Mitsui Fudosan (8801) Q1 2027 earnings summary

Executive summary

• Q1/FY2026 revenue, operating income, business income, ordinary income, and net profit declined year-on-year due to a high base from prior property sales, but core segments (Leasing, Management, Facility Operations) achieved record first-quarter business income.

• Leasing segment saw strong growth from domestic and overseas offices and retail facilities, while Management and Facility Operations segments also posted record first-quarter profits.

• Progress toward full-year forecasts remains steady, with all major profit metrics tracking above 20% of annual targets.

• Revenue from operations for Q1/FY2026 was ¥616,930 million, down 23.1% year-over-year.

• Net income attributable to owners was ¥75,818 million, down 39% year-over-year.

Financial highlights

• Q1 consolidated operating revenues: ¥616.9 billion, down 23.1% year-on-year; business income: ¥104.6 billion, down 44.3% year-on-year; ordinary income: ¥89.5 billion, down 37.9% year-on-year; net profit attributable to owners: ¥75.8 billion, down 39% year-on-year.

• Extraordinary income of ¥24.2 billion from gains on sale of investment securities.

• Basic earnings per share for the quarter was ¥28.04, compared to ¥44.81 a year earlier.

• Total assets as of June 30, 2026, were ¥10,341.4 billion, up from ¥10,103.5 billion at March 31, 2026.

• Net assets stood at ¥3,347.7 billion, with an equity ratio of 31.4%.

Outlook and guidance

• Full-year forecast: revenue from operations ¥2,800 billion (+3.3% YoY), operating income ¥410 billion (+3.1%), business income ¥450 billion (+1.1%), ordinary income ¥315 billion (+0.5%), net profit attributable to owners ¥285 billion (+2.3%).

• Annual dividend forecast raised to ¥37 per share (from ¥35), with additional share buybacks planned.

• Progress rates as of Q1: 22% for operating revenues, 23.2% for business income, 28.4% for ordinary income, and 26.6% for profit attributable to owners, supporting confidence in achieving full-year forecasts.