August 10, 2023
Financial Highlights for FY2023 – 1Q
(The Fiscal Year Ending March 31, 2024)
Mitsubishi Estate Co., Ltd.
● Highlights
・Record operating revenue of ¥292.4 billion, operating profit of ¥48.4 billion, ordinary profit of ¥43.6
billion, and profit attributable to owners of parent of ¥19.2 billion.
・A decrease in operating profit owing to a decline in significant overseas capital gains recorded in FY
2022.
・Maintain low vacancy rates (Marunouchi Offices: 2.68% as of the end of June, 2023) and stable rental
profits. Steady progress toward achieving the initial forecasts in both income gains and capital gains
partly due to increased income gains from an improved business conditions for hotels and retailproperties.
●Earnings for FY 2023-1Q (Consolidated)
FY2023-1Q
Results
Commercial Property BusinessResidential Business
International Business
Investment Management Business
Operating Revenue
Commercial Property BusinessResidential Business
International Business
Investment Management Business
Operating Profit
Ordinary Profit
Total income taxes

FY2022-1Q
Results

ChangeMillions of yen (rounded down)
Percentage
FY2023 Forecasts
Change(May 2023. Disclosed)

190,857
51,68932,154
6,793
292,465
45,919(1,813)8,860
1,214
48,40043,63022,953

163,826
63,46160,751
9,345
305,367
38,384
2,576
47,9002,675
83,51881,845
18,82027,030(11,772)(28,596)(2,552)(12,902)7,534(4,390)(39,040)(1,461)(35,117)(38,215)
4,133

16.5%
(18.5%)(47.1%)(27.3%)(4.2%)
19.6%(170.4%)(81.5%)(54.6%)(42.0%)(46.7%)
22.0%

836,000
381,000
158,000
43,0001,469,000
188,000
36,00054,00012,000264,000
232,000
79,000

Profit Attributable to NonControlling Interests

4,118

4,190

(72)

(1.7%)

13,000

Profit Attributable to Owners ofParent

19,26961,553(42,284)(68.7%)

166,000

EBITDA

76,795

110,679(33,884)(30.6%)

374,500＜Summary＞【Overview】
There is a decrease in operating revenue and operating profit YoY. A decline in significant overseas capitalgains recorded in FY2022 is a major factor. On the other hand, continuing low vacancy rates contributes tostable rental profits. There is an increase in profits YoY in hotels and retail properties due to an improvementin business conditions. Despite a low progress rate overall, with the expected records of capital gains etc.
after 2Q, the performance makes a steady progress toward achieving the initial forecasts.
Factors affecting individual segments compared with FY2022 are detailed below.

【Commercial Property Business】
There is an increase in revenue and profits YoY with increases both in capital gains and income gains.
Capital gains increased by +¥3.0 billion YoY. The continuing stable rental profits from existing buildings
contributed to income gains. There is a large increase in profits followed by the improvement of businessconditions in hotels and outlet malls.
＜Office Buildings＞
Despite a decrease in rental profits from closed buildings for redevelopment, the continuing low vacancy
rates in existing buildings contributed to an increase in revenue YoY.
（Vacancy Rates）The vacancy rates for Japan (all uses) and Marunouchi (offices) remained almost thesame level YoY.
（Average Rents）Average rents remained almost the same level.

Vacancy rates

Japan (all uses)
Marunouchi (offices)2022/12Results

2023/03
Results

2023/06
Results

2024/03
Forecasts

4.37%
3.62%

3.73%
2.43%

3.91%
2.68%

3.50%
―

＜Retail Properties (e.g. outlet malls)＞
There is an increase in revenue and profits YoY followed by the improvement of business conditions. The
performance is in steady progress toward achieving our full-year forecasts.
＜Hotels＞
There is an increase in revenue and profits YoY followed by the improvement of business conditions. The
performance is in favorable progress toward achieving our full-year forecasts.
【Residential Business】
There is a decrease in revenue and profits YoY. Approximately 90% of the sales scheduled for full-year
have already been contracted, and the performance is in steady progress toward achieving our full-year
forecasts.
【International Business】
There is a decrease in revenue and profits due to a decline of capital gains associated with the sale ofCentral St. Giles, an office building in London, recorded in FY2022.
【Investment Management Business】
There is a decrease in revenue and profits YoY mainly due to a decline of incentive fees in FY2022.
【Architectural Design & Engineering Business and Real Estate Services Business】
There is an increase in revenue and profits YoY mainly due to a favorable performance in the enterprise
brokerage business.
● Earnings Estimates for FY2023 (Consolidated)
There is no change in the earnings estimates announced on May 11, 2023.

Definition of Term（Changes from previous versions）“FY2023” refers to the Group’s fiscal year ended March 31, 2024, and other fiscal years are referred to ina corresponding manner.
Disclaimer
The forecasts contained in this report, the Summary of Consolidated Financial Statements, and FACT BOOK
are based on information available to the Company at the time of disclosure. Therefore, actual performance
may differ from such forecasts due to various factors.
The summary of Financial Statements and Fact Book can be found on the homepage.
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