12Results

FY2018 Estimates(Announced on Feb 7, 2018)

Japan (all purpose)

2.93%

2.75%

2.61%

2.5%

Marunouchi (offices)

2.42%

2.80%

2.57%

Average rents (Japan, all purpose)¥25,842¥25,840¥26,157

Vacancy rates¥26,200

【Lifestyle Property Business】
Factors for the increase in income and profits are the increasing in income from property sales, and thefavorable performance of the outlet mall business.
【Residential Business】
The large-scale tower condominium sales led to an increase in income and profits in the condominium
business, but a decrease in property sales led to an overall decrease in income and profits in the ResidentialBusiness.
【International Business】
A factor for the increase in income was an increase in income from property sales, but the absence oftemporary profits resulted in an overall decrease in profits.
●Earnings Estimates for FY2018 (Consolidated)* Previous Estimate (anounced on November 6, 2017)

Millions of yen (rounded down)
FY2018Estimates(Current)
Revenue from Operations

FY2018Estimates(Previous)

Change(%)

Change1,202,000

1,202,000

00.0%

Operating Income

205,000

205,000

00.0%

Income Before Taxes and Special Items

179,000

179,000

00.0%

15,5009,500

13,000
7,000

2,500
2,500

19.2%
35.7%

Profit Attributable to Owners of Parent

112,000

112,000

00.0%

EBITDA

293,000

293,000

00.0%

Extraordinary Income
Extraordinary Loss

Summary【Overview】
The following adjustments were made based on the current state of progress; Extraordinary income(¥13.0billion→¥15.5 billion), Extraordinary income (¥7 billion→¥9.5 billion）but there is no change to Profit
Attributable to Owners of Parent.
Disclaimer
This data contains predictions and aims which relate to our future economic performance and projections ofrevenue and other financial items. These predictions are inherently subject to risks and uncertainties, due tounforeseeable events or external factors. Future events and actual results, financial and otherwise, maydiffer materially.
The Summary of Financial Statements and Fact Book can be found on the website.
◇http://www.mec.co.jp/e/investor/irlibrary/materials/index.html