Mitsubishi Estate Co. (8802) Q1 2027 earnings summary

Executive summary

• Achieved record first-quarter operating profit of ¥121.2 billion (up 94.3% YoY) and profit attributable to owners of parent of ¥95.4 billion (up 198.3% YoY), driven by capital gains from office and condominium sales in Japan and prime office asset sales overseas.

• Operating revenue for 1Q FY2026 rose 39.4% year-over-year to ¥497,685 million.

• Comprehensive income for 1Q FY2026 was ¥88,783 million, a significant turnaround from a loss of ¥1,249 million in 1Q FY2025.

• Extraordinary income of ¥30.0 billion from sale of strategic-holding stocks contributed to profit surge.

• Vacancy rate in Marunouchi Property Business declined to 0.49% as of June 2026, supporting higher earnings.

Financial highlights

• Operating revenue for 1Q FY2026 was ¥497.7 billion, up ¥140.7 billion YoY.

• Operating profit reached ¥121.2 billion (up ¥58.8 billion YoY); profit attributable to owners of parent was ¥95.4 billion (up ¥63.4 billion YoY).

• EPS for 1Q FY2026 was ¥79.17, up from ¥25.75 in 1Q FY2025.

• Total assets as of June 30, 2026, were ¥8,542,958 million, with net assets at ¥2,912,852 million.

• International Business operating profit surged by ¥36.7 billion YoY, mainly from capital gains.

Outlook and guidance

• FY2026 operating profit forecasted at ¥370.0 billion (up ¥40.2 billion YoY), with profit attributable to owners of parent at ¥235.0 billion (up ¥12.4 billion YoY), both record highs.

• Full-year FY2026 forecast: operating revenue ¥2,000,000 million (+14.5% YoY), operating profit ¥370,000 million (+12.2% YoY), profit attributable to owners of parent ¥235,000 million (+8.0% YoY), EPS ¥196.27.

• Extraordinary income of about ¥75.0 billion planned, mainly from selling strategic-holding stocks.

• ROE expected to be around 9% in FY2026, progressing toward 10% target by FY2030.

• Dividend forecast for FY2026 is ¥49 per share, with a progressive policy of +¥3 per year until FY2030.