May 8 2014
Earnings Highlights for FY 2014
Mitsubishi Estate Co., Ltd.
●Earnings for FY2014
Million yen（figures under a million are rounded down）
FY2014
Building BusinessResidential Business
Commercial Property
Development & Investment
International Business
Revenue from Operations
Building BusinessResidential Business
Commercial Property
Development & Investment
International Business
Operating Income
Income Before Taxes &Special Items
Net Income
EBITDAFY2013

ChangeChange(%)

FY2014 Estimates（Announced 14/2/5）

484,229403,259442,748
315,351

41,48187,908

9.4
27.9％
％

487,000
398,000

48,02950,278(2,249)(4.5)％

44,00080,366
1,075,285
108,172
27,77860,892
927,157
107,667
2,317

19,473
148,127505
25,460

32.0
16.0
0.5
1098.8％％％％82,0001,070,000
110,000
27,0008,130

11,180(3,049)(27.3)％

7,000

25,579161,271

8,371
118,349

17,20742,921

205.6
36.3

％
％

25,000160,000

139,638

92,38147,25651.2％

122,000

64,297
246,332

45,507200,587

18,78945,745

41.3
22.8

％
％

58,000242,000

Summary【Overview】
There is an increase in income and profits compared with FY2013. Main factors for the increased income
include the selling off buildings in the Building Business and International Business, as well as theincrease of condominiums sold in the Residential Business. Main factors for the increase in profits
include the appropriation of profits on property sales in the Building Business and International Businessas well as an improvement of gross margin on condominiums in the Residential Business.
Factors affecting the individual segments compared with FY2013 are detailed below.
【Building Business】
Major factors for the increase of income and profits include the sale of property and the increase of rental
income and profits from operating new properties.
(Vacancy rates)
The Japan (all purpose) vacancy rates for FY2014 saw a positive incline in demand due to the rise in
office expansion needs, which saw rates lower than those estimated.
Japan (all purpose)

5.29％（14/2/5 Estimate : 6.0％, 2013/3 : 3.98％）

Marunouchi (offices)

4.32％（2013/3 : 3.66％）(Average rents)
Results slightly below estimates are due to focusing on obtaining optimum rents and cases ofcontracts coming into effect later than expected producing a lag in the results.
Japan (all purpose)¥23,861/tsubo.month（14/2/5 Estimate : ¥24,000/tsubo.month）

【Residential Business】
Factors for the increase in income and profits include the increase in condominium sales and effect of thegross margin improvement. The ¥26bn target set in the mid-term plans was achieved. The condominium
sales market remains positive even after the rise in consumption tax.
【Commercial Property Development & Investment】
A major factor for the decrease in income and profits is a result of property sold in the previous period.
However, there is a strong investment demand for income–producing real estate and the trading market ispromising.
【International Business】
Factors for the increase in income and profits include the sale of property and the effect of thedepreciation of the yen.
●Earnings Estimates for FY2015
Million yen（figures under a million are rounded down）
FY2015
Estimates(New Segment*)
Building BusinessResidential Business
International Business
Revenue from Operations(New Segment*)
Building BusinessResidential Business
International Business
Operating Income
Income Before Taxes & Special
Items
Net Income
EBITDAFY2014
Results

ChangeChange(%)

553,000
393,000
61,0001,079,000

525,829403,259
80,366
1,075,285

27,171(10,259)(19,366)
3,715

5.2
(2.5)
(24.1)
0.3

％
％
％
％

116,000
17,00010,000134,000

116,277
27,77825,579161,271(277)(10,778)(15,579)(27,271)(0.2)(38.8)(60.9)(16.9)％％％％

95,000139,638(44,638)(32.0)％

60,000214,000

64,297
246,332(4,297)(32,332)(6.7)(13.1)％％*Segment Changes: As of FY2015, the Commercial Property Development & Investment Business has been
integrated into the Building Business.
Summary【Overview】
Compared with FY2014, an increase in income and decrease in profits is expected for FY2015.
Factors affecting the individual segments compared with FY2014 are detailed below.
【Building Business】
Expectations of an increase in income are due to income from the sale of property, and the increase ofrental income from operating new properties. However, the focus on cost recovery for property sales inconjunction with a reduction of profits due to redevelopment (inc. the closing of buildings) sees littlechange in profits on the previous period.
(Vacancy rates)
Expected vacancy rates for FY2015 (Japan, all purpose) are 3.5%. This includes properties from theformer Commercial Property Development & Investment Business (excluding logistics). The leasing ofexisting and new buildings in Marunouchi is progressing well.
(Average rents)
Average rents (Japan, all purpose) are expected to level off at ¥23,500/tsubo.month. One factor forthe decrease on the previous period is due to the inclusion of properties (excluding logistics) from theformer Commercial Property Development & Investment Business.
【Residential Business】
The decrease in income and profits is expected due to factors such as a fall in the number ofcondominiums to be sold and an increase in costs. Of the expected ¥255bn yearly sales for FY2015, 54%of contracts have already been completed.
【International Business】
A major factor contributing to the decrease in income and profits is property sales.

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 Consolidated Financial Statements and Fact Book can be found on the homepage.
◇Summary of Consolidated 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)