Mitsubishi Estate : Earnings Document

FY2023

(The Fiscal Year Ending March 31, 2024)

IR Data Book

For details of the "Long-Term Management Plan 2030", which began from April 2020, please see the following link.

https://www.mec.co.jp/en/ir/plan2030/

Definition of Term（Changes from previous versions）

"FY2023" means the Group's fiscal year ended March 31, 2024, and other fiscal years mean in a corresponding manner

Copyright @ MITSUBISHI ESTATE Co., Ltd. All Rights Reserved

Contents	Financial Supplemental Data
	Business Overview
	Commercial Property Business
	Office Buildings
	Outlet Malls, Retail Properties, Logistics Facilities, Hotels, and Airports
	Residential Business
	International Business
	Investment Management Business
	Investment/Financial Data, etc.
	ESG Initiatives
	Overview of the "Long-Term Management Plan 2030"

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MITSUBISHI ESTATE CO., LTD.

IR Data Book 2

Financial Supplemental Data

MITSUBISHI ESTATE CO., LTD.

IR Data Book 3

Financial Supplemental Data

1. Summary of Segment Changes

Old Segment

Commercial Property Business Group

Residential Business Group

International Business Group

Investment Management Business Group

Architectural Design & Engineering

Business Group

Real Estate Services Business Group

New Segment

Commercial Property Business Group

Marunouchi Property Business Group

Residential Business Group

International Business Group

Investment Management Business Group

Architectural Design & Engineering

Business Group

Real Estate Services Business Group

IR Data Book 4

Financial Supplemental Data

2. FY2023 Income Statement Results

Millions of yen (rounded down)	FY2023	FY2022	Change
Results	Results
Commercial Property Business	849,771	777,424	72,346
Residential Business	398,827	346,419	52,407
International Business	173,770	176,130	(2,360)
Investment Management Business	30,962	35,878	(4,915)
Architectural Design & Engineering	73,265	60,774	12,491
Business and Real Estate Services Business
Other	11,009	11,801	(792)
Elimination	(32,918)	(30,602)	(2,316)
Operating revenue	1,504,687	1,377,827	126,860
Commercial Property Business	211,795	188,852	22,943
Residential Business	38,888	35,037	3,851
International Business	51,448	89,400	(37,952)
Investment Management Business	(1,619)	8,054	(9,673)
Architectural Design & Engineering	9,021	4,176	4,844
Business and Real Estate Services Business
Other	(1,577)	(2,121)	544
Elimination or Corporate	(29,328)	(26,696)	(2,632)
Operating profit	278,627	296,702	(18,075)
Non-operating income	15,809	14,361	1,448
(Share of profit of entities accounted for	308	260	47
using equity method)
Non-operating expenses	53,278	39,244	14,034
Ordinary profit	241,158	271,819	(30,661)
Extraordinary income	45,513	12,224	33,288
Extraordinary losses	12,138	31,141	(19,002)
Total income taxes	98,131	70,634	27,496
Profit attributable to non-controlling	7,968	16,924	(8,956)
interests
Profit attributable to owners of parent	168,432	165,343	3,089
Business profits	278,935	296,962	(18,027)
EBITDA	391,625	402,221	(10,596)

■ Breakdown of Extraordinary income	FY2023	FY2022
		Millions of yen (rounded down)
	Results	Results	Change
Gain on sale of non-current assets	10,381	8,921	1,460
Gain on sale of investment securities	30,280	3,303	26,977
Gain on amortization of negative	4,850	-	4,850
goodwill
Total	45,513	12,224	33,288
■ Breakdown of Extraordinary loss	FY2023	Millions of yen (rounded down)
	FY2022	Change
	Results	Results
Loss related to retirement of non-	-	17,741	(17,741)
current assets
Loss on valuation of shares of	-	2,599	(2,599)
subsidiaries and associates
Impairment losses	-	3,535	(3,535)
Loss on valuation of equity investments	12,138	7,264	4,874
Total	12,138	31,141	(19,002)
■ Capital Gains(before G&A) included in Operating Profit	Millions of yen
		(rounded off to the nearest billion)
	FY2023	FY2022	Change
	Results	Results
Commercial Property Business	52,000	42,000	10,000
Residential Business	23,000	24,000	(1,000)
International Business	32,000	61,000	(29,000)
Total	107,000	1270,000	(20,000)

IR Data Book 5

Financial Supplemental Data

3. FY2023 Income Statement Results (Main factors for increase/decrease)

	FY2023	FY2022	Change	Main factors for increase/decrease
Millions of yen (rounded down)	Results	Results
Operating Profit	278,627	296,702	(18,075)
Commercial Property Business	211,795	188,852	＋22,943	+Strong performance of hotels and commercial properties, increased gain on
				sale of properties
Capital Gain (before G&A)	52,000	42,000	＋10,000
Residential Business	38,888	35,037	＋3,851	+Increased profit of condominiums business
Capital Gain (before G&A)	23,000	24,000	(1,000)
International Business	51,448	89,400	(37,952)	-The absence of large capital gains recorded in the previous fiscal year
Capital Gain (before G&A)	32,000	61,000	(29,000)
Investment Management Business	(1,619)	8,054	(9,673)	-The adjustment of incentive fees (non-cash) reported in the previous fiscal
				year
Architectural Design & Engineering	9,021	4,176	＋4,844	+Good performance of Architectural Design & Engineering Business and Real
Business and Real Estate Services Business				Estate Services Business
Other	(1,577)	(2,097)	＋519
Elimination or Corporate	(29,328)	(26,696)	(2,632)

IR Data Book 6

Financial Supplemental Data

4. FY2024 Income Statement Forecasts (FY2024 Forecasts vs. FY2023 Results)

Millions of yen (rounded down)	FY2024	FY2023	Change
	Forecasts	Results
Commercial Property Business	519,000	499,138	19,862
Marunouchi Property Business	382,000	381,027	973
Residential Business	392,000	398,827	(6,827)
International Business	245,000	173,770	71,230
Investment Management Business	39,000	30,962	8,038
Architectural Design & Engineering	74,000	73,265	735
Business and Real Estate Services Business
Other	12,000	11,009	991
Elimination	(67,000)	(63,313)	(3,687)
Operating revenue	1,596,000	1,504,687	91,313
Commercial Property Business	110,000	114,730	(4,730)
Marunouchi Property Business	90,000	97,082	(7,082)
Residential Business	40,000	38,888	1,112
International Business	70,000	51,448	18,552
Investment Management Business	13,000	(1,619)	14,619
Architectural Design & Engineering	7,000	9,021	(2,021)
Business and Real Estate Services Business

■ Capital Gains included in Operating Profit (before G&A)	Millions of yen (rounded off
		to the nearest billion)
	FY2024	FY2023	Change
	Forecasts	Results
Commercial Property Business	45,000	52,000	(7,000)
Residential Business	20,000	23,000	(3,000)
International Business	45,000	32,000	13,000
Total	110,000	107,000	3,000

*From FY2024, the former Commercial Property Business Group is split into the Commercial Property Business Group and the Marunouchi Property Business Group.

Other	(2,000)	(1,577)	(423)
Elimination or Corporate	(28,000)	(29,346)	1,346
Operating profit	300,000	278,627	21,373
Non-operating income	12,000	15,809	(3,809)
(Share of profit of entities accounted for	300	308	(8)
using equity method)
Non-operating expenses	60,000	53,278	6,722
Ordinary profit	252,000	241,158	10,842
Extraordinary income / losses	26,000	33,374	(7,374)
Total income taxes	92,000	98,131	(6,131)
Profit attributable to noncontrolling	13,000	7,968	5,032
interests
Profit attributable to owners of parent	173,000	168,432	4,568
Business profits	300,300	278,935	21,365
EBITDA	413,600	391,625	21,975			7
IR Data Book

Financial Supplemental Data

5. FY2024 Income Statement Forecasts (Main factors for increase/decrease)

	FY2024	FY2022	Change	Main factors for increase/decrease
Millions of yen (rounded down)	Forecasts	Results
Operating Profit	300,000	278,627	＋21,373
Commercial Property Business	110,000	114,730	(4,730)	-Decrease gain on sale of properties
Capital Gain (before G&A)	45,000	52,000	(7,000)
				-Decrease rental profit due to closure of buildings planned for
Marunouchi Property Business	90,000	97,082	(7,082) redevelopment/property sale, and increase expenses such as applicable
				taxes
Residential Business	40,000	38,888	＋1,112	+Increase profit of condominium business
Capital Gain (before G&A)	20,000	23,000	(3,000)
International Business	70,000	51,448	＋18,552	+Increase gain on sale of properties, increase profit of condominium business
Capital Gain (before G&A)	45,000	32,000	＋13,000
Investment Management Business	13,000	(1,619)	＋14,619	+Rebound of adjustment of incentive fees
Architectural Design & Engineering	7,000	9,021	(2,021)
Business and Real Estate Services Business
Other	(2,000)	(1,577)	(422)
Elimination or Corporate	(28,000)	(29,346)	＋1,346

IR Data Book 8

Financial Supplemental Data

6. Balance Sheet

		Millions of yen (rounded down)
	As of	As of	Change
	Mar. 31, 2024	Mar. 31, 2023
Current assets	1,945,088	1,616,602	328,485
Cash and deposits	273,951	225,011	48,939
Trade notes, accounts	89,174	69,987	19,187
receivable and contract assets
Real estate for sale	53,792	65,252	(11,460)
Real estate for sale in progress	453,008	420,956	32,051
Real estate for development	719	719	-
Equity investments	962,175	716,416	245,758
Other	112,265	118,256	(5,990)
Non-current assets	5,638,660	5,255,356	383,303
Total property, plant and	4,597,114	4,416,214	180,900
equipment
Total intangible assets	104,743	111,187	(6,444)
Investment securities	434,243	306,352	127,891
Other	502,559	421,602	80,956
Total assets	7,583,748	6,871,959	711,789

		Millions of yen (rounded down)
	As of	As of	Change
	Mar. 31, 2024	Mar. 31, 2023
Liabilities	4,959,155	4,492,017	467,137
Current liabilities	871,447	855,337	16,110
Trade notes and accounts	87,094	66,407	20,687
payable
Short-term borrowings	231,378	194,881	36,497
Current portion of long-term	93,261	210,087	(116,825)
borrowings
Current portion of bonds payable	81,111	26,635	54,476
Other	378,601	357,326	21,276
Non-current liabilities	4,087,707	3,636,680	451,027
Bonds payable	799,472	820,584	(21,111)
Long-term borrowings	1,931,400	1,618,019	313,380
Other	1,356,835	1,198,077	158,758
Net assets	2,624,593	2,379,941	244,651
Shareholders' equity	1,463,054	1,399,299	63,754
Foreign currency translation	132,469	77,489	54,979
adjustment
Accumulated other	805,583	680,772	124,811
comprehensive income※
Share acquisition rights	71	193	(121)
Non-controlling interests	223,414	222,187	1,227
Total liabilities and net assets	7,583,748	6,871,959	711,789

※Total amount excluding foreign currency translation adjustment

IR Data Book 9

Financial Supplemental Data

7. Assets Breakdown (Consolidated) : As of March 31, 2024

Millions of yen (rounded down)

	As of	As of	Change
	Mar 31, 2024	Mar. 31, 2023
Inventories
Condominium(domestic)	380,572	344,572	36,000
International	16,150	27,611	(11,461)
US	5,420	17,697	(12,277)
Europe	-	-	-
Asia	10,730	9,913	817
Other	117,112	121,361	(4,249)
Total inventories	513,834	493,544	20,290
Equity investments
Domestic Office Building	72,500	56,810	15,690
Domestic(other)	110,154	80,975	29,179
International	779,520	578,630	200,890
US	365,304	298,349	66,955
Europe	42,620	42,957	(337)
Asia	371,595	237,323	134,272
Total equity investments	962,175	716,416	245,758

	As of	As of	Change
	Mar. 31, 2024	Mar. 31, 2023
Property, plant and equipment
Office Building(Commercial Property Business) *	981,816	3,128,790	(64,285)
Office Building(Marunouchi Property Business) *	2,082,689
Outlet Mall	134,625	137,313	(2,688)
Logistics Facility	186,837	106,355	80,482
Retail Property(Except Outlet Mall)	120,264	143,054	(22,790)
Rental Apartment	156,236	146,896	9,340
International	669,789	493,339	176,450
US	362,259	262,495	99,764
Europe	279,718	215,741	63,977
Asia	27,811	15,103	12,708
Other	264,858	260,467	4,391
Total property, plant and equipment	4,597,114	4,416,214	180,900

• From FY2024, the former Commercial Property Business Group is split into the Commercial Property Business Group and the Marunouchi Property Business Group.

IR Data Book 10