Mitsui Fudosan : Financial Reporting Document

Investors Guide

Financial Results for FY2023

Financial Results and

New Group Long-Term Vision,

Business Highlights

& Innovation 2030

For more details

Business Overview

Year ended March 31, 2024 (FY2023)

Tangible and Intangible				Trend in Revenue
Fixed Assets				from Operations			¥2.6
Approx.
¥4. trillion
46%									trillion
			Approx.
	Total Assets		¥1.4
		trillion
	Approx.
Approx.	¥9.4trillion	Real Property
Approx.
Others			for Sale
¥2.7 trillion		¥2.3 trillion						(Forecast)
29%			25%	FY2012
							FY2024
Facility	Other	Leasing	Other			To Investors and Individuals	Brokerage,
12%	10%			50%		25%
						(Overseas), etc.		Asset Management, etc.
Operations		34%	Leasing	Office	Property	To Individuals	Manage-
8%		(Domestic)
Revenue from		Retail		55%	Sales	50%	ment	Property
	Operations		35%						Management
	Approx.			Sports & Entertainments	Others		75%
Management	¥2.3 trillion			28%	Facility	13%
19%					Other
	Property Sales		Operations
			New Construction under
			Hotels &
		26%				72%		87%
						Resorts		Consignment & Reform

Management Goals

Growth Indicator

or		Around FY2030			FY2026
+8
	EPS*¹ growth rate			EPS growth rate	Business income	Net income*⁵
	%		+8%	¥440 ¥270
			or higher	billion			billion
	higher each year*²		each year*³	or higher*⁴		or higher
		Efficiency Indicator
		Around FY2030			FY2026
		ROE			ROE	ROA	6	D/E Ratio
		10or	8.5%	5%	Around
						Maintain financial soundness
						while conscious of ratings
						1.2-1.5
	%			or higher	or higher*			times
		higher
		Shareholder Returns (FY2024-FY2026)			52.7
					%
									Total Payout Ratio

Total payout return ratio		Share Repurchase
	¥40.0B
50%
	Dividend payout Ratio
25.2%	34.9%
or higher each period

Performance Trends	FY2024
		EPS Growth Rate(YoY)	(Forecast)
		+15%	EPS
		+12%	¥83.9
FY2023		+37%
		Profit Attributable to
EPS
		Owners of Parent
¥80.2	¥29.1		¥235B
Profit Attributable to	¥76.8B
Owners of Parent
¥224.6B	FY2013	FY2020	FY2024
			(Forecast)

ROE

7.5%

5.3%	ROA
	3.9%
3.7%
FY2012	FY2023

ROA = (Operating income + Non-operating income)/Average total assets over the period

ROE = Profit Attributable to Owners of Parent/Average shareholders' equity over the period

Total Dividends

25.2%

¥78.5B

Dividend payout ratio

¥29.6B

Around

FY2015

FY2023

35%

Annual Dividend

per Share*7

¥30

each period

Profit Attributable to

Stable dividend increases linked to

Owners of Parent

sustainable profit growth

¥

2

¥235B

(continuous and progressive dividends)

¥29.8B

Flexible and continuous repurchase

of own shares

FY2001

FY2024

(Forecast)

* 1: Earnings Per Share * 2: FY2023 (forecast as of February 9, 2024) - FY2030 (forecast) CAGR * 3: FY2023 (forecast as of February 9, 2024) - FY2026 (forecast) CAGR * 4: Operating income +Equity in earnings/losses of affiliates (including Gain/loss on sales of shares of subsidiaries and affiliates for the purpose of real estate sales)+Gain/loss on sales of fixed assets

* 5: Profit attributable to owners of parent * 6: Business income / Average total assets over period

* 7: In light of the stock split undertaken on April 1, 2024 at a ratio of three shares to one share, FY2001-FY2023 data is adjusted on a post-stock split basis and rounded to the nearest whole number.

Source of Our Profit

(FY2023)
	Total Assets	Approx.¥9.4 trillion
		Tangible/Intangible Fixed Assets			Real Property for Sale	Others
		Approx.						Approx.
		¥3.59trillion						¥1.63trillion
		Rental Properties		Other Fixed Assets			To Investors	To Individuals	Others
38%		9%	17%	8%	29%
				Approx.	Approx.
			50%	50%
			Tokyo Dome,	Other
				hotels

Approx.¥4.7 trillion

Assets Under Management

Business Income*

(FY2024 Forecast)

Leasing

Facility Operations

Property Sales

Management*

Other

Elimination or Corporate

¥170B

¥30B

¥170B

¥60B

¥0B

¥60B

*Includes other non-asset (brokerage, sales contract, etc.) profits

¥370Total B

*Operating income +Equity in earnings/losses of affiliates (including Gain/loss on sales ofshares of subsidiaries and affiliates for the purpose of real estate sales)+Gain/loss on salesoffixed assets

	Operating Income
	from Leasing
¥167.8B
¥104.3B
FY2012	FY2023

Rental

Year-end Book Value

¥3.59trillion

A Properties

FY2023

Year-end Market Price

¥6.96trillion

Operating Assets

Unrealized Profit

¥3.36trillion

Real Property for Sale

NOI yield 8.0%

Domestic

7.9%

Overseas

8.1%

Turnover

Operating Assets

Expected

B

(to Investors)

Stable Asset

Under

Operating Assets

Under

At the time of

11%

89%

NOI yield

7.0%

5.4%

NOI yield at

6.4%

Domestic

Overseas

Development

Expected

real estate sale

Book value

Development

Operating Assets

Approx.

3-4

%

at the end

71%

(Latest

of March 2024

Asset Sales

29%

result)

Book value

Unrealized Profit

Approx.

and

¥3.59trillion

Replacement

at the end

¥0.6-1.1

of March 2024

trillion

according to

Examples of

Portfolio Strategies

Approx.

Overseas

Domestic

¥1.63trillion

Major Assets Sold in the Past

(FY2019-2023 results)

26%

63%

Overseas

Domestic

Office

2.7-4.2%

Retail

2.8-4.2%

26%

45%

Logistics

3.9-4.9%

Operating Income

from Property Sales to Investors ¥and Individuals82(Overseas),.1etc.

B

¥7.7B
FY2012	FY2023

An Abundant Land Bank

(Source: MERCURY FY2023)

Market Potential

As of March 31, 2024, except as stated

Leasing

Property Sales to Individuals

Office

Vacancy Rate

8.57%

Central Tokyo

Retail

Number of	National Commercial
Domestic Facilities	Sales Ranking
21	4 out of Top 10 Facilities

Logistics

Facilities under development or operation in Japan and overseas

Number of Condominium Contracts Posted 3,650units Contract Progress Rate Approx. 84％

Market share of high-grade condominiums (over ¥200 million/unit) Over 50% of the Group

	5 Wards
5.8%	5.47%
	Source: Miki Shoji
	(As of March 31, 2024)

		Mitsui Fudosan
		(Tokyo
		metropolitan area;
		non-consolidated)
		2.2%
2003	2024	(As of March 31, 2024)
Corporate Shared Office
280,000 members	Approx. 19 times vs. FY2018
(As of April, 2024)

			Owned
13			by Mitsui Fudosan
	Store sales Rankings, FY2022
Approx.		2nd	LAZONA Kawasaki Plaza	¥85.7B
2,500tenants
	4th	Lalaport TOKYO-BAY	¥68.2B
(As of October 1, 2023)
	6th	Mitsui Outlet Park	¥59.2B
Approx.		KISARAZU
	8th	Mitsui Outlet Park
10,300stores		¥54.4B
		JAZZ DREAM NAGASHIMA
(As of October 1, 2023)	Source: SENKEN SHIMBUN
	*Excerpt from our facilities only

Total 67properties

Over ¥850.0billion cumulative investment Approx. 5.3million m2 total floor space

Leased properties

Almost fully occupied (Mitsui Fudosan)

Tokyo Metropolitan Area

9.3% vacancy rate (Market) Source: CBRE

Operating Income/	Operating
Operating Income Margin
Income
	Margin
	15.8%
5.4%	Operating
Income
¥15.3B	¥49.7B
FY2012	FY2023

FY2030	FY2024-2026
or later	10,000
8,000	units
units
Approx.
27,000
units*
FY2027-2029
9,000 units

*Including a redevelopment project in the planning phase

Management

Facility Operation

Operating Income
	Property
	Management
	¥38.5B
¥26.4B
	Brokerage/Asset
	Management, etc.
¥15.1B	¥27.7B
FY2012	FY2023

Property	Brokerage
Management
	Brokerage for Individuals
Rental Parking (Repark)		(Rehouse)
	Approx.
Approx. 250Kunits*
	38,700units*
								handled for
								individuals
Contracted Operation		No. 1for
and Management
(e.g., Office, Retail, Housing)
Condominiums Managed		37consecutive
	years
Approx. 290Kunits*		(FY1986-FY2022)
Leasing Housing Units Managed
Approx. 150Kunits*
*FY2023		*FY2023

Asset

Management

Sales to various		Management of assets
investors		from property owners

		Private fund,etc.
30%	AUM	28%
Approx.
	¥4.7
7%	trillion	Originator
	19%
		8%
		8%

(As of March 31, 2024)

Hotels and Resorts

Trends in Occupancy Rates/ADR (Lodging-focusedhotels)

(%)					(Yen)
100					22,500	Average Occupancy Rate
90					20,500		(Average of FY2023)
80					18,500	83%
70					16,500
60					14,500
	Average
50					12,500
40					10,500		Occupancy Rate
					(Left)
30			8,500		ADR (Right)
FY2012	FY2023

Facilities Directly Operated by the Company

(Domestic and overseas)

53facilities Approx. 13,300rooms

910KMitsui Garden Hotel members Twicemembers as many as 2018 year-end (As of March 31, 2024)

Tokyo Dome

Adjacent to 3 stations

on 4 lines, for convenience of transportation

Tokyo Station

Approx. 6minutes

Haneda Airport

Approx. 45minutes

Narita Airport

Approx. 50minutes

Visitors (FY2019)

Approx. 40Mpeople/year

In central Tokyo

A spacious site13covering

Approx. hectares

Facility Overview

Plentiful Facilities That Meet the Needs of Diverse Visitors

Tokyo Dome

All-weather stadium

LaQua

Retail facilities, amusement park, spa

Tokyo Dome Hotel

Large-scale city hotel

Overseas

Facility Operation

Expansion of Overseas Projects

Breakdown of Group Assets by Area

Growth of Overseas Assets

2.7

LaLa arena TOKYO-BAY Completed in Apr. 2024

	Number of properties in operation
	as of end of Mar., 2024.
	Europe and	Asia	Total
	America
Office	(16)	(1)	17
Retail	(-)	(8)	8
Leasing	(13)	(-)	13
Housing
Logistics	(2)	(9)	11
Hotel/SA/

Number in

future development pipeline*

Europe and	Asia	Total
America
(+9)	(+1)	+10
(-)	(+5)	+5
(+22)	(+1)	+23
(+3)	(+5)	+8

*Plans for the next phase and expansion of existing properties are counted

As of March 31, 2024
Total Assets	Asia 19%
Overseas
Approx.
¥9.4	28.5%
trillion	U.K. 11%
Domestic
71.5%

Approx.

times

¥2,709B

in 6 years

Approx. 3.0 times

Asia

¥514B

in the U.S.

U.S. 70%

U.K.

¥153B

¥

1,003B

¥300B

¥208B

U.S.

¥640B

¥1,894B

FY2017

FY2023

● Further promote neighborhood	● Large multipurpose arena with a
creation with "excitement" by	seating capacity of 10,000
leveraging the power of sports and
entertainmant
	Basketball game (image)

Music Concerts (image)