February 9, 2024
Financial Highlights for FY2023 – 3Q
(The Fiscal Year Ending March 31, 2024)
Mitsubishi Estate Co., Ltd.
● Highlights<Full-Year Forecasts>
・ Contracts and deliveries of domestic and overseas capital gains have been making a strong progress
towards the full-year forecasts.
・ Office leasing is progressing well, particularly in Marunouchi.
Vacancy rates remain low and average rents continue to be high level.

Large-scale leasing of 1,000 tsubos is progressing.

The vacancy rate forecast for Marunouchi at the end of FY2023 has improved
from around 3% to mid-2%.

・ Commercial Property Business operating profit was revised upward by ¥10 billion due to the strong
performance of office leasing, hotels, retails,and flexible offices.
・ Overall operating profit was revised upward by ¥ 3 billion and profit attributable to owners ofparent remained unchanged after taking into account the downward adjustment of incentive fees(non-cash) in the Investment Management Business and the increase in interest expenses etc.
<3Q Financial Results>
Record operating revenue of ¥926.4 billion, operating profit of ¥146.8 billion, ordinary profit of ¥123.2
billion and profit attributable to owners of parent of ¥77.5 billion.
The decline in operating profit was mainly due to the absence of large overseas capital gains in theprevious year.

<Earnings Forecasts for FY2023 (Consolidated)>
Previous forecasts announced on November 9, 2023.
FY2023
Revised Forecasts

Millions of yen (rounded down)
FY2023
ChangePrevious Forecasts

205,000
36,00054,000(2,000)267,000

195,000
36,00054,0005,000
2 6 4, 0 0 0

Non-operating income

11,00011,000Non-operating expenses

46,00043,000Ord in ary Pr o fit

232,000

2 3 2, 0 0 0+ 10,00000(7,000)+ 3 , 00 00+ 3,0000

Pro fit At t rib u t ab le to Own ers o f
Par en t

166,000

1 6 6, 0 0 00

Commercial Property BusinessResidential Business
International Business
Investment Management BusinessOp er at in g Pro fit

<FY2023-3Q Financial Results (Consolidated)>

Commercial Property BusinessMillions of yen (rounded down)
FY2022-3Q
ChangeResults
516,037
55,050

FY2023-3Q
Results
571,087

Residential Business

211,220

200,374

10,846

International Business

88,179121,694(33,515)

Investment Management Business

21,602

41,127(19,524)

Op er at in g Reven u e

926,448906,324

20,124

Commercial Property Business

134,215

121,913

12,301

Residential Business

7,049

10,137(3,087)

International Business

26,781

69,178(42,396)

Investment Management Business(3,593)

19,382(22,975)

146,821200,012(53,191)

Non-operating income

13,278

11,771

1,506

Non-operating expenses

36,81528,7798,036

123,284

183,004(59,720)

16,295

8,860

7,434

23,430(23,430)

Op er at in g Pro fit

Ord in ary Pro fit
Extraordinary incomeExtraordinary losses-To t al in co me t axes

54,66245,4589,204

Pro fit A t t rib u t ab le t o N o n Co n t ro llin g In terest s

7,369

20,167(12,798)

Pro fit A t t rib u t ab le t o Own ers o f
Paren t77,547

102,809(25,262)【 Commercial Property Business】
YoY increase in revenues and profits due to higher rental profits from office buildings and strong
performance of hotels and commercial properties.
Contracts and deliveries of capital gains have been making a strong progress towards the full-year forecasts.
＜ Office Buildings＞
YoY increase in profits resulted from a strong performance of office leasing despite a decrease in rental
profits from closed buildings for redevelopment.

Vacancy rates

2023/03
Results

2023/09
Results

2023/12
Resu lts

2024/03
Forecasts

Japan (all uses)

3.73%

4.07%

4 .0 6 %3.5%

Marunouchi (offices)

2.43%

2.47%

2 .8 8 %mid-2%＜ Retail Properties (e.g. outlet malls) and Hotels＞
YoY increase in revenue and profits due to an improved business environment.
【 Residential Business】
YoY increase in revenue and YoY decrease in profits. Making a steady progress with 97% of thecondominium sales planned to be recorded for the full-year already contracted.

【 International Business】
YoY decline in revenue and profits due to the absence of large capital gains recorded in the previousyear. Contracts and deliveries of capital gains have been making a strong progress towards the full-year
forecasts.
【 Investment Management Business】
YoY decrease in revenue and profits mainly due to the adjustment of incentive fees (non-cash).
【 Architectural Design & Engineering Business and Real Estate Services Business】
YoY increase in revenue and profits mainly due to a favorable performance in the enterprise brokeragebusiness.
Disclaimer
The forecasts contained in this report, the Summary of Consolidated Financial Statements, and other financial
materials 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 other financial materials can be found on the homepage.
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