Mitsubishi Estate Co. (8802) Q4 2026 earnings summary

Executive summary

• Achieved record FY2025 operating profit of ¥329.7 billion (up 6.6% YoY) and profit attributable to owners of parent at ¥222.5 billion (up 17.5% YoY), with comprehensive income rising 21.8% to ¥318.3 billion.

• ROE improved to 8.5% from 7.6% YoY, driven by strong leasing, retail, and hotel business performance.

• FY2026 forecasts operating profit of ¥370 billion (up 12.2% YoY), profit attributable to owners of parent at ¥235 billion, and ROE around 9%.

• Extraordinary income of ¥75 billion planned, mainly from sale of strategic shareholdings.

• Hashimoto Development TMK newly consolidated during the period.

Financial highlights

• FY2025 operating revenue: ¥1,746.1 billion (up 10.5% YoY); operating profit: ¥329.7 billion; profit attributable to owners of parent: ¥222.5 billion.

• FY2026 forecast: operating revenue ¥2,000 billion (up 14.5%), operating profit ¥370 billion, profit attributable to owners of parent ¥235 billion.

• EPS for FY2025: ¥181.80 (record high), up from ¥151.04 in FY2024; FY2026 forecast: ¥196.27.

• Total assets as of March 31, 2026: ¥8,566.2 billion; net assets: ¥2,877.6 billion.

• Cash and cash equivalents at period end: ¥280.1 billion.

Outlook and guidance

• FY2026 operating profit expected to reach a record high, driven by Marunouchi property and overseas capital gains (70% already secured).

• Progressive dividend policy: ¥49 per share for FY2026, increasing by ¥3 annually until FY2030.

• Share buyback of ¥50 billion planned for FY2026, with additional repurchases considered; board resolved to repurchase shares on May 13, 2026.

• Targeting ROE of around 9% in FY2026, progressing toward 10% by FY2030.

• Actual performance may differ significantly from forecasts due to various factors.