Mitsui Fudosan (8801) Q2 2025 earnings summary

Executive summary

• First-half FY2024 revenue, operating income, and ordinary income declined year-on-year but remained at historically high levels, while net income was the third-highest on record despite a drop due to the absence of extraordinary gains from investment securities sales seen last year.

• For 2Q FY2025, all profit indicators reached record highs, with significant year-over-year growth in revenue, operating income, business income, ordinary income, and net income.

• Interim dividend set at JPY 15 per share for H1 FY2024, and annual dividend forecast raised to ¥34 per share for FY2025.

• Announced a share buyback of ¥57B and a total payout ratio planned at 56.6%.

Financial highlights

• H1 FY2024 operating revenue was JPY 1,162.4 billion, down 0.2% year-on-year; business income was JPY 173.1 billion, down 6.4%; ordinary income was JPY 137.3 billion, down 11.1%; net income attributable to owners of parent was JPY 88.3 billion, down 31.7%.

• 2Q FY2025 revenue from operations: ¥1,353.4B (+16.4% YoY); operating income: ¥218.7B (+29.1% YoY); business income: ¥246.4B (+42.3% YoY); ordinary income: ¥183.5B (+33.7% YoY); net income: ¥152.1B (+72.3% YoY).

• EPS for 2Q FY2025: ¥54.88 (vs. ¥31.55 in 2Q FY2024).

• Equity ratio at 32.9%, D/E ratio at 1.42x as of Sep 30, 2025; total assets ¥9,838.0B.

• Extraordinary profits of JPY 13.4 billion from investment securities sales and gains on sale of fixed assets; impairment losses of JPY 2.8 billion in FY2024 and ¥16,673 million in FY2025.

Outlook and guidance

• Full-year forecasts for FY2024 remain unchanged, while FY2025 forecasts were revised upward: revenue ¥2,700B, operating income ¥385B, business income ¥430B, ordinary income ¥295B, net income ¥265B.

• Annual dividend forecast raised to ¥34 per share; share buybacks totaling ¥57B planned.

• ROE forecast in the mid-8% range; EPS CAGR revised upward to approx. +10.3%/year.

• Strong contract progress and market environment for domestic property sales support confidence in achieving targets.