November 6, 2017
Earnings Highlights for FY2018-2Q(The Fiscal Year Ending on March 31, 2018)
Mitsubishi Estate Co., Ltd.
Earnings for FY2018-2Q (Consolidated)
Millions of yen (rounded down)

Change(%)

FY2018-2Q
Results

FY2017-2Q
Results

Office Building Business

226,054

223,067

2,987

1.3%

Lifestyle Property Business

50,242

40,735

9,506

23.3%

108,000

Residential Business

131,628

175,932(44,304)(25.2)%

426,000

ChangeFY2018 Estimates（ Announced on Nov 6, 2017)
501,000

International Business

38,96334,046

4,917

14.4%

82,000

Revenue from Operations

485,838

511,753(25,914)(5.1)%

1,202,000

Office Building Business

67,96264,104

3,857

6.0%

143,000

Lifestyle Property Business

14,358

11,115

3,242

29.2%

30,000Residential Business(1,760)

9,492(11,253)(118.6)%20,000International Business

10,64914,011(3,362)(24.0)%

24,000Ope rating Income

84,27892,148(7,869)(8.5)%

205,000

Income Before Taxes and Special Items

73,961

84,275(10,313)(12.2)%

179,000

Profit Attributable to Owners of Pare nt

41,72957,514(15,785)(27.4)%

112,000

EBITDA

128,586

136,163(7,577)(5.6)%

293,000

Summary【Overview】
There is a decrease in income and profits compared with FY2017-2Q. Despite increased rental income andprofits in the Office Buiding Business and increased property sales in the Lifestyle Property Business,overall income and profits decreased due to absence of large-scale tower condominium sales recorded in thesame period of the previous year and a decrease in property sales in the Office Building Business,
Residential Business and International Business. Factors affecting the individual segments compared withFY2017-2Q are detailed below.
【Office Building Business】
Despite a decrease in income and profit from property sales, an increase in rental income and profits of newbuildings and existing buildings resulted in an overall increase in income and profits.
(Vacancy rates)
The vacancy rates for Japan (all purpose) and Marunouchi (offices) had improved since the end of June2017 for two reasons: the progress in leasing of the new building in Marunouchi after a large
cancellation, and the effect of leasing outside Marunouchi.
(Average rents)
The average rents for Japan (all purpose) at the end of September 2017 rose compared with the end ofJune 2017 due to the result of higher rents from new buildings in Marunouchi coming into effect.
(yen/tsubo.month)

Vacancy rates

Japan (all purpose)

2017/3Results

2017/6
Results

2017/9Results

FY2018 Estimates(Announced on Nov 6, 2017)

2.93%

3.55%

2.75%

2.5%

Marunouchi (offices)

2.42%

4.19%

2.80%

Average rents (Japan, all purpose)¥25,842¥25,722¥25,840¥26,000

【 Lifestyle Property Business】
Factors for the increase in income and profits are the increasing in income and profit from property sales,
and the favorable performance of the outlet mall business.
【Residential Business】
The decrease in income and profits are due to selling off a large-scale tower condominium in the same
period of the previous year and a decrease in income and profit from property sales. In this fiscal year,
large-scale tower condominiums wil be sold in second half of this fiscal year.
【International Business】
A factor for the increase in income was a increase in income from property sales, but the absence oftemporary profits resulted in an overall decrease in profits.

Earnings Estimates for FY2018 (Consolidated)*Previous Estimates (annouced on May 10, 2017)
Millions of yen (rounded down)
FY2018 Estimates(Current)

FY2018 Estimates(Previous)

Building Business

501,000

497,000

4,0000.8%

Lifestyle Property Business

108,000

105,000

3,0002.9%

Residential Business

426,000

423,000

3,0000.7%

International Business

82,00095,000(13,000)(13.7)%

Revenue from Operations

1,202,000

1,200,000

2,0000.2%

Building Business

143,000

140,000

3,0002.1%

Lifestyle Property Business

30,00026,000

4,000

15.4%

Residential Business

20,00020,00000.0%International Business

24,00023,000

1,000

4.3%

Operating Income

205,000

195,000

10,0005.1%

Income Before Taxes and Special Items

179,000

171,000

8,000

4.7%

Profit Attributable to Owners of Parent

112,000

108,000

4,000

3.7%

EBITDA

293,000

282,500

10,5003.7%

Change(%)

ChangeSummary【Overview】
The earnings estimates for FY2018 was revised upwards in income by ¥2 billion and profits by ¥10 billion
due to increased rental income and profits in the Office Building Business and Lifestyle Property Business,
and an adjustment of property sales plans in the Lifestyle Property Business and the International Business.
Furthermore, there were upward revisions of Non-operating revenue and expense and Extraordinary incomeand loss. These revisions resulted in increase of Income Before Taxes and Special Items by ¥8 billion, andincrease of Profit Attributable to Owners of Parent by ¥4 billion.
【Office Building Business】
There was an upward revision of income and profits as the result of an increase in rental income and profitsof new buildings and existing buildings.
【 Lifestyle Property Business】
There was an upward revision of income and profits due to the favorable performance of the outlet mallbusiness and an adjustment of plans for property sales.

【International Business】
Due to adjustment of property sales plan, downwards revison in income and upwards revison in profit weremade, respectively.
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.
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