February 4 2016
Earnings Highlights for 2016/3-3Q
Mitsubishi Estate Co., Ltd.
●Earnings for 2016/3-3Q
Millions of yen (rounded down)
2016/3
3Q Results

2015/3
3Q Results

Building Business

316,368

377,899(61,530)(16.3)%

422,000

Lifestyle Property Business

65,64085,494(19,853)(23.2)%

87,000Residential Business

220,012

174,787

45,22525.9%

356,000

International Business

55,571

46,590

8,980

19.3%

76,000

Revenue from Operations

ChangeChange(%)

2016/3 Estimates（Current）

711,965

728,041(16,076)(2.2)%

1,017,000

Building Business

84,986

77,0997,886

10.2%

105,000

Lifestyle Property Business

19,69021,878(2,187)(10.0)%

25,000Residential Business

7,750

196

7,553

3853.6%

14,00014,93918,352(3,412)(18.6)%

18,000Operating IncomeInternational Business

121,239

108,752

12,48711.5%

155,000

Income Before Taxes and Special Items

109,191

93,10416,08717.3%

130,000

Profit Attributable to Owners of Parent

78,43496,603(18,169)(18.8)%

75,000EBITDA

186,499

172,170

14,3298.3%

239,000

Summary【Overview】
There is a decrease in income and an increase profits compared with FY2015-3Q. Main factors for thedecrease of income is due to selling off properties in the Building Business and Lifestyle Property
Business in the previous year. Main factors for the increase of profits include the increase of rental profits
and an increase of profits from the sale of property in the Building Business and an increase ofcondominium units sold in the Residential Business. Factors affecting the individual segments comparedwith FY2015-3Q are detailed below.
【Building Business】
There is a decrease in income and an increase in profits compared with the same period of the previousyear. One major factor for the decrease in income is the selling off of property in the same period of theprevious year. Despite a reduction in rental profits as a result of buildings being closed for redevelopment,
there was an overall increase in profits due to an increase in rental profits and profits from property sales
on existing property.
(Vacancy rates)
With leasing is underway for properties within and outside of Marunouchi, the Japan (all purpose)vacancy rates for the end of December 2015 increased by 0.54% when compared with the end ofSeptember 2015, putting figures in line with estimates. The vacancy rates for Marunouchi (offices) forthe end of December 2015 had improved by 0.47% since the end of September 2015.
Japan (all purpose)

3.36%(2015/9: 3.90%, 2016/3 Estimate: 2.5%)

Marunouchi (offices)1.79%(2015/9: 2.26%)

(Average rents)
The average rents for Japan (all purpose) at the end of December 2015 increased by ¥779/tsubo.monthcompared with the end of September 2015. This is a result of higher rents from redeveloped buildings
coming into effect, as well as the upward revision of existing rents in Marunouchi, the ending oftemporary usage of buildings to be closed for redevelopment、an increase of turnover rent from retailproperty tenants, and the effect of changes in the portfolio. Taking these factors into account, the estimate
for 2016/3 was raised from ¥24,500/tsubo.month by ¥500/tsubo.month.
Japan (all purpose)¥25,094/tsubo.month(2015/9: ¥24,315/tsubo.month, 2016/3 Estimate： ¥25,000/tsubo.month)【Lifestyle Property Business】
The decrease in income and profits is due to selling off property in 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), 92.7% of contracts had been finalized by the end ofDecember 2015, which is in line with estimates.
【International Business】
A increase in income from property sales, and the effect of a favorable exchange rate resulted in an
increase in income. A decrease in profits from property sales resulted in an overall decrease in profits.
●Earnings Estimates for FY2016
2016/3 Estimates（Current）

Change(%)

ChangeBuilding Business

422,000

418,000

4,000

1.0%

Lifestyle Property Business

87,00085,000

2,000

2.4%

Residential Business

356,000

356,000--

International Business

76,00070,000

6,000

8.6%

Revenue from Operations.

2016/3 Estimates（Previous）

1,017,000

1,003,000

14,000

1.4%

Building Business

105,000

104,000

1,000

1.0%

Lifestyle Property Business

25,00024,000

1,000

4.2%

Residential Business

14,00014,000--International Business

18,00016,000

2,000

12.5%

Operating Income

155,000

150,000

5,000

3.3%

Income Before Taxes and Special Items

130,000

125,000

5,000

4.0%

Profit Attributable to Owners of Parent

75,00075,000EBITDA

239,000

233,500

5,500

2.4%

【Overview】There was an upward revision of the earnings estimates for FY2016, income by ¥14 billion and profits by¥5 billion. The main factors include an increase in rental income and profits from companies affiliatedwith the Building Business, and an increase of income and profits from property sales in both theLifestyle Property Business and International Business. Furthermore, the following adjustments weremade based on performance results and the current state of progress; Non-operating revenue（ ¥7billion→¥8 billion), Non-operating expense (¥32 billion→¥33 billion), Income before taxes and specialitems (¥125 billion→¥130 billion), Extraordinary income(¥17 billion→¥18 billion), Corporation tax,etc. (¥44 billion→¥50 billion）but there is no change to Profit Attributable to Owners of Parent.
【Building Business】
There was an increase of income from affiliated companies resulting in an upward revision of income by¥2 billion and profit by ¥1 billion.
【Lifestyle Property Business】
There was an upward revision of income by ¥2 billion and profits by ¥1 billion, due to an increase inproperty sales.
【International Business】
There was an upward revision of income by ¥6 billion and profits by ¥2 billion, due to an increase inproperty sales and effects of the exchange rate.
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)