Mitsui Fudosan : Results for the Six Months Ended September 30, 2018(329KB)

FACT BOOK

For the Six Months Ended September 30, 2018

November 9, 2018

1-1, Nihonbashi Muromachi 2-chome, Chuo-Ku, Tokyo, 103-0022, Japanhttps://www.mitsuifudosan.co.jp/english/

Corporate Data

(As of September 30, 2018)

Head Office:

1-1, Nihonbashi Muromachi 2-chome, Chuo-ku, Tokyo, 103-0022, Japan

Date of Establishment:

July 15, 1941

Share Capital: ¥339,766 million

Contents

Corporate Data, Contents 1

Consolidated Business Overview 2

Segment Results

Consolidated Balance Sheets

3 - 6

8 - 9

Consolidated Statements of Income 10

Number of Issued and Outstanding Shares: 991,424,727

Stock Exchange Listings:

Tokyo (Code: 8801)

Forward-Looking Statements

Consolidated Statements of Cash Flows 11

Consolidated Statements of Earning ForecastsContingent Liabilities

12 - 13

14

In this Fact Book, statements other than historical facts are forward-looking statements that reflect the Company's plans and expectations. These forward-looking statements involve risks and uncertainties related to internal and external factors that may cause actual results and achievements to differ from those anticipated in these statements. Therefore, we do not advise potential investors to base investment decisions solely on this Fact Book.

CONSOLIDATED BUSINESS OVERVIEW

Results of Operations

(¥ millions)

Revenue from Operations

Leasing

Property Sales

Management

Mitsui Home

Other Operating Income

Leasing

Property Sales

Management

Mitsui Home

Other

Elimination or Corporate

Non-Operating Income/Expenses

Equity in Net Income/Loss of Affiliated Companies

Interest Income/Expense, in Net

Other, in Net

Ordinary Income Extraordinary Gains/Losses

Extraordinary Gains

Extraordinary Losses Income before Income Taxes

Income Taxes

Profit

Profit (Loss) Attributable to Non-Controlling Interests Profit Attributable to Owners of Parent

¥138,917

112,110

92,232

19,878

◆ Overview

• ● In the six-month period under review, revenue from operations increased and operating income decreased in the "Leasing" segment. This growth in revenue was mainly due to the upward revision of rents from existing office buildings in Japan, full-term contributions from office buildings and retail facilities that were completed and opened for operation during the previous fiscal year, as well as contributions from Mitsui Shopping Park LaLaport NAGOYA minato AQULS, which opened during the fiscal period under review, and 55 Hudson Yards in the US. From a profit perspective, the downturn in operating income largely reflects the increase in expenses associated with the completion of several new office buildings in Japan. Revenue and earnings improved in the "Property Sales" segment. This mainly reflected such factors as robust property sales to individuals in Japan as well as contributions from the handover of condominiums-for-sale in the UK and property sales to investors. In overall terms, revenue from operations increased ¥138.9 billion, or 19.2%, to ¥860.7 billion, and operating income climbed ¥19.8 billion, or 21.6%, to ¥112.1 billion year on year. Ordinary income grew ¥25.6 billion, or 31.7%, to ¥106.5 billion. Profit attributable to owners of parent rose ¥19.9 billion, or 41.1%, to ¥68.5 billion. Taking into consideration a variety of factors including the Company's robust results in the six-month period under review, Mitsui Fudosan has decided to upwardly revise its consolidated forecasts for the full fiscal year. Ordinary income is now projected to reach ¥236.0 billion compared with the previous forecast of ¥233.0 billion and profit attributable to owners of parent to come in at ¥163.0 billion compared with the previous forecast of ¥153.0 billion.

◆ Dividends

• ● The interim dividend is ¥20 per share (¥18 per share for the corresponding period of the previous fiscal year).

This is unchanged from the forecast announced at the beginning of the period.

Progress Comparison with Full Year Forecasts

(¥ millions)

Six Months Ended September 30, 2018	Year to March 2019 (Forecast as of November 9, 2018)	6-Month Results/Full-Year Forecast (%)
Revenue from Operations Operating Income Ordinary Income Profit Attributable To Owners of Parent	¥860,705 112,110 106,529 ¥68,550	¥1,870,000 250,000 236,000 ¥163,000	46.0 44.8 45.1 42.1

Extraordinary Gains/Losses

(¥ millions)

Extraordinary Gains Extraordinary Losses

- -

Consolidated Statements of Comprehensive Income

(¥ millions)

Six Months Ended September 30

2018	2017
Profit	¥69,509	¥47,835
Other Comprehensive Income	16,450	45,475
Valuation Difference on Available-For-Sale Securities Deferred Gains or Losses on Hedges Foreign Currency Translation Adjustment Remeasurements of Defined Benefit Plans, Net of Tax Share of Other Comprehensive Income of Associates Accounted for Using Equity Method	26,224 277 (6,582) 313 (3,782)	47,835 37 (3,371) 928 45
Comprehensive Income	¥85,960	¥93,310
(Comprehensive Income Attributable to Owners of the Parent) (Comprehensive Income Attributable to Non-Controlling Interests)	85,354 605	93,987 (676)

【Reference】 Nonconsolidated Operating Income/Expenses (Mitsui Fudosan)

(¥ millions)

Change

SEGMENT RESULTS

[1] LEASING

(¥ millions)

Six Months Ended September 30		Change
2018	2017
Revenue from Operations Operating Income	¥292,882 71,670	¥271,766 72,595	¥21,115 (924)

Year to March 2019 (Forecast as of November 9, 2018)	6-Month Results/ Full-Year Forecast (%)	Year Ended March 31, 2018
Revenue from Operations Operating Income	¥600,000 140,000	48.8 51.2	¥558,165 138,338

• ● For the six-month period under review, revenue from operations rose ¥21.1 billion compared with the corresponding period of the previous fiscal year for the segment as a whole. Operating income, on the other hand, decreased ¥0.9 billion year on year. This growth in revenue was mainly due to the upward revision of rents from existing office buildings in Japan, full-term contributions from office buildings and retail facilities that were completed and opened for operation during the previous fiscal year, as well as contributions from Mitsui Shopping Park LaLaport NAGOYA minato AQULS, which opened during the fiscal period under review, and 55 Hudson Yards in the US. From a profit perspective, the downturn in operating income largely reflects the increase in expenses associated with the completion of several new office buildings in Japan.

• ● The vacancy rate for the Company's office buildings located in the Tokyo metropolitan area was 2.7% on a non-consolidated basis as of September 30, 2018.

【Reference】 Non-consolidated Results (Revenue from operations)

・Newly on-stream and full-term contribution projects: ¥8.4 billion year-on-year increase in revenue ・Existing properties: ¥4.7 billion year-on-year increase in revenue

・Shifting and terminations, etc.: ¥1.5 billion year-on-year increase in revenue

Breakdown of Leasing Operations (Nonconsolidated)

At September 30

Number of Buildings

Office Buildings

Leased Floor Space (1,000m2) Leasing Revenue (¥ millions) Vacancy Rate (%)

Retail Facilities

Number of Buildings

Leased Floor Space (1,000m2) Leasing Revenue (¥ millions) Vacancy Rate (%)

10,833 2.6 27 742

Leased Floor Space

(¥ millions)

Vacancy Rate

(%)

9/2018	6/2018	3/2018	3/2017	3/2016	3/2015
Consolidated Office Buildings and Retail Facilities (including overseas)	3.0	2.9	2.4	3.1	2.2	3.2
Non-consolidated Tokyo Metropolitan Area Office Buildings	2.7	2.5	2.2	3.4	2.6	3.2
Regional Area Office Buildings	2.6	2.2	2.3	2.3	3.1	4.1

Major Projects during the Period (six-month total)

(NEWLY OPENED)

2 Television Centre (London, UK)

Office building completed in March 2018

msb Tamachi Tamachi Station Tower South (Minato-ku, Tokyo) Nihonbashi Takashimaya Mitsui Building (Chuo-ku, Tokyo) OVOL Nihonbashi Building (Chuo-ku, Tokyo)

Office building completed in May 2018

Office building completed in June 2018

Office building completed in June 2018

Mitsui Shopping Park LaLaport NAGOYA minato AQULS (Nagoya, Aichi)

Retail facility opened in September 2018

(FULL-TERM CONTRIBUTION)

1 Angel Court (London, UK) G-BASE Tamachi (Minato-ku, Tokyo) Shinjuku M-SQUARE (Shinjuku-ku, Tokyo)Office building completed in March 2017

Office building completed in January 2018

Office building completed in January 2018

TOKYO MIDTOWN HIBIYA (Chiyoda-ku, Tokyo)

Mixed-use development project completed in February 2018

[2] PROPERTY SALES

Property Sales to Individuals and Investors

(¥ millions)

Six Months Ended September 30		Change
2018	2017
Revenue from Operations Operating Income	¥233,259 37,989	¥134,811 14,791	¥98,447 23,198

Year to March 2019 (Forecast as of November 9, 2018)	6-Month Results/ Full-Year Forecast (%)	Year Ended March 31, 2018
Revenue from Operations Operating Income	¥535,000 90,000	43.6 42.2	¥499,607 83,010

• ● For the six-month period under review, revenue and earnings in the "Property Sales to

Individuals (Domestic)" category improved compared with the corresponding period of the previous fiscal year. This was mainly due to increases in the reported number of units as well as profit margins. Revenue and earnings in the "Property Sales to Investors and Individuals (Overseas)" category also improved compared with the corresponding period of the previous fiscal year. This largely reflected progress in the handover of condominiums-for-sale in the UK and property sales to investors. Accounting for each of these factors, overall revenue from operations climbed ¥98.4 billion and operating income grew ¥23.1 billion year on year in this segment as a whole.

In newly constructed condominiums in Japan, the Company's contract rate as of September 30, 2018, was 90% of the 3,250 units projected for the year.

Major Projects Undertaken during the Period (six-month total) (Property Sales to Individuals (Domestic))

Park Court Aoyama The Tower (Minato-ku, Tokyo)

Park Court Akasaka Hinokicho The Tower (Minato-ku, Tokyo)

Park Homes Kichijoji Kita Gran Villa (Nerima-ku, Tokyo)

THE GARDENS TOKYO OJI (Kita-ku, Tokyo)

Fine Court Nerima Sakuradai The Marks (Nerima-ku, Tokyo)Condominiums Condominiums Condominiums Condominiums Detached Housing

(Property Sales to Investors and Individuals (Overseas), etc.)

70 Mark Lane (London, UK)

Office Building

Television Centre (The Helios, The Crescent) (London, UK)

Condominiums

Property Sales to Individuals (Domestic)

(¥ millions)

Condominiums Detached Housing

28 (3)

¥122,943 19,915

1,387 268

¥8,864 7,431

¥86,738 15,689

1,359 271

¥6,382 5,790

¥36,205 4,225

¥2,482 1,641

Subtotal

142,858

1,655 17,820

8,632 102,427

1,630 8,422

6,284

40,431

25 9,397

2,348

Operating Income

Property Sales to Investors and Individuals (Overseas), etc.

Total Revenue

Total Operating Income

Operating IncomeRevenue

90,400 20,169 233,259 ¥37,989

6,368 134,811 ¥14,791

58,016 13,800 98,447 ¥23,198

Breakdown for the Revenue from the Property Sales to Individuals (Domestic)

(¥ millions)Condominiums

Tokyo Metropolitan

Area ¥109,938

1,111 ¥71,388

1,062 ¥38,549

49

Other

Total

13,005 122,943

276 1,387

15,349 86,738

297 1,359

(2,344) 36,205

(21) 28

Tokyo Metropolitan

Detached Housing

19,915

268

14,836

256

5,079

12

Area

Other

Total ¥19,915

-268 ¥15,689

-853

271

15

¥4,225

(853)

(15) (3)

Inventories of Property Sales to Individuals (Domestic)

(Units)Condominiums

9/2018	6/2018	3/2018	3/2017	3/2016	3/2015
Condominiums	185	167	108	321	88	83
Detached Housing	40	31	40	69	127	100
Total	225	198	148	390	215	183

9/2018

6/2018

3/2018

3/2017

3/2016

3/2015

185

167

108

321 69 390

88 127 215

83 100 183

Contracted for Sale from the Property Sales to Individuals (Domestic)

(Units)

Contracts at Beginning of Term	Contracts during Term	Total	Reported No. of Units	Contracts at End of Term	Newly Launched during Term
Condominiums	4,188	1,514	5,702	1,387	4,315	1,501
Detached Housing	153	191	344	268	76	189
Total	4,341	1,705	6,046	1,655	4,391	1,690