FY 2020 – 2Q
(For the Year Ending March 31, 2020)

IR Presentation

Contents

MITSUBISHI ESTATE CO., LTD.

Summary of Financial Statements for FY 2020 - 2Q

2Strengthening Capital Policy / Corporate Governance

14

Financial Supplemental Data

22

Prospects of Mid-Term Management Plan

27

Detailed Business Units' Review

32

Office Building Business

35

Lifestyle Property Business

51

Residential Business

56

International Business

63

Other business

68

Investment / Financial Data etc.

701Summary of Financial Statements for
FY 2020 - 2Q

MITSUBISHI ESTATE CO., LTD.

2

Financial Highlights

1. Summary of Financial Statements<FY2020-2Q Financial Results>• Income and profit both decreased (y-y).
• Mainly due to changes in the timing of capital gains and delivery of domestic condominiums.
• Rental profits increased from new buildings (e.g. Marunouchi Nijubashi Building) and the Outlet Mall Business, etc.

<FY2020 Estimates>• All business lines are progressing steadily.

• There is no change to the FY2020 earnings estimates announced on May 14, 2019.

<Topics>
Current Quarter (July to September 2019)• New office building "Link Square Shinjuku," directly connected to the JR Shinjuku Station, was completed in August. The
building opened with full occupancy.
• Five new logistics facilities in the Greater Tokyo Area have been green-lit for development.
(After October 2019）• Plans for the “FUKAYA HANAZONO PREMIUM OUTLETS®”, our 10th Outlet Mall in Japan, have been finalized. It isscheduled open in Fall 2022.
MITSUBISHI ESTATE CO., LTD.

3

Financial Highlights

2. Income Statement Results for FY2020-2Q
Income and profit both decreased (y-y) due to changes in the timing of capital gains and delivery ofdomestic condominiums.
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

FY20202Q
535,226
250,427
64,615151,091
28,4508,757
47,097△ 15,213
92,276
71,414
18,163
4,741
9,181
1,271
△ 1,479△ 11,015
6,738
17,931FY20192Q
577,289274,266
51,626
182,005
27,778
11,09043,398△ 12,878
106,891
76,778
14,694
13,442
10,7602,336△ 63△ 11,057
5,835
18,719△ 42,062△ 23,839
12,988△ 30,913
671△ 2,333
3,697△ 2,335△ 14,614△ 5,363
3,469△ 8,700△ 1,578△ 1,064△ 1,419
42
903
△ 788

81,08394,007△ 12,923

48,0783,118
61,812△ 3,118△ 13,734

ChangeCapital Gains included in Operating Income
FY20202Q
Total
12,000
Office Building Business
3,000
Lifestyle Property Business
3,000
Residential Business
3,000International Business
3,000
Investment Management Business
Hotel & Airport Business
Other
Eliminations or corporate-

EBITDA
Interest-bearing debt

OfficeBuilding△ 5,363*Hotel・Airport Business, Architectural Design & Engineering, Real Estate Services, OtherMITSUBISHI ESTATE CO., LTD.

△ 9,000△ 6,000
2,000△ 2,000△ 2,000△ 1,000-

Lifestyle
Property Residential
3,469△ 8,700 International
Others△ 1,578 △ 2,441

Decrease in
Capital gains

106,891

Increase in capital gains andrental profit from Outlet Mall
Business.

92,276

Decrease in condominium profits andrental apartments capital gains.

Change△ 11,359
107,074

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

FY2020FY20192Q
2Q
139,820
151,179
2,589,350 2,482,276

to the nearest billion)

FY20192Q
21,000
9,000
1,000
5,000
5,000
1,000
-

Decrease in capital gains
FY2019-2Q

OfficeBuilding

Lifestyle
Property

Residential International

Others

FY2020-2Q

4

Financial Highlights

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

Increase in building rental profits and capital gains contributes to achieve historic high profit.
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

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

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

EBITDA
Interest-bearing debt

*Hotel・Airport Business, Architectural Design & Engineering, Real Estate Services, OtherMITSUBISHI ESTATE CO., LTD.

Change
3,000
3,000

0

OfficeBuilding
5,309

Lifestyle
Property
Others2,440
Residential△
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
230,403

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

Millions of yen (rounded off
to the nearest billion)

Decrease in capital gains
FY2019ResultOfficeBuilding

Lifestyle
Property

Residential International

Others

FY2020Estimates

5

FY 2020 Q2 Income Statement Analysis

The YoY profit decrease owes mainly to capital gains recognition timing and condominium completion
timing. These will both be realized 2H 2020 and remain in line with full year targets.
Operating Income（as of end of 2Q）①Progress on Capital Gains(Billions of Yen)

229.1

230.0

・A large amount of capital gains expects to be recognized in 2H 2020. The
relevant transactions are on schedule.
(Billions of Yen)

Major Factors for the
Change (vs FY2019)① Capital Gains△9 billion yen② Profit from Domestic
Condominium Business△6.4 billion yen

1st Half Results
48.0

51.0

15.2

12.6

92.2

7.4

12.0
1.0

78.4

165.9

166.4

39.0

51.0

（＋12.0）（＋3.0）MJ HOTEL Asakusa
Location : Tokyo
Use: Hotel
Sales Time: Mar. 2020 (Scheduled)(To be recognized in 4Q)

・A large amount of properties are on schedule to deliver in 2H 2020.
・By end of 2Q, 83% of the full-year sales estimates were progressed.
Condominiums Sold
as of 2Q (units)

79.2

FY2020-2Q

12.0（△9.0）②Progress on Domestic Condominium（Units）

4,000
FY2019-2Q

FY2020Location: London
Use: Office Building
Sales Time: Jul. 2019(To be recognized in 3Q)
Sales Amount: 260 Million ￡106.8

Full Year(vs FY2019)

8 Finsbury Circus③ Income Gains＋0.8 billion yen

21.0

2nd Half

FY2019 FY2020
Full-year Estimates

Capital Gains
Profit from Domestic Condominium Business*
Income Gains

Full-year Condominiums Sold (units)
End of 2Q
3,300 Units (E)Condominiums Distribution of Sales
by Agreement Date
(Millions of yen)

240,000

3,000

180,000

2,000

120,000

1,000
01,213 Units(36.8%)FY2020Full-year

End of 2Q

208,000 (E)172,495(82.9%)

60,0000

FY2020* Excluding capital gain, etc. from operating income of Mitsubishi Estate Residence. Co., Ltd
MITSUBISHI ESTATE CO., LTD.

6

Office Building/ Favorable leasing and rent increases at renewals

The leasing progresses steadily with strong demand. Existing buildings cash flow is improving.
Leasing of New Buildings

Secondary Vacancy• New Building leasing progresses steadily.
Buildings
completedin FY2020

100%

Buildings to
be completed
in FY2021& FY2022

About 70％
About 90％
0%

20%

40%

Beginning of FY

60%

80%

• Vacancies in the existing buildings are now mostly filled byexisting tenants’ expansion.
• Hibiya Kokusai Building is fully leased.
• Sunshine 60 is almost fully leased.
• Secondary vacancies are being filled at better-than-expected
prices.
• Increased average rents (all uses in Japan) from ¥26,900 to¥27,300 in March 2020(E).

100%

End of 2Q

Buildings completed
in FY2020

Link Square Shinjuku, CO･MO･RE YOTSUYA

Buildings to becompleted in FY2021& 2022Kita-Aoyama, Tamachi Building N, Marunouchi 1-3
Project, Tokiwabashi Building A

Vacancy Rates(All uses in Japan)

Sep. 2019

Mar. 2020(E)

1.98％

1.5%

Rent increases in Existing Buildings• New tenants and rent increases achieved a sales increase >20
billions in the past 5 years.
(Billions of Yen)

Main reason forrelocation

Recent Contract
Cases

MITSUBISHI ESTATE CO., LTD.

• Business expansion• Location upgrade to attract talent• Enhancing productivity under work-stylereform• Relocation for IT, Manufacturer, HR
company• Relocation to expand from owned startup incubator to dedicated space

20.0

16.0

15.0

11.3

10.0
5.0
0.0

25.7

24.1

21.9

25.0

2.4 2.4
FY20154.9

7.3

FY2016

4.0

4.7

5.9

FY2017FY2018FY20192.2

3.8

FY2020 FY2020(E)-2Q
Rent revenue increase from moving in/out tenants, rent revisions
Accumulated amount (from FY2015)7

Lifestyle Property Business / Outlet Mall Business

Strong sales continue from inbound and domestic demand. Strategy focuses on creating leisuredestinations.
• Record sales for 1H at 6 outlet malls: Gotemba, Rinku, Sano, Tosu, Kobe-Sanda and Shisui.

Change in Store Floor Area, Revenue
from Operations, and Operating Income（㎡）

Major Growth(Billions of Yen)

320,000

50.0

Revenue from Operations

315,000

45.0

310,000

40.0

305,000

35.0

300,000

Store Floor
Area• The share of Sales-Linked Rent is high at 50% Operating
Revenue and Income expanded faster than floor space.
Average of all facilities
Sales-linked & fixed ratio(Rent revenue basis)

Revenue from Operations

Operating income

160%

50%

Store Floor Area

150%
140%

30.0

130%

295,000

25.0

290,000

Change in Growth Rate

50%

20.0

Operating Income

120%
110%

FY2019 Results

100%

285,000

15.0

280,000

10.0

275,000

5.0

Name

Open

0.0

Tosu
（Phase 4）

November,
2019

Approx. 28,200㎡→Approx. 31,800㎡（+13%）

Gotemba（Phase 4）

Spring, 2020

Approx. 44,600㎡→Approx. 60,000㎡（+35%）

Rinku（Phase 5）

Summer, 2020

Approx. 39,400㎡→Approx. 49,600㎡（+26%）
Glamping facilities will be attached.

270,000

FY2014FY2015FY2016FY2017FY2018FY2019Store Floor 287,600
Area
Revenuefrom
38.8
Operations
Operating
13.0
Income294,700

308,500

308,500

308,500

314,600

39.9

43.9

43.6

45.4

46.6

14.2

16.3

17.3

18.9

19.6

Fixed Rent

Sales-Linked Rent

FY2014 FY2015 FY2016 FY2017 FY2018 FY2019• Outlet Malls have the following planned expansions.
Details※No newly built outlet malls during the period above.
MITSUBISHI ESTATE CO., LTD.

8

Residential Business ・ International Business /Topics

Domestic Condominium Business

International BusinessHigh rise condos are selling well. Condominium
contract balance is increasing.

• Expected full completion in Dec. 2019. 95% of available space
has been leased.
• Signed contracts with top-tier firms.
• Will start contributing profit in FY2020.

Condominiums Contract Balance
104,242A year ago:
53,519FY2020U.S. flagship building renovation progresses
steadily

172,495
208,000
Beginning of FY

40,728FY2021

Renovation

End of 2Q

89,468Full-year(E)050,000100,000

150,000

200,000

250,000（Millions of yen）

To be delivered
in FY 2020

To be delivered
in FY 2021

To be delivered
in FY 2023

The Parkhouse
Kobe Tower

Tsudanuma The
Tower

HARUMI FLAGThe 1st area

Total Units：352
Sold out
in Aug. 2019

Total Units：759
Sold out
in Mar. 2019

Total Units：2,690
First batch of sales (600 units)were supplied in Aug. 2019.

（To be reported in 4Q）
MITSUBISHI ESTATE CO., LTD.

1271 Avenue of the Americas

In the UK, one building has been soldwhile started a new building’s construction.

8 Finsbury Circus(Sold in July 2019)

8 Bishopsgate(Construction started in March 2019)9

Efforts to Enhance Capital Efficiency（ROA・ROE）①Accelerating property sales
Asset portfolio that can generate
capital gains has been created.
• Seller's market encourages accelerated
property sales.
• Expected capital gains of ¥40-50 Bn
annually.
• Improving ROA・ROE by taking asset
management services.

②Improving Sourcing
Focus on seeking out exclusive 1-1
projects and urbanization control
area projects.

navigating government approvals. This limits the poolof competitors and thus the risk of excessive pricecompetition.

60.0

40.0

0.0

39.0

FY201848.0

51.0

FY2019FY2020(E)LOGIPORT Osaka Taisho(partially acquired in October)

Hotel Management Business• 2 hotels will open this fiscal year.
• 2 additional hotels will open next fiscal
year.
• 3,000 rooms managed presently. Will
reach 4,500 rooms by 2024.
The Royal Park Canvas
Osaka Kitahama

The Royal Park Hotel
Iconic Osaka Midosuji

Number of Rooms：238
Open： June 2019

Number of Rooms：352
Open：March 2020

Navigating
Government
Approvals

Logicross Kasukabe Project Logicross Hasuda Project

MITSUBISHI ESTATE CO., LTD.

• MEL REIT Investments grew over ¥100
Bn.

*These projects require specialized expertise in(Billions of Yen)

20.0

Investment Management Business• Currently promoting urbanization control
area projects* at the two logistics
facilities in development.

Process ofurbanization control area projects

Capital Gains③Progress on
Non-asset Business

10

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 September
30, 2019
1,190,884
292,285
50,09180,316272,260
983
404,306
90,6404,795,788
4,161,135
96,618245,056

At 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

292,974
5,986,672

259,5815,774,193

Millions of yen (rounded down)

Change118,015
115,471△ 12,512△ 3,787
4,107△ 12
16,920△ 2,172
94,46473,0501,490△ 13,470
33,392
212,479

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 September, 2019)

International
Business
775,145

Residential
Business
680,336

Lease obligations
1,792

Lifestyle
Property
503,230

MITSUBISHI ESTATE CO., LTD.

Building
Business
3,578,969(as of September, 2019)242,959
95,786△ 13,834
45,245△ 6,173
119,000△ 23,450△ 25,000
147,172
71,667
66,263
9,242△ 30,479△ 15,786△ 24,761△8
10,076
212,479

2,589,350

2,589,350
Loans
1,611,424(as of September, 2019)
Short-term
9.6%

Floating
27.9%

Bonds
857,134
5,986,672

ChangeConsolidated interest-bearing debt Consolidated interest-bearing debt Consolidated interest-bearing debt
(as of September, 2019)
Fixed / Floating rate ratio
Long-term / Short-term ratio
Commercial Papers
119,000

Other
448,988

At September At March 31,
30, 2019
2019
4,060,047
3,817,088
784,729
688,942
44,132
57,967
131,401
86,156
224,892
231,065
119,000
51,55075,000213,752
238,753
3,275,318
3,128,145
805,584
733,916
1,255,130
1,188,866
1,214,599
1,205,357
1,926,625
1,957,105
1,142,037
1,157,824
588,057
612,819294
302
196,236
186,159
5,986,672
5,774,193

Fixed
72.1%

2,589,350

Long-term
90.4%

11

Financial Highlights

5. FY2020 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

41,590Change in Inventories

86,614132,337

45,723120,000△ 12,337

23,311△ 53,837△ 9,124

44,713△ 164,000△ 154,876△ 13,511△ 286,841 △ 271,083

15,758△ 351,000△ 79,917△ 165,814

Cash flows fromoperating activities

Change in Equity Investment

Cash flows frominvesting activities
Proceeds from sales ofinvestment securities③FY2020
Estimates

Change（③－②）

FY2020-2Q
Results

217,000 △ 128,954

69,113

5,277

13,871

8,594

10,000△ 3,871604△ 289,570△ 285,089

4,481△ 309,000△ 23,911△ 153,394

Cash flow fromfinancing activities

37,203 △ 192,473 △ 229,676

107,000

299,473

215,145

Cash and cash equivalents
at end of year

286,859

152,000△ 27,308

297,486△ 134,000 △ 208,871△ 96,701

Capital Investment

Free cash flow

MITSUBISHI ESTATE CO., LTD.

6,497

179,308 △ 107,551

74,871

68,37412

Financial Highlights

6. Change in ROA・ROE・EPS
7.8%

8.0%
7.3%

7.8%

100.20
100

96.97
7.0%

6.6%
90

86.78
6.0%

5.6%

80
74.00

5.2%
5.0%

70
60.13
4.0%

4.0%

(Yen)
110

3.8%

52.85
3.2%

3.9%

60

3.6%

3.3%

50

3.0%
40

2.0%

30
FY2015FY2016FY2017EPS(right axis)

MITSUBISHI ESTATE CO., LTD.

FY2018ROA

FY2019FY2020(E)ROE

13Strengthening Capital Policy /Corporate Governance

MITSUBISHI ESTATE CO., LTD.

14

Strengthening Capital Policy / Corporate Governance

1. 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.

15

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 :16

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)
Asset

Shareholders’ Equity and Liability

Capital recycling business which takes
advantage of Real Estate Market Conditions

Maintaining Financial Stability◆ In a seller’s market, the company accelerates to recover capitalthrough 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 Marunouchi redevelopment◆ 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 a buyer’s market.
◆ 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 Capital Efficiency, we increase numerator(net income) and decrease denominator (shareholders' equity)◆ Controlling Shareholders' equity using flexible return measures
based on market conditions

17

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

Estimates when Mid-Term
Management plan was developed

Interest-bearing debt

Around ¥1 trillion

Around ¥990 billion

Around¥100 billion
Around¥120 billion

Around¥90 billion

Increase inoperatingcash flows¥150 billion

Around¥390 billion◆ 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.

Around¥750 billion

Around¥250 billion
Final Estimates

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

Operating Cash Flow*

Net Investment

Dividend

Final Estimates

Share Buyback※ Cash flows from operating activities excluding Change in Inventories and Change in Equity Investment

MITSUBISHI ESTATE CO., LTD.

18

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 seller’s market.
◆ With cost of capital in mind, investing in carefully-selected projects which help to increase the corporate
value◆ 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.

19

Strengthening Capital Policy / Corporate Governance

6. Status of Share Buyback①Details of BOD resolution 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 BOD resolution (as of October 31, 2019)(Billions of Yen)

Period of
Repurchase
Number of
Repurchased
SharesFrom May 15, 2019 toMarch 31, 2020
25,559,800 shares

100.0

MITSUBISHI ESTATE CO., LTD.

52,248,164,850 yen

60
Maximum

100.0

75.0

45

50.0

30

25
25.0

RepurchaseAmount to-date（As of Oct.
31,2019)(Millions of shares)

65

52.2
（52.2%）

Oct. 31,2019

0

15
0

Buyback Amount

Number of Shares

20

Strengthening Capital Policy / Corporate Governance

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

BOD Decision not to renew a plan for countermeasures to large-scale acquisitions of the shares 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 only consist of independent external directors•

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 entities* and total approx. ¥31.5 billion shares
held as strategic-holding stocks (listed shares) in thepast 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.

10.0

1.4

0
FY2016FY2017FY2018FY2019FY2020(E)21

Financial Supplemental Data

MITSUBISHI ESTATE CO., LTD.

22

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.

23

Financial Supplemental Data

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

32%
96.97

100

30.9%

100.20
30.9%

86.78
80

31%

30%

74.00
30.0%
60.13

60

29%

52.85
46.34

28%

40

27.0%
26.6%

26.5%
20

12.00

16.00

14.00

26.00

30.00

31.00

20.00
26%

25.9%

0

FY2014FY2015FY2016EPS

MITSUBISHI ESTATE CO., LTD.

27%

FY2017

Dividends per ShareFY2018
Payout ratio (right axis)

FY2019FY2020(Estimates)

25%

24

Financial Supplemental Data

3. Income Generating Assets Unrealized Gain : Current Status ①
Unrealized gain rose approx. ¥480 billion (y-y), supported by declines in cap rates andcash flow improvement
Income Generating Assets Unrealized Gain
(Billions of Yen)
8,000

Book value

Unrealized gain

7,941.1
7,383.4

Adjusted BPS

5,395.6

2,800

5,498.9
2,963.5

5,000

3,422.8

2,643

3,898.4
2,384

2,569.0
2,096.4

3,241

3,300
2,950

6,079.0

4,000

BPS

(Yen)

6,791.9

7,000
6,000

BPS and Adjusted BPS*

2,178

2,300

2,180.7

2,015

1,800

3,000
2,000
3,299.2

3,318.1

3,509.9

3,828.4

3,960.5

4,042.7
1,300

1,000

1,148

1,078

1,088

FY2015FY2016

1,224

1,276

958

0
FY2014FY2015FY2016FY2017FY2018FY2019800
FY2014FY2017FY2018FY2019＊ BPS including unrealized gain (after tax)

MITSUBISHI ESTATE CO., LTD.

25

Financial Supplemental Data

4. Income Generating Assets Unrealized Gain :Current Status ②

Unrealized Gain Breakdown

Rental Profits(Billions of Yen)

180

International
10%

174.8
168.3

170
160.7
160

Domestic(Outside of Marunouchi)
15%

150

Marunouchi
New Building*46%

Marunouchi
Existing Building
29%

136.2

140

131.7

130
120

116.9

110
100
FY2014FY2015FY2016FY2017FY2018FY2019*Redeveloped properties after the completion of Marunouchi Building

MITSUBISHI ESTATE CO., LTD.

26

Prospects of Mid-Term Management Plan

MITSUBISHI ESTATE CO., LTD.

27

Prospects of Mid-Term Management Plan

1. Progress on Mid-Term Management Plan ①（as of May 14, 2019）

FY2020Target and final estimates of each indicator

TargetPrevious Estimates

Current Estimates(17.5.11)(18.5.14)(19.5.14)

Growth Potential

Operating Income¥220 billion¥230 billion¥230 billion

Performance

Operating Income /Total Assets(ROA)

Approx. 3.5%

3.8%

3.9%

Net Debt / EBITDA

8.5 times

Approx. 8 times

7.4 times(Approx. 8 times)(Approx. 7.5 times)(Approx. 6.9 times)

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

Target(17.5.11)

Previous
Estimates

Current
Estimates(18.5.14)(19.5.14)

Changes in Capital Gains, etc.
of Operating Income
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

Previous
Estimates

Current
Estimates(18.5.14)(19.5.14)

8

13

15

30

27

36

38

40

51

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

28

Prospects of Mid-Term Management Plan

2. Progress on Mid-Term Management Plan ②（as of May 14, 2019）

Change in Operating Income(Billions of Yen)
240

229.1

230.0

48.0

51.0

15.2

12.6

213.0

210

Capital Gains
・Accelerate property sales as encouraged in a seller’s market.
・Before tax IRR results of Domestic capital recycling business:
approx. 10％*

39.0
180
24.4
150

Initial Estimate

Final Estimates¥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

・Rental profits from rental properties increased
approx. 1.5x from 5 years ago (FY2014)(Billions of Yen)
180

30

160.7

168.3

174.8

160
0

FY2018

Income Gain
* Excluding

FY2019Profit from Domestic
condominium business*

FY2020(E)Capital Gain

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

MITSUBISHI ESTATE CO., LTD.

131.7

140
120

136.2

116.9

100
FY2014FY2015FY2016FY2017FY2018FY201929

Prospects of Mid-Term Management Plan

3. Investment-Return in Mid-Term Management Plan（as of May 14, 2019）

Initial Mid-Term Plan estimate(FY2018-FY2020)
Investment(Billions of Yen)

ReturnNet Investment

Office Building Business

500

200

300

Lifestyle Property Business

200

50

150

Residential Business

850

750

100

(700)

(600)

(100)

International Business

400

150

250

<Group-wide>business model
Innovation Investments

100(Domestic condominium)

Total

2,050

1,150

900

(Domestic condominium)

(700)

(600)

<100>

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

Investment

ReturnNet Investment

Total

2,010

1,230

780

(Domestic condominium)

(570)

(580)

(△10)

MITSUBISHI ESTATE CO., LTD.

30

Prospects of Mid-Term Management Plan

4. Progress on investments in Mid-Term Management Plan（as of May 14, 2019）

Carefully selected investing 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

370

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

200

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)
31

Detailed Business Units' Review

MITSUBISHI ESTATE CO., LTD.

32

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.

33

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
billionResidential
Business
32%
Lifestyle Property
Business
8%

Investment
Management
Business
4%

Hotel & Airport
Business
Other
1%
Business
2%

International
Business
11%

Office Building
Business
Operating Income
58%

Residential
Business
12%

Around¥229.1

Hotel & Airport
Business
Other
1%
Business
4%

Investment
Management
Business
1%

International
Business
12%

Total Assets
Residential
Business
12%

Around¥5,774.1

billionLifestyle Property
Business
13%

Office Building
Business
62%

billionLifestyle Property
Business
9%

FY2019 Results

MITSUBISHI ESTATE CO., LTD.

34

Office Building Business

MITSUBISHI ESTATE CO., LTD.

35

Office Building Business

1. Marunouchi Area Map

MITSUBISHI ESTATE CO., LTD.

36

Office Building Business

2. Pipeline

Marunouchi Area

GRAND CUBE

Marunouchi Nijubashi
Building

Marunouchi 1-3
Project

Tokyo Tokiwabashi Project

Total Floor Area: 193,600㎡ Total Floor Area: 151,700㎡ Total Floor Area: 174,100㎡ Total Floor Area: 181,000㎡
Completion: Apr. 2016
Completion: Jan. 2017
Completion: Oct. 2018
Completion: Sep. 2020

(Outside of Marunouchi)

FY2017Tokyo

Otemachi Park
Building

FY2018FY2019FY2020

FY2021

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

FY2022

msb Tamachi(musubu Tamachi)

Link Square Shinjuku

CO･MO･RE YOTSUYA

Kita Aoyama 2-chome
Project

Total Floor Area: 138,300㎡*
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

FY2028*Tower S
MITSUBISHI ESTATE CO., LTD.

37

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

4,660

4,500
4,000

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

4,175

4,896

5,580 5,670
5,174

5,038

5,385

5,570

5,745

5,876

4,347

3,500
2,727 2,784
2,687 2,758 2,755 2,583
2,565 2,565
2,531

3,000
2,500
2,000

1,677

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

2,195 2,258
1,705 1,705

1,500

1,022 1,022

1,000
500

256

256

355

03/3

04/3

05/3

489

489

06/3

07/3

2,915

743

743

08/3

09/3

1,174

1,836

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

0

Total (Domestic)

10/3

11/3

Marunouchi

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

20/3(E)

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

MITSUBISHI ESTATE CO., LTD.

38

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)27,000

Average rent(All uses in Japan)

25,00024,00023,00022,00019,00024,864

22,817
6.06%

22,213

26,193

27,177 27,300

24,423

23,974 23,850 23,861

8%
23,587

7%

22,602
21,902 21,711 21,733

6%

5.29%

5.64%

4.82%

5%

4.36%

18,000

3.59%

3.40%

2.77%

2.42%

1.68%2.06%

16,00015,0003.98%
3.58% 3.58%

2.26%

2.77%

4%

4.32%
3.66%

2.86%

17,00014,00010%

9%25,23423,56021,00020,00025,842

Vacancy rate(All uses in Japan)

26,00026,664 26,702

2.93%

2.22%
2.42%

1.87%
2.42%

1.82%

1.74%

13,000

2.80%

0.55%

0.19%

3%

2.51%

1.56%

1.5%
1.80%

1.65%

1.37%

1.09%

2.19%

2%

1.98%

1%

1.27%

12,000

0%
03/3

04/3

MITSUBISHI ESTATE CO., LTD.

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 18/12 19/3

19/9

20/3
(E)

39

Office Building Business

5. Earnings Related Data: Office Building Business Revenue Breakdown(Unconsolidated)(Billions of Yen)FY2019-2Q(Results)

FY2019(Results)

FY2020-2Q(Results)

FY2020(Estimates)

Revenue from Office Building Business(Unconsolidated)

230.1

440.6

205.9

501.0

Changes from Previous Period+ 46.0+ 19.6△ 24.1+ 60.3

Rent revenue from new buildings+ 7.5+ 17.9+ 7.0+ 10.5

Rent revenue from existing buildings

+ 3.7

+ 6.2

+ 2.4

+ 3.7

Termination of master lease,closure of building for redevelopment

+ 0.0

+ 0.3

+ 0.2

△ 0.1

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

+ 3.7

+ 5.9

+ 2.2

+ 3.8

+ 0.8

+ 3.3

△ 0.6

△ 1.8

+ 33.9△ 7.6△ 33.1+ 48.2

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

MITSUBISHI ESTATE CO., LTD.

40

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

+14.7
+23.9

10

0

+4.3

-2.5

-4.9
-10.7

+12.5

+7.3

+8.7
-3.9

-5

+15.3

+13.0

5

-1.1
-5.9

+1.9

+27.2

+6.0

-1.5

+7.3
-1.5

-10.5

-4.0

-4.6
-5.6

-10

+9.8

+10.5 +0.2
+7.0

-3.4

-6.0

-8.3

-0.7

+2.4

+4.9

+4.0

+4.7

+5.9

+3.8

+2.2

-0.1

-7.5

-9.0

-10.5

-8.1

-5.0

-15

Total

-5.2

+18.5 +13.2

+6.6

-2.5

-5.4

-20

+9.5

+22.6 +0.7 +17.9

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) 20/32Q

-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.

+9.4

41

Office Building Business

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

100%

NOI
(Regional Breakdown / Growth Rate)

40%
12.7%

13.8%

13.7%

13.7%

100%

35%
15.2%

30%
25.8%

61.5%

24.9%

61.4%

25.0%

61.3%

25.8%

8.9%

75.9%

25%

1.7%

7.1%

7.6%
2.4%

15.3%

18.0%

17.2%

73.2%

71.6%

72.2%

5.3%
9.3%

-10%
FY2019

6.3%

-0.7%

0%

0%

25%

10%

4.6%

0%
-5%

0%

-10%
FY2016FY2017

Marunouchi

Tokyo excluding Marunouchi

Nationwide excluding Tokyo

Growth rate(Total) [right axis]

Nationwide excluding Tokyo

MITSUBISHI ESTATE CO., LTD.

30%

5%

-1.1%

Marunouchi

Growth rate(Marunouchi) [right axis]

35%

15%
8.5%

10%

-5%

FY2018

10.6%

13.4%

5%

-0.5%

FY2017

10.4%

20%

6.1%
2.3%

FY2016

11.6%

20%
60.5%
15%

7.3%

40%

FY2018FY2019

Tokyo excluding Marunouchi

Growth rate(Total) [right axis]

Growth rate(Marunouchi) [right axis]

42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

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

0.99

0.91
0.72

0.5

1.21

1.09

0.87

0.86 0.85

0.77
0.65

1.32

0.99

0.97

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

0.69
0.58

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.

43

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

8%

22,574
8.18%

5.51%

19,17517,758 17,593

18,0006.70%

21,295

21,13420,064
6.05%

19,6995.30%

18,26418,09521,855

6%

18,73017,973

17,495
16,716 16,504

17,195
16,325

3.60%

4%

4.34%

16,0003.41%

14,0002.72% 2.89%

2.80%

12,0002%

1.78% 1.64%

10,000

0%
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

19/9

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

44

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%

6.70%

7%
6.06%
6.05%

6%

5.51%

5.30%

5%
4%

4.32%
4.36%

3.66%
4.34%
3.41%

3%

2.72%

2.42%

2.77%

3.60%
2.42%

2.80%
2.19%

2.89%

2%

2.69%

2.51%

2.26% 2.42%
1.82%

1.74%

1%

0.19%

0.55%

1.65% 1.78% 1.72% 1.64%

1.37%

1.09%

0%
03/3

04/3

05/3

06/3

07/3

08/3

09/3

10/3

11/3

5 Central Wards of Tokyo(Market)

12/3

13/3

14/3

15/3

16/3

17/3

18/3

19/3

19/6

19/9

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

MITSUBISHI ESTATE CO., LTD.

45

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.

46

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

MARUNOUCHI

12
3
MARUNOUCHINIHONBASHI

1

1

TORANOMONSHINAGAWA

0SHIBUYANIHONBASHI

11SHIBUYA

3

SHINAGAWA

MITSUBISHI ESTATE CO., LTD.

21

TORANOMON

047

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%

48

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

790
Tokyo Bldg.
“TOKIA”

100

740
110

820
113

OTEMACHIFINANCIAL CITY
GRAND CUBE

850
116

Marunouchi
Nijyubashi Bldg.
“Nijyubashi
Square”

Marunouchi Bldg.

80

480
Before opening of
Marunouchi
Building

430(Store)

1,000
870

116

890

119

900
800
700

103
OAZO

60

Marunouchi
Park Bldg.

Marunouchi
Eiraku Bldg.
“iiyo!!”

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

590

600

87
500

73
400

59
280

300

40
40

200

20
100
0

0
beforeSep. 2002

MITSUBISHI ESTATE CO., LTD.

Sep. 2002

Sep. 2004

Nov. 2005

Apr. 2007

Sep. 2009

Mar. 2012

May 2016

Feb. 2017

Nov. 201849

Office Building Business

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

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

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

Relaxation of plot 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.

Hotels50

Lifestyle Property Business

MITSUBISHI ESTATE CO., LTD.

51

Lifestyle Property Business1. PREMIUM OUTLET®

Sendai-Izumi

KYOTO JOYO
Kobe-Sanda

Tosu

Rinku
GOTEMBA PREMIUM OUTLETS®

RINKU PREMIUM OUTLETS®
Site Area

Total Floor Area Store Floor Area Number of Stores

HANAZONO Sano
Ami

Toki

Gotemba Shisui

Name

Location

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㎡*

49,600㎡*

260*

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

FUKAYA HANAZONO PREMIUM OUTLETS® Project

Fukaya, Saitama

176,800㎡-

25,000㎡

100~120

Open: Fall FY2022

KYOTO JOYO PREMIUM OUTLETS® Project

Joyo, Kyoto

270,000㎡---

Open: after FY2023*Planned figure after expansion

MITSUBISHI ESTATE CO., LTD.

52

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.

14,0009,000
4,000

Sales-Linked
Rent

Fixed Rent

50%

FY2020(E)FY2018(Millions of yen)

Operating Income
19,00050%

120,000

Total Assets

110,000
100,000

90,00080,00070,00053

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

FY2022LOGIPORT
Osaka Taisho

Logicross
Nagoya Kasadera

LOGIPORT Kawasaki Bay

Saito Moegi
Logistics Facility Project

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

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

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

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

Logicross Narashino

Osaka Nishi-Yodogawa
Logistics Center

Logicross Yokohama
KohokuTotal 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㎡ Total Floor Area: 62,200㎡
Completion: Jun. 2019
Completion: Jul. 2019
Completion: Nov. 2020

MITSUBISHI ESTATE CO., LTD.

Logicross AtsugiⅡ

Logicross Ebina
Project

54

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 Narashino

Logicross Nagoya Kasadera
Site Area

Total Floor Area

Logicross Yokohama Kohoku
Construction Start Date

Completion Date-

171,300㎡-

Jun. 2017

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㎡

FY2020

FY2021

Saito Moegi Logistics Facility Project A District

Ibaraki, Osaka

51,000㎡

125,300㎡

FY2020

FY2022

Logicross Ebina Project

Ebina, Kanagawa

30,100㎡

62,200㎡

Oct. 2019Nov. 2020

Logicross Hasuda Project

Hasuda, Saitama

49,600㎡

79,100㎡

Jan. 2020

Mar. 2021

Logicross Kasukabe Project

Kasukabe, Saitama

19,000㎡

38,000㎡

Mar. 2020

Apr. 2021

Logicross Funabashi Project

Funabashi, Chiba

11,700㎡

23,600㎡

Nov. 2020

Nov. 2021

Logicross Zama Project

Zama, Kanagawa

83,400㎡

183,900㎡

Jan. 2022

Jun. 2023

MITSUBISHI ESTATE CO., LTD.

55

Residential Business

MITSUBISHI ESTATE CO., LTD.

56

Residential Business1. Condominium Business Data

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

FY2019-2Q(Results)

FY2019(Results)

FY2020-2Q
FY2020(Results) (Estimates)

102,564

238,924

72,572208,000

1,539

4,007

1,213

3,300

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

5,300
9,700

Gross margin

Inventory(units)New Supply of
Condominiums(units)MITSUBISHI ESTATE CO., LTD.

19.7%

17.0%

17.0%

17.2%

371

542

515

-

3,700

Total: 18,700 units
1,631

3,966

1,814

3,400

FY2020 - FY2022
FY2023 - FY2025
FY2026 -57

Residential Business

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

254,140

260,000
240,000
220,000

238,924
215,762200,000

95.8%

180,000

89.3%

160,000

79.4%

96.5%

223,266
94.8%
88.7%
77.9%

89.3%

93.0%

80.7%

84.7%

66.1%

140,000
120,000

60.6%

63.0%

208,000 (E)

73.1%

82.9%

59.2%

68.9%

100,000

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

58

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

120,000

60
58.71

100,000

50

80,00040

60,00030

40,00037,132 37,000 20

20,00010

001998 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

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

MITSUBISHI ESTATE CO., LTD.

59

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

60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

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

580
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.

61

Residential Business6. Overseas Residence
Name

Location

Site Area

Total Units

Completion Date

Weifeng・Dong Yue

ChangchunApprox. 130,000㎡

574

Dec. 2015

Zhuojin・Wandai(Parc Botanica)
Weifeng・Dongyu

ChengduApprox. 75,000㎡

3,4522019 (Scheduled)

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)aspire 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)

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)

China

Vanke・Nantong

Life Ladprao Hype

Thailand

Malaysia

VietnamSora gardensⅡ
Australia
Melbourne Quarter

Melbourne

Approx. 4,400㎡

719

2020 (Scheduled)

Mastery

SydneyApprox. 16,900㎡

3742021 (Scheduled)

Mastery
MITSUBISHI ESTATE CO., LTD.

62

International Business

MITSUBISHI ESTATE CO., LTD.

63

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

At June 30, 2019 *1,2,3

Currency Exchange Rate

Rockefeller Group, Inc.

USA

430,761 millions of yen￥ / $(BS)107.79Mitsubishi Estate London Limited.

UK

163,411 millions of yen￥ / ￡(BS)136.57

Mitsubishi Estate Asia Pte. Ltd. *4

Asia

187,863 millions of yen￥ / S$ (BS)79.68

*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

64International Business2. North America
Name

Location

Main Use

1271 Avenue of the Americas

New York, NewYork

Office・Retail1221 Avenue of the Americas

New York, NewYork

Office・Retail

Flushing Commons(Phase 1)

New York, NewYork

Rockefeller Group Logistics
Center(5 Bldg.)

Piscataway, New
JerseyLogistics

Boro Tower

Tysons, Virginia

Liv North Valley

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

8,950

195,000

10,000244,000

11,000-

Office for sale
Residence

48/3
51/5

Completion Date

Completion in 1959
Renovation
completion in 2019NORTH AMERICA
Rockefeller Group International, Inc.
Mitsubishi Estate New York Inc.

1972

13/1

Retail148

New York

2017

17/1
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

Phoenix

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
2019

1,692,000

Boston1221 Avenue of the Americas

1271 Avenue of the Americas

65International Business

3. Europe
Name

Location

Main Use

Site 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

3,460

53,000

51/3

2022

3,300

18,300

8/2

2003

Office・Retail

7,900

38,800

11/2

2010

Office・Retail

2,200

15,9009/2

2016

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

12,00022,000

5/2

2003

Clive House

London, UK

Office145 Leadenhall Street

London, UK

Office・Retail

1 Victoria Street

London, UK

Office(Tentative Name) 8 Bishopsgate

London, UK

Office・Retail

Warwick Court

London, UK

Office・Retail

Central Saint Giles

London, UK

8 Finsbury Circus

London, UK

245 Hammersmith Road

1,800

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 10-1266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
Hangzhou, China
Science & Technology Park

Office52,500--2020

Taiwan Nangang Development
Project(4 Bldg.)

Taipei City, Taiwan

Office・Hotel ・Retail

67,000-Grand Open in
Dec. 2015

One City Centre

Bangkok, Thailand

Office・Retail

9,700

-

61

2022

Savya Financial CenterNorth Tower

Manila, Philippines

Office・Retail6,000*2

-

14

2021

Yoma Central(4 Bldg.)

Yangon, Myanmar

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

Riverbank Place

Ho Chi Minh, Vietnam Office200,000*1

ASIA･OCEANIA

Dec. 2017

SuzhouChengduHangzhouMitsubishi Estate Taiwan Ltd.
Taipei

YangonBangkok

9,900

25

Dec. 2014

6,100

93,400*3

51

2021

75,000412021

CapitaSpring

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

Singapore

ManilaMitsubishi Estate Vietnam Company Ltd.

Ho Chi Minh City

3,200

Office・Serviced
Apartment・Retail

Mitsubishi Estate(Shanghai) Ltd.
Shanghai

Mitsubishi Estate Asia Pte. Ltd.

Jakarta

PT. Mitsubishi Estate Indonesia*1 Total Floor Area
*2 Total Site Area
*3 Total 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

67

Other business

MITSUBISHI ESTATE CO., LTD.

68

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.

69

Investment / Financial Data etc.

MITSUBISHI ESTATE CO., LTD.

70

Investment / Financial Data etc.

1. Capital Investment
Major Breakdown of Capital Investment

Capital Investment / EBITDA(Billions of Yen)

(Billions of Yen)

350.0

350.0

309.0

300.0

275.3

250.0

2.8

275.3
27.6

51.6

289.5
2.4

11.8

285.0
7.1
13.0

2.7

25.1

93.4

150.0

40.1

6.5

17.2
15.2

12.1

100.0

104.9

50.0

33.0

22.1
36.0

38.4
6.5

36.9

15.9

126.1

9.0

4.0

279.7

300.0

275.3
252.0

275.3

320.6

324.0
309.0

285.0

250.0

74.7

58.6

26.4

21.0

79.0

30.9

200.0

6.5

8.0

302.4
289.5

16.8
21.3

96.3

200.0

42.0

150.0

17.0
25.0

100.0

68.4

80.0

FY2019FY2020(E)

0.0

50.0
0.0

FY2016FY2017FY2018

Office Building(MEC: New/Redevelopment)

Office Building(MEC: Refurbishment)

Office Building(Subsidiaries)

Lifestyle Property

Residential

International

Hotel & Airport

Special Purpose Vehicle

FY2016FY2017FY2018

Capital Investment

FY2019FY2020(E)

EBITDA

Other(including consolidated eliminations)

MITSUBISHI ESTATE CO., LTD.

71

Investment / Financial Data etc.

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

Interest bearing debt
123.2

Office Building
Business
316.4

Equity investment byother companies
89.2

S.P.V. Total Scale*1*2
412.0

Consolidated S.P.V.
130.3

Interest bearing debt
123.0
Office Building
Business
210.0
Equity investment byother companies
89.2

Equity investment by
Mitsubishi Estate
199.5
Lifestyle Property
Business
95.5

Lifestyle Property
Business
71.5

Unconsolidated
S.P.V. Scale
281.6

Equity investment by
Mitsubishi Estate
69.4*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.

72

Investment / Financial Data etc.

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

(Times)2,500.0

10.0
9.0

2,000.0

7.7

7.5

7.4

7.3

6.7
7.1

7.0

7.0
6.9

6.7

1,500.0

8.0

6.0

6.1

1,000.0

1,878.6
1,753.6

2,153.6
1,978.6

2,194.8
2,019.8

2,140.2
1,965.2

2,400.0
2,225.0

5.0
4.0

3.0
500.0

2.0
1.0

0.0

0.0
FY2016FY2017Net Interest-bearing debt
Debt/EBITDA Ratio (right axis)

MITSUBISHI ESTATE CO., LTD.

FY2018FY2019FY2020(E)Net Interest-bearing debt
*after hybrid debt deductions
Debt/EBITDA Ratio (right axis)*after hybrid debt deductions
73

Investment / Financial Data etc.

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

3,000.0

95.0%

95.0%

96.1%

93.7%

96.4%

95.1%

93.4%

100%

95.4%

93.6%

90%
4.7

2,500.0
6.8

10.2

2,000.0

35.0

53.1%

7.2

1,000.0

1,292.9
1,065.4

28.0

5.6

64.1%
69.7%

4.5

100.0

73.2%

100.0
76.2%

60.1%
1,261.9

1,381.2

1,428.5

1,523.0

1,406.0

1,208.8

70%

50%
40%

1,072.3

30%
250.0

250.0

250.0

250.0

500.0
566.3

747.2

636.2

701.5

685.2

653.0

612.7

603.8

558.9

0.0

Total

80%

60%

54.0%

8.3

1,500.0

7.2

9.5

61.8%

61.7%

100.0

20%
10%
0%

FY2011FY2012FY2013

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

Straight BondMITSUBISHI ESTATE CO., LTD.

Subordinated bondBank Loan

Fixed ratio

Long-term ratio

74

Investment / Financial Data etc.

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

10

2.5%

9
8
1.90%
7
6

6.20

1.58%

1.88%

5.45

5.55

5.58

5.45

1.54%

1.55%

1.01%

1.05%

1.07%
0.96%

0.72%

0.70%

1

1.38%

1.52%

0.96%

0.87%

2

6.36

6.69

2.0%

5.71
1.41%

1.27%

4

1.05%

6.18

1.40%

1.29%

3

6.79
1.72%

5.91
1.42%

5

1.88%

0.95%

1.32%

0.97%
0.75%

0.62%

0.61%

FY2015FY2016

0.66%

1.5%
1.24%

0.92%

1.0%

0.71%

0

0.5%

FY2009FY2010FY2011FY2012Average Duration of Interest-bearing debt

MITSUBISHI ESTATE CO., LTD.

FY2013

FY2014

Bonds/Average interest

FY2017

Bank Loans/Average interest

FY2018FY2019Total/Average interest

75

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

RS
PS
Incentive Incentive
12.5％
12.5％

25％

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.

76

Investment / Financial Data etc.

7. ESG Incoformation, etc. （Website Links）
ESG Data

Japanese: https://www.mec.co.jp/j/csr/esg/index.html
English:https://www.mec.co.jp/e/csr/esg/index.html

GRI Standards Content Index
Japanese: https://www.mec.co.jp/j/csr/gri/index.html
English:https://www.mec.co.jp/e/csr/gri/index.html

Integrated ReportJapanese: https://www.mec.co.jp/j/investor/irlibrary/annual/index.html
English:MITSUBISHI ESTATE CO., LTD.

https://www.mec.co.jp/e/investor/irlibrary/annual/index.html
77

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