Mitsui Fudosan (8801) Q1 2025 earnings summary

Executive summary

• Achieved record highs in operating revenues, operating income, and ordinary income year-on-year for Q1 FY2024, with revenue from operations at ¥630.4 billion (+12.3%), operating income at ¥101.3 billion (+26.0%), and ordinary income at ¥90.2 billion (+23.7%).

• Business income rose 23.9% year-on-year to ¥104.8 billion, driven by strong domestic property sales and facility operations.

• Profit attributable to owners of parent declined 24.3% year-on-year to ¥65.0 billion due to the absence of prior year's extraordinary gains from investment securities sales.

• All major profit metrics exceeded 25% of full-year forecasts, indicating strong progress toward annual targets.

Financial highlights

• Q1 operating revenue: ¥630.4 billion, up 12.3% year-on-year; operating income: ¥101.3 billion, up 26.0%; ordinary income: ¥90.2 billion, up 23.7%.

• Business income: ¥104.8 billion, up 23.9% year-on-year; profit attributable to owners of parent: ¥65.0 billion, down 24.3%.

• EPS for 1Q FY2024: ¥23.19 (post-stock split basis).

• Total assets at Q1 end: ¥9.74 trillion; equity ratio: 32.4%.

• Operating revenue progress rate: 24.2%; business income: 28.3%; ordinary income: 34.7%; net profit: 27.7%.

Outlook and guidance

• No change to full-year consolidated earnings and dividend forecasts announced in May 2024.

• FY2024 full-year forecast: revenue ¥2.6 trillion (+9.1% YoY), operating income ¥340.0 billion (+0.1%), business income ¥370.0 billion (+6.9%), profit attributable to owners of parent ¥235.0 billion (+4.6%).

• Annual dividend forecast: ¥30 per share (post-stock split basis); EPS growth target of +8% CAGR through FY2026 under long-term vision “& INNOVATION 2030.”

• Progress rates for core profit segments (leasing, management) above 25%, with property sales to domestic individuals at 43% of full-year target.

• Facility operations segment progress rate over 37%, led by hotels and resorts.