FACT BOOK
For the Three Months Ended June 30, 2020
August 6, 2020
1-1, Nihonbashi Muromachi 2-chome,Chuo-Ku, Tokyo, 103-0022, Japan
https://www.mitsuifudosan.co.jp/english/
Corporate Data | Contents | |
(As of June 30, 2020) | ||
Head Office: | Corporate Data, Contents | 1 |
1-1, Nihonbashi Muromachi 2-chome,Chuo-ku, Tokyo, | ||
103-0022, Japan | Consolidated Business Overview | 2 |
Date of Establishment: | Segment Results | 3 - 6 |
July 15, 1941 | ||
[Reference] Overseas Business | 6 | |
Share Capital: | ||
¥339,766 million | Consolidated Balance Sheets | 7-8 |
Number of Issued and Outstanding Shares: | Consolidated Statements of Income | 9 |
979,250,227 | ||
Consolidated Statements of Cash Flows | 10 | |
Stock Exchange Listings: | ||
Tokyo (Code: 8801) | Contingent Liabilities and Additional Information | 11 |
Forward-Looking Statements
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.
1
CONSOLIDATED BUSINESS OVERVIEW
Results of Operations | (¥ millions) | ||
Three Months Ended June 30 | Change | ||
2020 | 2019 | ||
Revenue from Operations | ¥407,025 | ¥427,171 | ¥(20,146) |
Leasing | 134,548 | 155,024 | (20,476) |
Property Sales | 136,587 | 107,576 | 29,010 |
Management | 90,248 | 100,111 | (9,862) |
Other | 45,641 | 64,458 | (18,817) |
Operating Income | 36,861 | 50,885 | (14,024) |
Leasing | 28,649 | 39,737 | (11,087) |
Property Sales | 25,531 | 11,880 | 13,651 |
Management | 4,648 | 12,389 | (7,740) |
Other | (10,157) | (2,290) | (7,867) |
Elimination or Corporate | (11,810) | (10,830) | (980) |
Non-Operating Income/Expenses | (7,158) | (1,548) | (5,609) |
Equity in Net Income/Loss of Affiliated Companies | (312) | 2,944 | (3,257) |
Interest Income/Expense, in Net | (6,856) | (6,963) | 106 |
Other, in Net | 11 | 2,470 | (2,459) |
Ordinary Income | 29,703 | 49,337 | (19,634) |
Extraordinary Gains/Losses | (5,552) | - | (5,552) |
Extraordinary Gains | 6,268 | - | 6,268 |
Extraordinary Losses | 11,820 | - | 11,820 |
Income before Income Taxes | 24,151 | 49,337 | (25,186) |
Income Taxes | 10,531 | 15,921 | (5,390) |
Profit | 13,619 | 33,415 | (19,796) |
Profit (Loss) Attributable to Non-Controlling Interests | (150) | 234 | (385) |
Profit Attributable to Owners of Parent | ¥13,770 | ¥33,180 | ¥(19,410) |
◆Overview
-
In addition to taking such steps as the closure of retail facilities and hotels as well as stores in the
brokerage business for individuals, Mitsui Fudosan implemented various measures, including the reduction and waiver of rent for retail facilities owned by the Company that had been closed with a view to harmonious coexistence during the three-month period under review. This was largely in response to the spread of COVID-19 and requests by the government and local administrative authorities, while reflecting our efforts as a company to actively prevent further spread of the pandemic. Operations resumed on a progressive basis from mid-May with priority given to the safety and security of customers and employees at each facility and the implementation of infection prevention measures.
In the office building leasing category, leasing and other revenue from existing office buildings increased. In the Property Sales (Domestic) category, the Company reported progress in the handover of such properties as The Tower Yokohama Kitanaka and PARK CITY MUSASHI-KOYAMA THE TOWER.
(Note: In newly constructed condominiums in Japan, the Company's contract rate as of June 30, 2020 was 83% of the 3,800 units projected for the fiscal year.)
In overall terms, revenue from operations decreased ¥20.1 billion, or 4.7%, compared with the corresponding period of the previous fiscal year operating income declined ¥14.0 billion, or 27.6%, and profit attributable to owners of parent fell ¥19.4 billion, or 58.5% year on year.
Meanwhile, business results are progressing within the scope of underlying assumptions for consolidated forecasts announced at the beginning of the period.
Progress Comparison with Full Year Forecasts | (¥ millions) | |||||
Three Months Ended | 3-Month Results / | |||||
Year to March 2021 | Full-Year Forecast | |||||
June 30, 2020 | (%) | |||||
Revenue from Operations | ¥407,025 | ¥1,850,000 | 22.0 | |||
Operating Income | 36,861 | 200,000 | 18.4 | |||
Ordinary Income | 29,703 | 169,000 | 17.6 | |||
Profit Attributable to Owners of Parent | 13,770 | 120,000 | 11.5 | |||
Extraordinary Gains/Losses | (¥ millions) | |||||
【Extraordinary Gains】 | ||||||
Gain on Sales of Investment Securities | ¥6,268 | |||||
Total | ¥6,268 | |||||
【Extraordinary Losses】 | ||||||
Loss Related to COVID-19 | 11,820 | |||||
Total | ¥11,820 | |||||
Consolidated Statements of Comprehensive Income | (¥ millions) | |||||
Three Months Ended June 30 | ||||||
2020 | 2019 | |||||
Profit | ¥13,619 | ¥33,415 | ||||
Other Comprehensive Income | 27,454 | 18,592 | ||||
Valuation Difference on Available-For-Sale Securities | 39,280 | 16,380 | ||||
Deferred Gains or Losses on Hedges | (107) | (102) | ||||
Foreign Currency Translation Adjustment | (5,849) | 674 | ||||
Remeasurements of Defined Benefit Plans, Net of Tax | (63) | (215) | ||||
Share of Other Comprehensive Income of Associates Accounted | (5,805) | 1,855 | ||||
for Using Equity Method | ||||||
Comprehensive Income | ¥41,074 | ¥52,008 | ||||
(Comprehensive Income Attributable to Owners of the Parent) | 41,457 | 51,801 | ||||
(Comprehensive Income Attributable to Non-Controlling Interests) | (383) | 207 | ||||
【Reference】 Nonconsolidated Operating Income/Expenses (Mitsui Fudosan) | (¥ millions) | |||||
Three Months Ended June 30 | Change | |||||
2020 | 2019 | |||||
Revenue from Operations | Leasing | ¥114,819 | ¥141,665 | ¥(26,845) | ||
Property Sales | 791 | 6,795 | (6,004) | |||
Other | 9,978 | 7,636 | 2,342 | |||
Total | 125,589 | 156,097 | (30,507) | |||
Gross Profit Margin (%) | Leasing | 13.6 | 20.1 | (6.5)pt | ||
Property Sales | - | 33.0 | - | |||
Other | 30.2 | 15.6 | 14.6 pt | |||
Operating Income | ¥8,296 | ¥22,870 | ¥(14,574) |
2
SEGMENT RESULTS
[1] LEASING
(¥ millions) | |||
Three Months Ended June 30 | Change | ||
2020 | 2019 | ||
Revenue from Operations | ¥134,548 | ¥155,024 | ¥(20,476) |
Operating Income | 28,649 | 39,737 | (11,087) |
Year to March 2021 | 3-Month Results / | Year Ended | |
Full-Year Forecast (%) | March 31, 2020 | ||
Revenue from Operations | ¥600,000 | 22.4 | ¥636,056 |
Operating Income | 113,000 | 25.4 | 145,893 |
- In the "Leasing" segment, overall revenue from operations declined ¥20.4 billion and operating income decreased ¥11.0 billion. Despite an increase in leasing and other revenue from existing office buildings as well as contributions from MITSUI OUTLET PARK YOKOHAMA BAYSIDE, which opened during the fiscal year under review, this downturn in revenue and earnings was mainly due to the closure of retail facilities as a result of COVID-19 and the reduction and waiver of rent payments for certain facilities owned by the Company.
The vacancy rate for the Company's office buildings located in the Tokyo metropolitan area was 2.1% on a non-consolidated basis as of June 30, 2020.
【Reference】 Non-consolidated Results
(Revenue from operations)
- Newly on-stream and full-term contribution projects: ¥3.2 billion year-on-year increase in revenue
- Existing properties: ¥29.3 billion year-on-year decrease in revenue
- Shifting, terminations, etc.: ¥2.6 billion year-on-year decrease in revenue
Breakdown of Leasing Operations (Non-consolidated)
At June 30 | |||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||
Total | Tokyo | Regional Areas | |||||||
Metropolitan Area | |||||||||
Number of Buildings | 147 | 135 | 119 | 107 | 28 | 28 | |||
Office | Leased Floor Space (1,000m2) | 2,948 | 2,805 | 2,623 | 2,479 | 325 | 326 | ||
Buildings | Leasing Revenue (¥ millions) | 77,166 | 76,088 | 71,699 | 70,684 | 5,467 | 5,403 | ||
Vacancy Rate (%) | 2.1 | 2.0 | 2.1 | 2.0 | 1.6 | 2.0 | |||
Number of Buildings | 93 | 87 | 67 | 62 | 26 | 25 | |||
Retail | Leased Floor Space (1,000m2) | 2,120 | 2,049 | 1,397 | 1,379 | 723 | 671 | ||
Facilities | Leasing Revenue (¥ millions) | 31,656 | 57,138 | 22,176 | 39,828 | 9,480 | 17,309 | ||
Vacancy Rate (%) | 1.3 | 0.9 | 1.5 | 1.1 | 1.1 | 0.4 |
Leased Floor Space | (¥ millions) | |||||||
At June 30 | Change | |||||||
2020 | 2019 | |||||||
Revenue | Office Buildings | ¥89,737 | ¥87,767 | ¥1,969 | ||||
Retail Facilities | 33,464 | 59,223 | (25,759) | |||||
Office Buildings and | Total Leased Floor Space | (1,000 m2): | 5,652 | 5,329 | 323 | |||
Owned | 2,137 | 1,981 | 156 | |||||
Retail Facilities | Office Buildings | |||||||
Managed | 1,277 | 1,245 | 32 | |||||
Retail Facilities | Owned | 1,698 | 1,573 | 125 | ||||
Managed | 540 | 530 | 10 | |||||
Other | Revenue | 11,347 | 8,033 | 3,313 | ||||
Total Revenue | ¥134,548 | ¥155,024 | ¥(20,476) | |||||
Vacancy Rate | (%) | |||||||
6/2020 | 3/2020 | 3/2019 | 3/2018 | 3/2017 | 3/2016 | |||
Consolidated | 2.1 | 2.3 | 1.8 | 2.4 | 3.1 | 2.2 | ||
Office Buildings and Retail Facilities (including overseas) | ||||||||
Non-consolidated | 2.1 | 1.9 | 1.7 | 2.2 | 3.4 | 2.6 | ||
Tokyo Metropolitan Area Office Buildings | ||||||||
Regional Area Office Buildings | 1.6 | 1.3 | 1.8 | 2.3 | 2.3 | 3.1 | ||
Major Projects during the Period (three-month total) | ||||||||
(NEWLY OPENED) | ||||||||
BUNKYO GARDEN GATETOWER (Bunkyo-ku, Tokyo) | Office building completed in April 2020 | |||||||
MITSUI OUTLET PARK YOKOHAMA BAYSIDE (Yokohama, Kanagawa) | Retail facility opened in June 2020 | |||||||
(FULL-TERM CONTRIBUTION) | ||||||||
LaLaport NUMAZU (Numazu, Shizuoka) | Retail facility opened in October 2019 | |||||||
Otemachi One (Chiyoda-ku, Tokyo) | Office building completed in February 2020 | |||||||
TOYOSU BAYSIDE CROSS TOWER (Koto-ku, Tokyo) | Office building completed in March 2020 | |||||||
3
[2] PROPERTY SALES
(¥ millions) | |||
Three Months Ended June 30 | Change | ||
2020 | 2019 | ||
Revenue from Operations | ¥136,587 | ¥107,576 | ¥29,010 |
Operating Income | 25,531 | 11,880 | 13,651 |
Year to March 2021 | 3-Month Results / | Year Ended | |
Full-Year Forecast (%) | March 31, 2020 | ||
Revenue from Operations | ¥540,000 | 25.3 | ¥524,094 |
Operating Income | 103,000 | 24.8 | 123,745 |
- For the three-month period under review, revenue and earnings in the Property Sales (Domestic) category improved. This was mainly due to progress in the handover of such properties as The Tower Yokohama Kitanaka and PARK CITY MUSASHI-KOYAMA THE TOWER. In contrast, revenue and earnings in the Property Sales to Investors (Overseas) category decreased. This largely reflected corrections following the sale of properties during the corresponding period of the previous fiscal year. Overall, revenue from operations in the "Property Sales" segment climbed ¥29.0 billion and operating income increased ¥13.6 billion.
In newly constructed condominiums in Japan, the Company's contract rate as of June 30, 2020 was 83% of the 3,800 units projected for the fiscal year.
Major Projects Undertaken during the Period (three-month total) (Property Sales to Individuals (Domestic))
THE TOWER YOKOHAMA KITANAKA (Yokohama, Kanagawa) | Condominiums |
Park City Musashi-Koyama The Tower (Shinagawa-ku,Tokyo) | Condominiums |
THE COURT Jingu-Gaien(Shibuya-ku, Tokyo) | Condominiums |
Park Court MINAMIAZABU (Minato-ku, Tokyo) | Condominiums |
Fine Court Komazawa Park (Setagaya-ku, Tokyo) | Detached Housing |
(Property Sales to Investors and Individuals (Overseas))
MFLP Sakai (Sakai, Osaka) | Logistics |
Property Sales to Individuals and Investors | (¥ millions) | |||||||||||
Three Months Ended June 30 | Change | |||||||||||
2020 | 2019 | |||||||||||
Unit Price | Unit Price | Unit Price | ||||||||||
Revenue | Units | (¥10 | Revenue | Units | (¥10 | Revenue | Units | (¥10 | ||||
thousand) | thousand) | thousand) | ||||||||||
Condominiums | ¥124,405 | 1,398 | ¥8,899 | ¥52,699 | 523 | ¥10,076 | ¥71,705 | 875 | ¥(1,177) | |||
Property Sales to | Detached Housing | 3,299 | 51 | 6,470 | 8,950 | 134 | 6,680 | (5,651) | (83) | (210) | ||
Individuals (Domestic) | Subtotal | 127,705 | 1,449 | 8,813 | 61,650 | 657 | 9,384 | 66,054 | 792 | (571) | ||
Operating Income | 24,943 | 5,612 | 19,330 | |||||||||
Property Sales to Investors | Revenue | 8,881 | 45,926 | (37,044) | ||||||||
and Individuals (Overseas), | ||||||||||||
588 | 6,267 | (5,679) | ||||||||||
etc. | Operating Income | |||||||||||
Total Revenue | 136,587 | 107,576 | 29,010 | |||||||||
Total Operating Income | ¥25,531 | ¥11,880 | ¥13,651 | |||||||||
Breakdown for the Revenue from the Property Sales to Individuals (Domestic) | (¥ millions) | |||||||||||
Three Months Ended June 30 | Change | |||||||||||
2020 | 2019 | |||||||||||
Revenue | Units | Revenue | Units | Revenue | Units | |||||||
Condominiums | Tokyo Metropolitan | ¥121,463 | 1,322 | ¥47,879 | 421 | ¥73,583 | 901 | |||||
Area | ||||||||||||
Other | 2,942 | 76 | 4,820 | 102 | (1,877) | (26) | ||||||
Total | 124,405 | 1,398 | 52,699 | 523 | 71,705 | 875 | ||||||
Detached Housing | Tokyo Metropolitan | 3,299 | 51 | 8,805 | 131 | (5,506) | (80) | |||||
Area | ||||||||||||
Other | - | - | 144 | 3 | (144) | (3) | ||||||
Total | ¥3,299 | 51 | ¥8,950 | 134 | ¥(5,651) | (83) | ||||||
Inventories of Property Sales to Individuals (Domestic) | (Units) | |||||||||||
6/2020 | 3/2020 | 3/2019 | 3/2018 | 3/2017 | 3/2016 | |||||||
Condominiums | 260 | 128 | 141 | 108 | 321 | 88 | ||||||
Detached Housing | 66 | 58 | 30 | 40 | 69 | 127 | ||||||
Total | 326 | 186 | 171 | 148 | 390 | 215 |
Contracted for Sale from the Property Sales to Individuals (Domestic) | (Units) | ||||||
Contracts at | Contracts | Total | Reported No. of | Contracts at End | Newly Launched | ||
Beginning of Term | during Term | Units | of Term | during Term | |||
Condominiums | 3,673 | 221 | 3,894 | 1,398 | 2,496 | 298 | |
Detached Housing | 64 | 19 | 83 | 51 | 32 | 21 | |
Total | 3,737 | 240 | 3,977 | 1,449 | 2,528 | 319 |
4
[3] MANAGEMENT
(¥ millions) | |||
Three Months Ended June 30 | Change | ||
2020 | 2019 | ||
Revenue from Operations | ¥90,248 | ¥100,111 | ¥(9,862) |
Operating Income | 4,648 | 12,389 | (7,740) |
Year to March 2021 | 3-Month Results / | Year Ended | |
Full-Year Forecast (%) | March 31, 2020 | ||
Revenue from Operations | ¥410,000 | 22.0 | ¥421,490 |
Operating Income | 50,000 | 9.3 | 55,670 |
- In the "Property Management" category, revenue and earnings declined owing mainly to the drop in occupancy rates in the "Repark" business (car park leasing business) following requests for self-restraint by the government and local administrative authorities as a result of the spread of COVID-19.
In the "Brokerage and Asset Management, etc." category, revenue and earnings also decreased. This was due to a variety of factors including a drop in the number of brokerage units handled in light of the closure of stores in the "Mitsui Rehouse" business (brokerage business for individuals).
Accordingly, overall revenue from operations in the "Management" segment fell ¥9.8 billion and operating income declined ¥7.7 billion.
(¥ millions) | ||||||
Three Months Ended June 30 | Change | |||||
2020 | 2019 | |||||
Property Management | Revenue | ¥70,311 | ¥76,249 | ¥(5,938) | ||
Operating Income | 1,379 | 7,787 | (6,408) | |||
Brokerage, Asset | Revenue | 19,937 | 23,861 | (3,924) | ||
Management, etc. | Operating Income | 3,268 | 4,601 | (1,332) | ||
Total | Revenue | ¥90,248 | ¥100,111 | ¥(9,862) | ||
Operating Income | 4,648 | 12,389 | (7,740) | |||
Property Management Business: Car Park Leasing (including "Property Management" category)
(Units) | |||
At June 30, 2020 | At June 30, 2019 | Change | |
Total Managed Units | 273,515 | 251,562 | 21,953 |
Brokerage Business: Mitsui Fudosan Realty
(including "Brokerage and Asset Management, etc." category)
(¥ millions) | ||||||||
Three Months Ended June 30 | Change | |||||||
2020 | 2019 | |||||||
Brokerage | Transaction | Units | Transaction | Units | Transaction | Units | ||
Volume | Volume | Volume | ||||||
¥318,187 | 8,134 | ¥405,780 | 10,326 | ¥(87,593) | (2,192) |
Consignment Sales Business: Mitsui Fudosan Residential (including "Brokerage and Asset Management, etc." category)
(¥ millions) | ||||||||||
Three Months Ended June 30 | Change | |||||||||
2020 | 2019 | |||||||||
Consignment Sales | Transaction | Units | Transaction | Units | Transaction | Units | ||||
Volume | Volume | Volume | ||||||||
¥29,399 | 261 | ¥13,665 | 173 | ¥15,734 | 88 | |||||
5
[4] OTHER
(¥ millions) | |||
Three Months Ended June 30 | Change | ||
2020 | 2019 | ||
Revenue from Operations | ¥45,641 | ¥64,458 | ¥(18,817) |
Operating Income | (10,157) | (2,290) | (7,867) |
Year to March 2021 | 3-Month Results / | Year Ended | |
Full-Year Forecast (%) | March 31, 2020 | ||
Revenue from Operations | ¥300,000 | 15.2 | ¥324,001 |
Operating Income | (13,000) | 78.1 | 2,291 |
- The "Facilities Operations" category was impacted by the spread of COVID-19. This included the closure of hotel and resort facilities in light of requests by the government and local administrative authorities. For the segment overall, revenue decreased ¥18.8 billion and operating income declined ¥7.8 billion.
(¥ millions) | ||||||
Three Months Ended June 30 | Change | |||||
2020 | 2019 | |||||
New Construction under Consignment | ¥22,769 | ¥28,177 | ¥(5,408) | |||
Facility Operations | 4,907 | 16,081 | (11,173) | |||
Other | 17,964 | 20,198 | (2,234) | |||
Total Revenue | ¥45,641 | ¥64,458 | ¥(18,817) | |||
Three Months Ended June 30 | Change | |||||
2020 | 2019 | |||||
Revenue from New Construction under | ¥22,257 | ¥29,918 | ¥(7,660) | |||
Consignment Orders Received | ||||||
Major Projects Undertaken during the Period (three-month total) | ||||||
(FULL-TERM CONTRIBUTION) | ||||||
Mitsui Garden Hotel Fukuoka Gion (Fukuoka, Fukuoka) | Hotel opened in June 2019 | |||||
Halekulani Okinawa (Kunigami-gun, Okinawa) | Hotel opened in July 2019 | |||||
Mitsui Garden Hotel Kyoto Station Front (Kyoto, Kyoto) | Hotel opened in August 2019 | |||||
Mitsui Garden Hotel Ginza-gochome(Chuo-ku, Tokyo) | Hotel opened in September 2019 | |||||
Mitsui Garden Hotel Jingugaien Tokyo Premier (Shinjuku-ku, Tokyo) | Hotel opened in November 2019 | |||||
Mitsui Garden Hotel Roppongi Premier (Minato-ku, Tokyo) | Hotel opened in January 2019 | |||||
Mitsui Garden Hotel Sapporo West (Sapporo, Hokkaido) | Hotel opened in February 2020 |
[REFERENCE] OVERSEAS BUSINESS
(¥ millions) | ||||
Three Months Ended June 30 | Change | |||
2020 | 2019 | |||
Leasing | Revenue | ¥17,016 | ¥16,054 | ¥961 |
Operating Income | 4,922 | 5,359 | (437) | |
Property Sales | Revenue | 3,724 | 12,782 | (9,058) |
Operating Income | (33) | (356) | 323 | |
Management, Other, etc. | Revenue | 3,283 | 3,240 | 43 |
Operating Income | 11 | 93 | (82) | |
Pro forma Operating Income of Overseas Affiliates *1 | 1,586 | 2,870 | (1,283) | |
Total Overseas Income | 6,486 | 7,967 | (1,481) | |
Overseas Income Ratio *2 | 16.9% | 14.8% | 2.1 pt | |
* 1: The sum of the following amounts:
・Calculated by multiplying the operating income or the amount equivalent to operating income of each overseas equity-method affiliated company by the Company's equity interest
Note: The amount equivalent to operating income is the amount of profit calculated on a simplified basis after taking into consideration the tax burden.
・Gain on sale of shares of overseas equity-method affiliated companies
(Limited to overseas equity-method affiliated companies whose principal business is the sale of real estate)
* 2: Total overseas income / (Operating income + Proforma operating income of overseas affiliates) × 100
6
CONSOLIDATED BALANCE SHEETS
(¥ millions) | ||||
ASSETS: | June 30, 2020 | March 31, 2020 | Change | |
Cash and Time Deposits | ¥253,224 | ¥183,412 | ¥69,812 | |
Accounts Receivable-Trade | 29,683 | 38,908 | (9,225) | |
Marketable Securities | 105 | 219 | (113) | |
Real Property for Sale | 1,072,720 | 1,043,889 | 28,831 | |
Real Property for Sale in Process | 548,174 | 516,997 | 31,177 | |
Real Property for Development | 309,958 | 318,411 | (8,452) | |
Expenditure on Contracts in Progress | 26,789 | 17,149 | 9,639 | |
Other Inventories | 5,286 | 5,308 | (22) | |
Advance Payments-Trade | 16,236 | 28,541 | (12,305) | |
Short-Term Loans | 17,217 | 18,543 | (1,325) | |
Equity Investments in Properties for Sale | 7,324 | 6,682 | 641 | |
Other | 225,578 | 215,803 | 9,775 | |
Allowance for Doubtful Accounts | (285) | (300) | 14 | |
Current Assets | 2,512,014 | 2,393,566 | 118,447 | |
Buildings and Structures | 2,000,680 | 1,965,266 | 35,413 | |
Accumulated Depreciation-Buildings and Structures | (771,014) | (757,561) | (13,453) | |
Buildings and Structures, Net | 1,229,665 | 1,207,705 | 21,959 | |
Machinery, Equipment and Vehicles | 100,158 | 99,723 | 435 | |
Accumulated Depreciation-Machinery, Equipment and Vehicles | (42,364) | (40,943) | (1,421) | |
Machinery, Equipment and Vehhicles | 57,793 | 58,780 | (986) | |
Land | 2,180,035 | 2,175,707 | 4,327 | |
Construction in Progress | 197,514 | 177,433 | 20,081 | |
Other | 158,974 | 155,755 | 3,218 | |
Accumulated Depreciation | (100,269) | (97,772) | (2,497) | |
Other, Net | 58,704 | 57,983 | 721 | |
Tangible Fixed Assets | 3,723,713 | 3,677,609 | 46,103 | |
Leasehold Interests in Land | 39,544 | 40,993 | (1,448) | |
Other | 34,626 | 34,539 | 87 | |
Intangible Fixed Assets | 74,170 | 75,532 | (1,361) | |
Investment Securities | 956,637 | 888,056 | 68,581 | |
Long-Term Loans | 9,493 | 7,586 | 1,907 | |
Lease Deposits | 145,483 | 145,413 | 69 | |
Net Defined Benefit Asset | 28,618 | 28,994 | (375) | |
Deferred Income Taxes | 28,480 | 25,943 | 2,536 | |
Deferred Tax Assets on Land Revaluation | 2 | 2 | - | |
Other | 176,258 | 153,717 | 22,540 | |
Allowance for Doubtful Accounts | (1,063) | (1,065) | 1 | |
Investments and Other Assets | 1,343,910 | 1,248,650 | 95,260 | |
Total Non-Current Assets | 5,141,794 | 5,001,792 | 140,002 | |
Total Assets | ¥7,653,809 | ¥7,395,359 | ¥258,449 |
[Real Property for Sale] | |||||||
(a) Breakdown by Company | (¥ millions) | ||||||
At June 30, 2020 | March 31, 2020 | Change | |||||
Mitsui Fudosan Residential | ¥693,053 | ¥717,860 | ¥(24,807) | ||||
Mitsui Fudosan | 635,303 | 582,181 | 53,121 | ||||
Mitsui Fudosan America Group | 373,230 | 355,724 | 17,506 | ||||
SPCs Total | 190,148 | 192,689 | (2,541) | ||||
Mitsui Fudosan UK Group | 41,550 | 46,072 | (4,521) | ||||
Other and Elimination | 13,803 | 13,310 | 493 | ||||
Consolidated Total | ¥1,947,090 | ¥1,907,839 | ¥39,250 | ||||
(b) Accounts of Real Property for Sale | (¥ millions) | ||||||
Three Months Ended | At Beginning of | New Investments* | Cost Recovery | Others | At End of Period | ||
June 30 | Period | ||||||
2020 | ¥1,907,839 | ¥150,032 | ¥(98,587) | ¥(12,193) | ¥1,947,090 | ||
2019 | ¥1,630,558 | ¥107,860 | ¥(74,476) | ¥(290) | ¥1,663,652 |
Note: Land acquisition-related expenditures by Mitsui Fudosan Residential Co., Ltd., totaled ¥24.4 billion for the three-month period under review. * New investments include the increase in real property for sale at subsidiaries in which the Company invested during the period.
[Tangible and Intangible Fixed Assets ]
The consolidated balance of tangible and intangible fixed assets stood at ¥3,797.8 billion as of June 30, 2020, up ¥44.7 billion compared with the end of the previous fiscal year. This largely reflects new investments in such projects as RAYARD MIYASHITA PARK by Mitsui Fudosan and 50 Hudson Yards by Mitsui Fudosan America Group.
Foreign currency exchange rates:
¥108.83:US$1 as of June 30, 2020, ¥109.56:US$1 as of March 31, 2020; ¥133.32:£1 as of June 30, 2020, ¥143.48:£1 as of March 31, 2020
(a) Breakdown by Company | (¥ millions) | ||
At June 30, 2020 | March 31, 2020 | Change | |
Mitsui Fudosan | ¥2,842,308 | ¥2,815,017 | ¥27,290 |
Mitsui Fudosan America Group | 433,379 | 421,554 | 11,824 |
SPCs Total | 228,188 | 228,744 | (556) |
Mitsui Fudosan Residential | 64,687 | 64,600 | 87 |
Mitsui Fudosan UK Group | 53,942 | 58,365 | (4,422) |
Other and Elimination | 175,377 | 164,859 | 10,517 |
Consolidated Total | ¥3,797,883 | ¥3,753,141 | ¥44,741 |
Above figures include revaluation reserve for land.
(b) Accounts of Tangible and Intangible Fixed Assets | (¥ millions) | ||||
Three Months Ended | At Beginning of | New Investments* | Depreciation | Others | At End of Period |
June 30 | Period | ||||
2020 | ¥3,753,141 | ¥80,891 | ¥(21,337) | ¥(14,811) | ¥3,797,883 |
2019 | ¥3,500,482 | ¥80,319 | ¥(21,218) | ¥(93) | ¥3,559,489 |
* New investments include the increase in tangible and intangible fixed assets at subsidiaries in which the Company invested during the period.
7
CONSOLIDATED BALANCE SHEETS
(¥ millions) | ||||
LIABILITIES: | June 30, 2020 | March 31, 2020 | Change | |
Accounts Payable-Trade | ¥85,024 | ¥147,075 | ¥(62,050) | |
Short-Term Debt | 371,845 | 143,025 | 228,819 | |
Non-RecourseShort-Term Debt | 88,846 | 21,416 | 67,430 | |
Commercial Papers | 173,000 | 173,000 | - | |
Bond Redeemable Within One Year | 20,000 | 55,000 | (35,000) | |
Non-Recourse Bond Redeemable Within One Year | 7,600 | 47,500 | (39,900) | |
Income Taxes Payable | 12,040 | 36,905 | (24,864) | |
Advances from Contracts in Progress | 25,487 | 21,635 | 3,851 | |
Allowance for Completed Project Indemnities | 759 | 797 | (38) | |
Allowance for Possible Guarantee Losses | 1 | 3 | (2) | |
Other | 379,613 | 393,401 | (13,788) | |
Current Liabilities | 1,164,219 | 1,039,761 | 124,457 | |
Corporate Bonds | 696,410 | 612,603 | 83,807 | |
Non-Recourse Corporate Bonds | 89,485 | 81,935 | 7,550 | |
Long-Term Debt | 1,939,431 | 1,893,813 | 45,618 | |
Non-Recourse Deposits from Tenants | 420,365 | 452,823 | (32,457) | |
Deposits from Tenants | 436,976 | 436,595 | 381 | |
Deferred Income Taxes | 164,781 | 147,786 | 16,995 | |
Deferred Tax Liabilities on Land Revaluation | 151,544 | 151,544 | - | |
Net Defined Benefit Liability | 46,497 | 46,196 | 301 | |
Allowance for Directors' and Corporate Auditors' Retirement Benefits | 805 | 800 | 4 | |
Other | 45,050 | 44,973 | 76 | |
Long-Term Liabilities | 3,991,349 | 3,869,071 | 122,278 | |
Total Liabilities | 5,155,569 | 4,908,833 | 246,735 | |
NET ASSETS: | ||||
Common Stock | 339,766 | 339,766 | - | |
Capital Surplus | 372,162 | 372,162 | - | |
Retained Earnings | 1,062,646 | 1,070,239 | (7,593) | |
Treasury Stock | (21,183) | (14,364) | (6,819) | |
Total Shareholders' Equity | 1,753,391 | 1,767,804 | (14,413) | |
Net Unrealized Holding Gains on Securities | 359,281 | 319,993 | 39,288 | |
Deferred Gains or Losses on Hedges | (215) | (222) | 7 | |
Reserve on Land Revaluation | 330,305 | 330,305 | - | |
Foreign Currency Translation Adjustment | (26,364) | (14,793) | (11,571) | |
Remeasurements of Defined Benefit Plans | 5,554 | 5,592 | (37) | |
Total Accumulated Other Comprehensive Income | 668,561 | 640,875 | 27,686 | |
New Share Subscription Rights | 1,507 | 1,454 | 53 | |
Non-Controlling Interests | 74,778 | 76,391 | (1,613) | |
Total Net Assets | 2,498,239 | 2,486,525 | 11,714 | |
Total Liabilities and Net Assets | ¥7,653,809 | ¥7,395,359 | ¥258,449 | |
Note: Debt-Equity Ratio 1.57 times (1.45 times at March 31, 2020) | ||||
Interest-Bearing Debt: | 3,806,985 | 3,481,117 | 325,868 | |
Non-Recourse Debt | 606,296 | 603,674 | 2,622 | |
Surplus lease deposits/guarantee deposits | 291,493 | 291,181 | 312 |
[Interest-Bearing Debt]
The Mitsui Fudosan Group witnessed a cash outflow from purchase of real estate for sale of ¥123.7 billion and a cash outflow from investing activities of ¥112.1 billion on the back of such factors as new investments in tangible and intangible assets. The cash outflow attributable to cash dividends paid came to ¥21.1 billion. Owing to the net increase in cash and cash equivalents of ¥72.4 billion, interest-bearing debt stood at ¥3,806.9 billion as of June 30, 2020, up ¥325.8 billion compared with the end of the previous fiscal year.
Breakdown by Company
(¥ millions) | |||
At June 30, 2020 | March 31, 2020 | Change | |
Mitsui Fudosan | ¥2,939,504 | ¥2,630,106 | ¥309,397 |
Mitsui Fudosan America Group | 677,132 | 681,207 | (4,074) |
Mitsui Fudosan Residential | 613,000 | 594,900 | 18,100 |
SPCs Total | 348,505 | 345,355 | 3,150 |
Mitsui Fudosan Asia Group | 90,533 | 81,735 | 8,797 |
Mitsui Fudosan UK Group | 47,394 | 51,909 | (4,514) |
Loans to Subsidiaries | (1,029,417) | (990,427) | (38,990) |
Other and Elimination | 120,332 | 86,330 | 34,002 |
Consolidated Total | ¥3,806,985 | ¥3,481,117 | ¥325,868 |
(Non-recourse Debt of Total) | 606,296 | 603,674 | 2,622 |
8
CONSOLIDATED STATEMENTS OF INCOME
(¥ millions) | |||
Three Months Ended June 30 | |||
2020 | 2019 | ||
Revenue from Operations | ¥407,025 | ¥427,171 | |
Cost of Revenue from Operations | 326,081 | 330,002 | |
Gross Operating Profit | 80,943 | 97,168 | |
Selling, General and Administrative Expenses | 44,082 | 46,282 | |
Operating Income | 36,861 | 50,885 | |
Interest Income | 486 | 317 | |
Dividend Income | 3,245 | 3,406 | |
Equity In Net Income of Affiliated Companies | - | 2,944 | |
Other Non-Operating Income | 1,022 | 515 | |
Non-Operating Income | 4,755 | 7,184 | |
Interest Expenses | 7,343 | 7,281 | |
Share of Loss of Entities Accounted For Using Equity Method | 312 | - | |
Other Non-Operating Expenses | 4,257 | 1,451 | |
Non-Operating Expenses | 11,913 | 8,733 | |
Ordinary Income | 29,703 | 49,337 | |
Gain on Sales of Investment Securities | 6,268 | - | |
Extraordinary Income | 6,268 | - | |
Loss Related to COVID-19 * | 11,820 | - | |
Extraordinary Losses | 11,820 | - | |
Income Before Income Taxes | 24,151 | 49,337 | |
Income Taxes | 10,531 | 15,921 | |
Profit | 13,619 | 33,415 | |
Profit (Loss) Attributable to Non-Controlling Interests | (150) | 234 | |
Profit Attributable to Owners of Parent | ¥13,770 | ¥33,180 |
- Losses attributable to COVID-19 mainly comprise fixed costs, including land and rental fees applicable to retail facilities, hotels, and other properties for the duration of closure as well as depreciation and amortization.
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CONSOLIDATED STATEMENTS OF CASH FLOWS
(¥ millions) | |||
Three Months Ended June 30 | |||
2020 | 2019 | ||
Cash Flows From Operating Activities | |||
Income before Income Taxes | ¥24,151 | ¥49,337 | |
Depreciation and Amortization | 21,337 | 21,218 | |
Interest and Dividend Income Receivable | (3,732) | (3,724) | |
Interest Expense | 7,343 | 7,281 | |
(Gain) Loss on Equity-Method Investments | 312 | (2,944) | |
(Gain) Loss on Sales of Investment Securities | (6,268) | - | |
Loss Related to COVID-19 | 11,820 | - | |
(Increase) Decrease in Accounts Receivable | 9,504 | 9,645 | |
Increase (Decrease) in Accounts Payable | (20,387) | (19,729) | |
(Increase) Decrease in Real Property for Sale | (93,554) | (54,069) | |
Other | (24,264) | (23,713) | |
Subtotal | (73,738) | (16,698) | |
Cash Receipts of Interest and Dividend Income | 6,023 | 6,386 | |
Cash Payments of Interest Expense | (5,538) | (5,099) | |
Payments Related to COVID-19 | (9,898) | - | |
Income Taxes Paid | (40,586) | (33,186) | |
Net Cash Provided by (Used in) Operating Activities | (123,737) | (48,597) | |
Cash Flows From Investing Activities | |||
Purchase of Tangible and Intangible Fixed Assets | (88,763) | (182,676) | |
Proceeds from Sale of Tangible and Intangible Fixed Assets | 89 | 1,140 | |
Purchase of Investment Securities | (26,295) | (6,448) | |
Proceeds from Sale of Investment Securities | 4,293 | 35 | |
Payment of Lease Deposits | (2,648) | (1,818) | |
Proceeds from Collection of Lease Deposits | 2,196 | 1,619 | |
Repayment of Deposits from Tenants | (6,692) | (10,120) | |
Proceeds from Deposits from Tenants | 7,591 | 12,295 | |
Payment of Loan Receivable | (5,290) | (6,189) | |
Collection of Loan Receivable | 2,743 | 3,917 | |
Proceeds from Withdrawal of Time Deposits | 2,602 | 1,341 | |
Other | (2,008) | (5,528) | |
Net Cash Provided by (Used in) Investing Activities | ¥(112,181) | ¥(192,432) |
(¥ millions) | |||
Three Months Ended June 30 | |||
2020 | 2019 | ||
Cash Flows From Financing Activities | |||
Proceeds from Short-Term Debt | ¥379,592 | ¥620,635 | |
Repayment of Short-Term Debt | (162,624) | (432,105) | |
Proceeds from Long-Term Debt | 134,145 | 193,089 | |
Repayment of Long-Term Debt | (31,012) | (96,744) | |
Proceeds from Issuance of Bonds | 130,050 | 30,500 | |
Redemption of Bonds | (112,400) | (39,200) | |
Cash Dividends Paid | (21,108) | (23,286) | |
Proceeds from Share Issuance to Non-Controlling Shareholders | 1,885 | 3,786 | |
Dividends Paid to Non-Controlling Shareholders | (1,279) | (1,154) | |
Repayment to Non-Controlling Shareholders | (379) | - | |
Repayment of Finance Lease Obligations | (1,125) | (1,075) | |
(Increase) Decrease in Treasury Stocks | (6,819) | (16,002) | |
Payments from Changes in Ownership Interests in Subsidiaries | - | (2,650) | |
Not Resulting in Change in Scope of Consolidation | |||
Net Cash Provided by (Used in) Financing Activities | 308,925 | 235,793 | |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (514) | (1,098) | |
Net Increase (Decrease) in Cash and Cash Equivalents | 72,491 | (6,334) | |
Cash and Cash Equivalents at Beginning of the Period | 179,472 | 157,682 | |
Cashand Cash Equivalents at End of the Period | ¥251,963 | ¥151,348 |
10
CONTINGENT LIABILITIES | ADDITIONAL INFORMATION | |
In response to concerns regarding the faulty installation of foundation piles at a condominium complex located in Yokohama and sold by Mitsui Fudosan Residential Co., Ltd., a consolidated subsidiary of Mitsui Fudosan, the company received a
report confirming that a portion of the piling used in construction failed to reach the necessary depth and required bearing layer from Sumitomo Mitsui Construction Co., Ltd., the building contractor, on April 11, 2016. Furthermore, Mitsui Fudosan Residential received a notice from the City of Yokohama that the subject condominium complex violated the Building Standards Law and a request that the company take all responsible measures to address and correct the situation in line with discussions with condominium owners on August 26, 2016.
In outlining its stance toward corrective measures including the reconstruction of the condominium complex impacted by faulty installation as well as compensation, Mitsui Fudosan Residential executed an agreement with the condominium association on May 8, 2016, confirming that the company would shoulder all expenses. Later, on September 19, 2016, the condominium association resolved that it would seek the complete reconstruction of the entire condominium complex in accordance with the Act on Building Unit Ownership, etc.
According to the report issued by Sumitomo Mitsui Construction, which noted that construction records had been diverted and modified in connection with the installation of foundation piles and that certain foundation piles failed to reach the necessary depth and required bearing layer, the condominium complex was deemed to be in violation of the Building Standards Law. As a result, and in accordance with the aforementioned agreement, Mitsui Fudosan Residential has decided to seek damages including reconstruction costs as well as expenses relating to the temporary housing of residents during the period of construction under such remedies as tort liability and warranties against defects from Sumitomo Mitsui Construction, as well as Hitachi High-Technologies Corporation and Asahi Kasei Construction Materials Corporation, who installed the foundation piles. Based on this decision to seek damages, Mitsui Fudosan Residential filed a lawsuit for total compensation amounting to around ¥50.9 billion against the three companies identified above on November 28, 2017. Mitsui Fudosan has posted all related temporary payments undertaken by Mitsui Fudosan Residential up to the end of the first quarter of the fiscal year under review as current assets on its consolidated
quarterly balance sheet.
Depending on the flow of future events, any incidence of expenditure may impact the consolidated results of the Mitsui Fudosan Group. At this stage, however, the Company is unable to provide a reasonable estimate of any such impact.
The Mitsui Fudosan Group assumes that the spread of COVID-19 will have a certain impact on its future earnings with respect to the necessity or otherwise to post an impairment loss on fixed assets and accounting estimates in connection with such items as the valuation of real estate for sale based on information available at the time quarterly consolidated financial statements were prepared.
While economic activities remained constrained due to variety of factors including requests by the government and administrative authorities in the first quarter of the fiscal year under review, conditions are expected to gradually normalize from the second quarter and through to the end of fiscal year. There are no significant changes to the Company's assumptions from the end of the previous fiscal year.
11
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Mitsui Fudosan Co. Ltd. published this content on 06 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 August 2020 06:18:09 UTC