August 4, 2017
Earnings Highlights for FY2018-1Q(The Fiscal Year Ending on March 31, 2018)
Mitsubishi Estate Co., Ltd.
Earnings for FY2018-1Q (Consolidated)
Millions of yen (rounded down)

Change(%)

FY2018-1Q
Results

FY2017-1Q
Results

Office Building Business

110,344

111,632(1,287)(1.2)%

497,000

Lifestyle Property Business

22,57019,826

2,744

13.8%

105,000
423,000

ChangeFY2018 Estimates（Announced on May 10, 2017)

Residential Business

72,13570,844

1,291

1.8%

International Business

10,827

20,540(9,712)(47.3)%

95,000

Revenue from Operations

234,217242,147(7,929)(3.3)%

1,200,000

Office Building Business

32,01632,632(616)(1.9)%

140,000

Lifestyle Property Business

6,414

5,327

1,087

20.4%

26,000Residential Business(1,022)

1,269(2,291)(180.5)%20,000International Business

2,346

11,475(9,128)(79.5)%

23,000Operating Income

35,84347,340(11,496)(24.3)%

195,000

Income Before Taxes and Special Items

31,64545,219(13,573)(30.0)%

171,000

Profit Attributable to Owners of Parent

17,93327,400(9,466)(34.5)%

108,000

EBITDA

58,70869,453(10,745)(15.5)%

282,500

Summary【Overview】
There is a decrease in income and profits compared with FY2017-1Q. Despite an increase in rental income
and profits in the Office Buiding Business, there is a decrease in profit from capital gains* in theOffice Building Business, Residential Business and International Business. Factors affecting the individual
segments compared with FY2017-1Q are detailed below.
* Capital Gains: Disposition of assets and other one-time-only profit with the exclusion of residential
condominium sales.
【Office Building Business】
Despite absence of capital gains recorded in the same period of the previous year, an increase in rental
income and profits of new buildings and existing buildings resulted in stable income and profits comparedwith FY2017-1Q.
(Vacancy rates)
The temporary effect of leasing cancellation in a new building in Marunouchi led to the vacancy rates forJapan (all purpose) and Marunouchi (offices) increasing compared with the end of March 2017. This had
already been taken into consideration at the beginning of the period, and with leasing underway, figures
are in line with estimates.
(Average rents)
Despite upward rent revisions in Marunouchi, the effect of limited-time-only leasing of a building being
closed for redevelopment resulted in the stable average rent compared with the end of March 2017.
(yen/tsubo.month)
2017/3Results

2017/6
Results

2018/3 Estimates(Announced on May 10, 2017)

Japan (all purpose)

2.93%

3.55%

3.0%

Marunouchi (offices)

2.42%

4.19%

Average rents (Japan, all purpose)¥25,842¥25,722

Vacancy rates¥26,000

【 Lifestyle Property Business】
Factors for the increase in income and profits are the effect of a new subsidiary consolidated in FY2017-2Q
and the favorable performance of the outlet mall business.
【Residential Business】
The effects of an increase in the condominium sales led to a increse in income, but a decrease in capitalgains led to an overall decrease in profits.
【International Business】
The decrease in income and profits is due to capital gains in the same period of the previous year.
Earnings Estimates for FY2018 (Consolidated)
There is no change in the earnings estimates announced on May 10, 2017.

Disclaimer
This data contains predictions and aims which relate to our future economic performance and projections ofrevenue and other financial items. These predictions are inherently subject to risks and uncertainties, due tounforeseeable events or external factors. Future events and actual results, financial and otherwise, maydiffer materially.
The Summary of Financial Statements and Fact Book can be found on the website.
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