Mitsui Fudosan Co., Ltd. · TSE:8801
Mitsui Fudosan — FY2024 Earnings Presentation
41 slides from Mitsui Fudosan's earnings presentation, May 9, 2025
Slide 1: Summary of Online Conference on Financial Results FY ended March 2025
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 We will explain in detail the Mitsui Fudosan group’s results for the fiscal year ended March 2025. We will use the Financial Results and Business Highlights materials dated May 9th which are available on our websi
Slide 2: FY2024 record highs and guidance exceeded
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 As shown in the box outlined in blue at the top of the page and the table, in FY2024, we were able to achieve YoY growth and hit new records highs in each of operating revenue, operating income, business income, o
Slide 3: FY2025 earnings forecasts
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 Also, as shown in the lower box outlined in blue and the table, for our FY2025 earnings forecasts, we are guiding for operating revenue of 2 trillion 700 billion yen,business income of 425 billion yen and profit a
Slide 4: FY2024 dividend and shareholder returns
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 As shown in the box outlined in blue and the table, we have decided to raise the full year dividend per share by 1 yen from our forecast of 30 yen per share to 31 yen per share. This reflects the fact that net inc
Slide 5: Business income growth across all segments
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 For FY2024, we achieved YoY growth in business income across all segments. In particular, for each of the core segments of Leasing, Property Sales, Management and Facility Operations we achieved new record highs.
Slide 6: Profit and loss statement
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 We will start with the profit and loss statement. FY2024 operating revenue was 2 trillion, 625.3 billion yen, up 242 billion yen or 10.2% YoY. Business income, which is the combination of operating income and gain
Slide 7: Non-operating income and expenses
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 Next, before commenting on the segment details, please return to the table on the left. We will touch upon the major items below the line. We will start with non-operating income and expenses. Equity in net income
Slide 8: Extraordinary gains and losses
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 Next, We will discuss extraordinary gains and losses. As shown in the table titled Extraordinary Gains and Losses on the upper right, Mitsui Fudosan posted 54.5 billion yen in extraordinary profits in FY2024, from
Slide 9: Gains on sales of fixed assets and impairment losses
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 In addition, with regard to the gains on sales of tangible fixed assets, in line with our stated policy of making no distinction between tangible fixed assets and real property for sale in considering asset sales
Slide 10: Profit attributable to non-controlling shareholders
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 Please now look at the table on the lower left hand side. In FY2024, we posted a 2.7 billion yen for profit attributable to non-controlling shareholders. This is mainly the result of factors such as the allocation
Slide 11: Leasing segment
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 We will start with the Leasing segment. As shown at the top of the page, FY2024 operating revenue was 872.3 billion yen and business income was 176.4 billion yen. This was a YoY topline increase of 57.3 billion ye
Slide 12: Office vacancy rate
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 We show the office vacancy rate in the box in the middle of the page. Mitsui Fudosan's non-consolidated metropolitan area office vacancy rate as of the end of March was 1.3%, an improvement of 1.2%-points from the
Slide 13: Property Sales segment: domestic individuals
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 As shown at the top of the page, overall FY2024 segment operating revenue was 758 billion yen and business income was 167 billion yen. On a YoY basis, this represents increases of 130.4 billion yen and 31.8 billio
Slide 14: Units reported and inventory
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 The number of reported units are shown in the middle of the table. The combined units for condominiums and detached housing were 4,110, up 410 units YoY. The average unit price for condominiums and detached housin
Slide 15: Property Sales to Investors and Overseas Individuals
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 Operating revenue was 344.4 billion yen, up 31.2 billion yen YoY. Business income was the combination of 46.4 billion yen in operating income from Property Sales to Investors and 24.1 billion yen in combined gains
Slide 16: Asset recycling and property sales
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 In FY2024, we made progress on property sales through the acceleration of asset recycling of both tangible fixed assets and real property for sale, such as the sale of partial stakes in tangible fixed asset Yokoha
Slide 17: Management segment
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 This segment consists of the Property Management business, which focuses on managing properties under contract and the car park leasing business, Repark; and the Brokerage and Asset Management business, which incl
Slide 18: Property Management subsegment
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 We will now discuss conditions for the individual subsegments within this segment. We will start with Property Management. Subsegment operating revenue was 361.4 billion yen and business income was 38.4 billion ye
Slide 19: Brokerage and Asset Management subsegment
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 Next is the Brokerage and Asset Management subsegment. Operating revenue was 124.8 billion yen and business income 33.1 billion yen for YoY increases of 9 billion yen and 5.4 billion yen respectively. The key fact
Slide 20: Facility Operations segment
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 Overall Facility Operations reported FY2024 operating revenues of 224 billion yen and business income of 38.6 billion yen. This represents a YoY increase of 29.5 billion yen in revenues and a substantial YoY 12.2
Slide 21: Hotels and Resorts, Sports and Entertainment
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 Looking at the individual subsegments, the Hotel and Resorts business posted operating revenue of 162.1 billion yen, up 21.5 billion yen. The Sports and Entertainment business, consisting primarily of Tokyo Dome C
Slide 22: Other segment
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 Overall, the Other segment reported FY2024 operating revenues of 284.6 billion yen and business income was 6.5 billion yen. The improved margin for the New Construction under Consignment business of Mitsui Home an
Slide 23: Overseas business
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 Overall combined Overseas business profit for FY2024 was 27.2 billion yen, down 27.8 billion yen YoY. Please note there is a 3-month lag in reflecting Overseas profits. The figures included in FY2024 reflect the r
Slide 24: Overseas Management and Other segments
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 The combination of the Management and Other segments reported a 3.2 billion yen increase in revenue and a 0.1 billion yen decline in profits, on the back of improved RevPAR at the Halekulani Hotel and other hotels
Slide 25: Total assets
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 At the bottom of the page on the left, total assets as of the end of FY2024 were 9 trillion 859.8 billion yen, up 370.3 billion yen from the end of the previous fiscal year. Of the increase in outstanding assets,
Slide 26: Real property for sale balance
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 As shown in the table on the upper left, the total outstanding balance of Real Property for Sale was 2 trillion 500.7 billion yen, up 125.4 billion yen from the end of the previous fiscal year. New investments wer
Slide 27: Tangible and intangible assets and debt
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 Next, looking at the lower left, the outstanding balance of Tangible and Intangible Assets was 4 trillion 707.4 billion yen, up 301.8 billion yen from the end of the previous fiscal year. The key contributing fact
Slide 28: D/E ratio and equity ratio
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 Going back to page 69, as a result of the above, the D/E ratio as of the end of FY2024 was 1.40x and the equity ratio was 31.9%, as shown on the lower right. Given that it is the end of the fiscal year, we have al
Slide 29: Market value of rental properties
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 As you can see in the table at the top, market value as of the end of FY2024 was 7 trillion 492.7 billion yen. The gap between market and book value, effectively the unrealized gains, was 3 trillion 685.5 billion
Slide 30: FY2025 business income and net income forecast
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 For FY2025 business income, we forecast 425 billion yen, up 26.3 billion yen versus FY2024, and net income of 260 billion yen, up also by 11.2 billion yen YoY. Taking into account the impact of changes in behavior
Slide 31: FY2025 Leasing forecast
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 We will now discuss the breakdown of our forecast. Starting with the Leasing segment, while there will be positive contributions to rental revenue on the back of new openings and expanded floor space at domestic r
Slide 32: FY2025 Property Sales forecast
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 For the Property Sales segment, we project operating revenue of 710 billion yen and a substantially higher business income of 190 billion yen, as a result of an improved profit margin due to the reporting of centr
Slide 33: Domestic residential sales forecast
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 We expect to report a combined total of condominium and detached housing units of 3,200, for operating revenue of 440 billion yen and operating income of 110 billion yen. This represents YoY increases of 26.4 bill
Slide 34: Contract progress and land bank
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 Although we do not show this on the page, the progress rates for contracts for the planned 2,800 condominium units is already at 88.4%, high even in comparison to the 84.4% level of the same time last year. This i
Slide 35: Management, Facility Operations and Other forecasts
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 Next, please turn back to page 74 for a moment, for a discussion of the Management segment. For this segment, we are projecting operating revenue of 500 billion yen and business income of 75 billion yen, both up Y
Slide 36: FY2025 forecast summary
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 In summary, we expect FY2025 operating revenues to rise 74.6 billion yen to 2 trillion 700 billion yen. We are guiding for business income to grow 26.3 billion yen to 425 billion yen, ordinary income to fall 5.2 b
Slide 37: FY2025 dividend guidance
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 As mentioned at the outset on page 4, our annual DPS guidance for FY2025 is 33 yen, up 2 yen from the 31 yen of FY2024. This will be split equally, with an interim dividend of 16.5 yen and a fiscal year-end divide
Slide 38: FY2025 investment plans
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 For FY2025, we project investments in tangible and intangible assets of 200 billion yen, primarily focused on domestic development investments. For real property for sale in FY2025, we project investments of 630 b
Slide 39: EPS and ROE progress toward & INNOVATION 2030
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 With regard to the EPS growth metric, we had set a 3-year target of a CAGR or 8% or higher for EPS based on the FY2023 EPS level of 78.5 yen, derived from the net income forecast of 220 billion yen. However, in th
Slide 40: Balance sheet targets and strategic shareholdings
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 With regard to the balance sheet, interest-bearing debt was 4 trillion 416 billion yen for FY2024. We project this to be 4 trillion 600 billion yen in FY2025. As a result of progress on investments, both domestic
Slide 41: Cash allocation progress
Summary of Online Conference on Financial Results for the Fiscal Year Ended March 2025 On the left we show our assumptions for the cumulative 3-year period as set out in & INNOVATION 2030. The actual results for FY2024 are shown in the table on the right. Both cash inflow and outflow were around 1.1