Mitsui Fudosan : Fact Book(271KB)

FACT BOOK

For the Nine Months Ended December 31, 2021

February 4, 2022

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

https://www.mitsuifudosan.co.jp/english/

Corporate Data	Contents
(As of December 31, 2021)
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:
¥340,162 million	Consolidated Balance Sheets	7-8
Number of Issued and Outstanding Shares:	Consolidated Statements of Income	9
965,481,947
	[Reference] Consolidated Statements of Earning Forecasts	10-11
Stock Exchange Listings:
Tokyo (Code: 8801)	Notes to Quarterly Consolidated Financial Statements	12-13

Note: The fiscal year ending March 31, 2022, the Company will omit the disclosure of quarterly consolidated statements of cash flows for the first and third quarters.

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)
	Nine Months Ended December 31	Change
	2021	2020
Revenue from Operations	¥1,466,906	¥1,468,035	¥(1,128)
Leasing	493,136	459,922	33,213
Property Sales	405,586	526,423	(120,836)
Management	318,548	294,729	23,818
Other	249,634	186,959	62,675
Operating Income	154,529	164,444	(9,915)
Leasing	101,488	96,468	5,019
Property Sales	75,414	97,735	(22,321)
Management	41,557	25,191	16,366
Other	(26,199)	(20,887)	(5,312)
Elimination or Corporate	(37,730)	(34,063)	(3,667)
Non-Operating Income/Expenses	(16,711)	(21,176)	4,465
Equity in Net Income/Loss of Affiliated Companies	478	(841)	1,319
Interest Income/Expense, in Net	(21,793)	(20,102)	(1,690)
Other, in Net	4,604	(231)	4,836
Ordinary Income	137,818	143,268	(5,450)
Extraordinary Gains/Losses	46,953	(197)	47,150
Extraordinary Gains	51,175	47,177	3,998
Extraordinary Losses	4,222	47,374	(43,152)
Income before Income Taxes	184,771	143,071	41,700
Income Taxes	63,023	44,235	18,787
Profit	121,748	98,835	22,912
Profit (Loss) Attributable to Non-Controlling Interests	(1,755)	(50)	(1,704)
Profit Attributable to Owners of Parent	¥123,503	¥98,886	¥24,616

Overview

Amid the ongoing impact of COVID-19, retail facility leasing exhibited a recovery and revenue and earnings from such activities as the "Repark" (car park leasing) and "Rehouse" (brokerage for individuals) businesses grew year on year in the nine months ended December 31, 2021. In contrast, due to a decline in the reported number of units in the "Property Sales to Individuals (Domestic)" category, the concentrated handover of properties in the "Property Sales to Investors" category in the fourth quarter, and other factors, revenue from operations edged down ¥1.1 billion, or 0.1%, compared with the corresponding period of the previous fiscal year. On the earnings front, operating income declined ¥9.9 billion, or 6.0%, and ordinary income decreased ¥5.4 billion, or 3.8%, year on year.

Profit attributable to owners of parent increased ¥24.6 billion, or 24.9%, (a record third quarter high) compared with the corresponding period of the previous fiscal year due to a variety of factors including the sales of policy-holdings shares posted as extraordinary gains.

Consolidated Forecasts

In light of such factors as the Company's results for the nine months ended December 31, 2021, Mitsui Fudosan has upwardly revised its consolidated forecasts for the fiscal year under review. In specific terms, operating income is projected to come in at ¥240 billion (previous forecast ¥230 billion), ordinary income ¥215 billion (previous forecast ¥205 billion), and profit attributable to owners of parent ¥175 billion (previous forecast ¥160 billion). Forecast for revenue from operations remains unchanged.

Progress Comparison with Full Year Forecasts			(¥ millions)
		Nine Months Ended	Year to March 2022	9-MonthResults /
		December 31, 2021	(Forecast as of	Full-Year Forecast
		February 4, 2022)	(%)
Revenue from Operations			¥1,466,906	¥2,150,000	68.2
Operating Income			154,529	240,000	64.4
Ordinary Income			137,818	215,000	64.1
Profit Attributable to Owners of Parent		123,503	175,000	70.6
Extraordinary Gains/Losses	(¥ millions)
Extraordinary Gains
Gain on Sales of Investment Securities		¥51,175
Total			¥51,175
Extraordinary Losses
Loss Related to COVID-19			4,222
Total			4,222
Consolidated Statements of Comprehensive Income			(¥ millions)
				Nine Months Ended December 31
				2021	2020
Profit				¥121,748	¥98,835
Other Comprehensive Income				39,059	45,403
Valuation Difference on Available-For-Sale Securities		7,818	59,035
Deferred Gains or Losses on Hedges		(33)	1,794
Foreign Currency Translation Adjustment		25,635	(10,813)
Remeasurements of Defined Benefit Plans, Net of Tax		(1,550)	1,010
Share of Other Comprehensive Income of Associates Accounted		7,188	(5,622)
Comprehensive Income				¥160,807	¥144,239
(Comprehensive Income Attributable to Owners of the Parent)		161,415	144,685
(Comprehensive Income Attributable to Non-Controlling Interests)	(608)	(446)
䛆Reference䛇 Nonconsolidated Operating Income/Expenses (Mitsui Fudosan)	(¥ millions)
		Nine Months Ended December 31	Change
		2021	2020
Revenue from Operations	Leasing		¥433,391	¥404,966	¥28,425
	Property Sales		103,963	172,810	(68,847)
	Other		30,066	41,035	(10,968)
	Total		567,422	618,813	(51,391)
Gross Profit Margin (%)	Leasing		15.0	14.2	0.8 pt
	Property Sales		28.6	20.2	8.4 pt
	Other		27.1	46.1	(19.0)pt
Operating Income			¥67,276	¥80,133	¥(12,857)

2

SEGMENT RESULTS

[1] LEASING

			(¥ millions)
	Nine Months Ended December 31	Change
	2021	2020
Revenue from Operations	¥493,136	¥459,922	¥33,213
Operating Income	101,488	96,468	5,019
	Year to March 2022	9-MonthResults /	Year Ended
	(Forecast as of February
	Full-Year Forecast (%)	March 31, 2021
	4, 2022)
Revenue from Operations	¥680,000	72.5	¥623,073
Operating Income	130,000	78.1	120,777

(Leasing)

Amid the ongoing impact of COVID-19, overall revenue from operations and operating income in the "Leasing" segment grew ¥33.2 billion and ¥5.0 billion, respectively, in the nine months ended December 31, 2021. This was mainly due to the year-on-year recovery in sales at retail facilities, the full-term contribution from Bunkyo Garden Gate Tower, which was completed during the previous fiscal year, and an increase in leasing revenue and income from existing office buildings. On a separate note, the Company's office vacancy rate in the Tokyo metropolitan area as of December 31, 2021 (non- consolidated) was 4.1%.

Leased Floor Space							(¥ millions)
					At December 31	Change
					2021	2020
	Revenue		Office Buildings	¥288,808	¥274,805	¥14,003
		Retail Facilities	166,635	151,817	14,818
Office Buildings and	Total Leased Floor Space	(1,000 m2):		5,739	5,824	(85)
			Owned	1,923	2,162	(239)
Retail Facilities		Office Buildings
	Managed	1,439	1,243	196
		Retail Facilities	Owned	1,803	1,869	(66)
		Managed	574	550	24
Other	Revenue				37,691	33,299	4,392
Total Revenue					¥493,136	¥459,922	¥33,213
Vacancy Rate								(%)
			12/2021	9/2021	6/2021	3/2021	3/2020	3/2019
Consolidated			3.5	3.7	3.7	2.9	2.3	1.8
Office Buildings and Retail Facilities (including overseas)
Non-consolidated			4.1	3.9	4.7	3.1	1.9	1.7
Tokyo Metropolitan Area Office Buildings
Regional Area Office Buildings			4.3	4.2	3.9	3.5	1.3	1.8

Breakdown of Leasing Operations (Non-consolidated)

					At December 31
		2021		2020	2021		2020	2021	2020
		Total		Tokyo		Regional Areas
			Metropolitan Area
	Number of Buildings	135		140	110		113	25	27
Office	Leased Floor Space (1,000m2)	2,915		2,947	2,621		2,629	294	318
Buildings	Leasing Revenue (¥ millions)	246,442		237,044	228,913		220,399	17,529	16,644
	Vacancy Rate (%)	4.1		3.5	4.1		3.5	4.3	3.2
	Number of Buildings	99		99	73		72	26	27
Retail	Leased Floor Space (1,000m2)	2,229		2,277	1,479		1,485	750	791
Facilities	Leasing Revenue (¥ millions)	161,159		146,074	111,892		99,695	49,266	46,378
	Vacancy Rate (%)	1.8		1.3	2.0		1.5	1.6	1.1

Major Projects during the Period (nine-month total)

(NEWLY OPENED)

LaLaport SHANGHAI JINQIAO (Shanghai, China)	Retail facility opened in April 2021
OMIYAKADOMACHI SQUARE (Saitama, Saitama)	Office building completed in October 2021
(FULL-TERM CONTRIBUTION)
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
RAYARD MIYASHITA PARK (Shibuya-ku, Tokyo)	Retail facility opened in July 2020
LaLaport AICHI TOGO (Aichi-gun, Aichi)	Retail facility opened in September 2020
RAYARD Hisaya-odori Park (Nagoya, Aichi)	Retail facility opened in September 2020
Nagoya Mitsui North Building (Nagoya, Aichi)	Office building completed in January 2021

3

[2] PROPERTY SALES

			(¥ millions)
	Nine Months Ended December 31	Change
	2021	2020
Revenue from Operations	¥405,586	¥526,423	¥(120,836)
Operating Income	75,414	97,735	(22,321)
	Year to March 2022	9-MonthResults /	Year Ended
	(Forecast as of February
	Full-Year Forecast (%)	March 31, 2021
	4, 2022)
Revenue from Operations	¥670,000	60.5	¥714,739
Operating Income	137,000	55.0	118,213

(Property Sales)

Revenue and earnings in the "Property Sales to Individuals (Domestic)" category decreased. This was mainly due to the year-on-year decline in the reported number of condominium units. Owing to the concentrated handover of contracted properties in the fourth quarter, revenue and earnings in the "Property Sales to Investors and Individuals (Overseas) etc." category also declined in the nine months ended December 31, 2021. In overall terms, revenue from operations and operating income in the "Property Sales" segment decreased ¥120.8 billion and ¥22.3 billion, respectively.

Of the 3,200 new condominium units in Japan being recorded in the fiscal year ending March 31, 2022, the Company had contracts in place for 99% as of December 31, 2021.

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

Park Court SHIBUYA The Tower (Shibuya-ku, Tokyo)	Condominiums
Park Court BUNKYO KOISHIKAWA The Tower (Bunkyo-ku, Tokyo)	Condominiums
Park Homes Kashiwa Tower Residence (Kashiwa, Chiba)	Condominiums
Fine Court Eifuku 4-Chome(Suginami-ku, Tokyo)	Detached Housing

(Property Sales to Investors and Individuals (Overseas))

Iidabashi Grand Bloom (Chiyoda-ku, Tokyo)	Office building
Ginza 5-chome GLOBE (Chuo-ku, Tokyo)	Retail facility
Takeshita-dori Square (Shibuya-ku, Tokyo)	Retail facility
Park Axis Kiba Canal West (Koto-ku, Tokyo)	Rental Housing
Park Axis Toyocho Shinsui Koen (Koto-ku, Tokyo)	Rental Housing
8-10 Moorgate (London, UK)	Office building

Property Sales to Individuals and Investors								(¥ millions)
			Nine Months Ended December 31			Change
			2021				2020
				Unit Price				Unit Price			Unit Price
		Revenue	Units	( 10	Revenue		Units	( 10	Revenue	Units	( 10
				thousand)				thousand)			thousand)
	Condominiums	¥157,659	2,398	¥6,575	¥226,120		2,969	¥7,616	¥(68,461)	(571)	¥(1,041)
Property Sales to	Detached Housing	28,908	377	7,668	23,387		351	6,663	5,520	26	1,005
Individuals (Domestic)	Subtotal	186,567	2,775	6,723	249,508		3,320	7,515	(62,940)	(545)	(792)
	Operating Income		20,521				31,771			(11,250)
Property Sales to Investors	Revenue		219,019				276,914			(57,895)
and Individuals (Overseas),
Operating Income		54,892				65,963			(11,071)
etc.
Total Revenue			405,586				526,423			(120,836)
Total Operating Income			¥75,414				¥97,735			¥(22,321)
Breakdown for the Revenue from the Property Sales to Individuals (Domestic)	(¥ millions)
		Nine Months Ended December 31		Change
		2021	2020
		Revenue	Units	Revenue	Units		Revenue	Units
Condominiums	Tokyo Metropolitan	¥136,323	1,851	¥204,318	2,464		(67,994)	(613)
	Area
	Other	21,335	547	21,802	505		(466)	42
	Total	157,659	2,398	226,120	2,969		(68,461)	(571)
Detached Housing	Tokyo Metropolitan	27,001	345	22,346	333		4,655	12
Area
	Other	1,906	32	1,041	18		865	14
	Total	¥28,908	377	¥23,387	351		¥5,520	26
Inventories of Property Sales to Individuals (Domestic)					(Units)
		12/2021	9/2021	6/2021	3/2021		3/2020	3/2019
Condominiums		109	139	121	150		128	141
Detached Housing		2	3	6	17		58	30
Total		111	142	127	167		186	171

Contracted for Sale from the Property Sales to Individuals (Domestic)				(Units)
	Contracts at	Contracts	Total		Reported No. of	Contracts at End of	Newly Launched
	Beginning of Term	during Term		Units	Term	during Term
Condominiums	3,043	3,125		6,168	2,398	3,770	3,054
Detached Housing	145	374		519	377	142	357
Total	3,188	3,499		6,687	2,775	3,912	3,411

4