NTT URBAN DEVELOPMENT : Notice of Financial Results for the FY 2017 and Forecasts for the FY 2018

NTT Urban Development Corporation (head office: Chiyoda-ku, Tokyo, President and Chief Executive Officer: Hiroshi Nakagawa) announced the consolidated financial results for the NTT Urban Development Group for the FY2017 (referring to the 33rd business period from April 1, 2017 to March 31, 2018). Please refer to the Presentation Material for the FY2017 and Forecasts for the FY2018 and the Summary of Financial Statements for the FY2017.

• In consolidated financial results for FY2017, operating revenue amounted to ¥166.8 billion (down ¥21.8 billion year on year) and operating income was ¥29.6 billion (down ¥1.7 billion). However, excluding sales of properties, the Company recorded gains in revenue and income. Ordinary income was ¥27.4 billion, a decrease of ¥1.2 billion. Profit attributable to owners of parent was ¥18.7 billion, an increase of ¥2.0 billion. These results achieved the earnings forecasts for FY2017.
• Regarding Offices/Retail Business, operating revenue was ¥91.9 billion (down ¥21.6 billion). Operating income was ¥29.8 billion (down ¥3.9 billion). Excluding sales of properties, the Company recorded gains in revenue and income due to the termination of free-rent periods at properties such as Shinagawa Season Terrace.
• In the Residential Business, operating revenue amounted to ¥59.7 billion (up ¥0.1 billion) and operating income stood at ¥4.9 billion (up ¥1.8 billion), reflecting a sharp increase in the number of condominium unit sales recorded, despite decline in share-outs.
• The Company has decided to voluntarily adopt International Financial Reporting Standards (IFRS) from the first quarter of FY2017. For the FY2018 (IFRS) operating revenue is expected ¥167.5 billion. Operating income is ¥28.0 billion. Profit attributable to owners of parent is ¥16.0 billion.