August 4 2016

Earnings Highlights for 2017/3-1Q
Mitsubishi Estate Co., Ltd.

●Earnings for 2017/3-1Q
Millions of yen (rounded down)

2017/3-1Q
Results

2016/3-1Q
Results

Change(%)

Change2017/3 Estimates(Announced on Aug 4, 2016)

Building Business

111,632

105,776

5,856

5.5%

Lifestyle Property Business

19,826

20,207

ᇞ 381

ᇞ 1.9%

443,000
85,000Residential Business

70,844

69,269

1,575

2.3%

426,000

International Business

20,54013,594

6,945

51.1%

65,000Re ve nue fro m Ope ratio ns

242,147

223,847

18,3008.2%

1,102,000

Building Business

32,63230,166

2,466

8.2%

112,000

Lifestyle Property Business

5,327

4,882

445

9.1%

24,000Residential Business

1,269

1,024

244

23.8%

28,000International Business

11,475

3,788

7,686

202.9%

22,000Ope rating Inco me

47,34037,264

10,07527.0%

175,000

Inco me Be fo re Taxe s and Spe cial Ite ms

45,21933,877

11,34133.5%

150,000

Profit Attributable to Owners o f Pare nt

27,40023,296

4,104

17.6%

86,000EBITDA

69,45358,825

10,62818.1%

262,500

Summary【Overview】
There is an increase in income and profits compared with 2017/3-1Q. Main factors for this are
the increase of rental income and profits, and increased income and profits on property sales
in the Building Business, as well as a temporary increase of income and profits from property
sales, etc., in the International Business. Factors affecting the individual segments comparedwith 2017/3-1Q are detailed below.
【Building Business】
Despite a reduction in rental income and profits as a result of buildings being closed forredevelopment, there was an increase in income and profits from rent and property sales etc.,
resulting in an overall increase in income and profits.
(Vacancy rates)
While the turnover of tenants was normal, the tight market resulted in a stable vacancy rate
for the end of June 2016 when compared with the end of March 2016. With favorable market
conditions continuing in Marunouchi, leasing is progressing well.
Japan (all purpose)
Marunouchi (offices)

2016/6: 2.34%
2016/6: 1.29%(2016/3: 2.22%, 2017/3 Estimate: 3.5%)(2016/3: 1.37%)

(Average rents)
Due to upward rent revisions, notably in Marunouchi, the average rents for Japan (allpurpose) at the end of June 2016 increased by ¥87/tsubo.month compared with the end ofMarch 2016. While giving due care to the macroeconomic climate, no major changes to theoffice demand trends are currently anticipated.
Japan (all purpose)¥25,321/tsubo.month(2016/3: ¥25,234/tsubo.month,2017/3 Estimate： ¥25,500/tsubo.month)【Lifestyle Property Business】
The positive effects of the opening and initial opening-related costs of a retail facility
expansion (SHISUI PREMIUM OUTLETS ® ) in the previous period resulted in a decrease inincome and increase in profits.
【Residential Business】
Factors for the increase in income and profits are the improvement of the gross margin and anincrease of income and profits from property sales, despite a decrease in condominium units
sold. Of expectations for the sales of condominiums (¥234 billion), 74.4% of contracts had
been finalized by the end of June 2016, which is in line with estimates.
【International Business】
Despite the effects of the exchange rate, there was an increase in income and profits fromproperty sales, etc., leading to an overall increase in income and profits.

●Earnings Estimates for 2017/3
There was a revision to extraordinary income and corporation tax etc., but revenue fromoperations, operating income, income before taxes and special items, profit attributable toowners of parent remain as announced on May 11 2016.

Disclaimer
This data contains predictions and aims which relate to our future economic performance andprojections of revenue and other financial items. These predictions are inherently subject torisks and uncertainties, due to unforeseeable events or external factors. Future events andactual 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)