Mitsubishi Estate Co. (8802) Q2 2027 earnings summary

Executive summary

• H1 FY2026 revenue was ¥880,614M, up 18.5% YoY; operating profit reached ¥187,126M, up 73.9%, and profit attributable to owners of parent was ¥129,133M, up 122.4%.

• Both operating profit and parent profit were second-quarter records, supported by asset-sale gains in Japan and overseas and positive rent reversions in Marunouchi.

• FY2026 forecasts were revised upward for operating profit to ¥380bn and parent profit to ¥245bn; revenue guidance remains ¥2,000bn.

Financial highlights

• H1 operating revenue was ¥880,614M versus ¥743.2bn a year earlier; operating profit was ¥187,126M versus ¥107.6bn.

• Ordinary profit reached ¥156,140M, up 88.9% YoY; profit attributable to owners of parent was ¥129,133M, up 122.4%.

• Capital gains included in operating profit before G&A totaled ¥75bn, up ¥58bn YoY; extraordinary income was ¥40.1bn versus ¥26.0bn.

• Comprehensive income was ¥152,859M versus ¥32,123M; basic EPS was ¥107.40 versus ¥47.03 in H1 FY2025.

Outlook and guidance

• FY2026 guidance: revenue ¥2,000bn, operating profit ¥380bn, ordinary profit ¥305bn, and parent profit ¥245bn; operating and ordinary profit and parent-profit forecasts were raised.

• FY2026 EPS guidance is ¥204.62; the forecast incorporates the EPS impact of the share repurchase resolved May 13, 2026.

• ROE guidance was raised from ~9% to above 9%; FY2025 ROE was 8.5%, with a 10% objective in progress.

• International Business forecast increased ¥10bn to ¥90bn on higher capital gains; investment-security sale gains lifted the parent-profit forecast.