FY 2020 - 1Q
(For the Year Ending March 31, 2020)

IR Presentation

Contents

MITSUBISHI ESTATE CO., LTD.

Summary of Financial Statements for FY 2020 - 1Q

2

Financial Results Highlights andProspects of Mid-Term Management Plan

9

Strengthening Capital Policy / Corporate Governance

15

Financial Supplemental Data

23

Detailed Business Units' Review

30

Office Building Business

33

Lifestyle Property Business

49

Residential Business

54

International Business

61

Other business

66

Investment / Financial Data etc.

681

Summary of Financial Statements for
FY 2020 - 1Q

MITSUBISHI ESTATE CO., LTD.

2

Financial Highlights

1. Summary of Financial Statements＜FY 2020-1Q Financial Results＞• Decrease in income and increase in profits on a year-to-year basis. Though, income were decreased
due to selling off property in the previous period in the Office Building Business, profits where
increased year-on-year due to the effects of new buildings "Marunouchi Nijubashi Building" etc.
throughout a year, increase in rental profits in a favorable performance in Outlet Mall Business, andincrease in profit from Overseas Condominiums, etc.

＜Major topics＞（Current quarter（April - June, 2019）• Leasing of new buildings and leasing of secondary vacancy of existing buildings both progress steadily.
Secondary vacancy of Hibiya Kokusai Building is fully leased.
• Issued the first 50-year bond (15 billion yen, its interest rate is 1.132％) in Japan.
（After July, 2019）• The consortium the Company participates has been selected as the party having priority right fornegotiation regarding specified operating businesses of seven airports in Hokkaido.
• Details of phase 5 expansion plan of RINKU PREMIUM OUTLETS® (Osaka) have been determined.
To be open in summer, 2020, after expanding to approx. 260 stores from current approx. 200 stores.
• Sales contract of “8 Finsbury Circus”, office building in London, UK, has been concluded.
MITSUBISHI ESTATE CO., LTD.

3

Financial Highlights

2. Income Statement Results for FY2020-1Q
Increase in profit on a year-to-year basis due to the effects of the new building throughout a year
and increase in rental profit from Outlet Mall Business.
Millions of yen (rounded off
Millions of yen (rounded down)

Revenue from Operations
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management Business
Other*
Elimination
Operating Income
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management Business
Other*
Eliminations or corporate
Non-Operating Revenue
Non-Operating Expense
Income before Taxes and Special
Items
Extraordinary Income
Extraordinary Loss
Profit Attributable to Owners of Parent

EBITDA
Interest-bearing debt

FY20201Q
265,883
121,081
36,982
71,386
16,6004,467
22,655△ 7,291
46,85033,851
10,189
2,540
6,082
689
△ 519
△ 5,982
5,348
8,219

FY20191Q
272,660
149,551
23,07568,966
11,2294,925
20,703△ 5,792
45,32237,323
7,056
1,238
3,780
836
307
△ 5,219
4,614
10,06043,97839,877

4,101

26,4202,097
25,297△ 2,097
1,122

Change△ 6,777△ 28,469
13,906
2,419
5,371
△ 458
1,952
△ 1,498
1,527△ 3,472
3,132
1,302
2,301
△ 147
△ 825
△ 763
733
△ 1,840

FY2020FY20191Q
1Q
71,96968,461
2,477,752 2,519,403

Decrease in capital gains

OfficeBuilding△ 3,472
45,322

Change0△ 4,000
2,000
0
2,000
-

Lifestyle
Property
3,132

Residential
1,302

International Others△ 1,735
2,301

46,850
Increase in capital gains and rental
profit from Outlet Mall Business.

Change3,508△ 41,651

to the nearest billion)

FY20191Q
7,000
4,000
3,000
-

Major Factors for Changes in
Operating Income by BusinessMillions of yen (rounded down)*Hotel・Airport Business, Architectural Design & Engineering, Real Estate Services, OtherMITSUBISHI ESTATE CO., LTD.

Capital Gains included in Operating Income
FY20201Q
Total
7,000
Office Building Business
Lifestyle Property Business
2,000
Residential Business
3,000International Business
2,000
Investment Management Business
Hotel & Airport Business
Other
Eliminations or corporate-

Increase in rental profits and capital gains
FY2019-1Q

OfficeBuilding

Lifestyle
Property

Residential International

Others

FY2020-1Q

4

Financial Highlights

3. Income Statement Estimates for FY2020* There is no change in the FY2020 earnings estimates announced on May 14, 2019.

Increase in building rental profits and capital gains contributes to achieve the highest profits inconsecutive four fiscal years.
Millions of yen (rounded off
Millions of yen (rounded down)

Revenue from Operations
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management Business
Other*
Elimination
Operating Income
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management Business
Other*
Eliminations or corporate
Non-Operating Revenue
Non-Operating Expense
Income before Taxes and Special
Items
Extraordinary Income
Extraordinary Loss
Profit Attributable to Owners of Parent

EBITDA
Interest-bearing debt

FY2020FY2019Estimates
Results
1,360,000 1,263,283
590,000
529,695
120,000
106,182
402,000
420,405
137,000
81,84418,00049,588
119,000
110,534△ 26,000 △ 34,969
230,000
229,178
153,000
147,691
35,00032,56020,00030,42837,00026,927
2,000
9,231
6,000
6,799
△ 23,000 △ 24,459
9,000
12,391
32,00034,983

Change96,71760,305
13,818△ 18,405
55,156△ 31,588
8,466
8,969
822
5,309
2,440
△ 10,428
10,073△ 7,231△ 799
1,459△ 3,391△ 2,983

207,000

206,587413

10,0003,000
137,000

8,170
3,818
134,608

1,830
△ 818
2,392

OfficeBuilding
5,309

Lifestyle
Property
2,440

Change
3,000
3,000

0

OthersResidential△
6,571△ 10,428 International
10,073

Increase in rental profits,
capital gains, etc.

229,178

230,000

Decrease in condominium profits
Increase in rental profits, capital gains, etc.

Change3,359
230,403to the nearest billion)

FY2019Results
48,00012,0004,000
11,00014,000
5,000
2,000
-

Major Factors for Changes in
Operating Income by BusinessMillions of yen (rounded down)

FY2020FY2019Estimates
Results
324,000
320,6412,550,000 2,319,597*Hotel・Airport Business, Architectural Design & Engineering, Real Estate Services, OtherMITSUBISHI ESTATE CO., LTD.

Capital Gains included in Operating Income
FY2020Estimates
Total
51,000
Office Building Business
15,000Lifestyle Property BusinessResidential Business
International Business
Investment Management Business
36,000Hotel & Airport Business
Other
Eliminations or corporate

Decrease in capital gains
FY2019ResultOfficeBuilding

Lifestyle
Property

Residential International

Others

FY2020Estimates

5

Financial Highlights

4. Balance Sheet
Millions of yen (rounded down)

Current assets
Cash
Notes and accounts receivable-trade
Property for sale
Property for sale in progress
Property for development
Equity investments
Other
Fixed assets
Tangible assets
Intangible assets

Investment securities
Other

Total assets

At June 30,
20191,153,514
295,326
45,00570,404
269,615996
386,730
85,4344,772,760
4,110,366
97,697
245,623At March 31,
2019
1,072,869
176,81462,603
84,104
268,152996
387,385
92,8114,701,323
4,088,084
95,128258,527

269,070
5,876,275

259,5815,774,193

Millions of yen (rounded down)

Change80,645
118,512△ 17,597△ 13,699
1,462
△0
△ 655
△ 7,375
21,43622,282
2,569△ 12,904
9,487
102,082

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term debt
Commercial Papers
Bonds due within one year
Other
Long-term liabilities
Bonds
Long-term debt
Other
Net assets
Shareholders’ equity

Other accumulated comprehensive income

Stock acquisition rights
Non-controlling interests
Total liabilities and net assets

Total Assets(as of June, 2019)
International
Business
738,349
Residential
Business
669,258

Lease obligations
4,592

Lifestyle
Property
503,895

MITSUBISHI ESTATE CO., LTD.

(as of March, 2019)

119,069
83,660△ 7,847
222,532△ 8,535
119,000△ 5,000△ 36,487
35,408293
32,5982,516△ 16,987△ 10,716△ 4,929△8△ 1,333
102,0822,319,597
Loans
1,506,089(as of March, 2019)
Short-term
4.6%

Floating
23.8%

Bonds
808,917

Building
Business
3,535,165

ChangeConsolidated interest-bearing debt Consolidated interest-bearing debt Consolidated interest-bearing debt
(as of March, 2019)
Fixed / Floating rate ratio
Long-term / Short-term ratio

Other429,604

5,876,275

At June 30,
At March 31,
2019
2019
3,936,157
3,817,088
772,603
688,942
50,12057,967
108,668
86,156
222,529
231,065
119,000
70,00075,000202,264
238,753
3,163,554
3,128,145
734,210
733,916
1,221,465
1,188,866
1,207,875
1,205,357
1,940,117
1,957,105
1,147,108
1,157,824
607,889
612,819294
302
184,826
186,159
5,876,275
5,774,193

2,319,597
Fixed
76.2%

2,319,597

Long-term
95.4%

6

Financial Highlights

5. FY2019 Consolidated Cash FlowMillions of yen (rounded down)①FY2018
Results②FY2019
Results

Change（②－①）

293,338

345,954

52,616

Depreciation and amortization

77,54580,336

2,791

84,0003,664

20,623

Change in Inventories

86,614132,337

45,723120,000△ 12,337

12,787△ 53,837△ 9,124

44,713△ 164,000△ 154,876

9,879△ 286,841 △ 271,083

15,758△ 351,000△ 79,917△ 52,064

Cash flows fromoperating activities

Change in Equity Investment

Cash flows frominvesting activities
Proceeds from sales ofinvestment securities③FY2020
Estimates

Change（③－②）

FY2020-1Q
Results

217,000 △ 128,954

55,9795,277

13,871

8,594

10,000△ 3,871403△ 289,570△ 285,089

4,481△ 309,000△ 23,911△ 52,733

Cash flow fromfinancing activities

37,203 △ 192,473 △ 229,676

107,000

299,473

114,657

Cash and cash equivalents
at end of year

286,859

152,000△ 27,308

298,698△ 134,000 △ 208,871

3,915

Capital Investment

Free cash flow

MITSUBISHI ESTATE CO., LTD.

6,497

179,308 △ 107,551

74,871

68,3747

Financial Highlights

6. Status of Share Buyback①Details of resolution at the board of directors meeting held on May 14, 2019(1) Class of Shares to be Repurchased

Common shares(2) Total Number of Shares to be Repurchased

65,000,000 shares (Maximum)(4.68% of outstanding shares (excluding treasury stock))(3) Total Amount of Repurchase Price

100 billion yen (Maximum)(4) Period of Repurchase

From May 15, 2019 to March 31, 2020

(5) Method of Repurchase

Open market purchase on the Tokyo Stock Exchange②The accumulated buyback amount after the resolution at the board of directors
meeting mentioned above (as of July 31, 2019)
Number of
Repurchased Shares
May 2019（May 15 – May 31）

3,093,400 shares

6,407,306,000 yen

June 2019（June 1 – June 30）

3,589,200 shares

7,393,110,000 yen

July 2019（July 1 – July 31）

5,359,900 shares

10,842,957,450 yen

12,042,500 shares

24,643,373,450 yen

Accumulated Amount

MITSUBISHI ESTATE CO., LTD.

Repurchase Amount8

Financial Results Highlights for FY2019 and
the Prospects of Mid-Term Management Plan

MITSUBISHI ESTATE CO., LTD.

9

Financial Results Highlights for FY2019 andProspects of Mid-Term Management Plan

1. Income Statement Results for FY2019
Overall increase from building rental profits and capital gains, etc.
Surpassed previous record in profits.
Millions of yen (rounded down)

Revenue from Operations
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management Business
Other*
Elimination
Operating Income
Office Building Business
Lifestyle Property BusinessResidential Business
International Business
Investment Management Business
Other*
Eliminations or corporate
Non-Operating Revenue
Non-Operating Expense
Income before Taxes and Special
Items
Extraordinary Income
Extraordinary Loss
Profit Attributable to Owners of Parent

EBITDA
Interest-bearing debt

FY2019FY2018Results
Results
1,263,283 1,194,049
529,695
506,161
106,182
97,920420,405
410,598
81,84486,92549,58822,665110,534
96,773△ 34,969 △ 26,996
229,178
213,047
147,691
147,243
32,56028,07930,42823,86026,927
24,147
9,231
4,596
6,799
8,162
△ 24,459 △ 23,043
12,391
10,44734,98332,988Change69,23323,5338,261
9,807△ 5,080
26,922
13,761△ 7,973
16,131
448
4,480
6,567
2,779
4,634
△ 1,363△ 1,416
1,944
1,994

206,587

190,506

16,081

8,170
3,818
134,608

14,71913,768120,443△ 6,549△ 9,950
14,165FY2019FY2018ChangeResults
Results
320,641
302,424
18,2172,319,597 2,481,675 △ 162,078

Millions of yen (rounded off
to the nearest billion)

FY2018Results
39,00016,0002,000
1,000
15,000
1,000
3,000
1,000
-

Change9,000△ 4,000
2,000
10,000△ 1,000
4,000△ 1,000△ 1,000-

Major Factors for Changes in
Operating Income by Business

OfficeBuilding
448

Lifestyle
Property
4,480International
2,779
Residential
6,567

Others1,855

Increase in capital gains, etc.

213,047

Millions of yen (rounded down)*Hotel・Airport Business, Architectural Design & Engineering, Real Estate Services, OtherMITSUBISHI ESTATE CO., LTD.

Capital Gains included in Operating Income
FY2019Results
Total
48,000
Office Building Business
12,000Lifestyle Property Business
4,000
Residential Business
11,000International Business
14,000Investment Management Business
5,000
Hotel & Airport Business
2,000
Other
Eliminations or corporate-

229,178

Increase in rental profits and capital gains, etc.
Increase in rental profits

FY2018Results

OfficeBuilding

Lifestyle
Property

Residential International

Others

FY2019Results

10

Financial Results Highlights for FY2019 andProspects of Mid-Term Management Plan

2. Progress on Mid-Term Management Plan ① (Final standings of each indicator)（as of FY2019-4Q）

FY2020Target and final estimates of each indicator

Target(17.5.11)

Previous Estimates

Current Estimates(18.5.14)(19.5.14)

Growth Potential

Operating Income¥220 billion¥230 billion¥230 billion

Performance

Operating Income /Total Assets(ROA)

Around 3.5%

3.8%

3.9%

Net Debt / EBITDA

8.5 times

Around 8 times

7.4 times(Around 8 times)(Around 7.5 times)(Around 6.9 times)

Stability(Hybrid finance reflected)(Billions of Yen)FY2020Operating Income by Segment

Previous
Estimates

Target(17.5.11)(18.5.14)

Current
Estimates(19.5.14)

Changes in Capital Gains, etc.
of Operating Income
Previous
Estimates

Current
Estimates

8

13

15

30

27

36

38

40

51

Target(17.5.11)

Office Building Business

138

150

153

Lifestyle Property Business

37

35

35

Residential Business

20

20

20

International Business

29

32

37

Investment Management Business

6

3

2

Other*

5

7

6

Eliminations or Corporate

△15

△17

△23

Total

220

230

230

(18.5.14)(19.5.14)*Hotel・Airport Business, Architectural Design & Engineering Business, Real Estate Service Business, OtherMITSUBISHI ESTATE CO., LTD.

11

Financial Results Highlights for FY2019 andProspects of Mid-Term Management Plan

3. Progress on Mid-Term Management Plan ② (Capital Gains and Income Gains)（as of FY2019-4Q）

Capital Gains For
Mid-Term Management Plan Period

Change in Operating Income(Billions of Yen)
240

229.1

230.0

48.0

51.0

15.2

12.6

213.0
210
39.0
180
150

24.4

・Accelerate property sales as encouraged by real estate market
conditions best-suited for selling・Before tax IRR results of Domestic capital recycling business:around 10％*

Estimates when developed

Final EstimatesAround ¥90～100 billion¥138 billion* Average of property sold during current Mid-Term Management Plan (20 properties)

120

Increase in Rental Profits

90
149.6

165.9

166.4

60

(Billions of Yen)
180

30
0

・Rental profits from rental properties increasedaround 1.5 times from 5 years ago (FY2014)

160.7

160
FY2018
Income GainFY2019Profit from Domestic
condominium business*

FY2020(E)Capital Gain

* Excluding capital gain, etc. from operating income of Mitsubishi Estate Residence. Co., Ltd

MITSUBISHI ESTATE CO., LTD.

131.7

140
120
100

168.3

174.8

136.2

116.9

FY2014FY2015FY2016FY2017FY2018FY201912

Financial Results Highlights for FY2019 andProspects of Mid-Term Management Plan

4. Progress on Mid-Term Management Plan ③ (Office Building Business)（as of FY2019-4Q）■New Buildings

Marunouchi Nijubashi
Building

CO･MO･RE YOTSUYA

Floor space：174,100㎡
Completion：Oct. 2018

Floor space：139,700㎡
Completion：Jan. 2020

Tokyo
Tokiwabashi Project Buildings completed in FY2018 and 2019 are
fully leased
 Buildings to be completed in FY2020 and 2021
are informally arranged for lease at over 70%
on average.
 Constant positive relocation needs, such as
location and/or facility upgrade, talent attraction,
office consolidation, and work-style reform.

■Existing Buildings
 Leasing of secondary vacancy progresses
steadily Vacancy rates of all uses in Japan at the end of
FY2020 is estimated to be 1.5％.
 A sales increase of around ¥26 billion for
6 years starting FY 2015 is expected due tocontinuous “moving in/out of tenants” such as
new leases and expansion of floor space within
the facility, and “rent revisions at lease renewal”
of existing tenants.

Change in increase of rent revenue due to moving
in/out of tenants, rent revisions at lease renewal(Billions of Yen)
30

25.7

Yearly change in rent revenue from moving in/out

25
20

of tenants and rent revisions at lease renewal

16.0
11.3

10
5

21.9

Accumulated amount (from FY2015)

15

0

MITSUBISHI ESTATE CO., LTD.

Floor space：686,000㎡(All buildings)
A Building Completion：Apr. 2021
B Building Completion：FY 2028

2.4 2.4
FY20154.9

7.3

FY20164.0

4.7

FY2017FY20185.9

FY20193.8

FY2020(E)13Financial Results Highlights for FY2019 andProspects of Mid-Term Management Plan

5. Progress on Mid-Term Management Plan ④ (Change in ROA / ROE / EPS)
（as of FY2019-4Q）

7.8%

8.0%
7.3%

7.8%
100.20

96.97

7.0%

100

6.6%
90

86.78
6.0%

5.6%

80
74.00

5.2%
5.0%

70
60.13

4.0%

(Yen)
110

52.85
3.2%

3.6%

4.0%

3.8%

3.9%

3.3%

60

50

3.0%
40

2.0%

FY2015FY2016FY2017EPS(right axis)

MITSUBISHI ESTATE CO., LTD.

FY2018ROA

FY2019FY2020(E)

30

ROE

14

Strengthening Capital Policy /Corporate Governance

MITSUBISHI ESTATE CO., LTD.

15

Strengthening Capital Policy / Corporate Governance

1. The Company’s Ultimate Mission and Capital Policy
Discussed the company’s direction from 2020s onwards in light of progress on the current MidTerm Management Plan and dialogue with capital market stakeholders.
Reconfirmed the Company’s direction in Capital Policy based on our Mission.
The Mission of the
Mitsubishi Estate Group

Realizing Mission by
utilizing capital
marketContributing to the enrichment of societyby the company’s utilizing capital market
and engaging in many real estate projects.

Capital Policy to meetthe expectations ofcapital market

Aims to earn shareholder return thatreflects capital market’s expectations by
having flexible capital policy in response toreal estate market condition.

MITSUBISHI ESTATE CO., LTD.

Creation of truly meaningful society
through urban development

Capital Efficiency outperforming costof capital

Financial Stability which enables thecompany to never miss out on
promising investment opportunities【Investment】【Asset Sales】【Shareholders Return】

Maximizing return bybalancing optimal investment
into retaining business andcapital recycling business

Enhancing capital recovery
and efficiency by sales ofunderperforming assets andproperty sales timely inaccordance with market
conditions.

Controlling shareholders’equity by utilizing measures
to enhance shareholder
return policy in accordancewith market conditions.

16Strengthening Capital Policy / Corporate Governance

2. Refinement of Capital Policy ①(Dynamic between Real Estate Market Conditions and Capital Policy)
Flexible capital policy in response to real estate market conditions(Increasing corporate value by controlling Balance Sheet)
Enhancing corporate value by optimal mix of growth investment, asset sales,
shareholders return and financing arrangement in response to real estate market.
Market conditions
favorable for selling
Asset Sales:

Profits:

Shareholder return :Market conditions
favorable for buying
Aiming to maximize mid-to-long term corporate
value by combining stable Cash Flow produced
from long-term development and retaining
projects, with capital recycling business whichtakes advantage of real estate market conditions.

MITSUBISHI ESTATE CO., LTD.

Active acquisition/investment:

Capital gain:

Shareholders return :17

Strengthening Capital Policy / Corporate Governance

3. Refinement of Capital Policy ② (Controlling Balance Sheet)
Flexible capital policy in response to real estate market conditions(Increasing corporate value by controlling Balance Sheet)＜Controlling Asset Side of Balance Sheet＞＜Controlling Shareholders’Equity and Liability Side of Balance Sheet ＞

Capital recycling business which takes
advantage of Real Estate Market Conditions

Maintaining Financial Stability

 When market conditions are favorable for selling, the company
accelerates to recover capital through the sales of assets
 Improving ROA and ROE by expanding non-asset businessaccompanied by retaining asset management business To encourage future growth, the company actively invests inpromising investment projects that can contribute to corporate
value enhancement.

Long-term development and retaining projectsuch as redevelopment of Marunouchi Such projects are the company’s core business Yielding stable rental Cash Flow by investing capital, regardless of
the real estate market conditions
 The company may consider recovering return in view of yield fromeach property and external environment, etc.

Sale of underperforming properties andstrategic-holding stocks
MITSUBISHI ESTATE CO., LTD.

 Financial reserve capacity which prevents missing promising
investment projects and provides opportunities to purchase realestate in buyer-favorable conditions
 Long-term and low-cost financing thanks to our high credit
standing
 During seller-favorable conditions, the company allocates its
proceeds from asset disposal to shareholders return and balance
sheet stability

Improving Capital Efficiency
 Aiming for enhancement of Capital Efficiency, we increase
numerator (net income) and decrease denominator (shareholders'equity) Controlling the amount of Shareholders' equity using flexible returnmeasures dependent upon real estate market conditions

18

Strengthening Capital Policy / Corporate Governance

4. Executing Share buyback in response to Cash Flow during the current
Mid-Term Management Plan Period ① (Cash flow)
Estimated cash flow during the current Mid-Term Management Plan
Period (FY2018～FY2020, Total Accumulation) (as of FY2019-4Q)【Cash in】

【Cash out】

 Accelerating asset sales encouraged by market
conditions favorable for selling The realized profit exceeded the estimates fromwhen the plan was originally developed.

Around ¥990 billion

Around¥600 billion

Around ¥1 trillion

Increase inoperatingcash flows¥150 billion

Around¥390 billion
Estimates when Mid-Term
Management plan was developed

Interest-bearing debt

 Investing in carefully selected projects which help toincrease the corporate value.
 Yielding a return on better-than-expected profit ataround 30% payout ratio Executing share buyback depending upon Cash Flow
condition.

Final Estimates

Operating Cash Flow*

Decrease innet
investment
Around¥120
billion¥900 billion

Enhancingshareholders
return¥130 billion

Around¥780 billion

Suppressionof debt¥140 billion
Estimates when Mid-Term
Management plan was developed※ Cash flows from operating activities excluding Change in Inventories and Change in Equity Investment

MITSUBISHI ESTATE CO., LTD.

Around¥100 billion
Around¥120 billion

Around¥90 billion

Around¥750 billion

Around¥250 billion

Around ¥1 trillion

Around ¥990 billion

Net Investment

Dividend

Final Estimates

Share Buyback
19Strengthening Capital Policy / Corporate Governance

5. Executing Share buyback in response to Cash Flow during the current
Mid-Term Management Plan Period (Rationale)①Motivations for improving Capital Efficiency
 Managing total amount of Shareholders' equity through share buyback
 Intend to improve Capital Efficiency (ROE) and EPS②Cash flow exceeding expectations during the current Mid-Term Management Plan Period
 Realizing estimate-exceeding income gain, thanks to implementation of the tasks to reinforce income
streams so far, together with the favorable real estate market
 Accelerating capital recovery by taking advantage of real estate market conditions favorable for selling With cost of capital in mind, investing in carefully-selected projects which help to increase the corporatevalue
 Due to the increase of long-term redevelopment projects, project investment will occur next period
The company is now able to both increase shareholders’ return and maintain financial stability

The company decided to execute share buyback worth ¥100 billion in light of the two factors listed
above and the current stock price. Going forward, the company will continuously consider optimalmeasures for shareholders’ return, in response to market conditions and cash flow status.

MITSUBISHI ESTATE CO., LTD.

20

Strengthening Capital Policy / Corporate Governance

6. Major development plan, etc. contributing growthin the next management plan and onwards
Office Building BusinessTokyo
Tokiwabashi Project

Outlet Mall Business

Areas where we hereafter focus on in
Marunouchi (Tokiwabashi / Yurakucho)【Expansion Plan】

・Gotenba (Phase 4 Expansion)
・Rinku (Phase 5 Expansion)【New Development Plan】
・Hanazono (Saitama)

Tokiwabashi
Area
Tokyo Station

・Joyo (Kyoto)

International Business

Yurakucho
Area

Akasaka
Station1271 Avenue of the Americas(New York)(Tentative) 8 Bishopsgate(London)Circular Quay Tower(Sydney)

Reconstruction Site

Kokusai Shin-Akasaka Building
Joint Reconstruction
MITSUBISHI ESTATE CO., LTD.

CO･MO･RE YOTSUYA

Daswin Project(Jakarta)

Yoma Central(Yangon)21

Strengthening Capital Policy / Corporate Governance

7. Strengthening Governance①Non-Renewal of Countermeasures to Large-Scale Acquisitions•

The company decided at the board meeting not to renew a plan for countermeasures to large-scale acquisitions of theshares in the company (takeover defense measures) that will terminate the validated period in June 2019•

To enhance corporate value on a medium- to long-term basis, the company puts effort in communicating stock market
and appropriate measures②Changes to composition of Committees (To be determined at the shareholders’ meeting in late June)•

Nominating Committee, following Remuneration Committee, will consist of independent outside directors only•

The Chair of the Audit Committee will be independent outside director (Consequently, all 3 Committee Chairs will be
independent outside directors)③Disposal of strategic-holding stocks•

Sold 28 brands* and total around ¥31.5 billion ofshares held as strategic-holding stocks (listed shares)in the past 4 years•

Plans to carry out disposal of ¥10 billion in FY2020•

Routinely consider purpose of holdings and dispose
when purpose is not clear

Change in disposal of strategic-holding stocks(Billions of Yen)
17.9
20
15

12.2

10
5

*Including partial disposal of holding shares

MITSUBISHI ESTATE CO., LTD.

0

10.0

1.4
FY2016FY2017FY2018FY2019FY2020(E)22Financial Supplemental Data

MITSUBISHI ESTATE CO., LTD.

23

Financial Supplemental Data

1. Management Indicator

FY2017(Results)

FY2018(Results)

FY2019(Results)

FY2020(Estimates)(Reference)
Mid-term
Management Plan

Operating income(Growth potential) (Billions of yen)

192.4

213.0

229.1

230.0

220.0

Operating income / Total assets (ROA)(Performance)

3.6%

3.8%

4.0%

3.9%

Around 3.5%

Net interest-bearing debt / EBITDA(Stability) (times)

7.7

7.3

6.7

Around 7.4

Around 8.5

Net interest-bearing debt / EBITDA(after hybrid-debt deduction) (times)

7.1

6.7

6.1

6.9

Around 8

Annual dividends per share (yen)

20

26

30

31

-

27.0%

30.0%

30.9%

30.9%

-

Dividend payout ratio

MITSUBISHI ESTATE CO., LTD.

24

Financial Supplemental Data

2. Changes in EPS and Dividends
 Around 30% payout ratio is expected for FY2019 and FY2020
 EPS around 2.2 times and dividend per share around 2.6 times more in FY2020 compared with
FY 2014(Yen)

100.20

96.97

100

30.9%

30.9%

86.78
80

32%

31%

30%

74.00
30.0%
60.13

60

29%

52.85
46.34

28%

40

27.0%
26.6%

26.5%
20
25.9%
0

12.00

FY2014

16.00

14.00

FY2015FY2016EPS

MITSUBISHI ESTATE CO., LTD.

26.00

30.00

31.00

27%

20.00
26%

FY2017

Dividends per ShareFY2018
Payout ratio (right axis)

FY2019FY2020(Estimates)

25%

25

Financial Supplemental Data

3. Unrealized Gain of Income Generating Assets : Current Status ①
Unrealized gain rose around ¥480 billion year on year, supported by declines in thecap rates and cash flow improvement
Unrealized gain of income generating assets(Billions of Yen)
8,000

Book value

Unrealized gain
7,383.4

6,079.0
5,395.6

5,498.9
2,963.5

5,000
4,000

2,096.4

2,180.7

3,422.8

3,241

3,300

3,898.4

2,569.0

2,800

2,643
2,384

2,300

2,178
2,015

1,800

3,299.2

3,318.1

3,509.9

3,828.4

3,960.5

4,042.7

1,300

1,000
0

Adjusted BPS
2,950

3,000
2,000

BPS

(Yen)

6,791.9

7,000
6,000

7,941.1

BPS and Adjusted BPS*

958

FY2014FY2015FY2016FY2017FY2018FY2019800

FY2014

1,148

1,078

1,088

FY2015FY2016FY20171,224

FY20181,276

FY2019＊ BPS including unrealized gain (after tax)

MITSUBISHI ESTATE CO., LTD.

26

Financial Supplemental Data

4. Unrealized Gain of Income Generating Assets :Current Status ②

Breakdown of Unrealized Gain

Change in Rental Profits(Billions of Yen)
180

International
10%
Domestic(Outside of Marunouchi)
15%

174.8
168.3

170

160.7

160
150

Marunouchi
New Building*46%

Marunouchi
Existing Building
29%

140

131.7

136.2

130
120

116.9

110
100

FY2014FY2015FY2016FY2017FY2018FY2019*Redeveloped properties after the completion of Marunouchi Building

MITSUBISHI ESTATE CO., LTD.

27

Financial Supplemental Data

5. Investment-Return in Mid-Term Management Plan（as of FY2019-4Q）

Estimates when Mid-Term Management plan was developed (FY2018～FY2020)
Investment

Return(Billions of Yen)

Net Investment

Office Building Business

500

200

300

Lifestyle Property Business

200

50

150

Residential Business

850

750

100

(Domestic condominium)

(700)

(600)

(100)

International Business

400

150

250

<Group-wide>business model
Innovation Investments

100
1,150

900

Total

2,050

(Domestic condominium)

(700)

(600)

Final Estimates (FY2018～FY2020)(Billions of Yen)

Investment
Total(Domestic condominium)

MITSUBISHI ESTATE CO., LTD.

<100>

Return
2,010

(570)

Net Investment
1,230

(580)

780

(△10)

28

Financial Supplemental Data

6. Progress on investments in Mid-Term Management Plan（as of FY2019-4Q）

Carefully selected investing in the excellent growth investment to help increase
corporate value
Amount Invested (FY2018,FY2019)

Office Building
Business
Lifestyle
Property
Business

110

300

160

80

Percent ofbudget invested: 95%(¥190 / ¥200 billion)

Residential
Business
Domestic
condominium
International
Business
InvestingBusiness Model 30 30
Innovation
Total

MITSUBISHI ESTATE CO., LTD.

FY2020 Budget(Unit：Billions of Yen)

Percent ofbudget invested: 92%(¥460 / ¥500 billion)

520

290

Percent ofbudget invested: 80%(¥570 / ¥700 billion)

200

370

310

180

Percent ofbudget invested: 93%(¥810 / ¥850 billion)

Percent ofbudget invested: 123%(¥490 / ¥400 billion)

Percent ofbudget invested: 60%(¥60 / ¥100 billion)
1,270

740

Percent ofbudget invested: 98%(¥2,010 / ¥2,050 billion)29

Detailed Business Units' Review

MITSUBISHI ESTATE CO., LTD.

30

Corporate

1. Mitsubishi Estate Group’s Business Segment
Office Building Business
Engages in the development,
leasing, and operation
management of office buildings,
mainly in Marunouchi area andother major Japanese cities.

Investment Management
Business
Providing a wide range ofservices regarding real estate
investment for investors.

MITSUBISHI ESTATE CO., LTD.

Lifestyle Property
Business
Developing shopping centers,
outlet malls, and logistics
facilities nationwide, mainly inthe major metropolitan areas.

Hotel & Airport Business
Undertaking hotel management
nationwide as the Royal Park
Hotels group. Begun private
airport management business.

Residential Business

International Business

Operating residential
condominium business under“The Parkhouse” brand andrental apartments businessunder “The Parkhabio” brand.

Undertaking office building
development and leasing
businesses in the United States
and the United Kingdom, as wellas projects in Asia.

Architectural Design &Engineering Business

Real Estate Services
Business

Mitsubishi Jisho Sekkei Inc.
provides architectural designand engineering services of
construction and civilengineering.

Mitsubishi Real Estate Services
Co., Ltd. offers real estate
brokerage, parking lot
management support, andother services.

31Corporate

2. Business Scale

Hotel & Airport
Business
Investment
3%
Management
Business
4%

International
Business
6%

Other
Business
5%

Revenue fromOperations

Office Building
Business
41%

Around¥1,263.2
Residential
Business
32%

billionLifestyle Property
Business
8%

Investment
Management
Business
4%

Hotel & Airport
Business
Other
1%
Business
2%

International
Business
11%

Residential
Business
12%

Office Building
Business
Operating Income
58%

Around¥229.1billionLifestyle Property
Business
13%

Hotel & Airport
Business
Other
1%
Business
4%

Investment
Management
Business
1%

International
Business
12%

Total Assets
Residential
Business
12%

AroundOffice Building
Business
62%¥5,774.1

Lifestyle Property
Business
9%billion

FY2019 Results

MITSUBISHI ESTATE CO., LTD.

32

Office Building Business

MITSUBISHI ESTATE CO., LTD.

33

Office Building Business

1. Marunouchi Area Map
Marunouchi Today
Yurakucho

Marunouchi

OtemachiN

Kokyo (Imperial Palace) Gaien National Garden

Otemon Tower •JX Bldg.

Palace Hotel
Tokyo
PalaceBldg.

NIKK EI Bldg.

OtemachiPark Bldg.

Hibiya-bori Moat

Shin-Kokusai
Bldg.

MarunouchiNakadori Bldg.

Mitsubishi
Corp.

Yusen Bldg.

Marunouchi Naka-dori Ave.

Marunouchi Park Bldg.
& Mitsubishi Ichigokan

Marunouchi
2-chome Bldg.

Tokyo
Kaijo
NichidoBldg.

SMBC East Tower(Planned Comp letionin September 202 0)

Mitsubishi Bldg.

The Industry Clubof Japan and
Mitsubishi UF
Trust and J
Banking Bldg.

Marunouchi
Eiraku Bldg.

Marunouchi Center Bldg.
M UFG B ank
Head Office

Tokyo International Forum

Nihon Seimei
Maruno uchi Bldg.

Tokyo Station, JR Keiyo Line

JP TOWER

Yurakucho Ekimae Bldg.
(ITOCiA)(Owned by a
Mitsubishi Es tateconsolida ted subsidiary)Tokyo Kotsu
Kaikan Bldg.
(Owned by a
Mitsubishi Es tateconsolida ted
subsidiary)
InfosYurakucho

OTEMACHI FINANCIAL CITY
North Tower
South Tower

Tokyo Station, Marunouchi Line

Daimyo-koji Ave.

Yurakucho

Tokyo
SankeiBldg.

Otemachi Tower

OTEMACHIFINANCIAL CITY
GRAND CUBE

KDDI
Otemachi Bldg.

HOSHINOYA Tokyo

Otemachi
Bldg.

Otemachi Naka-dori Ave.

Yomi uri Kaikan
BIC Came ra

Center B uilding(Yurakucho Marion)

Yomi uri
ShimbunOtemachi Firs t Square

Marunouchi Naka-dori Ave.

Shin-Marunouchi
Bldg.

Marunouchi Bldg.

Shin-Tokyo Bldg.
Shin-Nisseki
Bldg.

(Annex)Marunouchi
1-3 Project

Marunouchi 1st St.

Kishimoto Marunouchi
Mitsui Bldg.
Bldg.

Gyoko-dori Ave.

Meiji Yasuda Seimei Bldg.

Marunouchi 3rd St.

Meiji Seimei Kan
Bldg.

Marunouchi
Nijubashi Bldg.

Marunouchi
South Exit

Tokyo Bldg.

Marunouchi
Central Exit

Marunouchi
North Exit

Shin-Maruno uchi
Center Bldg.

Marunouchi Oazo

Marunouchi Marunouchi
Hotel
Kitaguchi Bldg.

Otemachi Station, Tozai Line

ShinYurakucho
Bldg.

Yurakucho Station, Yurakucho Line

Yurakucho
Bldg.

Keidanren
KaikanBldg.

Otemachi Station, Toei Mita Line

Hibiya-dori Ave.

Babasaki-dori Ave.

Impe rial
Theater

Kokusai Bldg.

Marunouchi 6th St.

Yurakucho
Denki Bldg.

DN
Tower 21

SanshiKaikan Bldg.

Marunouchi 7th St.

The
PeninsulaTokyo

Togyo KaikanNippon Broadcasting
System Bldg.

Nippon Life
Marunouchi
Garden Tower

JA Bldg.

Ote Center Bldg.

Nijubashimae Station, Chiyoda Line
Marunouchi 4th St.

Marunouchi
Police Sta.
HibiyaSankei Bldg.

Toho
Twin Tower
Bldg.

Marunouchi 5th St.

Hibiya Station, Toei Mita Line
HibiyaMarine Bldg.

Marunouchi 2nd St.

Tokyo M idtown
HibiyaWadakura-bori
Moat

Babasaki-bori Moat

SMB C

Otemachi 1-2 Proj ect(Plann ed Comp letion in FY202 0)

NTT Commu nications
Otemachi Bldg.
Otemachi Nomu ra Bldg.
Otemachi PLACE
WEST TOWER
NTT Commu nications
Otemachi Bldg. (Annex)
Urbannet
Otemachi Bldg.

Shin-Otemachi
Bldg.
NTT
Marunouchi
Bldg.

NTT Data
Otemachi Bldg.

Otemachi PLACE
EAST TOWER

Sumitom o Fudos an
Maruno uchi Bldg.

Tokyo Station
Tokiwabashi District Redevelopment Project

Marunouchi Bldg.

Marunouchi
Central Bldg.

GranTokyo
South Tower

GranTokyo
North Tower

Marunouchi
Trust Tower M ain

Marunouchi
Trust Tower North

Eitai-dori Ave.

Sapia Tower

Asahi Life
Insurance
OtemachiBldg.
(Owned by aspecial-purpose
company undermanagement of
Mitsubishi Estate)

JFE Shoji
Bldg.
Nippon Bldg.

■ Completion before 2002
■ Completion from 2002

Tekko Bldg.

■ Completion from 2009
■ Completion from 2020
900 m

1,800 mMITSUBISHI ESTATE CO., LTD.

34

Office Building Business

2. Pipeline

Marunouchi Area

GRAND CUBE

Otemachi Park
Building

Total Floor Area: 193,600㎡ Total Floor Area: 151,700㎡
Completion: Apr. 2016
Completion: Jan. 2017

FY2018FY2019Marunouchi 1-3
Project

Tokyo Tokiwabashi Project

Total Floor Area: 174,100㎡ Total Floor Area: 181,000㎡
Completion: Oct. 2018
Completion: Sep. 2020

FY2020

FY2021

Total Floor Area: 686,000㎡(Total buildings)
Building A Completion: Apr. 2021
Building B Completion: FY2028

FY2022

msb Tamachi(musubu Tamachi)

Shinjuku Station South
Project

CO･MO･RE YOTSUYA

Kita Aoyama 2-chome
Project

Total Floor Area: 149,300㎡*
Partial Completion: May 2018*

Total Floor Area: 44,100㎡
Completion: Aug. 2019

Total Floor Area: 139,700㎡
Completion: Jan. 2020

Total Floor Area: 22,900㎡
Completion: Apr. 2020

FY2028Tokyo(Outside of Marunouchi)

FY2017

Marunouchi Nijubashi
Building*Tower S and Hotel facility
MITSUBISHI ESTATE CO., LTD.

35

Office Building Business

3. Earnings Related Data: Total operating floor space (Unconsolidated)
Total (Domestic) / Marunouchi / Marunouchi Redevelopment Buildings(Thousand ㎡)

6,500
6,000

5,444

5,500
5,000
4,500
4,000

3,825 3,907 3,769
3,684 3,696

4,175

4,347

4,660

4,896

5,580 5,670
5,174

5,038

5,385

5,570

5,745

3,500
3,000
2,500
2,000

1,677

1,946 2,024 1,897
1,798

2,195 2,258

1,500
1,000
500
0

256

256

355

03/3

04/3

05/3

489

489

06/3

07/3

743

743

08/3

09/3

Total (Domestic)

2,727 2,784
2,687 2,758 2,755 2,583
2,565 2,565
2,531

1,022 1,022

10/3

11/3

Marunouchi

1,174

12/3

1,383 1,365 1,360 1,345

13/3

14/3

15/3

16/3

1,705 1,705

17/3

18/3

5,876

2,915

1,836

19/3

20/3(E)

Marunouchi Redeveloped Buildings*Excluding floor space in Lifestyle Property Business from 16/3

MITSUBISHI ESTATE CO., LTD.

36

Office Building Business

4. Earnings Related Data: Vacancy Rates / Average Rents (Unconsolidated)
Vacancy Rates (Marunouchi offices / All uses in Japan) /Average Rents (All uses in Japan)(yen / tsubo-month)

28,000Vacancy rate(Marunouchi offices)27,000Vacancy rate(All uses in Japan)

26,000

Average rent(All uses in Japan)

25,00024,00023,00022,00019,00022,817
6.06%

22,213

21,902 21,711 21,733

23,974 23,850 23,861

26,193

26,910 26,900

5.64%

8%

23,587

7%

22,602

6%

4.82%

5%

4.36%

3.59%

3.40%

2.77%

17,0002.86%
1.68%2.06%

16,00015,000

2.42%

3.98%
3.58% 3.58%
4.32%
3.66%

2.26%

2.77%

14,00013,000

MITSUBISHI ESTATE CO., LTD.

05/3

2.80%

2.93%

2.22%

06/3

07/3

0.19%
08/3

2.42%
1.65%

1.37%

1.09%
09/3

10/3

11/3

12/3

2.69%
1.87%

1.82%
0.55%

04/3

4%

2.42%

1.74%

03/3

10%
9%

5.29%

18,00012,00024,42323,56021,00020,00024,86425,23425,842

26,664 26,702

13/3

14/3

15/3

16/3

17/3

3%

2.19%
1.56%

2.29%

1.5%

1.80%

1%

1.27%

18/3 18/12 19/3

2%

19/6

20/3
(E)

0%

37

Office Building Business

5. Earnings Related Data: Office Building Business Revenue Breakdown(Unconsolidated)(Billions of Yen)FY2019-1Q(Results)

FY2019(Results)

FY2020-1Q(Results)

FY2020(Estimates)

Revenue from Office Building Business(Unconsolidated)

127.9

440.6

100.8

501.0

Changes from Previous Period+ 37.4+ 19.6△ 27.0+ 60.3

Rent revenue from new buildings+ 3.7+ 17.9+ 3.5+ 10.5

Rent revenue from existing buildings

+ 1.8

+ 6.2

+ 1.5

+ 3.7

Termination of master lease,closure of building for redevelopment

+ 0.1

+ 0.3

+ 0.1

△ 0.1

Moving in/out of tenants,
Rent revisions at lease renewal

+ 1.7

+ 5.9

+ 1.3

+ 3.8

+ 0.3

+ 3.3

△ 0.6

△ 1.8

+ 31.4△ 7.6△ 31.5+ 48.2

Supplementary Revenue, including common
area charge
Sales of properties, etc.

MITSUBISHI ESTATE CO., LTD.

38

Office Building Business

6. Earnings Related Data: Rent Revenue Transition (Unconsolidated)
Increase / decrease of rent revenue (from the previous year)(Billions of Yen)

30
25

■New buildings■Existing buildings (Moving in/out of tenants, Rent revisions at lease renewal)■Existing Buildings (Termination of master lease, closure of building for redevelopment)

+0.3

20
15

+15.3

10
+13.0

5
0
-5

+4.3
-3.9
-2.5

-10.7

-1.1
-5.9

-5.4

+7.3
+1.9

+27.2

+23.9
+12.5

+6.0
-1.5

+7.3
-1.5

-10.5

-4.0
-2.5

-4.6
-5.6

+9.5

-5.2

+6.6
-3.4

-6.0

-8.3

-0.7

+22.6 +0.7 +17.9+18.5 +13.2

+2.4

+4.9

-7.5

-9.0

-10.5

+9.8

+4.0

+4.7

+10.5
+5.9

+3.8

+0.1
+3.5
+1.3

-0.1

-8.1

-5.0

-15

Total

+8.7
-4.9

-10

-20

+15.3

+14.7

03/3

04/3

05/3

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3(E) 20/31Q

-2.1

-2.7

-1.6

+8.3

-1.3

+19.8

+20.5

+17.4

+2.3

-1.7

-5.1

+19.0

+11.9

+7.6

+18.5

+15.2

+24.1

+14.2

MITSUBISHI ESTATE CO., LTD.

+4.9

39

Office Building Business

7. Earnings Related Data: Rental Revenue / NOI (Unconsolidated)
Rental Revenue(Regional Breakdown / Growth Rate)

100%

40%
12.7%

25.8%

61.5%

13.8%

13.7%

1.7%

24.9%

61.4%

7.1%

25.0%

61.3%

25.8%

60.5%
7.6%

2.4%
6.1%
2.3%

-0.5%

FY2016

13.7%

100%

35%

75.9%

25%

FY2018FY2019

11.6%

10.4%

10.6%

15.3%

18.0%

17.2%

73.2%

71.6%

72.2%

20%
13.4%

15%

9.3%

5%

-0.7%

0%

30%
25%

6.3%

0%

FY2016

10%
5%

4.6%

0%
-5%

FY2017

Marunouchi

Tokyo excluding Marunouchi

Nationwide excluding Tokyo

Growth rate(Total) [right axis]

Nationwide excluding Tokyo

MITSUBISHI ESTATE CO., LTD.

5.3%

-1.1%

Marunouchi

Growth rate(Marunouchi) [right axis]

35%

15%
8.5%

10%

-10%

40%

20%

-5%
FY2017

8.9%
15.2%

30%

7.3%

0%

NOI
(Regional Breakdown / Growth Rate)

FY2018FY2019

Tokyo excluding Marunouchi
Growth rate(Total) [right axis]-10%Growth rate(Marunouchi) [right axis]

40Office Building Business8. Office Building Market Data: New Supply of Large-Scale Office Buildings(23 Wards of Tokyo)(Millions of ㎡)

2.5
2.16
2
1.75

1.72

1.54
1.41

1.5
1.25

1

0.99

1.19 Past average supply 1.17
about 1.05 million ㎡/year(1998～2018)

0.91
0.72

0.5

1.21

0.77

1.09
0.87

0.86 0.85
0.65

0.58

1.32
0.99

0.97
0.69

Average estimate supply
for next 5 years
1.02 million ㎡/year

0.57

0.5

0.36

0
*Estimate※Research subject buildings: Buildings with total office floor area exceeding 10,000㎡
Source: Mori Building
MITSUBISHI ESTATE CO., LTD.

41

Office Building Business9. Office Building Market Data: Average Rents / Vacancy Rates(5 Central Wards of Tokyo)(yen / tsubo-month)

30,00012%
Average Rent

28,00026,0008.75%

20,000

10%
8.56%

7.98%

24,00022,0009.19% 9.04%

Vacancy Rate

6.70%

21,295
5.51%

19,17517,758 17,593

18,0008%

22,5748.18%
20,064

6.05%
18,26418,095

17,495

16,716 16,504

16,325

17,195

3.41%

17,9734.34%

6%18,7303.60%

2.72% 2.89%

4%

2.80%

12,00010,00021,518

19,6995.30%

16,00014,00021,1342%
1.78% 1.72%

03/3

04/3

05/3

06/3

07/3

08/3

09/3

10/3

11/3

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

19/6

0%

Source: Miki Shoji Co., Ltd.
MITSUBISHI ESTATE CO., LTD.

42

Office Building Business

10. Competitive Edge of Marunouchi: Vacancy Rates
5 Central Wards of Tokyo(Market) vs. Marunouchi(Unconsolidated)
10%
9%

8.75%
8.18%

9.19% 9.04%

8.56%

7.98%

8%
7%

6.70%
6.06%
6.05%

6%
5.51%
5%
4%

4.32%
4.36%

3.66%
3.41%

3%

2.72%

2.77%

1.74%

0%

0.19%

0.55%
03/3

04/3

05/3

06/3

07/3

4.34%

2.42%
2.89%

2%
1%

5.30%

08/3

2.42%
2.26% 2.42%

1.82%

1.09%
09/3

10/3

3.60%

11/3

5 Central Wards of Tokyo(Market)

12/3

13/3

14/3

15/3

2.69%
2.19%

1.65% 1.78% 1.72%

1.37%
16/3

2.80%

17/3

18/3

19/3

19/6

Marunouchi(Unconsolidated)
Source: Miki Shoji Co., Ltd.

MITSUBISHI ESTATE CO., LTD.

43

Office Building Business

11. Competitive Edge of Marunouchi: Area / number of railway lines

Marunouchi

Nihonbashi

ShinagawaShibuya

Toranomon

2,400m
1,500m

Area:

123ha

Area:

76ha

Area:

49ha

Area:

86ha

Area:

58ha

Railway lines:

28 lines

Railway lines:

5 lines

Railway lines:

9 lines

Railway lines:

8 lines

Railway lines:

2 lines©Open Street Map

MITSUBISHI ESTATE CO., LTD.

44

Office Building Business12. Competitive Edge of Marunouchi: Number of headquarters and offices(as of March, 2018)① Fortune Global 500 company headquarters③ Top 100 law firm headquarters and offices

32

MARUNOUCHI

18

3

1

0

0

5

TORANOMON1NIHONBASHISHINAGAWAMARUNOUCHISHINAGAWANIHONBASHISHIBUYATORANOMON

01SHIBUYA② Top 50 company headquarters in terms ofmarket capitalization④ Foreign financial company offices

72

MARUNOUCHI12

MARUNOUCHI3NIHONBASHI

1

1

TORANOMONSHINAGAWA

0SHIBUYANIHONBASHI

11SHIBUYA

3

SHINAGAWA

MITSUBISHI ESTATE CO., LTD.

21

TORANOMON

045

Office Building Business13. Marunouchi Data: Marunouchi Tenant Mix (Unconsolidated)
March 2000

Type of Business

Area ratio

March 2019

Type of Business

Area ratio

1

Manufacturing

42.5%

1

Manufacturing

23.9%

2

Finance22.2%

2

Finance

20.3%

3

Trading

10.4%

3

Professional Firm

17.0%

4

Information

6.3%

4

Trading

9.8%

5Professional Firm

4.4%

5

Information

4.0%

Others

14.2%

Others25.0%

Professional Firm
4.4%

Information
6.3%
Trading
10.4%

Manufacturing
42.5%

Manufacturing
23.9%

Information
4.0%
Trading
9.8%

Finance
22.2%

MITSUBISHI ESTATE CO., LTD.

Others25.0%

Others
14.2%

Finance
20.3%

Professional Firm
17.0%

46

Office Building Business

14. Marunouchi Data: Retail Property in Marunouchi:
Number of Stores / Store Floor Area(Unconsolidated)(Thousand ㎡)

140

Store Floor Area

Shin-Marunouchi
Bldg.

Number of Stores

120

Tokyo Bldg.
“TOKIA”

100
OAZO
Marunouchi Bldg.

80

60

40

Before opening of
Marunouchi
Building

280

430

480

590

740
103

Marunouchi
Park Bldg.

790
110

Marunouchi
Eiraku Bldg.
“iiyo!!”

820
113

OTEMACHIFINANCIAL CITY
GRAND CUBE

850
116

Otemon Tower・
JX Building,Otemachi Park
Building“HOTORIA”

Marunouchi
Nijyubashi Bldg.
“Nijyubashi
Square”

1,000
870

116

890
119

900
800
700
600

87

500

73

400

59

300

40

200

20

0

(Store)100

beforeSep. 2002

MITSUBISHI ESTATE CO., LTD.

Sep. 2002

Sep. 2004

Nov. 2005

Apr. 2007

Sep. 2009

Mar. 2012

May 2016

Feb. 2017

Nov. 2018

047

Office Building Business

15. Marunouchi Data: Approaches for Marunouchi Area Development
Improvement of floor-area-ratio
Improving floor-area-ratio in Marunouchi area by reviewing theuse area

1,000% → 1,300% (June, 2004)※1,200% for limited areas

Transfer of floor-area-ratio:
Exceptional floor-area ratio district system
Possible to transfer floor area among several areas meeting acertain conditions“Exceptional floor-arearatio district” Area

Relaxation of floor-area ratio regulation:
Special Urban Renaissance Districts
Possible to be permitted for relaxation of floor-area ratio
regulation depending on levels of contribution to city
regeneration as an exception of urban planning
Example: International business bases (Global Business Hub Tokyo etc.)
Development of fine urban environment (improvement on water quality ofditch around the Imperial Palace etc.)
BCP function(self-reliant of electric power and water supply, etc.)

Change of building uses:
Consolidation of non-office use
Possible to consolidate and allocate mandated non-officeuse floor-areas when running several projects
simultaneously◆Example: Consolidation between offices and hotels

Non-office ─◆Example: Transfer unused floor-area at Tokyo station to other buildings
around the station

Office ─Consolidate non-office uses in
offices into hotels to expand
office areas in office buildings
Offices
MITSUBISHI ESTATE CO., LTD.

Hotels48

Lifestyle Property Business

MITSUBISHI ESTATE CO., LTD.

49

Lifestyle Property Business1. PREMIUM OUTLET®

KYOTO JOYO
Tosu

Kobe-Sanda
Rinku

GOTEMBA PREMIUM OUTLETS®
Name

LocationToki

RINKU PREMIUM OUTLETS®
Site Area

Total Floor Area

Store Floor Area

Number of Stores

Sendai-Izumi

HANAZONO Sano
Ami
Gotemba Shisui

Schedule

GOTEMBA PREMIUM OUTLETS®

Gotemba, Shizuoka

422,300㎡*

69,200㎡*

60,000㎡*

300*

Open: Jul. 2000, Phase2 expansion: Jul. 2003, Phase3 expansion: Mar. 2008,
Phase4 expansion: land development and Construction begins in Sep. 2016,
Phase4 expansion: Spring 2020

RINKU PREMIUM OUTLETS®

Izumisano, Osaka

132,200㎡*

63,800㎡*

50,000㎡*

260*

Open: Nov. 2000, Phase2 expansion: Mar. 2002, Phase3 expansion: Dec. 2004,
Phase4 expansion: Jul. 2012, Phase5 expansion: 2020

SANO PREMIUM OUTLETS®

Sano, Tochigi

174,600㎡

39,900㎡

37,300㎡

170

Open: Mar. 2003, Phase2 expansion: Jul. 2004, Phase3 expansion: Mar. 2006,
Phase4 expansion: Jul. 2008

TOSU PREMIUM OUTLETS®

Tosu, Saga

134,200㎡

36,800㎡*

31,800㎡*

165*

Open: Mar. 2004, Phase2 expansion: Dec. 2007, Phase3 expansion: Jul. 2011,
Phase4 expansion: Fall 2019

TOKI PREMIUM OUTLETS®

Toki, Gifu

284,600㎡

41,300㎡

35,200㎡

180

Open: Mar. 2005, Phase2 expansion: Oct. 2006, Phase3 expansion: Jul. 2010,
Phase4 expansion: Nov. 2014

KOBE-SANDA PREMIUM OUTLETS®

Kobe, Hyogo

316,800㎡

49,600㎡

42,200㎡

210

Open: Jul. 2007, Phase2 expansion: Dec. 2009, Phase3 expansion: Dec. 2012

SENDAI-IZUMI PREMIUM OUTLETS®

Sendai, Miyagi

43,700㎡

20,300㎡

15,300㎡

80

Open: Oct. 2008

AMI PREMIUM OUTLETS®

Inashiki, Ibaraki

211,100㎡

34,800㎡

30,700㎡

150

Open: Jul. 2009, Phase2 expansion in Dec. 2011

SHISUI PREMIUM OUTLETS®

Inba, Chiba

421,000㎡

47,300㎡

41,900㎡

210

Open: Apr. 2013, Phase2 expansion: Apr. 2015,
Phase3 expansion: Construction begins in Oct. 2017, Phase3 expansion: Sep. 2018

HANAZONO PREMIUM OUTLETS® Project

Fukaya, Saitama

176,000㎡---

Open: after FY2021

KYOTO JOYO PREMIUM OUTLETS® Project

Joyo, Kyoto

270,000㎡---

Open: after FY2023*Planned figure after expansion

MITSUBISHI ESTATE CO., LTD.

50

Lifestyle Property Business2. Mitsubishi Estate・Simon Co., Ltd.
Business Activities : Management and operation of PREMIUM OUTLET®
Shareholders : Mitsubishi Estate 60%, Simon Property Group, Inc. 40%
Change in Business Results :FY2016FY2017FY2018Millions of yen (rounded down)

FY2019FY2020(E)Revenue fromOperations

43,946

43,642

45,462

46,65947,691

Operating Income

16,301

17,35918,94019,673

19,433

Income before
Taxes and Special
Items

16,521

17,593

19,211

19,952

19,469Net Income

10,69912,084

13,143

13,572

13,199Total assets

101,802

101,767

109,485

108,913116,256

Shareholders’ equity

34,576

38,642

42,72440,43843,372Average of all facilities
Sales-linked & fixed ratio(Rent revenue basis)◇Changes in store area(㎡)and number of stores
Store area(㎡)Number of Stores(Millions of yen)

FY2016FY2017FY2018FY2019308,500

308,500

308,500

314,600

318,200

1,527

1,529

1,540

1,570

1,590

(Millions of yen)

Revenue from Operations
45,00040,00035,00030,00025,000

MITSUBISHI ESTATE CO., LTD.

Operating Income

Fixed Rent

50%

FY2018(Millions of yen)

19,00014,000100,000

4,000

Sales-Linked
Rent

FY2020(E)120,000

9,000

50%

Total Assets

110,000
90,00080,00070,00051

Lifestyle Property Business

3. Pipeline
Corowa Koshien

MARK IS Fukuoka Momochi

Retail Property

M’s CROSS Omotesando

Number of Stores:2
Open: Sep. 2017

Logistics Facility

FY2018

Number of Stores:63
Open: Apr. 2018

FY2019Number of Stores:163
Open: Nov. 2018

FY2020

FY2021

LOGIPORT
Osaka Taisho

Logicross
Nagoya Kasadera

LOGIPORT Kawasaki Bay

Total Floor Area: 122,000㎡
Completion: Mar. 2018

Total Floor Area: 80,600㎡
Completion: Jan. 2019

Total Floor Area: 296,800㎡
Completion: May 2019

Logicross Narashino

Osaka Nishi-Yodogawa
Logistics Center

Logicross Yokohama
Kohoku Project

Total Floor Area: 39,100㎡
Completion: Mar. 2018

Total Floor Area: 38,300㎡
Completion: Sep. 2018

Total Floor Area: 16,000㎡ Total Floor Area: 34,700㎡
Completion: Jun. 2019
Completion: Jul. 2019

MITSUBISHI ESTATE CO., LTD.

Logicross AtsugiⅡ
Project

FY2022
Saito Moegi
Logistics Facility Project

Total Floor Area: 157,000㎡(2 Blocks)
Block B Completion: FY2021
Block A Completion: FY2022

52

Lifestyle Property Business

4. Logistics Facility BusinessTokyo Ryutsu Center Distribution B Building

Logicross Narashino

Name

Location

Tokyo Ryutsu Center Distribution B Building

Ota, Tokyo

Logicross Nagoya Kasadera
Site Area

Total Floor Area-

171,300㎡

Logicross Yokohama Kohoku
Construction Start Date

Completion Date-

Jun. 2017

Logicross Narashino

Narashino, Chiba

19,300㎡

39,100㎡-

Mar. 2018

Osaka Nishi-Yodogawa Logistics Center

Osaka, Osaka

18,100㎡

38,300㎡

Jul. 2017

Sep. 2018

Logicross Nagoya Kasadera

Nagoya, Aichi

33,200㎡

80,600㎡

Sep. 2017

Jan. 2019

LOGIPORT Kawasaki Bay

Kawasaki, Kanagawa

134,800㎡

296,800㎡

Dec. 2017

May 2019

Logicross Yokohama Kohoku

Atsugi, Kanagawa

8,000㎡

16,000㎡

Jun. 2018

Jun. 2019

Logicross AtsugiⅡ

Atsugi, Kanagawa

17,300㎡

34,700㎡

Aug. 2018

Jul. 2019

Saito Moegi Logistics Facility Project B District

Ibaraki, Osaka

15,800㎡

31,700㎡

FY2019FY2020

Saito Moegi Logistics Facility Project A District

Ibaraki, Osaka

51,000㎡

125,300㎡

FY2019FY2021

MITSUBISHI ESTATE CO., LTD.

53

Residential Business

MITSUBISHI ESTATE CO., LTD.

54

Residential Business1. Condominium Business Data

Condominiums
Sold(millions of yen)
Condominiums
Sold(units)

FY2019-1Q(Results)

FY2019(Results)

FY2020-1Q
FY2020(Results) (Estimates)

32,246238,924

31,736208,000

572

4,007

546

3,300

16.8%

17.0%

16.5%

17.2%

Inventory(units)

412

542

585

-

New Supply of
Condominiums(units)

953

3,966

977

3,400

Gross margin

MITSUBISHI ESTATE CO., LTD.

Land Bank
Breakdown in reporting term(as of March, 2019)

5,000
9,600
3,600

Total: 18,200 units
FY2020 - FY2022
FY2023 - FY2025
FY2026 -55

Residential Business

2. Condominium Business Data②
Quarterly Distribution of Sales by Agreement Date
(Millions of yen)

254,140

260,000
240,000
220,000

215,762200,000

95.8%

180,000

89.3%

160,000

79.4%

140,000
120,000

60.6%

223,266

96.5%

94.8%
88.7%
77.9%

238,924

89.3%

93.0%

80.7%

84.7%

208,000 (E)

73.1%

66.1%

59.2%

63.0%

100,000

68.9%

50.1%

80,00060,00040,00020,000
0

16/3

17/3

Full-year sales

MITSUBISHI ESTATE CO., LTD.

18/3

End of 3Q

End of 2Q

19/3

End of 1Q

20/3

Beginning of FY

56

Residential Business3. Condominium Market Data
Number of New Supply / Average Prices (the Greater Tokyo Area)(Unit)(Average price / Millions of yen)60

120,000
58.71

100,000

50

80,00040

60,00030

40,00037,132 37,000 20

20,00010

01998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
(E)
Number of new supply

0

Average priceSource: Real Estate Economic Institute Co., Ltd.

MITSUBISHI ESTATE CO., LTD.

57

Residential Business

4. Rental Apartment

Parkhabio Akasaka Tower

The Parkhabio Kiba
MITSUBISHI ESTATE CO., LTD.

Name

Location

Parkhabio Ebisu

Shibuya, Tokyo

Parkhabio Monzen Nakacho

Site Area

Total Units

Completion Date

700㎡

109

Oct. 2013

Koto, Tokyo

900㎡

129

Mar. 2014

Parkhabio Shibaura

Minato, Tokyo

700㎡

84

Dec. 2014

Parkhabio Iidabashi

Chiyoda, Tokyo

500㎡

113

Feb. 2015

Parkhabio Akasaka Tower

Minato, Tokyo

1,100㎡

212

Mar. 2015

Parkhabio Akihabara Est

Taito, Tokyo

400㎡

54

Mar. 2015

The Parkhabio Ueno Okachimachi

Taito, Tokyo

500㎡

72

Aug. 2016

The Parkhabio Shinagawa Togoshi

Shinagawa, Tokyo

300㎡

36

Nov. 2016

The Parkhabio Negishi 3-chome

Taito, Tokyo

500㎡

45

Jul. 2017

The Parkhabio Yokohama Kannai

Yokohama, Kanagawa

500㎡

85

Oct. 2017

The Parkhabio Sangen-jaya Terrace

Setagaya, Tokyo

900㎡

56

Nov. 2017

The Parkhabio Nihonbashi Kodenmacho

Chuo, Tokyo

200㎡

44

Nov. 2017

The Parkhabio Asakusa Komagata

Taito, Tokyo

300㎡

41

Dec. 2017

The Parkhabio Shinjuku

Shinjuku, Tokyo

2,200㎡

219

Feb. 2018

The Parkhabio Nihonbashi Hakozakicho

Chuo, Tokyo

400㎡

50

Feb. 2018

The Parkhabio Waseda

Shinjuku, Tokyo

900㎡

99

Mar. 2018

The Parkhabio Sugamo

Toshima, Tokyo

1,700㎡

188

May 2018

The Parkhabio Ebisu Place

Shibuya, Tokyo

800㎡

71

Sep. 2018

The Parkhabio Nishiyokohama

Yokohama, Kanagawa

400㎡

81

Nov. 2018

The Parkhabio Meguro Fort

Meguro, Tokyo

500㎡

27

Jan. 2019

The Parkhabio Kakinokizaka

Meguro, Tokyo

1,300㎡

49

Jan. 2019

The Parkhabio Kiba

Koto, Tokyo

1,700㎡

223

Feb. 2019

In addition to the listed above, there are approximately 20 projects under development

58

Residential Business

5. Redevelopment Project・Condominium Reconstruction Project
Redevelopment Project ・ Large-scale Development Project

Condominium Reconstruction Project

Scheduled
Delivery

Scheduled
Delivery

Location

Location

Project Name

Total Units

Project Name

Total Units

FY2020Mitaka, Tokyo

Gracia Tower Mitaka

184

FY2020

Shibuya, Tokyo

The Parkhouse Ebisu

102

FY2021

Shinagawa, Tokyo

Crevia Tower Oimachi THE RESIDENCE

136

FY2021

Shinjuku, Tokyo

The Parkhouse Waseda

115

FY2021

Narashino, Chiba

Tsudanuma The Tower

759

FY2021

Fukuoka, Fukuoka

The Parkhouse Momochi

231

FY2021Adachi, Tokyo

Senju The Tower

180

FY2022

Minato, Tokyo

The Parkhouse Mita Tower

FY2021

Atsugi, Kanagawa

The Parkhouse Hon-Atsugi Tower

160

FY2023 -The Greater Tokyo Area

FY2021

Kawaguchi, Saitama

The Parkhouse Kawaguchi Honcho

162

FY2021

Chiba, Chiba

Makuhari Bay Park Sky Grand Tower

826

FY2021

Kagoshima, Kagoshima

Kagoshima city Chuocho19・20 Redevelopment210

FY2022

Bunkyo, Tokyo

Park Court Bunkyo Koishikawa The Tower

580

FY2023Chuo, Tokyo

HARUMI FLAGThe Greater Tokyo Area

19 Street Area Redevelopment, Togoshi 5chome、Minami-Takasago Area Redevelopment, Urawa
Station Nishiguchi, etc.*1

Total 10,200*2

Outside of the Greater
Tokyo Area

C Street Area Redevelopment, Minatocho 3chome, etc. *1

Total 2,900*2

FY2023 -111
Total 1,300

4,100*1 There are approx. 20 ongoing projects scheduled for delivery in FY 2023 onward*2 Total of several planned projectSenju The Tower

MITSUBISHI ESTATE CO., LTD.

59

Residential Business6. Overseas Residence
Name

Location

Site Area

Total Units

Completion Date

ChangchunApprox. 130,000㎡

574

Dec. 2015

3,452

2019 (Scheduled)

China
Weifeng・Dong Yue

Vanke・Nantong

Life Ladprao Hype

Zhuojin・Wandai(Parc Botanica)

ChengduApprox. 75,000㎡

Weifeng・Dongyu

ChangchunApprox. 179,000㎡ To be determined2020 (Scheduled)

Vanke・Nantong

Nantong

Approx. 98,000㎡

Approx. 1,100

2020 (Scheduled)

HaimenHaimenApprox. 91,000㎡

1,424

2021 (Scheduled)

Vanke・Wuxi

Wuxi

Approx. 81,800㎡

1,556

2020 (Scheduled)

Thailandaspire Sathorn-Thapra

BangkokApprox. 8,500㎡

1,218

Nov. 2016

Life Pinklao

BangkokApprox. 8,000㎡

803

Nov. 2017

Life Asoke

BangkokApprox. 10,700㎡

1,642

Apr. 2018

RHYTHM Ekkamai

BangkokApprox. 3,000㎡

326

Oct. 2018

Life Sukhumvit 62

BangkokApprox. 4,300㎡

438Jan. 2020 (Scheduled)Life one WirelessBangkokApprox. 7,000㎡

1,344

Feb. 2020 (Scheduled)Life Ladprao

BangkokApprox. 11,000㎡

1,615Mar. 2020 (Scheduled)Life Asoke-Rama9

BangkokApprox. 14,000㎡

2,248

Oct. 2020 (Scheduled)Life Ladprao Valley

BangkokApprox. 9,000㎡

1,140Aug. 2021 (Scheduled)Life Asoke Hype

BangkokApprox. 8,100㎡

1,253

Jul. 2021 (Scheduled)

RHYTHM Ekkamai Estate

BangkokApprox. 3,500㎡

303

May 2021 (Scheduled)

Malaysia
Stonor 3

Kuala Lumpur

Approx. 5,900㎡

4002019 (Scheduled)

The Gems

Selangor

Approx. 40,000㎡

676

To be determined

Binh Duong Province

Approx. 7,900㎡

Approx. 560

2021 (Scheduled)VietnamSora gardensⅡ
Australia
Melbourne Quarter

Melbourne

Approx. 4,400㎡

719

2020 (Scheduled)

Mastery

SydneyApprox. 16,900㎡

3742021 (Scheduled)

Mastery
MITSUBISHI ESTATE CO., LTD.

60

International Business

MITSUBISHI ESTATE CO., LTD.

61

International Business1. International Business Overview①Total assets by area
Total Assets of Major Overseas Subsidiaries
Main Location

At Dec. 31, 2018 *1,2,3

Currency Exchange Rate

Rockefeller Group, Inc.

USA

410,801 millions of yen￥ / $(BS)110.00Mitsubishi Estate London Limited.

UK

156,852 millions of yen￥ / ￡(BS)140.46

Mitsubishi Estate Asia Pte. Ltd. *4

Asia

139,194 millions of yen￥ / S$ (BS)81.00

*1 Before consolidation adjustments.
*2 Due to overseas subsidiaries closing
accounts in Dec., figures from
3 months previous are used.
*3 The Total Assets of Major Overseas
Subsidiaries includes those in theInternational Business and the Investment
Management Business.
*4 Including the equity investments directly
made by Mitsubishi Estate.

②Strategy
・We analyze each market, and screen the “suitable place” where we can earn appropriate profits.
・We will continue to expand our international business with strategies of “suitable place, suitable resources” while developing diverse approaches according to
the characteristics of the targeted markets and the necessary management resources.

The United States

EuropeAsia

Strengths andCompetitiveness・Sourcing ability, market accessibility,
development capability based on long termbusiness achievements
・Asset management service by TA Realty

・Sourcing ability based on long-term businessachievements
Utilizing development know-how based on・Development Team composition /domestic business experiencemanagement ability
・Asset management service by Europa Capital

Approach・Hands-on development led by Rockefeller
Group・Hybrid model investment using TA Realty's
resources

・Development focusing on asset manager
model-type development

MITSUBISHI ESTATE CO., LTD.

・Expands mainly on partnership-type realestate development investments

62

International Business2. North America
Name

Location

Main Use

Site Area(㎡) Leasable Area(㎡) Floors* / Units

Completion Date

1271 Avenue of the Americas

New York, NewYork

Office・Retail

8,950

195,000

48/3

Completion in 1959
Renovation
completion in 20191221 Avenue of the Americas

New York, NewYork

Office・Retail10,000244,000

51/5

1972

Flushing Commons(Phase 1)

New York, NewYork

11,000-Rockefeller Group Logistics
Center(5 Bldg.)

Piscataway, New
JerseyLogistics

Boro Tower

Tysons, Virginia

Liv North Valley

Office for sale
Residence

NORTH AMERICA
Rockefeller Group International, Inc.
Mitsubishi Estate New York Inc.

13/1

Retail148

New York

2017

17/1
2019

1,692,000

191,000-

Office・Retail

16,70041,00020/4

Jan. 2019

Phoenix, Arizona

Rental Apartment

100,000

30,000385

Apr. 2019

Liv Goodyear

Goodyear,Arizona

Rental Apartment

67,00027,000326

Dec. 2018

Tri City Industrial Complex

San Bernardino,
California

Logistics

76,00039,500-Sep. 2018

Optimus Logistics Center(2 Bldg.)

Perris, California

Logistics

277,000

134,000-

Sep. 2018

MITSUBISHI ESTATE CO., LTD.

Boro Tower

Optimus Logistics Center

Atlanta

Mitsubishi Estate Group office
and its project locations
Major Project Locations* Floors(above ground / below ground)

Flushing Commons

Washington, D.C.

Los Angeles
Phoenix

Boston1221 Avenue of the Americas

1271 Avenue of the Americas

63

International Business

3. Europe
Name

Location

Main Use

Clive House

London, UK

Office145 Leadenhall Street

London, UK

Office・Retail

1 Victoria Street

London, UK

OfficeSite Area(㎡) Leasable Area(㎡) Floors*

Completion Date

8,000

8/1

1930’sRenovated in
2003

-

1,500

9/1

1950

7,900

31,200

9/3

1960’s

1,800(Tentative Name) 8 Bishopsgate

London, UK

Office・Retail

3,460

53,00051/3

2022

Warwick Court

London, UK

Office・Retail

3,300

18,300

8/2

2003

Central Saint Giles

London, UK

Office・Retail

7,900

38,800

11/2

2010

8 Finsbury Circus

London, UK

Office・Retail

2,200

15,9009/2

2016

245 Hammersmith Road

London, UK

Office・Retail

5,000

24,000

12/1

2019

46 Rue La Boétie

Paris, France

Office

580

2,400

9

1964
Renovated in
2008

Feringastrasse 10-12

Munich, Germany Office

12,00022,0005/2

2003

EUROPE

Mitsubishi Estate London Limited

LondonParis

Munich* Floors(above ground / below ground)

Mitsubishi Estate Group office
and its project locations
Major Project Locations(Tentative Name) 8 Bishopsgate
MITSUBISHI ESTATE CO., LTD.

Central Saint Giles

8 Finsbury Circus

46 Rue La Boétie

Feringastrasse 10-1264International Business

4. Asia / Oceania
Name

Location

Main Use

Site Area(㎡) Leasable Area(㎡) Floors / Units

Completion Date

Residential Development Project
Shanghai City, China
in Shanghai

Residence・Retail85,000-1,400

Logistics Development Project inBeijing City, China
Beijing(5 Bldg.)

Logistics

107,200

-

-

2018

Township Development Projectin Chengdu

Chengdu City, China

Residence・Retail75,000

-

3,400

2019

Mixed Use Development inHangzhouHangzhou, China

Office13,900

-

22

2021

Phase 3 of Singapore-Hangzhou
Science & Technology Park

Hangzhou, China

Office52,500--2020

Taiwan Nangang Development
Project(4 Bldg.)

Taipei City, Taiwan

Office・Hotel ・Retail

67,000200,000*-

Grand Open in
Dec. 2015

Taiwan Yucheng Development
Project

Taipei City, Taiwan

Office・Residence

5,200

-

-

-

Taiwan Banqiao Residential
Project

New Taipei City,
TaiwanResidence

5,700

-

-

-

Yoma Central(4 Bldg.)

Yangon, Myanmar

Office・Residence・
Hotel・Serviced
Apartment・Retail40,000--2021

Riverbank Place

Ho Chi Minh, Vietnam Office

Dec. 2017

SuzhouChengduSingapore25

Dec. 2014

6,100

93,400*51

2021

75,00041

2021

Singapore

Daswin Project

Jakarta, Indonesia

Office16,000Melbourne Quarter East Tower

Melbourne, Australia

Residence

4,400

-

719

2020

Circular Quay Tower

Sydney, Australia

Office・Retail

4,600

-

-

2021

Mitsubishi Estate(Shanghai) Ltd.
ShanghaiTaipei

Mitsubishi Estate Taiwan Ltd.

Mitsubishi Estate Vietnam Company Ltd.

Ho Chi Minh City

9,900

CapitaSpring

Hangzhou

Yangon3,200

Office・Serviced
Apartment・Retail

ASIA･OCEANIA

Mitsubishi Estate Asia Pte. Ltd.

Jakarta

PT. Mitsubishi Estate Indonesia* Total Floor Area

SydneyMelbourne

Mitsubishi Estate Group office
and its project locations
Mixed Use Development in Hangzhou
MITSUBISHI ESTATE CO., LTD.

Daswin Project

Yoma Central

Circular Quay Tower

Major Project Locations

65

Other business

MITSUBISHI ESTATE CO., LTD.

66

Other business1. Investment Management Business: Global Platform
Globally, we have combined assets under management of approximately JPY 3.1 trillion.

AuM Area Breakdown(Billions of Yen)

Asia & Oceania
40.0Europe350.0

JREA
1,020.0

Carry out marketing and research and establish funds worldwide
Overseas

Provide global opportunities to worldwide investors
Japan Real Estate AssetManagement Co., Ltd.

Group-wide
Synergy

Total:
approximately
JPY 3.1 trillion.

United States
1,000.0

Domestic

MJIA
700.0

Mitsubishi Jisho
Investment Advisors, Inc.
(End of FY2019)

Mitsubishi Estate Group’s network
for investment & development and management & services
MITSUBISHI ESTATE CO., LTD.

67

Investment / Financial Data etc.

MITSUBISHI ESTATE CO., LTD.

68

Investment / Financial Data etc.

1. Capital Investment
Capital Investment / EBITDA

Major Breakdown of Capital Investment(Billions of Yen)

(Billions of Yen)

350.0
300.0

275.3

250.0

51.6

200.0

30.9

2.8

27.6

40.1
12.1

100.0

0.0

2.4

11.8

285.0

7.1

13.0

2.7
93.4

74.7

58.6

6.5

104.9

50.0

289.5

25.1

26.4

150.0

275.3

FY2016

17.2
15.2

22.1
36.0

38.4
6.5

36.9

15.9
126.1

FY2017

16.8
21.3

96.3

FY2018

350.0

309.0
6.5
9.0

21.0

8.0
4.0

79.0
33.0

300.0
250.0

150.0

17.0
25.0

100.0

80.0

FY2019FY2020(E)Office Building(MEC: New/Redevelopment)

Office Building(MEC: Refurbishment)

Office Building(Subsidiaries)

Lifestyle Property

Residential

International

Hotel & Airport

Special Purpose Vehicle

275.3
252.0

275.3

320.6
285.0

324.0
309.0

200.0

42.0

68.4

279.7

302.4
289.5

50.0
0.0

FY2016FY2017FY2018

Capital Investment

FY2019FY2020(E)

EBITDA

Other(including consolidated eliminations)

MITSUBISHI ESTATE CO., LTD.

69

Investment / Financial Data etc.

2. Special Purpose Vehicles: Investment Balance (Unconsolidated / Domestic)
Breakdown: Investment Balance (as of June 30, 2019)(Billions of Yen)

Interest bearing debt
123.2

Office Building
Business
306.7
S.P.V. Total Scale*1*2
402.5

Equity investment byother companies
83.1

Consolidated S.P.V.
130.4

Interest bearing debt
123.0
Office Building
Business
200.2
Equity investment byother companies
83.1

Equity investment by
Mitsubishi Estate
196.1
Lifestyle Property
Business
95.8

Lifestyle Property
Business
71.8

Unconsolidated
S.P.V. Scale
272.0

Equity investment by
Mitsubishi Estate65.8*1 S.P.V. in which our stake is 20% or above*2 Please refer to FACTBOOK for the breakdown by segment

MITSUBISHI ESTATE CO., LTD.

70

Investment / Financial Data etc.

3. Net Interest-bearing debt/EBITDA Ratio(Billions of Yen)

10.0

2,500.0(Times)9.0
2,000.0

7.7

7.5

7.4

7.3
6.7

1,500.0

1,000.0

7.1

7.0

7.0
6.9

6.7
6.1

1,878.6
1,753.6

2,153.6
1,978.6

2,194.8
2,019.8

2,140.2
1,965.2

8.0

2,400.0
2,225.0

6.0
5.0
4.0
3.0
2.0

500.0

1.0
0.0

FY2016FY2017Net Interest-bearing debt
Debt/EBITDA Ratio (right axis)

MITSUBISHI ESTATE CO., LTD.

FY2018FY2019FY2020(E)0.0

Net Interest-bearing debt
*after hybrid debt deductions
Debt/EBITDA Ratio (right axis)*after hybrid debt deductions
71

Investment / Financial Data etc.

4. Interest-Bearing Debt Breakdown(Billions of Yen)

3,000.0

95.0%

95.0%

96.1%

93.7%

2,500.0

6.8

10.2

2,000.0

7.2

53.1%

8.3

1,500.0

1,000.0

35.0

61.8%

61.7%

1,292.9
1,065.4

7.2

9.5
54.0%

1,261.9

1,072.3

28.0
60.1%

64.1%

1,381.2

566.3

0.0

Total

747.2

636.2

701.5

100.0

5.6

69.7%
1,428.5

100%

95.4%

93.6%

90%

4.7

4.5

100.0

73.2%

100.0
76.2%

685.2

1,523.0

1,406.0

653.0

250.0

250.0

250.0

612.7

603.8

558.9

FY2013

FY2014FY2015FY2016FY2017FY2018FY20191,693.0

1,716.8

2,085.4

1,973.0

1,929.3

2,291.0

2,396.9

2,481.6

2,319.5

Subordinated loan

CP

Lease liability

MITSUBISHI ESTATE CO., LTD.

Bank Loan

50%

30%

FY2012

Subordinated bond

70%

40%

FY2011

Straight Bond

80%

60%

1,208.8

250.0

500.0

96.4%

95.1%

93.4%

Fixed ratio

20%
10%
0%

Long-term ratio

72

Investment / Financial Data etc.

5. Interest-bearing debt: Procurement Interest rates /Average Duration of Interest-bearing debt (Unconsolidated)(Year)

10

2.5%

9
8
7
6
5
4

1.90%
6.20
1.58%

1.88%
5.91
1.42%

1.88%
1.72%
5.45
1.40%

1.29%

1.27%
1.05%

3

5.55

1.01%

5.58

5.45

1.54%

1.55%

1.05%

1.07%

0.72%

0.70%

1
0

FY2009FY2010FY2011FY2012Average Duration of Interest-bearing debt

MITSUBISHI ESTATE CO., LTD.

FY2013

5.71

1.41%
1.52%

0.96%

0.87%

2

6.18

FY2014

Bonds/Average interest

0.96%

0.62%

0.61%

FY2015FY2016

6.36

1.38%

0.95%

0.66%

FY2017

Bank Loans/Average interest

6.79

1.32%

0.97%
0.75%

FY2018

6.69

2.0%

1.5%
1.24%

0.92%

1.0%

0.71%

FY20190.5%

Total/Average interest

73

Investment / Financial Data etc.

6. GovernanceOutside Director

Company with Nominating Committee, etc.

• 7 out of 15 are outside directors• Consists of a nominating committee, audit committee,
and remuneration committee.
• Each committee has a majority of outside directors• All 3 committee chairs are outside directors

Executive Compensation Plans to Share Values with Shareholders【Composition of Incentive】
Basic Incentive
50％

Fixed Incentive

Short-term Incentive Middle to Long-term Incentive
Single-year
Performance-based
Incentive

25％

RS
PS
Incentive Incentive
12.5％
12.5％

Fluctuated Incentive●Single-year Performance-based Incentive• Incentive: cash
• Calculation: Considers 4 KPIs(EBITDA・Operating Income・ROA・ROE) of the previous FY.
• Fluctuation range: 0％～200％●Restricted Stock Plan (RS* Incentive) *Restricted Stock• Incentive: stocks Lock-up Period: 3 years●New Long-term Performance-based Incentive Plan (PS * Incentive) *Phantom Stock• Incentive: cash
Performance Evaluation Period: 3 years• Calculation: fluctuation ratio based on the relative ranking of the Company’s total shareholder return among 5 (five) peer
companies* in the same industry and stock price’s increasing/decreasing rate
• Fluctuation range: 0％～500％*Nomura Real Estate Holdings, Inc., Tokyu Fudosan Holdings Corporation, Mitsui Fudosan Co., Ltd., Tokyo Tatemono Co., Ltd., and Sumitomo Realty & Development Co., Ltd

MITSUBISHI ESTATE CO., LTD.

74

Contact Information
Investor Relations Office,Corporate Communications Department
Mitsubishi Estate Co., LTD.
+81-3-3287-5200
http://www.mec.co.jp/<Disclaimer>
Regarding information on the properties of this material, it is based on judgment obtained from information available at thepresentation date of this material.
Please be aware that actual information can result in different results depending on various factors.

MITSUBISHI ESTATE CO., LTD.