Mitsubishi Estate Co. (8802) Q2 2025 earnings summary

Executive summary

• Operating profit for FY2024 2Q reached ¥99.8 billion, up 10.6% year-over-year; profit attributable to owners was ¥50.0 billion, up 20.4% year-over-year.

• Office, retail (outlet malls), and hotels performed strongly, with office vacancy rates at 1.45% as of September 30, 2024.

• Full-year forecasts remain unchanged, targeting record-high operating profit of ¥300 billion and profit attributable to owners at ¥173 billion.

• Capital gains are expected mainly in the second half, with full-year profit forecasts unchanged.

Financial highlights

• Operating revenue for 2Q was ¥641.1 billion, up 9.0% year-over-year.

• Ordinary profit for 2Q was ¥79.4 billion, up 5.6% year-over-year.

• Extraordinary income increased by ¥10.0 billion due to gains on sales of investment securities.

• Commercial Property Business profit increased 16.6% year-over-year; Residential Business profit also rose.

• International Business profit declined 37.3% year-over-year due to deferred property sales.

Outlook and guidance

• No change in full-year operating profit forecast; domestic business revised upward, international business forecast reduced due to postponed property sales.

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

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

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

• Capital gains expected to increase in the domestic market, leveraging stable transaction conditions.