Mitsui Fudosan Stock price
Compare with Peer Group
📊 Peer Group
📈 What is it?
The peer group consists of the companies with the most similar business model. They serve as a benchmark for putting a stock into context.
🧮 How is it selected?
Based on similarity of business model, meaning companies from the same industry with comparable products and a similar customer base. That's the only way to compare apples to apples.
🏛️ Why does it matter?
Whether a stock is cheap or expensive is best judged by comparison. A P/E of 18 or an EV/FCF of 20 can look cheap or expensive depending on the yardstick. The peer group gives you the most accurate one: companies with a similar business model that operate under the same conditions.
🎯 What does it mean for investors?
When a metric sits below the peer average, the stock is valued more cheaply relative to its competitors, and above the average more expensively. A discount to the peer group can be an opportunity, but it can also have a reason (for example lower growth). The comparison is a starting point, not a verdict.
Is Mitsui Fudosan a Top Scorer Stock based on the Dividend, High-Growth-Investing or Leverman Strategy?
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Key metrics
📘 Market Capitalization
📈 What is it?
Market capitalization shows how much a company is currently worth on the stock market.
🧮 How is it calculated?
🏛️ Why is it important?
It helps classify companies by size (Large, Mid, Small Cap) and indicates their market presence and relative stability.
🧮 Calculation
🎯 What does this mean for investors?
- Large-cap companies tend to be more stable, often pay dividends, but may grow more slowly.
- Smaller firms may offer higher growth potential but come with more volatility.
- Market capitalization is a useful indicator of company size — but not a measure of whether a stock is undervalued or overvalued.
📘 Enterprise Value (EV)
📈 What is it?
Enterprise Value represents the total cost to acquire a company — including its debt and excluding its cash reserves.
🧮 How is it calculated?
(= Market Cap + Net Debt)
🏛️ Why is it important?
EV gives a more complete picture of a company's value than market cap alone and is used in key valuation ratios like EV/FCF or EV/Sales.
🧮 Calculation
🎯 What does this mean for investors?
- Enterprise Value shows the true cost of buying a company, including all financial obligations.
- It is more accurate than just looking at market cap, especially when comparing companies with different levels of debt or cash.
- Professional investors prefer EV-based multiples because they better reflect the company’s full financial footprint.
📘 Net Debt
📈 What is it?
Net Debt shows how much debt remains after subtracting a company’s available cash reserves.
🧮 How is it calculated?
🏛️ Why is it important?
It indicates how dependent a company is on borrowed money and how easily it can service its debt in the short term.
🧮 Calculation
🎯 What does this mean for investors?
- Low or negative net debt signals financial strength and flexibility.
- Companies with strong cash positions are better positioned in crises.
- High net debt increases financial risk — especially in environments with rising interest rates or economic downturns.
📘 Cash
📈 What is it?
Cash represents all liquid assets a company can access immediately — including cash, bank deposits, and short-term investments.
🧮 How is it calculated?
🏛️ Why is it important?
It reflects a company’s financial flexibility and resilience — enabling investments, buybacks, or buffer in downturns.
🧮 Calculation
🎯 What does this mean for investors?
- A strong cash position means greater room for maneuver and crisis resistance.
- Cash-rich companies can invest, pay down debt, or repurchase shares.
- But excess idle cash might indicate a lack of growth opportunities.
📘 Shares Outstanding
📈 What is it?
Shares outstanding represent the total number of a company’s shares currently held by investors — excluding treasury stock.
🧮 How is it calculated?
🏛️ Why is it important?
It’s the basis for key metrics like Earnings Per Share (EPS), Market Capitalization, or the Price/Earnings ratio (P/E).
🧮 Calculation
🎯 What does this mean for investors?
- Fewer shares in circulation typically increase earnings per share — making each share more valuable.
- Share buybacks reduce the number of shares and boost per-share metrics.
- Issuing new shares does the opposite — diluting shareholder value and lowering per-share figures.
📘 Price-to-Earnings Ratio (P/E)
📈 What is it?
The P/E ratio shows how many times a company's earnings per share are reflected in its current share price — in other words, how "expensive" the stock appears relative to its profits.
🧮 How is it calculated?
🏛️ Why is it important?
The P/E ratio is one of the most widely used valuation metrics. It helps investors assess whether a stock appears cheap or expensive compared to its earnings power.
🧮 Calculation
📊 P/E (TTM) = Based on earnings from the last 12 months (Trailing Twelve Months):🎯 What does this mean for investors?
- A low P/E may indicate undervaluation — or signal underlying issues.
- A high P/E may reflect strong growth expectations — or an overvalued stock.
📘 Price-to-Sales Ratio (P/S)
📈 What is it?
The P/S ratio shows how much investors are paying for $1 of the company’s revenue – regardless of profitability.
🧮 How is it calculated?
🏛️ Why is it important?
P/S is especially useful for evaluating growth companies or businesses not yet profitable. It reflects how the market values the company’s sales.
🧮 Calculation
Market Cap = ¥4.03t | Revenue (TTM) = ¥2.52t
Market Cap = ¥4.03t | Estimated Revenue = ¥2.82t
🎯 What does this mean for investors?
- A low P/S may indicate undervaluation — or low profitability.
- A high P/S can reflect strong growth expectations — or excessive optimism.
- Especially helpful when evaluating companies where profits are low, volatile, or negative.
📘 Enterprise Value to Sales (EV/Sales)
📈 What is it?
EV/Sales shows how much investors are paying for $1 of revenue — considering not just equity, but also debt and cash. It’s the capital structure–adjusted version of the P/S ratio.
🧮 How is it calculated?
🏛️ Why is it important?
It’s ideal for comparing companies with different levels of debt. It reflects a company's true cost relative to its revenue.
🧮 Calculation
Enterprise Value = ¥8.88t | Revenue (TTM) = ¥2.52t
Enterprise Value = ¥8.88t | Forward Revenue = ¥2.82t
🎯 What does this mean for investors?
- EV/Sales allows for capital structure–neutral company comparisons.
- A lower ratio may indicate undervaluation; a higher one may signal strong growth expectations or overvaluation.
- Especially helpful when evaluating high-growth companies with low or negative earnings.
📘 Enterprise Value to Free Cash Flow (EV/FCF)
📈 What is it?
EV/FCF shows how many years it would take for a company to "pay back" its enterprise value using its free cash flow.
🧮 How is it calculated?
🏛️ Why is it important?
It focuses on real cash generation, ignoring accounting noise — ideal for assessing profitability and value based on liquidity, not earnings.
🎯 What does this mean for investors?
- A low EV/FCF may signal undervaluation and strong cash generation.
- A high EV/FCF might reflect weak recent cash flow or aggressive growth expectations.
- Best suited for stable, mature businesses with predictable free cash flows.
📘 Price-to-Book Ratio (P/B)
📈 What is it?
The P/B ratio compares a company’s market value to its book value — showing how much investors are paying for each dollar of net assets.
🧮 How is it calculated?
🏛️ Why is it important?
P/B is commonly used for asset-heavy industries like banks or industrials. It helps assess whether a stock is trading above or below its net asset value.
🧮 Calculation
🎯 What does this mean for investors?
- A P/B below 1 may signal undervaluation — or weak profitability.
- A P/B above 1 implies the market expects future value creation (e.g., brand, IP, growth).
- Best used for companies with tangible assets and strong balance sheets.
📘 Dividend per Share (DPS)
📈 What is it?
Dividend per Share shows how much cash a company pays out to shareholders for each share they own – usually on an annual or quarterly basis.
🧮 How is it calculated?
🏛️ Why is it important?
DPS is the absolute value of the payout per share – crucial for income-focused investors and dividend strategies.
🧮 Calculation
🎯 What does this mean for investors?
- A stable or growing DPS often signals a strong, shareholder-friendly business.
- DPS alone doesn’t tell you how attractive the payout is – the stock price also matters (→ see Dividend Yield).
- Long-term dividend growth is often a hallmark of high-quality companies – like the dividend aristocrats.
📘 Dividend Yield
📈 What is it?
Dividend yield shows how large a company’s dividend is in relation to its current share price.
🧮 How is it calculated?
🏛️ Why is it important?
It allows investors to compare dividend payouts across stocks, regardless of price or payout size.
🧮 Calculation
🎯 What does this mean for investors?
- A stable yield can reflect reliable distributions.
- Comparing 1Y and 5Y yield shows whether dividend growth keeps pace with stock price appreciation.
- A low yield isn’t always negative – it can signal strong past performance or growth focus.
📘 Dividend Growth
📈 What is it?
Dividend growth shows how much a company has increased its dividend per share over time.
🧮 How is it calculated?
5Y: Compound Annual Growth Rate (CAGR)
🏛️ Why is it important?
Consistently rising dividends are often a sign of financial strength and shareholder orientation – especially relevant for long-term investors.
🧮 Calculation
🎯 What does this mean for investors?
- Stable dividend growth is a sign of sustainable earning power.
- High dividend growth can significantly boost your total return:
- If a company pays $1 in dividends and increases it by 15% annually over 5 years, you’ll receive $2 per share in year 5 – twice as much as at the start!
📘 Payout Ratio
📈 What is it?
The payout ratio shows what percentage of a company’s earnings (per share) is distributed to shareholders as dividends.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess whether the dividend is sustainable – especially in relation to the company’s profitability.
🧮 Calculation
🎯 What does this mean for investors?
- A low payout ratio means the company retains more earnings for reinvestment – typical for growth companies.
- A moderate payout (e.g. 25–50%) indicates a healthy balance between returns and reinvestment.
- High payout ratios may seem attractive but can carry risk if earnings decline.
📘 Consecutive Dividend Increases
📈 What is it?
This metric shows how many consecutive years a company has raised its dividend per share – without any cuts or pauses.
🧮 How is it calculated?
(Special dividends are not considered.)
🏛️ Why is it important?
A long track record of increases reflects financial strength, consistency, and shareholder commitment.
🎯 What does this mean for investors?
- A long dividend increase streak builds confidence – especially in volatile markets.
- Such companies are seen as reliable and income-friendly investments.
- The longer the streak, the stronger the company’s dividend discipline.
📘 Revenue
📈 What is it?
Revenue shows how much a company earns in total from selling its products and services – the gross income before any costs are deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Revenue is one of the key figures to assess a company’s size, market position, and growth potential.
🧮 Calculation
🎯 What does this mean for investors?
- Growing revenue indicates rising demand and can be an early signal of future earnings growth.
- Comparing actual and expected revenue reveals trends in the market environment and analyst sentiment.
- Note: Strong revenue alone isn’t enough – margins and profitability matter just as much.
📘 EBITDA
📈 What is it?
EBITDA stands for “Earnings Before Interest, Taxes, Depreciation, and Amortization.” It reflects a company’s operating profit before the effects of financing, taxes, and accounting depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
EBITDA is widely used to evaluate a company’s operating performance – especially across capital-intensive sectors or international comparisons.
🎯 What does this mean for investors?
- A high or growing EBITDA indicates strong operational profitability – independent of taxes, interest, or accounting methods.
- It’s especially useful for comparing companies across sectors or geographies.
- Important: EBITDA is not a net income figure – it excludes key costs like depreciation and interest.
📘 EBIT
📈 What is it?
EBIT stands for “Earnings Before Interest and Taxes.” It reflects a company’s operating profit after depreciation, but before interest and tax expenses.
🧮 How is it calculated?
🏛️ Why is it important?
EBIT is a core profitability metric that shows how well the company performs in its main business operations – independent of capital structure and tax environment.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT indicates strong profitability from the company’s core business – before financial and tax effects.
- It allows better comparison between companies with different debt levels or tax structures.
- Compared to EBITDA, EBIT already accounts for depreciation and reflects capital intensity more clearly.
📘 Net Income
📈 What is it?
Net income is the company’s total profit – the amount left after all expenses, taxes, interest, and depreciation have been deducted.
🧮 How is it calculated?
🏛️ Why is it important?
Net income is the most comprehensive measure of a company’s profitability – showing how much actual profit remains after all business and financing costs.
🧮 Calculation
🎯 What does this mean for investors?
- Growing net income indicates that the company is managing all of its costs efficiently.
- It directly influences valuation metrics like P/E ratio and the company’s dividend capacity.
- Over time, net income trends reveal how resilient and profitable the business model really is.
📘 Free Cash Flow (FCF)
📈 What is it?
Free Cash Flow shows how much actual cash remains after a company covers its operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
FCF reflects a company’s real financial strength – regardless of accounting profits. It shows how much flexibility a company has for dividends, share buybacks, or debt reduction.
🎯 What does this mean for investors?
- High free cash flow means the company generates real, usable cash – independent of reported net income.
- It’s often the most reliable base for sustainable dividends and buybacks.
- Declining FCF can be an early warning sign – even when profits appear stable.
📘 Revenue Growth
📈 What is it?
Revenue growth shows how much a company’s sales have changed compared to the previous year – both on a trailing basis (TTM) and based on forward projections.
🧮 How is it calculated?
Forward = (Expected revenue ÷ Revenue in prior year − 1) × 100
Forward growth is based on analyst estimates for the current fiscal year.
🏛️ Why is it important?
Rising revenue signals growing demand, business expansion, and market share gains – especially important for growth-oriented companies.
🧮 Calculation
🎯 What does this mean for investors?
- Growth is the engine of long-term value creation – especially in tech and growth sectors.
- What matters is not just current growth, but its sustainability.
- Forward projections reflect whether analysts expect continued momentum – or a slowdown.
📘 EBITDA Growth
📈 What is it?
EBITDA growth shows how much a company’s operating profit (before interest, taxes, depreciation, and amortization) has increased or decreased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBITDA ÷ EBITDA from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
Growing EBITDA indicates improving operational profitability – regardless of financing or accounting effects.
🎯 What does this mean for investors?
- Strong EBITDA growth signals operational efficiency and scalability – especially during growth phases.
- EBITDA growth can be an early indicator of margin and earnings expansion – but should be assessed alongside revenue and EBIT.
📘 EBIT Growth
📈 What is it?
EBIT growth shows how much a company’s operating profit (after depreciation, but before interest and taxes) has increased compared to the previous year.
🧮 How is it calculated?
Forward = (Expected EBIT ÷ EBIT from prior year − 1) × 100
The forward estimate is based on analyst projections for the current fiscal year.
🏛️ Why is it important?
EBIT growth is a direct indicator of a company’s business performance – taking into account capital intensity through depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- Rising EBIT signals improving operating profitability – even after accounting for depreciation.
- It’s especially important for evaluating companies with significant capital expenditures.
- Combined with revenue and EBITDA growth, EBIT growth provides a well-rounded view of operational progress.
📘 Net Income Growth
📈 What is it?
Net income growth shows how much a company’s bottom-line profit has increased or decreased compared to the previous year – both on a trailing basis (TTM) and based on analyst projections.
🧮 How is it calculated?
Forward = (Expected net income ÷ Net income from prior year − 1) × 100
The forward estimate reflects analysts’ expectations for the current fiscal year.
🏛️ Why is it important?
Net income is the ultimate measure of profitability. Growing net income signals stronger efficiency, cost control, and sustainable earnings power.
🧮 Calculation
🎯 What does this mean for investors?
- Stronger net income boosts valuation, dividend potential, and investor confidence.
- If profits stall while revenue grows, it may signal margin pressure.
📘 Free Cash Flow Growth
📈 What is it?
Free cash flow (FCF) growth shows how a company’s available cash – after covering operating expenses and capital expenditures – has changed compared to the previous year.
🧮 How is it calculated?
🏛️ Why is it important?
Free cash flow reflects real financial strength. Growing FCF indicates more flexibility for dividends, share buybacks, and reinvestment.
🎯 What does this mean for investors?
- Declining FCF may point to rising investments, increasing costs, or weaker operating performance.
- Especially for dividend investors, FCF growth is critical – since dividends are paid from actual available cash.
- A negative trend isn't always bad, but it deserves closer attention.
📘 Gross Margin
📈 What is it?
Gross margin shows how much of a company’s revenue remains after deducting the direct costs of goods sold (like materials and production). It represents the company’s “raw profit” before fixed costs, taxes, and interest.
🧮 How is it calculated?
Or simply: Gross Margin = Gross Profit ÷ Revenue × 100
🏛️ Why is it important?
Gross margin indicates how efficiently a company can produce or procure what it sells. It is a key measure of product-level profitability and pricing power.
🧮 Calculation
🎯 What does this mean for investors?
- A high gross margin suggests strong pricing power and efficient production.
- Falling margins may signal rising input costs or competitive pressure.
- Compared to peers, gross margin offers insights into the quality of a business model.
📘 EBITDA Margin
📈 What is it?
The EBITDA margin shows how much of a company’s revenue remains as operating profit before interest, taxes, depreciation, and amortization.It reflects operating efficiency without being distorted by financing or accounting factors.
🧮 How is it calculated?
🏛️ Why is it important?
The EBITDA margin reveals how much operating income a company generates per dollar of revenue – independent of capital structure and tax effects.
🎯 What does this mean for investors?
- A high EBITDA margin reflects strong core profitability – before accounting distortions.
- It allows for effective comparisons across companies and sectors.
- A stable or growing margin signals efficient cost control and business scalability.
📘 EBIT Margin
📈 What is it?
The EBIT margin shows what percentage of revenue remains as operating profit after depreciation but before interest and taxes.
🧮 How is it calculated?
🏛️ Why is it important?
The EBIT margin reflects a company’s core profitability while accounting for capital intensity (e.g. machinery, infrastructure). It’s especially useful for comparing businesses with different levels of depreciation.
🧮 Calculation
🎯 What does this mean for investors?
- A high EBIT margin shows that the company remains efficient even after factoring in depreciation.
- It’s especially relevant for capital-intensive industries.
- Stable or rising EBIT margins over time are a strong indicator of pricing power and business quality.
📘 Net margin
📈 What is it?
Net margin shows how much of a company’s revenue remains as bottom-line profit after deducting all costs, interest, taxes, and depreciation.
🧮 How is it calculated?
🏛️ Why is it important?
Net margin reflects a company’s overall efficiency – across operations, financing, and taxation. It shows how much actual profit is generated from each dollar of revenue.
🧮 Calculation
🎯 What does this mean for investors?
- A high net margin means the company is not only strong operationally but also manages financing and taxes efficiently.
- Peer comparisons reveal business quality and competitiveness.
- Declining margins despite revenue growth can be a red flag for rising costs or inefficiencies.
📘 Free cash flow margin
📈 What is it?
The free cash flow (FCF) margin shows how much of a company’s revenue remains as actual free cash after covering all operating expenses and capital expenditures.
🧮 How is it calculated?
🏛️ Why is it important?
This margin reflects the true liquidity generated by the business – independent of accounting rules or depreciation. It’s especially relevant for dividends, buybacks, and reinvestment decisions.
🎯 What does this mean for investors?
- A high FCF margin means a company consistently generates strong cash flow.
- It’s a positive signal for financial stability and shareholder returns.
- The long-term trend is key – a declining margin may indicate rising investments or weakening operating efficiency.
📘 Equity Ratio
📈 What is it?
The equity ratio indicates what portion of a company’s total assets is financed by shareholders’ equity – in other words, how much it relies on its own capital.
🧮 How is it calculated?
🏛️ Why is it important?
A high equity ratio reflects financial strength and stability, especially during downturns. It’s a key indicator of a company’s solvency and long-term risk profile.
🧮 Calculation
🎯 What does this mean for investors?
- Companies with high equity ratios are generally more resilient and less dependent on external debt.
- Low equity ratios can signal higher risk or aggressive financial strategies.
- Important: Always assess the equity ratio in combination with the return on equity (ROE). This shows not just how stable the company is – but also how efficiently it uses shareholder capital.
📘 Return on Equity (ROE)
📈 What is it?
Return on equity (ROE) shows how efficiently a company uses its shareholders’ equity to generate profit. In other words: how much net income is earned per dollar of equity.
🧮 How is it calculated?
🏛️ Why is it important?
ROE is a core profitability metric. It helps investors understand whether a company delivers attractive returns on the capital provided by its shareholders.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROE indicates that the company is using its capital efficiently and profitably.
- It’s especially meaningful for capital-intensive businesses or firms with high equity bases.
- Important: A very high ROE can also result from high debt levels – always interpret it alongside the equity ratio to assess financial health.
📘 Return on Capital Employed (ROCE)
📈 What is it?
ROCE measures how efficiently a company generates profits from its total capital – including both equity and interest-bearing debt.
🧮 How is it calculated?
It evaluates the return on all capital employed, regardless of how it’s financed.
🏛️ Why is it important?
ROCE is ideal for comparing companies with different financing structures. It shows how well management uses capital to create value for both shareholders and creditors.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROCE means the company uses its capital efficiently – regardless of whether it's funded by debt or equity.
- The higher the ROCE compared to peers, the more value the company creates with its invested capital.
- Especially relevant for capital-intensive sectors like industrials, energy, or infrastructure.
📘 Return on Invested Capital (ROIC)
📈 What is it?
ROIC measures how efficiently a company generates returns from the capital invested in its core operations – regardless of whether the capital comes from equity or debt.
🧮 How is it calculated?
- NOPAT = Net Operating Profit After Taxes
- Invested Capital = Operating assets minus non-interest-bearing liabilities
🏛️ Why is it important?
ROIC is one of the most accurate indicators of capital efficiency. Unlike return on equity, it is not distorted by leverage and shows how much value is created for all capital providers.
🧮 Calculation
🎯 What does this mean for investors?
- A high ROIC shows how effectively a company uses the capital that is truly invested in its core operations.
- Unlike ROCE, ROIC focuses only on the capital that is actively used to run the business – and that requires a return (i.e. interest-bearing).
- Especially useful when comparing companies with large amounts of excess cash or non-interest-bearing liabilities – giving a more realistic picture of capital efficiency.
📘 Leverage Ratio (Debt-to-Equity)
📈 What is it?
The leverage ratio indicates how much a company relies on interest-bearing debt (such as loans and bonds) relative to its shareholders’ equity.
🧮 How is it calculated?
🏛️ Why is it important?
This ratio helps assess a company’s financial structure and risk profile. High leverage can enhance returns – but also increases exposure to interest rate changes and financial stress.
🧮 Calculation
🎯 What does this mean for investors?
- A low leverage ratio signals financial strength and independence.
- A higher ratio can improve returns in good times but increases risk during downturns or rising interest rate periods.
- 👉 Always interpret in the context of industry, capital intensity, and interest rate environment.
📘 Earnings per share (EPS)
📈 What is it?
Earnings per Share (EPS) shows how much profit is attributable to a single share – and is one of the most important metrics for evaluating a company's performance.
🧮 How is it calculated?
The diluted share count reflects potential new shares that could be issued through options, convertible bonds, or other rights.
🏛️ Why is it important?
EPS is the basis for many key valuation metrics like P/E ratio, PEG ratio, or payout ratio. It enables comparisons of profitability across companies, regardless of their size.
🧮 Calculation
🎯 What does this mean for investors?
- EPS captures per-share profitability and is especially useful for comparisons over time or with analyst estimates.
- Rising EPS may signal consistent growth or share buybacks.
- Important: Always use diluted EPS for more realistic valuations – especially in companies with stock-based compensation.
📘 Free cash flow per share (FCF per share)
📈 What is it?
Free Cash Flow per Share shows how much free cash flow a company generates per outstanding share – after investments, but before dividends or debt repayments.
🧮 How is it calculated?
Free cash flow is calculated as operating cash flow minus capital expenditures (CapEx).
🏛️ Why is it important?
FCF per Share reveals how much real cash is available per share – useful for dividends, buybacks, or reducing debt. Unlike net income, free cash flow is harder to manipulate and often seen as a more reliable metric.
🧮 Calculation
🎯 What does this mean for investors?
- High FCF per share signals strong financial flexibility.
- It shows how much capital the company can effectively reinvest or return to shareholders.
- Particularly relevant for dividend payers and capital-efficient businesses.
📘 Short interest
📈 What is it?
Short interest indicates how many shares of a company are currently sold short – that is, borrowed and sold by investors who expect the price to decline.
🧮 How is it calculated?
It reflects the percentage of a company’s shares that are being shorted relative to the total shares available.
🏛️ Why is it important?
Short interest serves as a sentiment indicator: A high value may signal skepticism or bearish expectations – but also increases the potential for a short squeeze if prices rise unexpectedly.
🎯 What does this mean for investors?
- Low short interest usually indicates market confidence in the company.
- High short interest can be a warning sign – or an opportunity if sentiment shifts.
- Especially relevant in volatile markets or ahead of key earnings releases.
📘 Employees
📈 What is it?
The employee count shows how many people a company employs worldwide – offering insights into its size, structure, and business model.
🧮 How is it calculated?
🏛️ Why is it important?
It helps assess operational scale, labor intensity, and cost structure. Combined with revenue and profit, it enables key metrics like revenue per employee or productivity.
🧮 Calculation
🎯 What does this mean for investors?
- A high headcount can signal operational complexity – but also significant growth capacity.
- Revenue per employee is a key indicator of efficiency.
- Especially useful for comparing tech, industrial, or service-heavy companies.
📘 Turnover per employee
📈 What is it?
Revenue per employee indicates how much revenue a company generates on average per employee – a key measure of efficiency and productivity.
🧮 How is it calculated?
The employee count is typically taken from the most recent annual report.
🏛️ Why is it important?
This metric helps compare business models – especially between labor-intensive and technology-driven companies. A high value suggests automation, operational efficiency, or strong value creation per head.
🧮 Calculation
🎯 What does this mean for investors?
- A high revenue per employee indicates a scalable and margin-strong business model.
- A low figure may reflect labor-intensive operations or lower value-add.
- Especially helpful when comparing tech companies to industrial or service sectors.
Mitsui Fudosan Stock Analysis
Analyst Opinions
16 Analysts have issued a Mitsui Fudosan forecast:
Analyst Opinions
16 Analysts have issued a Mitsui Fudosan forecast:
Mitsui Fudosan Events
Past Events
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MAY
17
2026 Earnings Call
4 months ago
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MAY
12
Q4 2026 Earnings Call
5 months ago
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FEB
6
Q3 2026 Earnings Call
8 months ago
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StocksGuide Free
Mitsui Fudosan — 2026 Earnings Call
1. Management Discussion
Good afternoon, everyone. I am Kijima, Executive Manager of Investor Relations at Mitsui Fudosan. I will present in detail the full year results for the fiscal year ended March 2026. Similar to last time, I will use the financial results and business highlights presentation dated May 13, which is available on our website.
As usual, I will begin with the results highlights on Slide 3 of the presentation. As indicated in the blue box on the upper part of the page and the figures in the table, in fiscal 2025, we achieved year-on-year growth for each of operating revenue, operating income, business income, ordinary income and profit attributable to owners of the parent exceeded our forecast for the full year and also set record highs for all levels of earnings.
As shown in the box on the lower right, the resulting full year EPS was JPY 101 for an EPS CAGR of 13.4% from the fiscal 2023 EPS forecast of JPY 78.5. The ROE for fiscal 2025 was 8.7%. Mitsui Fudosan achieved its fiscal 2026 goals for ROE, business income and net profit under the group long-term vision, & INNOVATION 2030 1 year ahead of plan.
Our forecast for fiscal 2026, as shown in the lower part of the blue box and the figures in the table are operating revenue of JPY 2.8 trillion, business income of JPY 450 billion and profit attributable to owners of the parent of JPY 285 billion. We project record high earnings in fiscal 2026.
Our forecast represent the 15th consecutive year of record highs for operating revenue, the third consecutive year for business income and the fifth consecutive year for net profit. Returning to the box on the lower right, as a consequence of these forecasts, we project a 3-year CAGR of 10.3% for growth metric EPS growth.
We are expecting to significantly exceed the fiscal 2026 CAGR target of 8% EPS growth and project an ROE of more than 8.5%. For strategic equity holdings, relative to our target of a 50% reduction over the 3-year period from the end of fiscal 2023, we have achieved a reduction of around 40% as of the end of fiscal 2025. We now aim to achieve a cumulative reduction of more than 50% as of the end of fiscal 2026.
With regard to shareholder returns, please turn to Page 4. Based on the overshoot of our net profit forecast and reflecting the dividend policy set out in & INNOVATION 2030 for a dividend payout ratio of around 35%, we have raised our annual DPS guidance for fiscal 2025 from the JPY 34, as announced on November 7 to JPY 35, up JPY 1. This represents a JPY 4 increase from the JPY 31 of the previous fiscal year.
Combined with the share buyback program of JPY 57 billion announced on November 7, this will bring the total payout ratio for fiscal 2025 to 54.9% of profit attributable to owners of parent. The JPY 57 billion share buyback program was completed on March 9. With regard to the treasury shares we acquired, the Board of Directors has resolved to retire the shares on May 29.
Our DPS guidance for fiscal 2026 based on a payout ratio of 35% and our net profit forecast of JPY 285 billion is for an annual dividend of JPY 37, up JPY 2 from fiscal 2025. In addition to this, for shareholder returns in fiscal 2026, we have also decided today to implement a JPY 40 billion share buyback program. We note that subject to conditions such as share price, cash and progress toward achieving our KPIs, we are open to considering further share buybacks over the course of the fiscal year.
I will now explain the results in detail. Please turn to Page 65 of the financial results and business highlights presentation. I will start with the profit and loss statement. Fiscal 2025 operating revenue was JPY 2,709.7 billion, up JPY 84.3 billion or 3.2% year-on-year. Business income, which is the combination of operating income and gains and losses on equity method investments and the disposal of fixed assets was JPY 445.1 billion, up JPY 46.4 billion or 11.6% year-on-year.
Ordinary income was JPY 313.3 billion, up JPY 23 billion or 7.9% year-on-year. Profit attributable to owners of parent was JPY 278.6 billion, up JPY 29.8 billion or 12% year-on-year. Progress relative to full year guidance is shown on the right in the table entitled Achievement rate. We revised up our earnings forecast twice in fiscal 2025, but relative to the upwardly revised forecast, we exceeded our projections at each level from operating revenue down to net profit.
Next, before covering the details of the segment results, please return to the table on the left. I will discuss the major items below the line. I will begin with nonoperating income. We incurred a loss of JPY 4.3 billion in equity in net income or loss of affiliated companies, a JPY 1.8 billion year-on-year widening of losses. This is mainly the result of increased expenses such as depreciation and other expenses related to U.S. rental properties that were completed in the fiscal year under review or the previous fiscal year.
Net interest expense was JPY 73.4 billion, an improvement of JPY 5.8 billion versus the previous fiscal year. While there was an increase in net yen-denominated interest expense on the back of rising interest rates in Japan, net foreign currency-denominated interest expense declined, mainly reflecting the impact of rate cuts in the U.S. and other factors.
Other nonoperating income was a loss of JPY 6.6 billion, a JPY 5.9 billion year-on-year widening of losses. This reflects the impact of a decline in dividends received and an increase in losses on the retirement of tangible assets. As a result, overall nonoperating income was a negative JPY 84.4 billion, a JPY 1.9 billion deterioration year-on-year.
Next, for extraordinary gains and losses, please refer to the box on the upper right entitled Extraordinary Income. We posted JPY 51.7 billion in extraordinary gains from the disposal of tangible assets. This is in line with the policy set out in the long-term vision & INNOVATION 2030 of not distinguishing between tangible assets and real property for sale when considering disposals.
We generated profits on the sale of the Otemachi Building Nagoya Station Front Building and the former Hibiya U-1 Building. We also generated profits on the sale of investment securities of JPY 51.6 billion, in line with the policy set out in & INNOVATION 2030 to reduce holdings of investment securities.
We generated profits on the sale of a portion of our equity holdings. Under extraordinary losses, we incurred JPY 19.7 billion in impairment losses. As explained at the time of second quarter results, this is related to a loss at LaLaport BBCC, a retail facility in Kuala Lumpur, Malaysia.
As previously disclosed, there is a JV partner for LaLaport BBCC. The partner will bear their share of the loss in line with their stake. As such, the impact on Mitsui Fudosan's net profit will only be for our share, which is around JPY 8 billion or roughly half of the JPY 17 billion LaLaport BBCC impairment loss.
Please return to the table on the left. As shown on the fourth line from the bottom, corporate tax was JPY 125.1 billion. Net losses attributable to noncontrolling interest shown in the second row from the bottom of the table was a positive JPY 6.8 billion. The figure is a significant positive, reflecting the portion of impairment losses attributable to noncontrolling interest for LaLaport BBCC as just discussed.
Please turn to the next page. I will now cover the segment results in detail. First, the Leasing segment, as shown on Slide 67 of the presentation. Reflecting growth in revenues and profits from offices in Japan and overseas, such as Tokyo Midtown Yaesu and 50 Hudson Yards in New York, fiscal 2025 operating revenue was JPY 936.6 billion, and operating income was JPY 181.5 billion, up JPY 64.2 billion and JPY 5 billion year-on-year, respectively.
Equity in net income or loss of affiliated companies was a negative JPY 4.5 billion, a year-on-year decline of JPY 4.5 billion, reflecting the impact of depreciation expenses on U.S. rental properties, which were completed in the fiscal year under review and the previous fiscal year.
As a result, business income was JPY 177 billion, up JPY 0.5 billion year-on-year. The office vacancy rate is shown 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 remains at a low 1.6%.
Next is the Property Sales segment. Please turn to Page 68. As shown at the very top of the page, fiscal 2025 operating revenue for property sales as a whole was JPY 729.2 billion, and business income was JPY 193.1 billion. This represents a JPY 28.7 billion year-on-year decline in operating revenue, but a JPY 26.1 billion year-on-year increase in profits.
Looking at the subsegments, for property sales to domestic individuals, operating revenue was JPY 439.3 billion and operating income was JPY 112 billion on the back of handovers for Mita Garden Hills, Park City Takadanobaba and others. This represents a JPY 25.7 billion year-on-year increase in operating revenues and a JPY 15.5 billion year-on-year increase in operating income.
We show the number of reported units in the middle of the page. The combined total of condominiums and detached housing units was 3,154, down 956 units year-on-year. However, the average price per unit for the combination of condominium and detached housing units hit a record high of JPY 139.3 million.
Near-term selling conditions remain strong and unchanged. We show completed inventory on the lower part of the page. As you can see, fiscal 2025 completed inventory as of the end of March 2026 was 36 units for condominiums and 10 units for detached housing for a combination of 46 units.
Inventory remains at historically low levels. Also, while not indicated on the slide, the OPM for domestic residential property sales was 25.5%. Next is property sales to investors and overseas individuals. Please return to the top of the page. Operating revenue was JPY 289.9 billion, down JPY 54.5 billion year-on-year.
Business income for the subsegment was JPY 81.1 billion, the combination of operating income of JPY 31.4 billion and the sum of equity method investment profits and gains on the sale of fixed assets at JPY 49.6 billion. On a year-on-year basis, subsegment operating income for property sales to investors fell JPY 14.9 billion year-on-year, but was offset by a JPY 25.4 billion year-on-year increase in equity method investment gains and gains on the disposal of fixed assets. In total, business income rose JPY 10.5 billion year-on-year.
Next, the Management segment. Please turn to Page 69. As shown at the top of the page, the overall Management segment reported fiscal 2025 operating revenue of JPY 511.4 billion and business income of JPY 80.8 billion. This is a JPY 25.1 billion increase in operating revenue and a JPY 9.2 billion increase in business profits from the previous fiscal year.
I will now discuss conditions for the individual subsegments. Property Management operating revenue was JPY 376.3 billion, while business income was JPY 44.3 billion. This represents year-on-year increases of JPY 14.9 billion and JPY 5.8 billion, respectively. The key factors were an increase in revenue at the car sharing business and higher management fees reflecting GMV growth at retail facilities.
Next is the Brokerage and Asset Management subsegment. Operating revenue was JPY 135.1 billion and business income was JPY 36.5 billion. This represents year-on-year increases of JPY 10.2 billion and JPY 3.3 billion, respectively. The main driver was an increase in project management fees.
Next is the Facility Operations segment. Please turn to Page 70. The overall Facilities Operations segment reported fiscal 2025 operating revenue of JPY 244.1 billion and business income of JPY 46.3 billion. This represents year-on-year increases of JPY 20 billion and JPY 7.7 billion, respectively.
We cover the key factors in the comment section on the left. The year-on-year gains are due to rising ADRs and occupancy rates for the Hotel and Resorts business and usage fee hikes at Tokyo Dome. Looking at the individual subsegments, the Hotel and Resorts business reported operating revenue of JPY 177.5 billion, up JPY 15.4 billion year-on-year.
The Sports and Entertainment business, which consists primarily of Tokyo Dome City, posted operating revenue of JPY 66.5 billion, up JPY 4.6 billion year-on-year. As you can see, both subsegments reported year-on-year top line growth.
Next is the Other segment. Please turn to Page 71. Overall, the Other segment reported fiscal 2025 operating revenue of JPY 288.2 billion and business income of JPY 10.1 billion. The improved margin at the new construction under consignment business at Mitsui Home and large-scale orders for the Lifestyle business at Mitsui Designtec drove the year-on-year improvement of JPY 3.6 billion each to operating revenue and business income.
Next, for reference, we show the figures for the overseas business. Please turn to Page 72. Overall combined overseas business income for fiscal 2025 was JPY 31.3 billion, up JPY 4 billion year-on-year. Within the overseas business, leasing saw improved profitability from offices as a result of progress on tenants moving into 50 Hudson Yards and other properties.
However, this was offset by an increase in expenses such as depreciation on U.S. rental properties, which were completed in the period under review and the previous fiscal year. As a result, while operating revenue grew JPY 16.4 billion, business income fell JPY 0.9 billion year-on-year.
In the Property Sales segment, we made progress on disposals of U.S. West Coast rental residential properties for an increase of JPY 14.8 billion in operating revenues. However, while we incurred losses of JPY 8.5 billion related to the sale of U.S. West Coast rental residential properties and the valuation of U.S. West Coast rental residential properties and residential properties for sale in China at the lower of cost or market, progress in profit recognition for the residential property sales in APAC contributed to narrowing the loss by JPY 4.8 billion year-on-year.
The combination of management and other segments reported a JPY 0.8 billion improvement in revenue and a JPY 0.1 billion increase in profits. Next, I will cover the balance sheet. Please turn to Page 73. At the bottom of the page on the left, total assets as of the end of fiscal 2025 were JPY 10,103.4 billion, up JPY 243.6 billion from the end of the previous fiscal year, mainly as a result of factors such as progress on investments and the rise in share prices.
As indicated below the table, the impact of moves in foreign currency rates was JPY 39.2 billion. As shown on the lower right of the table, the D/E ratio as of the end of fiscal 2025 was 1.41x and the equity ratio was 32.4%. I will now discuss the major components of change such as cost recovery. Please turn to Page 74.
As shown in the table on the upper left entitled Real Property for Sale, the outstanding balance was JPY 2,603 billion, up JPY 102.3 billion from the end of the previous fiscal year. Looking at the table below, new investments were JPY 644.4 billion. Cost recovery was JPY 520.3 billion and other, which includes the impact of ForEx was a negative JPY 21.8 billion.
Next, on the lower left, the outstanding balance of tangible and intangible assets was JPY 4,679.1 billion, down JPY 28.3 billion from the end of the previous fiscal year. As shown in the table below, there were new investments of JPY 246.3 billion, including construction investments for projects such as the renovation of LaLaport Tokyo-Bay North Wing, while depreciation was JPY 150.9 billion. And under other, there was a reduction of JPY 123.7 billion related to the sale of the former Hibiya U-1 Building and Otemachi Building Nagoya Station Front Building, as noted in the comment section on the right and the impact of ForEx.
Combining all of the above, the total outstanding balance fell a net JPY 28.3 billion compared to the end of the previous fiscal year. On the liability side, please see the table on the upper right. As of the end of fiscal 2025, outstanding interest-bearing debt was JPY 4,632.5 billion, up JPY 216.4 billion from the end of the previous fiscal year. This was primarily due to progress on investments in Japan and overseas and the impact of ForEx.
As it is the end of the fiscal year, we also revalued our rental properties, marking them to market. Please turn to Page 75. As you can see in the table on the upper part of the page, market value as of the end of fiscal 2025 was JPY 7,714.6 billion, making the gap to book value or the unrealized gains JPY 3,985.1 billion, up JPY 299.5 billion from the end of the previous fiscal year.
The increase was mainly the result of the new inclusion of a number of properties such as the Nihonbashi 1-Chome Central District Project, which has now been renamed Tokyo Midtown Nihonbashi and [Portside Yokohama] in properties that are marked to market.
There was also an impact from increases in rent revenues from existing offices and retail facilities. Next, I will explain in detail our forecast for the fiscal year ending March 2027. Please turn to Page 78. Our forecast for fiscal 2026 business income is JPY 450 billion, up JPY 4.8 billion from fiscal 2025. We also project a JPY 6.3 billion year-on-year increase in profit attributable to owners of parent to JPY 285 billion.
As indicated in the comments section in the box on the right, we have taken into account factors such as increases in office rents in Japan and overseas, increased leasing profits on the back of higher GMVs at retail facilities in Japan and overseas and expected growth in property sales, including the impact of an acceleration of total asset turnover, including both tangible assets and real property for sale.
Operating revenue, business income, ordinary income and profit attributable to owners of parent are all expected to hit record highs. I will now elaborate on the segment breakdown. First, for the Leasing segment, while we expect an increase in expenses on the back of the completion of domestic office properties and U.S. rental properties, we have also factored in increases in domestic office rents and growth in leasing profits as a result of GMV growth at domestic and overseas retail facilities.
We guide for operating revenue of JPY 970 billion and business income of JPY 180 billion, both rising year-on-year. We project Mitsui Fudosan's nonconsolidated metropolitan area office vacancy rate as of the end of fiscal 2026 to be in the 1% plus range. We expect vacancy rates to remain low.
For the Property Sales segment, while there is a high base for comparison in the property sales to domestic individual subsegment relative to the fiscal 2025's high level of central-urban, high-end large-scale properties, factoring in an acceleration of asset turnover in property sales to investors, including both real property for sale and tangible assets, we project overall property sales operating revenue of JPY 740 billion and business income of JPY 210 billion, both up year-on-year.
With regard to property sales to domestic individuals, please see the box on the left on Page 79. We expect to report 2,700 units, the combined total of condominium and detached housing units and are guiding for an OPM of 21% similar to the margins of more than 20% that we generated in fiscal '24 and '25.
While not shown on the page, relative to the 2,350 condominium units we expect to report, the contract rate is already at 75%. In addition, we have 24,600 units in our land bank, mainly focused on central urban large-scale redevelopment projects. We believe we can continue to stably generate profits over the medium to long term.
Next is the property sales to investors subsegment. While being mindful of maintaining a favorable balance between stable and sustainable leasing profits and property sales profits by generating added value through the disposal of real property for sale and tangible assets, we project operating revenue of JPY 430 billion and business income of JPY 145 billion, with both significantly higher year-on-year.
While not indicated on the slide, the progress rate on contracts which underpin this profit forecast is already above 50% as of the beginning of the fiscal year, which should give you a high degree of confidence in our ability to achieve our target.
Next, please turn to Page 78 for the Management segment. As a result of the absence of the one-off management fees reported in fiscal 2025, we are projecting operating revenues of JPY 510 billion and business income of JPY 75 billion, both down year-on-year.
However, our stated annual profit target for the Management segment under & INNOVATION 2030 is JPY 70 billion. Our fiscal 2026 forecast represents the third consecutive year that we expect to exceed this level. For the Facilities Operations segment, while we expect further revenue and profit growth in the Hotel and Resorts business given strong demand, taking into account an increase in expenses on the completion of new large-scale projects, we are guiding for overall segment operating revenue of JPY 260 billion and business income of JPY 45 billion. This level is unchanged from the fiscal 2025 level.
Next, for the Other segment, we project overall segment operating revenue of JPY 320 billion and business income largely unchanged year-on-year of JPY 10 billion. Next, on the net interest burden, reflecting progress on investments in Japan and overseas and the impact of rising interest rates in yen, we project an increase of JPY 11.5 billion versus fiscal 2025 to JPY 85 billion.
Finally, on extraordinary income, on the back of expected gains on disposals of tangible assets and investment securities, we project extraordinary income of JPY 105 billion, up JPY 21.3 billion year-on-year. In summary, we project fiscal 2026 operating revenue of JPY 2.8 trillion, up JPY 90.2 billion, business income of JPY 450 billion, up JPY 4.8 billion.
Ordinary income of JPY 315 billion, up JPY 1.6 billion and profit attributable to owners of parent of JPY 285 billion, up JPY 6.3 billion. For each of operating revenue, business income, ordinary income and profit attributable to owners of parent, the projections represent record highs.
With regard to the effect of the conflict in the Middle East, we have seen no impact in the near term. As such, it is not factored into our forecast, but the plan does incorporate a certain level of buffer. Obviously, the magnitude of the impact will depend on how long the conflict persists and its severity. But given we have multiple profit-generating capabilities, we don't feel there is a need to be overly concerned about our ability to achieve our targets.
I will skip a discussion of shareholder returns since I have already touched upon it at the beginning of the call. Next, I would like to return to Page 79 to discuss investments and cost recovery again using the table on the right. Investments in tangible and intangible assets in fiscal 2026 are projected to be JPY 300 billion, primarily focused on domestic development investments.
For real property for sale in fiscal 2026, we are guiding for investments of JPY 790 billion, but cost recovery of JPY 610 billion. Based on this, we project interest-bearing debt as of the end of fiscal 2026 to be JPY 4.8 trillion. Finally, on cash allocation, please turn to Page 18. Our cumulative track record for fiscal 2024 and 2025 is shown on the table on the right. Of the projected cash inflow, cumulative asset turnover proceeds for the 2 years of fiscal 2024 and fiscal 2025 were JPY 1.240 trillion. Compared to the cost recovery amount for the 3 years up to fiscal 2023, our target of cumulative cost recovery of JPY 2 trillion represents a 1.4x increase.
Relative to the fiscal 2026 target, we are tracking largely in line, having achieved 60% of the target to this point. In addition to real property for sale, we have also made progress on cost recovery, including disposals of tangible assets and investment securities.
Backed by growth in business income in each of the segments, the basic cash flow from operating activities over the last 2 years we have generated is around JPY 1 trillion. Our initial assumption was that this level of basic cash flow from operating activities would be achieved over a 3-year period.
With regard to cash outflow, we are making steady progress in winning promising investment projects with the combined total of growth investments and strategic investments at around JPY 1.970 trillion or 80% of our target. On shareholder returns, the combined total of dividends and share buybacks is approximately JPY 320 billion, roughly 80% of our target.
As a result, both cash inflows and outflows stand at around JPY 2.2 trillion for a progress rate of roughly 2/3 versus our planned targets. Currently, the impact of the Middle East conflict has led to highly volatile financial and economic markets, but the near-term fundamentals for our core business, real estate, particularly the Japanese real estate market are firm.
We believe Mitsui Fudosan is making solid progress on enhancing its ability to generate profits. The group as a whole remains firmly committed to achieving the forecast we have disclosed for this fiscal year while closely monitoring the financial and real estate market conditions in Japan and overseas. This completes my presentation.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]
Mitsui Fudosan — Q4 2026 Earnings Call
1. Management Discussion
Good afternoon, everyone. I am Kijima, Executive Manager of Investor Relations at Mitsui Fudosan.
I will present in detail the full year results for the fiscal year ended March 2026. Similar to last time, I will use the financial results and business highlights presentation dated May 13, which is available on our website.
As usual, I will begin with the results highlights on Slide 3 of the presentation. As indicated in the blue box on the upper part of the page and the figures in the table, in fiscal 2025, we achieved year-on-year growth for each of operating revenue, operating income, business income, ordinary income and profit attributable to owners of the parent exceeded our forecast for the full year and also set record highs for all levels of earnings.
As shown in the box on the lower right, the resulting full year EPS was JPY 101 for an EPS CAGR of 13.4% from the fiscal 2023 EPS forecast of JPY 78.5.
The ROE for fiscal 2025 was 8.7%.
Mitsui Fudosan achieved its fiscal 2026 goals for ROE, business income and net profit under the group long-term vision & INNOVATION 2030, 1 year ahead of plan.
Our forecast for fiscal 2026, as shown in the lower part of the blue box and the figures in the table are operating revenue of JPY 2.8 trillion, business income of JPY 450 billion and profit attributable to owners of the parent of JPY 285 billion. We project record high earnings in fiscal 2026, our forecast represents the 15th consecutive year of record highs for operating revenue, the third consecutive year for business income and the fifth consecutive year for net profit.
Returning to the box on the lower right. As a consequence of these forecasts, we project a 3-year CAGR of 10.3% for growth metric EPS growth. We are expecting to significantly exceed the fiscal 2026 CAGR target of 8% EPS growth and project an ROE of more than 8.5%.
For strategic equity holdings relative to our target of a 50% reduction over the 3-year period from the end of fiscal 2023, we have achieved a reduction of around 40% as of the end of fiscal 2025. We now aim to achieve a cumulative reduction of more than 50% as of the end of fiscal 2026.
With regard to shareholder returns, please turn to Page 4. Based on the overshoot of our net profit forecast and reflecting the dividend policy set out in & INNOVATION 2030 for a dividend payout ratio of around 35%, we have raised our annual DPS guidance for fiscal 2025 from the JPY 34 as announced on November 7 to JPY 35, up JPY 1. This represents a JPY 4 increase from the JPY 31 of the previous fiscal year.
Combined with the share buyback program of JPY 57 billion announced on November 7, this will bring the total payout ratio for fiscal 2025 to 54.9% of profit attributable to owners of parent. The JPY 57 billion share buyback program was completed on March 9.
With regard to the treasury shares we acquired, the Board of Directors has resolved to retire the shares on May 29.
Our DPS guidance for fiscal 2026, based on a payout ratio of 35% and our net profit forecast of JPY 285 billion, is for an annual dividend of JPY 37, up JPY 2 from fiscal 2025.
In addition to this, for shareholder returns in fiscal 2026, we have also decided today to implement a JPY 40 billion share buyback program.
We note that subject to conditions such as share price, cash and progress toward achieving our KPIs, we are open to considering further share buybacks over the course of the fiscal year.
I will now explain the results in detail. Please turn to Page 65 of the financial results and business highlights presentation. I will start with the profit and loss statement. Fiscal 2025 operating revenue was JPY 2,797 billion, up JPY 84.3 billion or 3.2% year-on-year.
Business income, which is the combination of operating income and gains and losses on equity method investments and the disposal of fixed assets was JPY 445.1 billion, up JPY 46.4 billion or 11.6% year-on-year.
Ordinary income was JPY 313.3 billion, up JPY 23 billion or 7.9% year-on-year.
Profit attributable to owners of parent was JPY 278.6 billion, up JPY 29.8 billion or 12% year-on-year.
Progress relative to full year guidance is shown on the right in the table entitled Achievement Rate. We revised up our earnings forecast twice in fiscal 2025, but relative to the upwardly revised forecast, we exceeded our projections at each level from operating revenue down to net profit.
Next, before covering the details of the segment results, please return to the table on the left. I will discuss the major items below the line. I will begin with nonoperating income. We incurred a loss of JPY 4.3 billion in equity in net income or loss of affiliated companies, a JPY 1.8 billion year-on-year widening of losses. This is mainly the result of increased expenses such as depreciation and other expenses related to U.S. rental properties that were completed in the fiscal year under review or the previous fiscal year.
Net interest expense was JPY 73.4 billion, an improvement of JPY 5.8 billion versus the previous fiscal year.
While there was an increase in net yen-denominated interest expense on the back of rising interest rates in Japan, net foreign currency denominated interest expense declined, mainly reflecting the impact of rate cuts in the U.S. and other factors.
Other nonoperating income was a loss of JPY 6.6 billion, a JPY 5.9 billion year-on-year widening of losses. This reflects the impact of a decline in dividends received and an increase in losses on the retirement of tangible assets. As a result, overall nonoperating income was a negative JPY 84.4 billion, a JPY 1.9 billion deterioration year-on-year.
Next, for extraordinary gains and losses, please refer to the box on the upper right entitled Extraordinary Income. We posted JPY 51.7 billion in extraordinary gains from the disposal of tangible assets. This is in line with the policy set out in the long-term vision & INNOVATION 2030 of not distinguishing between tangible assets and real property for sale when considering disposals. We generated profits on the sale of the Otemachi Building Nagoya station front building and the former Hibiya U-1 building.
We also generated profits on the sale of investment securities of JPY 51.6 billion, in line with the policy set out in & INNOVATION 2030 to reduce holdings of investment securities. We generated profits on the sale of a portion of our equity holdings.
Under extraordinary losses, we incurred JPY 19.7 billion in impairment losses. As explained at the time of second quarter results, this is related to a loss at LaLaport BBCC, a retail facility in Kuala Lumpur, Malaysia.
As previously disclosed, there is a JV partner for LaLaport BBCC. The partner will bear their share of the loss in line with their stake. As such, the impact on Mitsui Fudosan's net profit will only be for our share, which is around JPY 8 billion or roughly half of the JPY 17 billion LaLaport BBCC impairment loss.
Please return to the table on the left. As shown on the fourth line from the bottom, corporate tax was JPY 125.1 billion.
Net losses attributable to noncontrolling interest shown in the second row from the bottom of the table was a positive JPY 6.8 billion. The figure is a significant positive, reflecting the portion of impairment losses attributable to noncontrolling interest for LaLaport BBCC, as just discussed.
Please turn to the next page. I will now cover the segment results in detail. First, the Leasing segment, as shown on Slide 67 of the presentation. Reflecting growth in revenues and profits from offices in Japan and overseas, such as Tokyo Midtown Yaesu and 50 Hudson Yards in New York, fiscal 2025 operating revenue was JPY 936.6 billion and operating income was JPY 181.5 billion, up JPY 64.2 billion and JPY 5 billion year-on-year, respectively.
Equity in net income or loss of affiliated companies was a negative JPY 4.5 billion, a year-on-year decline of JPY 4.5 billion, reflecting the impact of depreciation expenses on U.S. rental properties, which were completed in the fiscal year under review in the previous fiscal year. As a result, business income was JPY 177 billion, up JPY 0.5 billion year-on-year.
The office vacancy rate is shown in the box in the middle of the page.
Mitsui Fudosan's nonconsolidated metropolitan area office vacancy rate as of the end of March remains at a low 1.6%.
Next is the Property Sales segment. Please turn to Page 68. As shown at the very top of the page, fiscal 2025 operating revenue for property sales as a whole was JPY 729.2 billion, and business income was JPY 193.1 billion. This represents a JPY 28.7 billion year-on-year decline in operating revenues but a JPY 26.1 billion year-on-year increase in profits.
Looking at the subsegments. For property sales to domestic individuals, operating revenue was JPY 439.3 billion, and operating income was JPY 112 billion on the back of handovers for Mita Garden Hills, Park City Takadanobaba and others. This represents a JPY 25.7 billion year-on-year increase in operating revenues and a JPY 15.5 billion year-on-year increase in operating income.
We show the number of reported units in the middle of the page.
The combined total of condominiums and detached housing units was 3,154, down 956 units year-on-year. However, the average price per unit for the combination of condominium and detached housing units hit a record high of JPY 139.3 million.
Near-term selling conditions remain strong and unchanged. We show completed inventory on the lower part of the page. As you can see, fiscal 2025 completed inventory as of the end of March 2026 was 36 units for condominiums and 10 units for detached housing for a combination of 46 units.
Inventory remains at historically low levels.
Also, while not indicated on the slide, the OPM for domestic residential property sales was 25.5%.
Next is property sales to investors and overseas individuals. Please return to the top of the page. Operating revenue was JPY 289.9 billion, down JPY 54.5 billion year-on-year. Business income for the subsegment was JPY 81.1 billion, the combination of operating income of JPY 31.4 billion and the sum of equity method investment profits and gains on the sale of fixed assets at JPY 49.6 billion.
On a year-on-year basis, subsegment operating income for property sales to investors fell JPY 14.9 billion year-on-year but was offset by a JPY 25.4 billion year-on-year increase in equity method investment gains and gains on the disposal of fixed assets.
In total, business income rose JPY 10.5 billion year-on-year.
Next, the Management segment. Please turn to Page 69. As shown at the top of the page, the overall management segment reported fiscal 2025 operating revenue of JPY 511.4 billion and business income of JPY 80.8 billion. This is a JPY 25.1 billion increase in operating revenue and a JPY 9.2 billion increase in business profits from the previous fiscal year.
I will now discuss conditions for the individual subsegment. Property Management operating revenue was JPY 376.3 billion while business income was JPY 44.3 billion. This represents year-on-year increases of JPY 14.9 billion and JPY 5.8 billion, respectively. The key factors were an increase in revenue at the car sharing business and higher management fees reflecting GMV growth at retail facilities.
Next is the Brokerage and Asset Management subsegment. Operating revenue was JPY 135.1 billion and business income was JPY 36.5 billion. This represents year-on-year increases of JPY 10.2 billion and JPY 3.3 billion, respectively. The main driver was an increase in project management fees.
Next is the facility operations segment. Please turn to Page 70. The overall Facilities Operations segment reported fiscal 2025 operating revenue of JPY 244.1 billion and business income of JPY 46.3 billion. This represents year-on-year increases of JPY 20 billion and JPY 7.7 billion, respectively. We cover the key factors in the comment section on the left. The year-on-year gains are due to rising ADRs and occupancy rates for the hotel and resorts business and usage fee hikes at Tokyo Dome.
Looking at the individual subsegments, the Hotel & Resorts business reported operating revenue of JPY 177.5 billion, up JPY 15.4 billion year-on-year. The sports and entertainment business, which consists primarily of Tokyo Dome City, posted operating revenue of JPY 66.5 billion, up JPY 4.6 billion year-on-year. As you can see, both subsegments reported year-on-year top line growth.
Next is the other segment. Please turn to Page 71. Overall, the Other segment reported fiscal 2025 operating revenue of JPY 288.2 billion and business income of JPY 10.1 billion. The improved margin at the new construction under consignment business at Mitsui Home and large-scale orders for the Lifestyle business at Mitsui Designtec drove the year-on-year improvement of JPY 3.6 billion each to operating revenue and business income.
Next, for reference, we show the figures for the overseas business. Please turn to Page 72. Overall combined overseas business income for fiscal 2025 was JPY 31.3 billion, up JPY 4 billion year-on-year. Within the overseas business, leasing saw improved profitability from offices as a result of progress on tenants moving into 50 Hudson Yards and other properties. However, this was offset by an increase in expenses such as depreciation on U.S. rental properties, which were completed in the period under review in the previous fiscal year. As a result, while operating revenue grew JPY 16.4 billion, business income fell JPY 0.9 billion year-on-year.
In the Property Sales segment, we made progress on disposals of U.S. West Coast rental residential properties for an increase of JPY 14.8 billion in operating revenues. However, while we incurred losses of JPY 8.5 billion related to the sale of U.S. West Coast rental residential properties and the valuation of U.S. West Coast rental residential properties and residential properties for sale in China at the lower of cost or market, progress in profit recognition for the residential property sales in APAC contributed to narrowing the loss by JPY 4.8 billion year-on-year.
The combination of management and other segment reported a JPY 0.8 billion improvement in revenues and a JPY 0.1 billion increase in profit.
Next, I will cover the balance sheet. Please turn to Page 73. At the bottom of the page on the left, total assets as of the end of fiscal 2025 were JPY 10,103.4 billion up JPY 243.6 billion from the end of the previous fiscal year, mainly as a result of factors such as progress on investments and the rise in share prices.
As indicated below the table, the impact of moves in foreign currency rates was JPY 39.2 billion.
As shown on the lower right of the table, the D/E ratio as of the end of fiscal 2025 was 1.41x and the equity ratio was 32.4%.
I will now discuss the major components of change such as cost recovery. Please turn to Page 74. As shown in the table on the upper left, entitled Real Property for Sale, the outstanding balance was JPY 2,603 billion, up JPY 102.3 billion from the end of the previous fiscal year.
Looking at the table below, new investments were JPY 644.4 billion, cost recovery was JPY 520.3 billion and other, which includes the impact of ForEx was a negative JPY 21.8 billion.
Next, on the lower left, the outstanding balance of tangible and intangible assets was JPY 4,679 billion, down JPY 28.3 billion from the end of the previous fiscal year. As shown in the table below, there were new investments of JPY 246.3 billion, including construction investments for projects, such as the renovation of LaLaport Tokyo Bay North Wing while depreciation was JPY 150.9 billion. And under other, there was a reduction of JPY 123.7 billion, related to the sale of the former Hibiya U-1 Building and Otemachi Building Nagoya station front building as noted in the comment section on the right and the impact of ForEx.
Combining all of the above, the total outstanding balance fell a net JPY 28.3 billion compared to the end of the previous fiscal year.
On the liability side, please see the table on the upper right.
As of the end of fiscal 2025, outstanding interest-bearing debt was JPY 4,632.5 billion, up JPY 216.4 billion from the end of the previous fiscal year. This was primarily due to progress on investments in Japan and overseas and the impact of ForEx.
As it is the end of the fiscal year, we also revalued our rental properties, marking them to market.
Please turn to Page 75. As you can see in the table on the upper part of the page, market value as of the end of fiscal 2025 was JPY 7,714.6 billion, making the GAAP to book value or the unrealized gains JPY 3,985.1 billion, up JPY 299.5 billion from the end of the previous fiscal year. The increase was mainly the result of the new inclusion of a number of properties such as the Nihonbashi 1-Chome Central District project, which has now been renamed Tokyo Midtown Nihonbashi and Tressa Yokohama in properties that are mark-to-market. There was also an impact from increases in rent revenues from existing offices and retail facilities.
Next, I will explain in detail our forecast for the fiscal year ending March 2027. Please turn to Page 78. Our forecast for fiscal 2026 business income is JPY 450 billion, up JPY 4.8 billion from fiscal 2025. We also project a JPY 6.3 billion year-on-year increase in profit attributable to owners of parent to JPY 285 billion.
As indicated in the comments section in the box on the right, we have taken into account factors such as increases in office rents in Japan and overseas, increased leasing profits on the back of higher GMVs at retail facilities in Japan and overseas, and expected growth in property sales, including the impact of an acceleration of total asset turnover, including both tangible assets and real property for sale.
Operating revenue, business income, ordinary income and profit attributable to owners of parent are all expected to hit record highs.
I will now elaborate on the segment breakdown. First, for the Leasing segment, while we expect an increase in expenses on the back of the completion of domestic office properties and U.S. rental properties, we have also factored in increases in domestic office rents and growth in leasing profits as a result of GMV growth at domestic and overseas retail facilities. We guide for operating revenue of JPY 970 billion and business income of JPY 180 billion, both rising year-on-year. We project Mitsui Fudosan's nonconsolidated metropolitan area office vacancy rate as of the end of fiscal 2026 to be in the 1%-plus range. We expect vacancy rates to remain low.
For the Property Sales segment, while there is a high base for comparison in the property sales to domestic individual subsegment relative to the fiscal 2025 high level of central urban, high-end large-scale properties. Factoring in an acceleration of asset turnover in property sales to investors including both real property for sale intangible assets, we project overall property sales operating revenue of JPY 740 billion and business income of JPY 210 billion, both up year-on-year.
With regard to property sales to domestic individuals, please see the box on the left on Page 79. We expect to report 2,700 units, the combined total of condominium and detached housing units and are guiding for an OPM of 21%, similar to the margins of more than 20% that we generated in fiscal '24 and '25.
While not shown on the page relative to the 2,350 condominium units we expect to report, the contract rate is already at 75%.
In addition, we have 24,600 units in our land bank, mainly focused on central urban large-scale redevelopment projects. We believe we can continue to stably generate profits over the medium to long term.
Next is the Property Sales to Investors subsegment. While being mindful of maintaining a favorable balance between stable and sustainable leasing profits and property sales profits by generating added value through the disposal of real property for sale and tangible assets, we project operating revenue of JPY 430 billion and business income of JPY 145 billion, was both significantly higher year-on-year.
While not indicated on the slide, the progress rate on contracts which underpin this profit forecast is already above 50% as of the beginning of the fiscal year, which should give you a high degree of confidence in our ability to achieve our target.
Next, please turn to Page 78 for the Management segment. As a result of the absence of the one-off management fees reported in fiscal 2025, we are projecting operating revenues of JPY 510 billion and business income of JPY 75 billion, both down year-on-year. However, our stated annual profit target for the Management segment under & INNOVATION 2030 is JPY 70 billion. Our fiscal 2026 forecast represents the third consecutive year that we expect to exceed this level.
For the Facilities Operations segment, while we expect further revenue and profit growth in the hotel and resorts business given strong demand, taking into account an increase in expenses on the completion of new large-scale projects, we are guiding for overall segment operating revenue of JPY 260 billion and business income of JPY 45 billion. This level is unchanged from the fiscal 2025 level.
Next, for the Other segment, we project overall segment operating revenue of JPY 320 billion, and business income largely unchanged year-on-year of JPY 10 billion.
Next, on the net interest burden, reflecting progress on investments in Japan and overseas and the impact of rising interest rates in yen, we project an increase of JPY 11.5 billion versus fiscal 2025 to JPY 85 billion.
Finally, on extraordinary income on the back of expected gains on disposals of tangible assets and investment securities, we project extraordinary income of JPY 105 billion, up JPY 21.3 billion year-on-year.
In summary, we project fiscal 2026 operating revenue of JPY 2.8 trillion, up JPY 90.2 billion, business income of JPY 450 billion, up JPY 4.8 billion, ordinary income of JPY 315 billion, up JPY 1.6 billion and profit attributable to owners of parent of JPY 285 billion, up JPY 6.3 billion. For each of operating revenue, business income, ordinary income and profit attributable to owners of parent, the projections represent record highs.
With regard to the effect of the conflict in the Middle East, we have seen no impact in the near term. As such, it is not factored into our forecast, but the plan does incorporate a certain level of buffer.
Obviously, the magnitude of the impact will depend on how long the conflict persists and its severity, but given we have multiple profit-generating capabilities, we don't feel there is a need to be overly concerned about our ability to achieve our targets.
I will skip a discussion of shareholder returns since I have already touched upon it at the beginning of the call.
Next, I would like to return to Page 79 to discuss investments and cost recovery again using the table on the right. Investments in tangible and intangible assets in fiscal 2026 are projected to be JPY 300 billion, primarily focused on domestic development investments. For real property for sale in fiscal 2026, we are guiding for investments of JPY 790 billion, but cost recovery of JPY 610 billion. Based on this, we project interest-bearing debt as of the end of fiscal 2026 to be JPY 4.8 trillion.
Finally, on cash allocation, please turn to Page 18. Our cumulative track record for fiscal 2024 and 2025 is shown on the table on the right. Of the projected cash inflow, cumulative asset turnover proceeds for the 2 years of fiscal 2024 and fiscal 2025 were JPY 1,240 billion. Compared to the cost recovery amount for the 3 years up to fiscal 2023, our target of cumulative cost recovery of JPY 2 trillion represents a 1.4x increase.
Relative to the fiscal 2026 target, we are tracking largely in line having achieved 60% of the target to this point.
In addition to real property for sale, we have also made progress on cost recovery, including disposals of tangible assets and investment securities.
Backed by growth in business income in each of the segments, the basic cash flow from operating activities over the last 2 years we have generated is around JPY 1 trillion. Our initial assumption was that this level of basic cash flow from operating activities would be achieved over a 3-year period.
With regard to cash outflow, we are making steady progress in winning promising investment projects with the combined total of growth investments and strategic investments at around JPY 1,970 billion or 80% of our target.
On shareholder returns, the combined total of dividends and share buybacks is approximately JPY 320 billion, roughly 80% of our target. As a result, both cash inflows and outflows stand at around JPY 2.2 trillion for a progress rate of roughly 2/3 versus our plan targets.
Currently, the impact of the Middle East conflict has led to highly volatile financial and economic markets, but the near-term fundamentals for our core business, real estate, particularly the Japanese real estate market are firm. We believe Mitsui Fudosan is making solid progress on enhancing its ability to generate profits.
The group as a whole remains firmly committed to achieving the forecast we have disclosed for this fiscal year while closely monitoring the financial and real estate market conditions in Japan and overseas.
This completes my presentation.
[Statements in English on this transcript were spoken by an interpreter present on the live call.]
Mitsui Fudosan — Q3 2026 Earnings Call
1. Management Discussion
Good afternoon, everyone. I am Kijima, Executive Manager of Investor Relations at Mitsui Fudosan. I will present in detail the third quarter results for the Mitsui Fudosan Group for the fiscal year ending March 2026. As usual, I will use the financial results and business highlights materials dated February 6, which are available on our IR website. I will begin, as always, with the key takeaways. Please turn to Page 3.
First, the 9-month cumulative results for the third quarter of fiscal 2025. We reported year-on-year increases in operating revenue, operating income, business income, ordinary income and profit attributable to owners of parent and also hit new record highs for each. In addition, business income for each of the 4 core segments also reached new record highs in third quarter.
Next, based on the strong performances of the Property Sales to Investors business and the Management segment, we have revised up our full year forecast. Operating income has been revised up by JPY 10 billion from JPY 385 billion to JPY 395 billion. Business income has been revised up by JPY 10 billion from JPY 430 billion to JPY 440 billion. Ordinary income has been revised up by JPY 10 billion from JPY 295 billion to JPY 305 billion and profit attributable to owners of parent was revised up by JPY 5 billion from JPY 265 billion to JPY 270 billion.
As a result, we project full year operating revenue, operating income, business income, ordinary profit and net profit to achieve new record highs. As well, we now expect to achieve the fiscal 2026 targets of business income of JPY 440 billion and net profit of JPY 270 billion set out in our long-term vision and Innovation 2030 1 year earlier than initially projected.
With regard to the projected new record highs, the forecast represents the 14th consecutive year of new record highs for operating revenue, the second consecutive year for business income and the fourth consecutive year for each of operating income, ordinary income and net income.
With regard to the JPY 45 billion share repurchase program resolved by the Board in February 2025, the full amount of acquisitions were completed last year on November 27. The Board has resolved at this time to cancel the acquired shares on February 27. I will now explain the results in detail using the financial results and business highlights as usual.
Jumping forward to Slide 64 of the materials, I will begin with the profit and loss statement. Third quarter 9-month operating revenue was JPY 1,981.8 billion, up JPY 305 billion or 18.2% year-on-year. Business income, which is the combination of operating income and gains and losses on equity method investments and the disposal of fixed assets was JPY 355.4 billion, up JPY 130.2 billion or 57.8% year-on-year. Ordinary income was JPY 247.5 billion, up JPY 74.5 billion or 43.1% year-on-year. Profit attributable to owners of parent was JPY 219.8 billion, up JPY 75.8 billion or 52.7% year-on-year.
Progress relative to our full year guidance is shown on the right in the table entitled Progress Rate. Relative to the upwardly revised forecast, third quarter operating revenue stood at 73.4%, business income at 80.8%, ordinary income at 81.2% and profit attributable to owners of parent at 81.4%. As you can see, we are making steady progress toward achieving the full year forecast.
Next, before covering the details of the segment results, please return to the table on the left. I will discuss the major items below the line. First, under nonoperating income, third quarter equity and net income or loss of affiliated companies was JPY 1.2 billion, a decline of JPY 3.7 billion (sic) [ 3.5 billion] year-on-year. This is mainly the result of an increase in expenses such as depreciation for U.S. rental properties completed in the previous and current fiscal year. Net interest expense in third quarter fell JPY 4.7 billion year-on-year to JPY 55.1 billion. While there was an increase in the net interest burden denominated in yen, reflecting the impact of rising interest rates in Japan, the foreign currency-denominated net interest burden fell, primarily the result of rate cuts in the U.S. Under other nonoperating income, the impact of dividends received was offset by losses on the retirement of fixed assets related to rebuilding projects for a net loss of JPY 1.1 billion. As a consequence, overall 9-month nonoperating income declined JPY 7.4 billion year-on-year to minus JPY 55.1 billion.
Next, for extraordinary gains and losses, please refer to the box on the upper right entitled Extraordinary Income. As shown here, we posted JPY 51.6 billion in 9-month extraordinary gains on the sale of tangible assets, in line with the policy set out in the long-term vision & Innovation 2030 of not distinguishing between fixed assets and real property for sales when considering asset sales. We generated profits on the sale of the Otemachi Building, Nagoya Station Front, and the former Hibiya U-1 Building. We also generated JPY 45.3 billion in extraordinary gains on the sale of investment securities. This is in line with our & Innovation 2030 policy related to holdings of investment securities. We are continuing to sell down some of our equity holdings on an ongoing basis.
Under extraordinary losses, we incurred JPY 16.8 billion in impairment losses. As explained at the time of first half results, this is related to Lalaport BBCC, a retail facility in Kuala Lumpur, Malaysia. As we have a joint venture partner for this project, there are losses that are attributable to the partner in line with their share. An amount that is roughly half of the impairment loss of JPY 16.8 billion has been reflected under net loss attributable to noncontrolling shareholders as shown on the second line from the bottom of the table on the left. Overall, the resulting impact on our net profit is around JPY 8 billion.
Next, I will cover the segment results in detail. I will start with the Leasing segment. Please see Slide 66. As shown at the top of the page, third quarter operating revenue was JPY 695.9 billion and business income was JPY 136.3 billion. This represents year-on-year increases of JPY 53.2 billion and JPY 4.7 billion, respectively. We discussed conditions for the Leasing segment in the comment section on the left. The segment as a whole reported year-on-year increases in revenues and profits in third quarter as a result of growth in office revenues and profits, driven by domestic and overseas properties such as Tokyo Midtown Yaesu and 50 Hudson Yards in New York. The office vacancy rate is shown in the box in the middle of the page. As of the end of December, Mitsui Fudosan's nonconsolidated metropolitan area office vacancy rate remained at a low level of 1.5%, reflecting the impact of corporate tenant replacement. We assume a vacancy rate in the mid-1% range at the end of this fiscal year.
Next is the Property Sales segment. Please turn to Slide 67. As shown at the top of the page, operating revenue for property sales as a whole in third quarter was JPY 520.2 billion, and business income was JPY 162.1 billion, up year-on-year by JPY 215.1 billion and JPY 110.6 billion, respectively. Looking at the subsegments. For property sales to domestic individuals, operating revenue was JPY 367.2 billion and operating income was JPY 102.6 billion, up JPY 145.4 billion and JPY 58.8 billion year-on-year, respectively. The key driver was progress on handovers for properties such as Mita Garden Hills and Park City Takadanobaba, as shown in the comment section on the left.
The contract rate for domestic condominiums as of the end of December relative to this fiscal year's total projected units of 2,800 now stands at 98%. We show the number of reported units in the middle of the page. The combined total of condominiums and detached housing units was 2,373, down 27 units year-on-year. However, the average price per unit for condominium and detached housing units was very high at over JPY 150 million. Near-term selling conditions remain strong and unchanged. We show completed inventory on the lower part of the page. As you can see, completed inventory as of the end of third quarter was 37 units for condominiums and 24 for detached housing for a scanned total of just 61 units. Inventory levels remain extremely low.
Next is Property Sales to Investors and Overseas Individuals. Please return to the top of the page. Operating revenue was JPY 153 billion, up JPY 69.7 billion year-on-year. Business income for the subsegment was JPY 59.5 billion, the combination of operating income of JPY 6.5 billion and combined gains on equity method investments and fixed asset sales of JPY 53 billion. Business income was up JPY 51.8 billion year-on-year. In addition to the sale of fixed assets, Otemachi Building Nagoya Station Front and the former Hibiya U-1 Building, we also completed the sale of 2 MFLP properties. While not shown on the materials, all contracts for sales of property sales to investors expected to complete during the current financial year were signed as of the end of December.
Next is the Management segment. Please turn to Slide 68. Please look at the top row of the table. For the Management segment as a whole, third quarter operating revenue was JPY 374 billion and business income was JPY 58.9 billion, up JPY 18.4 billion and JPY 7.9 billion year-on-year, respectively.
I will now discuss conditions for the individual subsegments. I will start with Property Management. Subsegment operating revenue was JPY 276.9 billion, and business income was JPY 31.5 billion, up JPY 8.5 billion and JPY 2.7 billion year-on-year, respectively. The key factors were an increase in users at the car sharing business and the impact of measures such as a hike in parking charges at the Repark, car park leasing business.
Next is the Brokerage and Asset Management subsegment. Operating revenue was JPY 97.1 billion, and business income was JPY 27.3 billion, up JPY 9.9 billion and JPY 5.1 billion year-on-year, respectively. The main driver was an increase in project management fees.
Next is the Facilities Operations segment. Please turn to Slide 69. The overall Facility Operations segment reported third quarter operating revenues of JPY 184.6 billion and business income of JPY 38.2 billion, up JPY 15.5 billion and JPY 6.4 billion year-on-year, respectively. We cover the key factors in the comment section on the left. The year-on-year gains are due to rising ADRs and occupancy rates for the hotel and resorts business and usage fee hikes at Tokyo Dome. Looking at the individual subsegments, the Hotel and Resorts business reported operating revenue of JPY 135.5 billion, up JPY 12.2 billion year-on-year. The Sports and Entertainment business, which consists primarily of Tokyo Dome City, generated operating revenues of JPY 49.1 billion, up JPY 3.3 billion year-on-year. As you can see, both subsegments reported year-on-year top line growth.
Next is the Other segment. Please turn to Page 70. Overall, the Other segment reported third quarter operating revenue of JPY 206.9 billion and business income of JPY 6.2 billion. Reflecting the impact of factors such as a large-scale order in the Lifestyle business of Mitsui Designtec, revenues and profits grew JPY 2.5 billion and JPY 1.5 billion year-on-year, respectively.
Next, for reference, we show figures for the overseas business. Please turn to Page 71. Overall combined overseas business income for third quarter was JPY 27.9 billion, up JPY 7.3 billion year-on-year. Please note, there is a 3-month lag in reporting overseas income. The figures for third quarter reflect the results of the overseas business for the period from January to September 2025. Within the overseas business, Leasing reported an JPY 11.4 billion year-on-year increase in revenues, but a JPY 0.2 billion year-on-year decline in profits. Revenues grew on the back of factors such as the increase in office revenues and profits from properties such as 50 Hudson Yards, but profits dipped on a rise in expenses such as depreciation on U.S. rental properties completed in the previous and current fiscal year.
In the Property Sales segment, revenues grew JPY 75.9 billion year-on-year on progress, on sales of U.S. West Coast rental residential properties. However, we incurred a JPY 1.6 billion loss in business income owing to losses related to the sale of U.S. West Coast rental residential properties, although this represents a JPY 7.7 billion year-on-year narrowing of losses. The combination of the management and other segments reported a JPY 0.5 billion year-on-year increase in revenue and a JPY 0.1 billion year-on-year dip in profits.
Next, I will cover the balance sheet. Please turn to Page 72. At the bottom of the page on the left, total assets as of the end of third quarter fiscal 2025 were JPY 9,975.6 billion, up JPY 115.8 billion compared to the end of the previous fiscal year, driven primarily by factors such as rising share prices on our holdings of investment securities. As noted separately, changes in foreign exchange rates had a negative impact of JPY 116 billion. The D/E ratio as of the end of third quarter fiscal 2025 was 1.48x and the equity ratio was 32%.
I will now discuss the major components of change, including cost recovery. Please turn to Slide 73. As shown in the table on the upper left, the total outstanding balance of real property for sale was JPY 2,511.1 billion, up JPY 10.4 billion from the end of the previous fiscal year. New investments were JPY 433.9 billion, cost recovery was JPY 378.5 billion and other, which includes elements such as ForEx impact was a negative JPY 44.9 billion. As you can see from the breakdown of these figures, Mitsui Fudosan Residential reported a net increase in cost recovery of JPY 51.6 billion, primarily on progress on handovers of properties such as Mita Garden Hills. Mitsui Fudosan reported a net increase in investments of JPY 109.1 billion.
While we made progress on the sale of properties, this was offset by continued progress on project investments. Mitsui Fudosan America reported a net increase in cost recovery of JPY 105.2 billion on progress in sales of properties and other factors. Mitsui Fudosan U.K. reported a net increase in investments of JPY 46.6 billion due to progress on investments.
Next, looking at the lower left, the outstanding balance of tangible and intangible assets was JPY 4,594.4 billion, down JPY 112.9 billion from the end of the previous fiscal year. New investments were JPY 162 billion due to construction investments for projects such as the renovation of LaLaport Tokyo-Bay North Wing, while depreciation was JPY 111.9 billion. Other, as noted in the comment section on the lower right, declined JPY 163 billion on the impact of the sale of the former Hibiya U-1 Building and the Otemachi Building Nagoya Station Front and changes in ForEx rates. Taking this into account, there was a net overall decline of JPY 112.9 billion relative to the end of the previous fiscal year.
On the liability side, please see the table on the upper right. The outstanding balance of interest-bearing debt as of third quarter fiscal 2025 was JPY 4,727.5 billion, up JPY 311.4 billion compared to the end of the previous fiscal year. This reflects the impact of factors such as progress on domestic and overseas investments, corporate tax payments and the payment of dividends.
Finally, I will discuss the revisions to our full year forecast in more detail. Please turn to Slide 74. First, with regard to operating income and business income, both were ahead of our full year forecast as of first half by more than JPY 10 billion. As such, we revised up our full year operating forecast to JPY 395 billion and our full year business income forecast to JPY 440 billion. I will highlight a number of key points in breaking down the upward revision of JPY 10 billion profit by segment.
First, reflecting the strong situation for contracts in the Property Sales to Investors business, we revised up segment business income by JPY 5 billion, raising our full year forecast from the initial JPY 190 billion to JPY 195 billion. Second, reflecting the strength of the retail brokerage Rehouse business, following the upward revision as of second quarter, we revised up our full year business income forecast by a further JPY 5 billion, raising our full year forecast to JPY 85 billion from our JPY 80 billion forecast as of first half. There are no changes to our projection at the nonoperating level. Our forecast for ordinary income is also revised up by JPY 10 billion to JPY 305 billion.
Reflecting a JPY 5 billion increase in corporate taxes as a result of higher projected profits, we revised up again our full year forecast for profit attributable to owners of parent by JPY 5 billion from our forecast as of second quarter to JPY 270 billion. As a result of the upward revisions, we expect to reach new record highs for each of operating revenue, operating income, business income, ordinary income and profit attributable to owners of parent. Also, as mentioned at the outset, as a consequence of the upward revision, we expect to achieve the fiscal 2026 profit targets set out in the group long-term vision and Innovation 2030, 1 year earlier than initially projected.
Please turn to Page 75. On the lower right, with regard to outstanding interest-bearing debt, reflecting near-term conditions such as ForEx rates, we now project the balance as of fiscal year-end to be JPY 4,700 billion, up JPY 100 billion from our initial projection of JPY 4,600 billion.
Please turn back to Slide 3. Reflecting earnings revisions, we had revised up our guidance for our growth metric, EPS growth from our initial guidance of around 9.6% to around 10.3% at the end of first half. However, factoring in our latest revisions to our earnings forecast, we again revised up our guidance to around 11.5%. With regard to ROE, we reiterate our mid-8% level forecast. While there will be some impact from what happens with share prices, we continue to focus on achieving this target 1 year early. The group as a whole remains firmly committed to achieving our upwardly revised profit targets for this fiscal year as well as the KPIs set out in & Innovation 2030.
This completes my presentation.
Mitsui Fudosan — Q3 2026 Earnings Call
Financial data from Mitsui Fudosan
Revenue
Revenue is the sum of all sales generated by a company, e.g. for its products or services.
Revenue (TTM) metric explainedDirect Costs
Direct costs are the costs incurred directly in connection with the manufacture of the product or service.
Gross Profit
Gross Profit indicates how much of the revenue remains in the company after deducting direct production costs. If the percentage share of sales is calculated, this is referred to as the gross margin.
Gross Profit metric explainedSelling and Administrative Expenses
Selling, general and administrative expenses (SG&A) include all expenses for marketing and sales as well as the general administration of the company.
Research and Development Expense
Research and development costs (R&D) provide information on how much the company invests in the research and development of its products. The costs are particularly interesting as a percentage of revenue and in comparison to direct competitors.
EBITDA
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is the company's earnings before interest, taxes, depreciation and amortization. The EBITDA margin is calculated as a percentage of sales.
Depreciation and Amortization
Depreciation represents reductions in the value of the company's assets (e.g. due to wear and tear on machinery).
EBIT (Operating Income)
EBIT (Earnings Before Interest and Taxes) is the company's profit before interest and taxes, also known as the operating income. The EBIT Margin is calculated as a percentage of sales at
.
Net Profit
Net Profit represents the profit or loss after deduction of all costs.
Net Profit metric explainedStocksGuide Premium
| Jun '26 |
+/-
%
|
||
| Revenue | 2,524,361 2,524,361 |
10%
10%
100%
|
|
| - Direct Costs | 1,903,311 1,903,311 |
10%
10%
75%
|
|
| Gross Profit | 621,050 621,050 |
10%
10%
25%
|
|
| - Selling and Administrative Expenses | 279,865 279,865 |
7%
7%
11%
|
|
| - Research and Development Expense | - - |
-
-
|
|
| EBITDA | - - |
-
-
|
|
| - Depreciation and Amortization | - - |
-
-
|
|
| EBIT (Operating Income) EBIT | 321,426 321,426 |
26%
26%
13%
|
|
| Net Profit | 230,270 230,270 |
25%
25%
9%
|
|
In millions JPY.
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Company Profile
Mitsui Fudosan Co., Ltd. engages in the real estate business. It operates through the following segments: Leasing, Property Sales, Management, Mitsui Home, and Other. The Leasing segment provides leasing of office buildings and commercial facilities. The Property Sales segment sells condominiums and detached houses for individuals; and rental housing and office buildings for investors. The Management segment offers property management, brokerage, and asset management services. The Mitsui Home segment includes new construction, reform, and renewal businesses. The Other segment consists of facility operations and merchandise sales. The company was founded by Takatoshi Mitsui in 1673 and is headquartered in Tokyo, Japan.
StocksGuide Premium
| Head office | Japan |
| CEO | Mr. Ueda |
| Employees | 26,630 |
| Founded | 1941 |
| Website | www.mitsuifudosan.co.jp |
