Mitsubishi Estate Co. (8802) Q1 2026 earnings summary

Executive summary

• Operating profit for FY2025 1Q reached ¥62.4 billion, up 20.5% year-over-year, with profit attributable to owners at ¥31.9 billion, up 23.3% year-over-year, driven by large-scale condominium deliveries and strong leasing and retail/hotel performance.

• Operating revenue for 1Q FY2025 rose to ¥356.95 billion, up from ¥328.24 billion year-over-year.

• FY2025 is forecasted to achieve record-high operating profit of ¥325 billion and profit attributable to owners of ¥195 billion, marking the fifth consecutive year of record profits.

• Capital gains are expected mainly in the second half, with negotiations progressing steadily.

Financial highlights

• EPS for 1Q FY2025 was ¥25.75, compared to ¥20.52 in 1Q FY2024.

• Ordinary profit for 1Q FY2025 was ¥55.67 billion, up 27.1% year-over-year.

• Extraordinary income rose by ¥2.33 billion due to increased gain on sales of investment securities; extraordinary losses also increased due to redevelopment-related asset retirements.

• Total assets as of June 30, 2025, stood at ¥7,984.7 billion, with interest-bearing debt at ¥3,471.8 billion, up ¥133.2 billion from March 2025.

• Total equity to total assets ratio was 31.4%, down from 32.1% at the previous fiscal year-end.

Outlook and guidance

• FY2025 operating profit is projected at ¥325 billion (up 17.1% YoY), and profit attributable to owners at ¥195 billion (up 2.7% YoY).

• Full-year FY2025 operating revenue forecasted at ¥1,850,000 million.

• EPS forecast for FY2025 is ¥160.16, factoring in the impact of share repurchase.

• Dividend forecast for FY2025 is ¥46 per share, with a progressive policy of +¥3 per year until FY2030.

• ¥100 billion share buyback planned for FY2025, with potential for additional buybacks depending on market conditions.