May 10, 2017
Earnings Highlights for FY2017(The Fiscal Year Ended on March 31, 2017)
Mitsubishi Estate Co., Ltd.
●Earnings for FY2017 (Consolidated)
Millions of yen (rounded down)
2017/3Results
Building Business

484,238

2016/3Results
422,349

Change(%)

Change61,8882017/3 Estimates（Announced on Feb 6, 2017)

14.7%

481,000

Lifestyle Property Business

88,95586,569

2,386

2.8%

89,000Residential Business

407,850

345,226

62,62418.1%

414,000

66,55675,956(9,399)(12.4)%

65,000

Revenue from Operations
Building Business

International Business

1,125,405
133,570

1,009,408
108,940

115,997
24,629

11.5%
22.6%

1,125,000
128,000

Lifestyle Property Business

25,807

25,842(35)(0.1)%

25,000Residential Business

19,25318,035

1,218

6.8%

22,000International Business

26,313

19,421

6,892

35.5%

24,000Operating Income

192,495

166,199

26,29615.8%

185,000

Income Before Taxes and Special Items

169,851

144,851

25,00017.3%

162,000

Profit Attributable to Owners of Parent

102,681

83,426

19,25423.1%

95,000EBITDA

279,718

252,034

27,684

11.0%

273,500

Summary【 Overview】
There is a considerable increase in income and profits compared with FY2016. Main factors for thisinclude an increase in rental income and profits in the Building Business, profit from property sales in theBuilding Business, Residential Business and International Bus iness, as well as a temporary increase inprofits. Factors affecting the individual segments compared with FY2016 are detailed below.
【 Building Business】
There is a decrease in rental income and profilts from buildings closed for redevelopment. However, anincrease in rental income and profits from both recently completed and existing buildings, and an increasein property sales resulted in an overall increase in income and profits(Vacancy rates)
A change in tenants was already taken into consideration, but with leasing performing aboveexpectations, the Japan (all purpose) vacancy rates at the end of March 2017 was above estimate.
(Average rents)
Due to factors such as tenant movement due to the completion of new buildings and the effect ofincreases in rent in the existing portfolio , rent at the end of March 2017 is above estimate.
(yen/tsubo.month)

Vacancy rates

Japan (all purpose)

2016/3Results

2016/12Results

2017/3Results

2017/3(Announced on Feb 6, 2017)

2.22%

3.08%

2.93%

3.5%

Marunouchi (offices)

1.37%

1.64%

2.42%

Average rents (Japan, all purpose)¥25,234¥25,862¥25,842¥25,500

【 Lifestyle Property Business】
A newly consolidated subsidiary was one factor for the increase in income. However, fewer property sales
compared with the previous period led to a stabilization of profits.
【 Residential Business】
Factors for the increase in income and profits are the improvement of gross margin on condominiums aswell as an increase in their sales, as well as an increase in property sales.
【 International Business】
The effects of the exchange rate led to a decrease in income, but an increase in profits on property sales
and temporary profits led to an overall increase in profits.
●Earnings Estimates for FY2018 (Consolidated)2018/3
Estimates

2017/3Results

Millions of yen (rounded down)
ChangeChange(%)

Building Business

497,000

484,238

12,762

2.6%

Lifestyle Property Business

105,000

88,955

16,04518.0%

Residential Business

423,000

407,850

15,150

3.7%

International Business

95,00066,55628,444

42.7%

Revenue from Operations
Building Business

1,200,000
140,000

1,125,405
133,570

74,595
6,430

6.6%
4.8%

Lifestyle Property Business

26,00025,807193

0.7%

Residential Business

20,00019,253747

3.9%International Business

23,00026,313(3,313)(12.6)%

Operating Income

195,000

192,495

2,505

1.3%

Income Before Taxes and Special Items

171,000

169,851

1,149

0.7%

Profit Attributable to Owners of Parent

108,000

102,681

5,319

5.2%

EBITDA

282,500

279,718

2,782

1.0%

【 Overview】
An increase is expected in income and profits for FY2018, due to an increase in rental income and profits
in the Building Business, an increase in the sale of condominiums in the Residential Business, and anincrease in the sale of property in the International Business. Factors affecting the individual segments
compared with FY2017 are detailed below.
【 Building Business】
The effects of Otemachi Financial City Grand Cube and Otemachi Park Building completed in theprevious period, an increase of rental income and profits on existing buildings, an increase of temporary
profits, and profits from property sales are estimated to result in an increase in income and profits.
(Vacancy rate)
The vacancy rate for the end of March 2018 (Japan, all purpose) when compared with the end of March2017 is expected to be a stable 3%.
(Average rent)
Average rent (Japan, all purpose) is expected to reach ¥26,000/tsubo.month due to the effect ofbuildings completed in the previous period and the result of upward rent revisions on existingbuildings.

【 Lifestyle Property Business】
An increase in income and profits is estimated due to an increase of properties sold and the consolidationof subsidiaries.
【 Residential Business】
A decrease in income is expected due to property sold off in the previous period, but an increase incondominium sales is expected to result in an increase in income and profits.
【 International Business】
An increase in income from property sales is expected to result in an increase in income. A decrease intemporary profits is expected to contribute to a decrease in profits.
●Dividends
In FY2017, interim dividends were ¥9 yen per share. However, upon balancing the accounts , profit
attributable to owners of parent had considerably increased compared with FY2016 with the year-end
dividend scheduled to be increased by ¥2, up to ¥11 per share (annual dividend payout is ¥20 per share).
After taking into deep consideration the above dividend objectives as well as future prospects, both theinterim dividend and year-end dividend will be set at ¥10 and annual dividend payout will be ¥20 per
share for FY2018.
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 othe rwise,
may differ materially.

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