Mitsui Fudosan Co., Ltd. · TSE:8801
Mitsui Fudosan — 2Q FY2024 Earnings Presentation
27 slides from Mitsui Fudosan's earnings presentation, Nov 12, 2024
Slide 1: Investors Meeting Presentation (Financial Results for 2Q, FY2024)
Investors Meeting Presentation (Financial Results for 2Q, FY2024) November 12, 2024 https://www.mitsuifudosan.co.jp/english/ 1
Slide 2: Core Business Growth: Decoupling from the Market
1.Ueda Core Business Growth: Decoupling from the Market Three business strategy paths New business domains New asset classes Core business growth First path Second path Third path 1. Promote further core business growth 3. Explore new business domains and 2. Expand into new asset classes (develop an
Slide 3: Until now
1.Ueda Core Business Growth: Decoupling from the Market Until now Deflationary economy (Lost 3 decades) Era when the cheap was valued This will elevate the raison d'etre of the Mitsui Fudosan Group Mitsui Fudosan 2Q, FY2024 2025年3月期 Investors Meeting 第２四半期決算 Presentation プレゼンテーション資料 3
Slide 4: Office: Diverse needs and requirements related to offices and work styles
2.Ueda Office Diverse needs and requirements related to offices and work styles We want to promote face-to-face communication and accelerate our initiatives to encourage creative work and innovation We want an office with a superior location and specifications, along with services that support work
Slide 5: Office: Responding to customer needs in a multi-layered way
2.Ueda Office With a genuine customer-centric approach, we respond to the needs of our customers in a multi-layered way Problem-solving proposals for each company's management issues (Mitsui Fudosan's solutions x corporate solutions for 3,000 tenants) Providing diverse workplaces and proposing optim
Slide 6: Office BIZ: Diverse workplaces and optimal work styles
2. Office Providing diverse workplaces and proposing optimal work styles supported by intangible services and events BIZ (10,000 members) Number of members Approx. 150,000 Nearly 3x pre-COVID levels & well walk: A popular event where 20 153,000 companies/teams compete over the 15 members number of s
Slide 7: Office: Members and revenue growth
2. Office Providing diverse workplaces and proposing optimal work styles supported by intangible services and events Number of members: Approx. 310,000 FY2024 Revenue: Forecasting Up 10% YoY nearly 21 times the pre-COVID level Recently added 20,000 members (10,000members) Major contract won! 30 20 1
Slide 8: Office: Problem-solving proposals
2. Office leisure Media and 1.0% publishing IT・Web Mitsui-No-Sumai Loop energy 0.9% 1.3% entertainment 11.3% 1.1% automobile advertising 1.6% Housing 1.8% construction Apparel and beauty 9.2% Retail Office 2.0% Transport and logistics facilities buildings 2.1% manufacture 2.3% Number of tenant Diver
Slide 9: Office: Customer-centric approach
2.Ueda Office With a genuine customer-centric approach, we respond to the needs of our customers in a multi-layered way An office in a city you want to visit, where you can enjoy a fulfilling worklife Problem-solving proposals for each company's management issues (Mitsui Fudosan's solutions x corpor
Slide 10: FY2024 FY-end Vacancy Rate
2.Ueda Office FY2024 FY-end Vacancy Rate To significantly improve from the initial target of around 2% to mid-1% 10.00% Central Tokyo 5 Wards (Source: Miki Shoji) Central Tokyo 5 Wards (Source: Miki Shoji) 9.00% Mitsui Fudosan (Tokyo metropolitan area; non- consolidated) Mitsui Fudosan(Tokyo metropo
Slide 11: Nihonbashi 1-chome Central District project
2.Ueda Office Nihonbashi 1-chome Central District project Steady progress in concluding contracts with top rents for the area Leasing has been largely completed. Mitsui Fudosan 2Q, FY2024 2025年3月期 Investors Meeting 第２四半期決算 Presentation プレゼンテーション資料 11
Slide 12: Office: Rent increases
2. Office Lease contracts where Rate of rent tenant has agreed to increase 1H 2024 a higher rent (Tokyo Metropolitan Area) More than Initiatives 80% 10 or 15% in multiple cases In principle, we aim to Continue aiming for Future negotiate for higher rents on high levels initiatives of rent revision r
Slide 13: Retail, Sports & Entertainment
3.Ueda Retail, Sports & Entertainment In the Senken Shimbun shopping center sales rankings (published in August 2024), Mitsui Fudosan as a developer had the most facilities ranked in the Top 10, with four properties. Rank Facility name Revenue (FY2023) 2nd Lazona Kawasaki Plaza ¥91.8 billion 6th Mit
Slide 14: 1H FY2024 Revenue up 6% YoY
3.Ueda Retail, Sports & Entertainment Retail Properties Division Tokyo Dome Department Apr 2024: Retail Properties, Sports and Entertainment Division established + Apr 2024: LaLa Arena TOKYO-BAY completed Maximizing Customer Experience Value through Synergies 1H FY2024 Revenue up 6% YoY Mitsui Fudo
Slide 15: Number of visitors to LaLaport were up 30% YoY
3.Ueda Retail, Sports & Entertainment Number of visitors to LaLaport were up 30% YoY in some periods thanks to events at LaLa Arena LaLaport TOKYO-BAY Vivit Minami Funabashi Cross-traffic Benefit Among Facilities LaLa Arena TOKYO-BAY LaLa Terrace TOKYO-BAY Mitsui Fudosan 2Q, FY2024 2025年3月期 Investor
Slide 16: Some stores generated over 10 times average sales
3.Ueda Retail, Sports & Entertainment Sports & Retail Entertainment facilities Customers Facilities RSC・MOP LSP TOKYO DOME Urban etc. LaLa Arena (1) Event Recognition Concerts Event (4) Participating Customer (2) Announcement in Events Ticket (event recognition) Journey Purchase Sporting Ticket sale
Slide 17: Logistics Facilities
4.Ueda Logistics Facilities Favorably located, high-spec, neighborhood creation-type logistics facilities Strong Leverage a strong customer base to directly approach end-users/ earning power Strong relationships with logistics companies Solutions-based marketing to address tenant issues, such as the
Slide 18: Property Sales to Individuals
5.Ueda Property Sales to Individuals Average unit price in FY2024: Over ¥100 million Business income forecast for Relative to full-year plan for units to be reported, the current fiscal year Highly likely to achieve contract rate as of end-September: Over 97% ¥96.0 billion target Park City Takadanob
Slide 19: Property Sales to Investors
6.Ueda Property Sales to Investors Yield benchmark for offices in prime locations ▻ Cap rate stable at low level Yield benchmark since 2007 for offices in prime locations Great East Lehman COVID-19 Japan Abenomics collapses Earthquake pandemic Property Sales to Investors profit ▻ Profit recognition
Slide 20: Property Sales to Investors and Individuals (Overseas)
6.Ueda Property Sales to Investors Property Sales Property Sales to Investors and to Investors Individuals (Overseas) Financial Gradual interest rate hikes Interest rate cuts in the US environment Absolute interest rates Continuing uncertainty Cap rate remain low (Persistently high cap rate) (Cap ra
Slide 21: Overseas Business
7.Ueda Overseas Business Steady progress in overseas leasing of offices and rental residential properties, etc. East Coast US West Coast US US Sunbelt 50 Hudson Yards Torrey View Steady progress Occupancy rate 90% → 95% (End-Mar 2024) (incl. preliminary commitments) (Mitsui Lab & Office) on leasing
Slide 22: Management: Repark and Rehouse
8.Ueda Management Mitsui's Repark Revised hourly rates Increased in over 50% of business locations* *23 wards of Tokyo Brokerage deals If you are relocating, choose Mitsui's Rehouse. Unit price Up just under Mitsui's Rehouse Number of purchase and Customer sale transactions brokered satisfaction 10%
Slide 23: Hotels & Resorts: ADR up over 50%
9.Ueda Hotels & Resorts ADR of lodging-focused hotels: Surpassed previous record to hit ¥25,000, continuing trend from last year. (¥) Record high 26,000 ¥25,000 24,000 22,000 20,000 18,000 ADR 16,000 (Lodging-focused hotels) 14,000 Up Over 50% vs. pre-COVID levels (Vs 1H 2019) 12,000 10,000 Up over
Slide 24: Hotels & Resorts: New luxury hotel in Hakone
9.Ueda Hotels & Resorts A new luxury hotel of the highest class built by the Mitsui Fudosan Group will be established on a site with ties to the Mitsui family in Kowakudani, Hakone “ ” Opening in 2026 Mitsui Fudosan 2Q, FY2024 2025年3月期 Investors Meeting 第２四半期決算 Presentation プレゼンテーション資料 24
Slide 25: Conclusion
10. Conclusion Hotels (1H 2024) Office (1H 2024) New Construction ADR: ¥25,000 under 2% Office Agreement on rent Rate of rent Up Over 50% of pre-COVID Consignment hikes increase (Tokyo Metropolitan Area) 10% Leasing (In multiple cases) levels Over 80% Sports & 19% +10~15% Entertainment Up over 20% Y
Slide 26: Conclusion: Highly competitive assets, High-value-added services
10. Conclusion * Highly competitive assets High-value-added services Decoupling for each asset & service Topline growth *This is an excerpt from "Nihonbashi Revitalization Plan Uchisaiwaicho 1-chome Urban Area Stage 3". This picture is an image of the future and differs from actual redevelopment pla
Slide 27: Disclaimer
Disclaimer 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 presenta