Mitsubishi Estate Co. (8802) Q1 2025 earnings summary

Executive summary

• Operating profit for FY2024 Q1 reached ¥51.7 billion, up year-over-year; profit attributable to owners was ¥25.9 billion, also up year-over-year.

• Office, retail (outlet malls), and hotels performed well, with office vacancy rates at 1.83% as of June 30, 2024.

• Full-year forecasts remain unchanged, with operating profit and profit attributable to owners expected to hit record highs.

Financial highlights

• Q1 operating revenue was ¥328.2 billion, up 12.2% year-over-year.

• Q1 operating profit was ¥51.8 billion, up ¥3.4 billion year-over-year; profit attributable to owners was ¥25.9 billion, up 34.6% year-over-year.

• Capital gains in Q1 totaled ¥7.0 billion, down ¥8.0 billion year-over-year.

• Total assets as of June 30, 2024, were ¥7,684.7 billion, up ¥101.0 billion from March 31, 2024.

• Total income taxes decreased 19.4% year-over-year.

Outlook and guidance

• FY2024 operating profit forecast is ¥300 billion, up ¥21.4 billion year-over-year, a new historical high.

• Profit attributable to owners forecast at ¥173 billion, up ¥4.5 billion year-over-year, marking a fourth consecutive record year.

• Dividend forecast for FY2024 is ¥43 per share, with a progressive increase of ¥3 per year planned until FY2030.

• Share buyback of ¥50 billion decided for FY2024, with similar levels expected through FY2026.

• Capital gains expected to be recorded mainly in the second half of FY2024.