November 7, 2016
Earnings Highlights for 2017/3-2Q
Mitsubishi Estate Co., Ltd.
●Earnings for 2017/3-2Q
Millions of yen (rounded down)
2017/3-2Q
Results

2016/3-2Q
Results

Change(%)

Change2017/3 Estimates(Announced on Nov 7, 2016)

Building Business

223,067

212,871

10,1954.8%

483,000

Lifestyle Property Business

40,73540,541194

0.5%

89,000Residential Business

175,932

156,351

19,58012.5%

417,000

International Business

34,046

41,737(7,691)(18.4)%

65,000

Revenue from Operations

511,753484,996

26,7565.5%

1,129,000

Building Business

64,10460,773

3,331

5.5%

126,000

Lifestyle Property Business

11,115

9,946

1,169

11.8%

24,000Residential Business

9,492

6,375

3,117

48.9%

22,00014,011

11,544

2,466

21.4%

24,000Operating Income

International Business

92,14883,746

8,401

10.0%

180,000

Income Before Taxes and Special Items

84,27575,010

9,264

12.4%

157,000

Profit Attributable to Owners of Parent

57,51456,272

1,242

2.2%

90,000EBITDA

136,163

126,955

9,207

7.3%

268,500

Summary【Overview】
There is an increase in income and profits compared with 2016/3-2Q. Main factors include the increase ofrental income and profits in the Building Business and an increase of property sold in the Residential
Business. Factors affecting the individual segments compared with 2016/3-2Q are detailed below.
【Building Business】
Despite a reduction in rental income and profits as a result of buildings being closed for redevelopment,
an increase of rental income and profits from the existing portfolio resulted in an overall increase inincome and profits.
(Vacancy rates)
As a result of a temporary increase in vacancy due to a change in tenants, the Japan (all purpose) vacancyand Marunouchi (offices) rates for the end of September 2016 increased by 0.59% and 0.68% respectively
when compared with the end of June 2016. However, this had already been taken into consideration at thebeginning of the period and figures are in line with estimates.
Japan (all purpose)

2.93%(2016/6: 2.34%, 2017/3 Estimate: 3.5%)

Marunouchi (offices)1.97%(2016/6: 1.29%)(Average rents)
As a result of tenant movement due to the completion of new buildings particularily in Marunouchi, as
well as an increase in rents in the existing portfolio, the average rents for Japan (all purpose) at the end of
September 2016 rose by ¥108/tsubo.month compared with the end of June 2016. This had already beentaken into consideration at the beginning of the period, and with leasing underway, figures are in line withestimates.
Japan (all purpose)¥25,429/tsubo.month(2016/6: ¥25,321/tsubo.month, 2017/3 Estimate： ¥25,500/tsubo.month)【Lifestyle Property Business】
The effect of a newly consolidated subsidiary resulted in an increase in income and profits.
【Residential Business】
A factor for the increase in income and profits is the increase of property sold. Of expectations for thesales of condominiums (¥230 billion), 86.1% of contracts had been finalized by the end of September
2016, which is at the same level as previous year.
【International Business】
There was a decrease in income and increase in profits as a result of a temporary increase in profits onproperty sales and the effects of the exchange rate.
●Earnings Estimates for 2017/3
Millions of yen (rounded down)
2017/3 Estimates（Current）
Building Business

443,000

Change(%)

Change40,000

9.0%

Lifestyle Property Business

89,00085,000

4,000

4.7%

Residential Business

417,000

426,000(9,000)(2.1)%

International Business
Revenue from Operations
Building Business.

483,000

2017/3 Estimates（Previous）

65,00065,00000.0%

1,129,000

1,102,000

27,0002.5%

126,000

112,000

14,00012.5%

Lifestyle Property Business

24,00024,00000.0%

Residential Business

22,00028,000(6,000)(21.4)%

24,00022,000

2,000

9.1%

Operating Income

International Business

180,000

175,000

5,000

2.9%

Income Before Taxe s and Special Items

157,000

150,000

7,000

4.7%

Profit Attributable to Owners of Parent

90,00086,000

4,000

4.7%

EBITDA

268,500

262,500

6,000

2.3%

【Overview】
There was an upward revision of the earnings estimates for 2017/3, income by ¥27 billion and profits by¥5 billion due to an increase in rental income and profits in the Building Business, and property sale plansin the Building Business, Residential Business and the International Business. Furthermore, additional
revisions were made for Non-operating expenses (¥7 billion→¥10 billion), Extraordinary income or loss
(Extraordinary Income: ¥6 billion→¥19 billion, Extraordinary Loss ¥9 billion→¥15 billion), Income
Before Taxes and Special Items were increased by ¥7 billion and Profit Attributable to Owners of Parentby ¥4 billion.
【Building Business】
There was an upward revision of income by ¥40 billion and profits by ¥14 billion as a result of anincrease of properties to be sold and rental increases due to the acquisition of companies.

【Residential Business】
There was a downward revision of income by ¥9 billion and profits by ¥6 billion, due to an adjustment ofplans for property sales.
Disclaimer
This data contains predictions and aims which relate to our future economic performance and projectionsof revenue and other financial items. These predictions are inherently subject to risks and uncertainties,
due to unforeseeable events or external factors. Future events and actual results, financial and otherwise,
may differ materially.

The Summary of Financial Statements and Fact Book can be found on the homepage.
◇Summary of Financial Statements(http://www.mec.co.jp/e/investor/irlibrary/tanshin/index.html)◇Fact Book
(http://www.mec.co.jp/e/investor/irlibrary/fact/index.html)