Mitsubishi Estate Co. (8802) Q3 2025 earnings summary

Executive summary

• Operating profit for FY2024 3Q reached ¥194.4bn, up ¥47.6bn year-over-year; profit attributable to owners was ¥105.7bn, up ¥28.2bn year-over-year.

• Operating revenue for 3Q FY2024 was ¥1,047,919 million, up 13.1% year-over-year.

• Office, retail (outlet malls), and hotels performed strongly; office leasing saw rising rent increases and a low Marunouchi vacancy rate of 1.97% as of Dec 31, 2024.

• Both income gains and capital gains are progressing steadily toward full-year forecasts.

• Profit attributable to owners of parent increased 36.4% year-over-year to ¥105,791 million.

Financial highlights

• Operating revenue for FY2024 3Q was ¥1,047.9bn, up ¥121.5bn year-over-year.

• Operating profit was ¥194.5bn (up ¥47.7bn YoY); profit attributable to owners was ¥105.8bn (up ¥28.2bn YoY).

• EPS for 3Q FY2024 was ¥84.23, up from ¥60.61 in 3Q FY2023.

• Total assets as of Dec 31, 2024, were ¥7,873,537 million, with net assets at ¥2,614,021 million.

• Extraordinary income rose by ¥18.8bn YoY, mainly from gains on sales of investment securities; extraordinary losses increased by ¥15.4bn due to asset retirement and impairment.

Outlook and guidance

• Full-year forecasts remain unchanged: operating profit ¥300bn (record high), profit attributable to owners ¥173bn (record high for fourth consecutive year).

• Full-year FY2024 operating revenue forecast is ¥1,596,000 million, up 6.1% year-over-year.

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

• Share buyback of ¥50bn decided for FY2024; similar buybacks expected annually through FY2026, with cancellation of treasury shares.

• Domestic business outlook revised upward; some overseas property sales postponed due to slow market recovery.