Mitsui Fudosan : Results for the Six Months Ended September 30, 2020(524KB)

FACT BOOK

For the Six Months Ended September 30, 2020

November 5, 2020

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

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

Corporate Data	Contents
(As of September 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:
¥339,897 million	Consolidated Balance Sheets	7-8
Number of Issued and Outstanding Shares:	Consolidated Statements of Income	9
965,281,777
	Consolidated Statements of Cash Flows	10
Stock Exchange Listings:
Tokyo (Code: 8801)	Consolidated Statements of Earning Forecasts	11-12
	Contingent Liabilities and Additional Information	13

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.

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CONSOLIDATED BUSINESS OVERVIEW

Results of Operations			(¥ millions)
	Six Months Ended September 30	Change
	2020	2019
Revenue from Operations	¥797,401	¥888,776	¥(91,374)
Leasing	294,455	313,173	(18,718)
Property Sales	205,288	222,948	(17,659)
Management	188,952	206,442	(17,489)
Other	108,705	146,211	(37,506)
Operating Income	64,189	118,604	(54,415)
Leasing	63,577	78,203	(14,626)
Property Sales	30,600	34,788	(4,188)
Management	11,644	28,893	(17,249)
Other	(18,299)	(1,172)	(17,126)
Elimination or Corporate	(23,334)	(22,109)	(1,224)
Non-Operating Income/Expenses	(16,900)	(10,775)	(6,125)
Equity in Net Income/Loss of Affiliated Companies	(2,022)	3,421	(5,444)
Interest Income/Expense, in Net	(13,481)	(14,047)	565
Other, in Net	(1,395)	(149)	(1,246)
Ordinary Income	47,288	107,829	(60,540)
Extraordinary Gains/Losses	(15,155)	(1,273)	(13,881)
Extraordinary Gains	30,871	-	30,871
Extraordinary Losses	46,026	1,273	44,752
Income before Income Taxes	32,133	106,556	(74,422)
Income Taxes	23,126	39,735	(16,608)
Profit	9,007	66,820	(57,813)
Profit (Loss) Attributable to Non-Controlling Interests	(33)	496	(529)
Profit Attributable to Owners of Parent	¥9,040	¥66,324	¥(57,283)

◆Overview

• Despite showing signs of a partial recovery in personal consumption, export activity, and production, the
  Japanese economy continued to confront a difficult operating environment in the first half of the fiscal year under review. Impacted by the COVID-19 pandemic, corporate sector earnings fell substantially. This in turn led to considerable weakness in such areas as capital investment and employment.

Looking at the Group's operating results against the backdrop of this harsh operating environment, both revenue and earnings declined in the first half of the fiscal year under review. Buffeted by a variety of factors including COVID-19, revenue from operations decreased ¥91.3 billion, or 10.3%, compared with the corresponding period of the previous fiscal year. From a profit perspective, operating income declined ¥54.4 billion, or 45.9% year on year. In line with efforts to control its balance sheet, the Mitsui Fudosan Group posted such items as an extraordinary loss of ¥32.8 billion in connection with the decision to dispose of the Shinjuku Mitsui Building. Accounting for these and other factors, profit attributable to owners of parent fell ¥57.2 billion, or 86.4%, year on year.

Recognizing that "Property Sales to Investors" have already exceeded initial plans*, the Mitsui Fudosan Group has decided to revise its sales projections. Revenue from operations is now anticipated to reach ¥1,950 billion, up from the previous forecast ¥1,850 billion. On the earnings front, forecasts for operating income, ordinary income, and profit attributable to owners of parent all remain unchanged.

• The contract progress rate on sales of revised "Property Sales to Investors" exceeded 90% (as of the date financial results for the first half of the fiscal year under review were announced).

Progress Comparison with Full Year Forecasts			(¥ millions)
	Six Months Ended	Year to March 2021	6-MonthResults /
	(Forecast as of	Full-Year Forecast
	September 30, 2020
	November 5, 2020)	(%)
Revenue from Operations		¥797,401	¥1,950,000	40.9
Operating Income		64,189	200,000	32.1
Ordinary Income		47,288	169,000	28.0
Profit Attributable to Owners of Parent		9,040	120,000	7.5
Extraordinary Gains/Losses	(¥ millions)
【Extraordinary Gains】
Gain on Sales of Investment Securities		¥28,371
Gain on sales of shares of associates		2,500
Total		¥30,871
【Extraordinary Losses】
Impairment Loss*		¥32,808
Loss Related to COVID-19		13,217
Total		¥46,026

* Posted in connection with the disposition of the Shinjuku Mitsui Building.

Consolidated Statements of Comprehensive Income			(¥ millions)
				Six Months Ended September 30
				2020	2019
Profit				¥9,007	¥66,820
Other Comprehensive Income				627	66,023
Valuation Difference on Available-For-Sale Securities		13,333	74,430
Deferred Gains or Losses on Hedges		340	(134)
Foreign Currency Translation Adjustment		(8,117)	(7,357)
Remeasurements of Defined Benefit Plans, Net of Tax		(115)	(403)
Share of Other Comprehensive Income of Associates Accounted	(4,813)	(511)
for Using Equity Method
Comprehensive Income				¥9,634	¥132,844
(Comprehensive Income Attributable to Owners of the Parent)		9,924	132,795
(Comprehensive Income Attributable to Non-Controlling Interests)	(290)	48
【Reference】 Nonconsolidated Operating Income/Expenses (Mitsui Fudosan)	(¥ millions)
		Six Months Ended September 30	Change
			2020	2019
Revenue from Operations	Leasing		¥256,724	¥284,919	¥(28,194)
	Property Sales		791	17,333	(16,542)
	Other		24,449	17,545	6,903
	Total		281,964	319,798	(37,834)
Gross Profit Margin (%)	Leasing		13.8	17.9	(4.1)pt
	Property Sales		-	44.6	-
	Other		41.3	25.5	15.8 pt
Operating Income			¥23,972	¥44,073	¥(20,100)

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SEGMENT RESULTS

[1] LEASING

			(¥ millions)
	Six Months Ended September 30	Change
	2020	2019
Revenue from Operations	¥294,455	¥313,173	¥(18,718)
Operating Income	63,577	78,203	(14,626)
	Year to March 2021	6-MonthResults /	Year Ended
	(Forecast as of November
	Full-Year Forecast (%)	March 31, 2020
	5, 2020)
Revenue from Operations	¥620,000	47.5	¥636,056
Operating Income	128,000	49.7	145,893

• In the "Leasing" segment, overall revenue from operations declined ¥18.7 billion and operating income decreased ¥14.6 billion. Despite an increase in leasing and other income from existing office buildings as well as contributions from MITSUI OULET PARK YOKOHAMA BAYSIDE and LaLaport AICHI TOGO, this downturn on revenue and earnings was mainly due to the closure of retail facilities as a result of COVID-19 in the first quarter of the fiscal year under review and expenses associated with the completion of multiple new office buildings in Japan.
  The vacancy rate for the Company's office buildings in the Tokyo metropolitan area was 2.6% on a non-consolidated basis as of September 30, 2020.

Breakdown of Leasing Operations (Non-consolidated)

					At September 30
		2020		2019	2020		2019	2020	2019
		Total		Tokyo		Regional Areas
			Metropolitan Area
	Number of Buildings	147		136	119		108	28	28
Office	Leased Floor Space (1,000m2)	2,997		2,821	2,673		2,496	324	325
Buildings	Leasing Revenue (¥ millions)	156,515		153,493	145,484		142,573	11,030	10,920
	Vacancy Rate (%)	2.5		1.8	2.6		1.8	1.9	1.8
	Number of Buildings	97		91	70		65	27	26
Retail	Leased Floor Space (1,000m2)	2,211		2,051	1,423		1,383	789	668
Facilities	Leasing Revenue (¥ millions)	87,122		114,687	59,711		80,173	27,410	34,513
	Vacancy Rate (%)	1.8		1.2	2.0		1.3	1.4	1.0

Leased Floor Space						(¥ millions)
				At September 30	Change
				2020	2019
	Revenue	Office Buildings	¥181,608	¥178,155	¥3,453
	Retail Facilities	90,818	118,878	(28,060)
Office Buildings and	Total Leased Floor Space	(1,000 m2):		5,790	5,349	441
		Owned	2,170	1,991	179
Retail Facilities	Office Buildings
Managed	1,292	1,252	40
	Retail Facilities	Owned	1,790	1,575	215
	Managed	538	531	7
Other	Revenue			22,028	16,140	5,888
Total Revenue				¥294,455	¥313,173	¥(18,718)
Vacancy Rate								(%)
		9/2020	6/2020	3/2020	3/2019	3/2018		3/2017
Consolidated		2.4	2.1	2.3	1.8	2.4		3.1
Office Buildings and Retail Facilities (including overseas)
Non-consolidated		2.6	2.1	1.9	1.7	2.2		3.4
Tokyo Metropolitan Area Office Buildings
Regional Area Office Buildings		1.9	1.6	1.3	1.8	2.3		2.3
Major Projects during the Period (six-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
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
(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

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