NTT URBAN DEVELOPMENT : Notice of Financial Results for the FY 2016 and Forecast for the FY 2017

NTT Urban Development Corporation (head office: Chiyoda-ku, Tokyo, President and Chief Executive Officer: Sadao Maki) announced the consolidated financial results for the NTT Urban Development Group for the FY 2016 (referring to the 32nd business period from April 1, 2016 to March 31, 2017). Please refer to the Presentation Material for the FY 2016 and Forecast for the FY 2017 and the Summary of Financial Statements for the FY 2016.

• For the FY 2016 operating revenue reached ¥188.6 billion, an increase of ¥5.6 billion compared with the previous fiscal year. Operating income was ¥31.3 billion, a decrease of ¥6.3 billion. Ordinary income was ¥28.7 billion, a decrease of ¥5.1 billion. Profit attributable to owners of parent was ¥16.6 billion, an increase of ¥0.1 billion.
  Full year performance for the fiscal year ending March 2017 was basically in line with expectations.
• Regarding Offices/Retail Business, operating revenue was ¥113.6 billion, an increase of ¥8.2 billion year-on-year. Operating income was ¥33.8 billion, an increase of ¥3.8 billion, mainly reflecting increase in rent revenue from improvement in vacancy rates of existing properties and expiry of free rent periods and sales of properties.
• In Residential Business, operating revenue was ¥59.6 billion, a decrease of ¥4.8 billion compared with the previous fiscal year, and operating income was ¥3.0 billion, a decrease of ¥8.7 billion, due to a decline in the number of units delivered and a decrease in the average price per unit.
• For the FY 2017 operating revenue is expected ¥163.0 billion, a decrease of ¥25.6 billion compared with the previous fiscal year. Operating income is ¥29.0 billion, a decrease of ¥2.3 billion. Ordinary income is ¥27.0 billion, a decrease of ¥1.7 billion. Profit attributable to owners of parent is ¥17.5 billion, an increase of ¥0.8 billion.