October 30 2015
Earnings Highlights for 2016/3-2Q
Mitsubishi Estate Co., Ltd.
●Earnings for 2016/3-2Q
Millions of yen (rounded down)
2016/3
2Q Results

2015/32Q Results

Building Business

212,871203,293

9,577

4.7%

418,000

Lifestyle Property Business

40,54161,002(20,460)(33.5)%

85,000Residential Business

156,351

118,223

38,12832.3%

356,000

International Business

41,737

29,416

12,321

41.9%

70,000

Revenue from Operations

484,996

438,52146,475

10.6%

1,003,000

60,77350,845

9,927

19.5%

104,000

Lifestyle Property Business

9,946

13,203(3,256)(24.7)%

24,000Residential Business

6,375(545)

6,921

-

14,000

Building BusinessInternational BusinessChangeChange(%)

2016/3 Estimates（Current）

11,544

10,452

1,091

10.4%

16,000Operating Income

83,746

66,732

17,01425.5%

150,000

Income Before Taxes and Special Items

75,01056,77918,231

32.1%

125,000

Profit Attributable to Owners of Parent
EBITDA56,27253,436

2,835

5.3%

75,000126,955

108,409

18,54617.1%

233,500

Summary【Overview】
There is an increase in income and profits compared with FY2015-2Q. Main factors include the increaseof rental income and profits in the Building Business and an increase of condominium units sold. Factors
affecting the individual segments compared with FY2015-2Q 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 and an increase in profits fromproperty sales resulted in an overall increase in income and profits.
(Vacancy rates)
As a result of a temporary increase in vacancy due to a change in tenants, the Japan (all purpose) vacancy
rates for the end of September 2015 increased by 0.37% when compared with the end of June 2015.
However, this was for non-Marunouchi buildings and had already been taken into consideration at thebeginning of the period, and with leasing underway, figures are in line with estimates. The vacancy rates
for Marunouchi (offices) for the end of September 2015 had improved by 0.09% since the end of June
2015.
Japan (all purpose)

3.90%(2015/6: 3.53%, 2016/3 Estimate: 2.5%)

Marunouchi (offices)2.26%(2015/6: 2.35%)(Average rents)
The average rents for Japan (all purpose) at the end of September 2015 fell by ¥145/tsubo.monthcompared with the end of June 2015. This is a result of tenants leaving as buildings are closed forredevelopment in Marunouchi. This had already been taken into consideration at the beginning of theperiod, and with leasing underway, figures are in line with estimates.

Japan (all purpose)¥24,315/tsubo.month(2015/6: ¥24,460/tsubo.month, 2016/3 Estimate： ¥24,500/tsubo.month)【Lifestyle Property Business】
The decrease in income and profits is due to selling off property in the same period of the previous year.
【Residential Business】
A factor for the increase in income and profits is the increase of condominium units sold. Of expectations
for the sales of condominiums (¥223 billion), 86.4% of contracts had been finalized by the end of
September 2015, which is in line with estimates.
【International Business】
Despite following temporary profits which featured in the same period of the previous year, an increase inrental income and profits and the effects of the exchange rate resulted in an increase in income andprofits.
●Earnings Estimates for FY2016
Millions of yen (rounded down)
2016/3 Estimates（Current）
Building BusinessChange(%)

Change415,000

3,0000.7%

Lifestyle Property Business

85,00081,0004,0004.9%

Residential Business

356,000

356,000--International Business

70,00069,000

1,000

1.4%

1,003,000

995,000

8,000

0.8%

Building Business

104,000

100,000

4,0004.0%

Lifestyle Property Business

24,00018,000

6,000

33.3%

Residential Business

14,00014,000--

Revenue from Operations.

418,000

2016/3 Estimates（Previous）

16,00013,0003,00023.1%

Operating Income

International Business

150,000

135,000

15,000

11.1%

Income Before Taxes and Special Items

125,000

113,000

12,000

10.6%

Profit Attributable to Owners of Parent

75,00070,0005,0007.1%

EBITDA

233,500

220,500

13,0005.9%【Overview】
There was an upward revision of the earnings estimates for FY2016, income by ¥8 billion and profits by¥15 billion. The main factors include an increase in rental income and profits in the Building Business,
and an increase of property sales in both the Lifestyle Property Business and International Business.
Furthermore, in addition to revisions for Non-operating expenses （ ¥29 billion→¥32 billion ）、Extraordinary income（¥15 billion→¥17 billion）and a reevaluation of Corporation tax, etc., Income
Before Taxes and Special Items was increased by ¥12 billion and Profit Attributable to Owners of Parentby ¥5 billion.
【Building Business】
There was an upward revision of income by ¥3 billion and profits by ¥4 billion. The main factors for thisare an increase of rental income and profits from the existing portfolio, pushing back the time tenants
must leave closing buildings, and good performance of subsidiaries such as Marunouchi Heat supply Co.,Ltd.
【Lifestyle Property Business】
There was an upward revision of income by ¥4 billion and profits by ¥6 billion, due to an increase inproperty sales and a reevaluation of the performance of Mitsubishi Estate・Simon Co., Ltd. following good
performance in the outlet business.

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)