Mitsubishi Estate Co. (8802) Q2 2026 earnings summary

Executive summary

• Operating profit for FY2025 2Q reached ¥107.59 billion, up ¥7.7 billion year-over-year, with profit attributable to owners at ¥58.07 billion, up 16.1% year-over-year.

• Operating revenue for 2Q FY2025 was ¥743.2 billion, up 15.9% year-over-year from ¥641.1 billion.

• EPS for 2Q FY2025 was ¥47.03, compared to ¥39.70 in the same period last year.

• Strong performance driven by new office leasing, upward rent revisions, and steady retail and hotel business results.

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

Financial highlights

• Ordinary profit for 2Q FY2025 was ¥82.65 billion, up 4.0% year-over-year.

• Extraordinary income increased by ¥8.6 billion due to gains on sales of investment securities and fixed assets.

• Interest-bearing debt increased by ¥132.2 billion to ¥3,470.8 billion as of September 30, 2025.

• Total assets as of September 30, 2025, were ¥8,014.7 billion, with net assets at ¥2,669.3 billion.

• Total equity to total assets ratio was 31.1% as of September 30, 2025.

Outlook and guidance

• FY2025 operating profit forecast is ¥325 billion, up ¥15.7 billion year-over-year, marking a record high for the second consecutive year.

• Profit attributable to owners is forecast at ¥195 billion, up ¥5.6 billion year-over-year, a record high for the fifth consecutive year.

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

• ROE is expected to improve to around 8%, progressing toward a 10% target.

• No revisions to the forecast during this quarter.