Mitsui Fudosan Co., Ltd. · TSE:8801
Mitsui Fudosan — FY2024 Earnings Presentation
31 slides from Mitsui Fudosan's earnings presentation, May 13, 2025
Slide 1: Investors Meeting Presentation (Financial Results for FY2024)
Investors Meeting Presentation (Financial Results for FY2024) May 13, 2025 https://www.mitsuifudosan.co.jp/english/
Slide 2: Summary of Financial Results for FY2024
Summary 植田 of Financial Results for FY2024 In FY2024, business income, profit attributable to owners of parent, and other items all reached new highs In forecasts for FY2025, we also expect revenue, business income, and profit attributable to owners of parent to reach new highs Billions of Yen ¥440.
Slide 3: Today's presentation
Today’s 植田 presentation Impact of surging construction costs on the 1 Company’s business and our response 2 Impact of higher interest rates on cap rates Overview and outlook for the overseas business, 3 mainly North America Status of the second and third paths of 4 & INNOVATION 2030 FY2024 Investors
Slide 4: Impact of surging construction costs: office buildings and large-scale redevelopments
1-1. Impact of surging construction costs on the Company’s business and 植田our response (Office buildings and large-scale redevelopments) Contracts completed and construction started for all of the following large-scale projects to be completed by FY2028 FY2025 FY2026 FY2027 FY2028 Nihonbashi-Honcho
Slide 5: Impact of surging construction costs: condominiums
1-2. Impact of surging construction costs on the Company’s business and 植田our response (Condominiums) Construction has started for almost all properties to be reported in FY2025 and FY2026 Also making steady progress on starting construction for properties to be reported in FY2027 Mitsui Fudosan Gro
Slide 6: Impact of surging construction costs and our response
1-3. Impact of surging construction costs on the Company’s business and 植田our response Grand opening on May 31 (planned) “Mitsui Shopping Park LaLa Terrace KAWAGUCHI” Renovation of existing facility to increase value while reducing costs Respond with a combination of methods based on abundant accumu
Slide 7: Impact of higher interest rates on cap rates (Japan)
2-1. 植田Impact of higher interest rates on cap rates (Japan) Despite a rise in interest rates, domestic cap rates have been stable at low levels Our unrealized gains as of end-FY2024 stood at approx. ¥3.7 trillion, an increase of 3.5% approx. ¥0.3 trillion from the previous level of approx. ¥3.4 tril
Slide 8: Impact of higher interest rates on cap rates (US and UK)
2-2. 植田Impact of higher interest rates on cap rates (US and UK) Even in the US and the UK, where interest rates have risen sharply, the rise in cap rates for areas and asset classes with stable cash flows has been moderate US 10-year government bond yield and UK 10-year government bond yield and Lon
Slide 9: Current vacancy rates remain low across all asset classes
2-3. 植田Impact of higher interest rates on cap rates (Current vacancy rates) The Company's vacancy rate remains low across all asset classes Cash flows are stable Tokyo metropolitan Retail facilities *1 area office buildings *1 1.3% 2.3% Rental housing *2 Logistics facilities *1 (Properties completed
Slide 10: Increase in rents for the Company's office buildings
3-1. Efforts to increase rents and property prices 植田(Increase in rents for the Company’s office buildings) In response to surging construction costs and rising interest rates, it is important that we increase our top line by raising rents and unit prices, etc. The Company’s Tokyo metropolitan area
Slide 11: Neighborhood creation in the Nihonbashi and Yaesu areas to date
3-2. Efforts to increase rents and property prices 植田(Neighborhood creation in the Nihonbashi and Yaesu areas to date) Muromachi Furukawa Mitsui Building construction completed Nihonbashi Muromachi Mitsui GranTokyo North Tower Muromachi Chibagin Mitsui Building and South Tower Tower construction com
Slide 12: Increase in area value through redevelopment
3-2. Efforts to increase rents and property prices 植田(Increase in area value through redevelopment) Area values have increased, partly thanks to the contribution from our neighborhood creation. Asking rents have increased significantly over the last 15 years Yen/Month/Tsubo 45,000 Yaesu, Kyobashi, N
Slide 13: The Company helped liven up festivities as a community member
3-2. Efforts to increase rents and property prices 植田(The Company also helped liven up the festivities as a member of the community) FY2024 Investors Meeting Presentation 13
Slide 14: Concept for future neighborhood creation in Nihonbashi and Yaesu
3-2. Efforts to increase rents and property prices 植田(Concept for future neighborhood creation in the Nihonbashi and Yaesu areas) Looking over Nihonbashi toward Nihonbashi 1-chome Central District Hakozaki Project construction to be completed * This is a concept image, and differs from the actual pl
Slide 15: Providing added value as an overdelivering landlord
3-3. 植田Efforts to increase rents and property prices (Providing added value) As an "overdelivering landlord," we undertake various initiatives (soft service events) that contribute to industry creation and human capital management, which address the management challenges of our corporate tenants ⇒ C
Slide 16: Condominiums: average price projected at record high
3-4. 植田Efforts to increase rents and property prices (Condominiums) Projecting an average price of ¥140 million on properties to be reported in FY2025, a record high The Mitsui Fudosan Group’s market share of high-end properties (¥200 million or more per unit) is over 50% *Source: MERCURY FY2024 App
Slide 17: Strong pipeline in central Tokyo
3-4. 植田Efforts to increase rents and property prices (Condominiums) Strong pipeline in central Tokyo Mitsui Fudosan Group condominium supply plans PARK COURT KITA-AOYAMA 2025 ● Park City Takadanobaba ●2027 onward Hongo 3-chome ● Project 2026 2025 ● PARK HOMES CENTRAL GARDEN TSUKISHIMA THE TOWER PARK
Slide 18: New supply of Tokyo condominiums has decreased
3-4. 植田Efforts to increase rents and property prices (Condominiums) New supply has also decreased ⇒ Promote the added value of Mitsui Fudosan properties as reflected in the price, while being mindful of the market 10,000 units 9 8 7 6 5 40,000 units 37,000 4 units 33,000 units 3 23,000 units 2 1 0 2
Slide 19: Acquiring high-quality investments; continuing asset replacement
4-1. Overview and outlook for the overseas business, mainly North 植田America Acquiring high-quality investments ⇒ Continuing asset replacement to create a resilient portfolio London Boston British Library Redevelopment Project Sydney 55 Pitt Street Innovation Square Phase III 55 Pitt Street (Sydney C
Slide 20: US East Coast: stable bedrock profits from flagship properties
4-2. Overview and outlook for the overseas business, mainly North 植田America (US East Coast) Generate stable bedrock profits through three flagship properties at 50/55 Hudson Yards and 1251 Avenue of the Americas Of ¥2 trillion in US assets, approximately ¥1 trillion are East Coast office buildings U
Slide 21: US Sun Belt rental housing expansion
4-3. Overview and outlook for the overseas business, mainly North 植田America (US Sun Belt) Accelerating investment in the rental housing business in the Sun Belt, where corporate agglomeration and population inflow are progressing Total of approximately 5,000 units 5000 New supply Approx. 800 units N
Slide 22: Identifying growth areas and carefully selecting investments
4-4. Overview and outlook for the overseas business, mainly North 植田America Identifying growth areas and markets, and carefully selecting investments Our strengths US real estate investment as a proportion of the global total Developer (Full year 2024) Dual (ability to assess real estate) capabiliti
Slide 23: Status of the second and third paths of &INNOVATION 2030
5-1. 植田Status of the second and third paths of & INNOVATION 2030 New business domains New asset classes Core business growth 1. Promote further core business 2. Expand into new asset classes 3. Explore new business domains and growth (develop and evolve) capture business opportunities Work to furthe
Slide 24: Second path: Arena business
5-1. 植田Status of the second path of & INNOVATION 2030 (Arena business) Occupancy Number of rate Almost properties Under 100% consideration on weekends for and expansion holidays ©CHIBAJETS FUNABASHI / PHOTO Keisuke Aoyagi LaLa arena TOKYO-BAY FY2024 Investors Meeting Presentation 24
Slide 25: Second path: Lab & office business (King's Cross, London)
5-2. Status of the second path of & INNOVATION 2030 植田(Lab & office business) AstraZeneca ● King’s Cross City West End King’s Cross Sta. London area map St. Pancras Sta. Project Site King’s Cross St. Pancras Sta. British Library British Library Redevelopment Project Google Earth Data SIO, NOAA, U.S.
Slide 26: Second path: Lab & office business
5-2. Status of the second path of & INNOVATION 2030 植田(Lab & office business) Japan* 10 properties Number of properties* US* 16 5 properties MITSUI LINK-Lab SHINKIBA 3 properties in total UK* 1 property Total investment amount* Approx. ¥500 billion * including properties already sold and planned Mit
Slide 27: Second path: Data center business
5-2. Status of the second path of & INNOVATION 2030 植田(Data center business) Number of Total investment properties* amount* 7 Approx. properties ¥ 300 billion in total MFIP Inzai I/II * Including properties under consideration and properties outside the Tokyo Hino Data Center Project ●● metropolitan
Slide 28: Third path: Life science business
5-3. Status of the third path of & INNOVATION 2030 植田(Life science business) Development of Information and various new network businesses • Industry trends to support industry players • Latest information • Challenges 1. Research consumables and reagents 2. Rental research Common equipment room whe
Slide 29: Third path: Future image
5-3. 植田Status of the third path of & INNOVATION 2030 (Future image) As a developer of industry, Information and we are considering network developing businesses to • Industry trends • Latest information support industry players in • Challenges the space and semiconductor industries Community buildin
Slide 30: Conclusion
6.植田 Conclusion New business domains New asset classes Core business growth FY2024 Investors Meeting Presentation 30
Slide 31: Disclaimer
Disclaimer 植田 This presentation contains forward-looking statements including details regarding the Company’s business results forecasts, development plans, and targets. All forward-looking statements are based on judgments derived from the information available to the Company at the time this prese