Mitsui Fudosan (8801) Q1 2026 earnings summary

Executive summary

• First quarter results set new record highs for operating revenue, operating income, business income, ordinary income, and profit attributable to owners of parent, with strong year-on-year growth across all metrics.

• All major business segments posted record-high business income, with property sales showing especially strong progress due to accelerated asset turnover.

• Office vacancy rate in the Tokyo metropolitan area dropped to 1.1%, and the contract progress rate for new condominiums reached a record 93.3%.

• A new female internal director was appointed, increasing board diversity to 23%, and the officer compensation system was revised to align with KPIs such as ROE and EPS.

• Comprehensive income grew 24.2% year-on-year to ¥110,796 million.

Financial highlights

• Operating revenue reached ¥802.3 billion, up 27.3% year-on-year.

• Business income was ¥187.7 billion, up 79.2% year-on-year; ordinary income rose to ¥144 billion, up 59.7% year-on-year.

• Operating income increased 58.1% to ¥160.1 billion; net income attributable to shareholders up 91.1% to ¥124.2 billion.

• Basic earnings per share for the quarter were ¥44.81, nearly double the previous year.

• Equity ratio improved to 32.9% from 31.9% at the previous fiscal year-end.

Outlook and guidance

• Full-year forecasts remain unchanged: revenue ¥2.7 trillion, operating income ¥380 billion, business income ¥425 billion, net profit ¥260 billion.

• Business income progress rate at 44% and net profit at 48% of full-year forecast after 1Q.

• Annual dividend forecast is ¥33 per share, up from ¥31 in the previous year; payout ratio targeted at around 35%.

• Guidance for office vacancy rate remains at around 2% for fiscal year-end.

• Expectation for property sales margins to normalize as the year progresses.