Mitsui Fudosan Co. , Ltd.

The vacancy rate for office buildings (non-consolidated) in the Tokyo metropolitan area remained low at 1.6% at the end of FY2026 (ending March 2026). Office leasable floor area reached 2,069 thousand ㎡ owned and 1,517 thousand ㎡ subleased, and the properties are highly regarded by tenant companies for their location, management quality, and soft services provided. This highly competitive property portfolio is a company-specific asset that is difficult for competitors to replicate in a short period of time.

The fair value of real estate for lease, etc. was ¥7,714,645 million against a book value of ¥3,729,540 million, resulting in unrealized gains of approximately ¥3,985,105 million. This latent asset value reflects the accumulation of many years of development and holding, and represents a company-specific strength that demonstrates the depth of the financial base and future capacity for asset sales and monetization.

Completed inventory at the end of FY2026 (ending March 2026) stood at an extremely low level of 46 units in total, comprising 36 condominium units and 10 detached houses. The contract progress rate against the 2,350 units planned to be recorded in the next fiscal period reached 75%, indicating high visibility of next-period revenue. This is underpinned by the brand strength and sales capability demonstrated by the delivery track record of high-end central Tokyo properties such as Mita Garden Hills and Park City Takadanobaba.

New properties such as Omotesando Grid Tower (completed January 2026) and BASEGATE Yokohama Kannai (opening March 2026) are being brought into operation in stages, expanding leasable floor area for offices and retail facilities. The Leasing segment is projected to record net sales of ¥970,000 million and operating income of ¥180,000 million in the next fiscal year, with growth driven mainly by higher domestic and overseas office rents and increased retail facility sales.

The company views for-sale real estate and fixed assets in total and is accelerating asset turnover in Investor & Overseas Residential Sales, etc. In the current fiscal year, despite a decline in net sales, operating income reached a record high of ¥193,182 million. In the next fiscal year, the decline from the reversal of bookings of large-scale, high-priced properties in central Tokyo is expected to be offset by overseas and investor-oriented sales, with the segment targeting operating income of ¥210,000 million (+8.7%).

New facilities such as LaLa arena TOKYO-BAY and Mitsui Garden Hotel properties are moving to full-year operation, improving the occupancy rate of accommodation-focused hotels to 85% (up from 82% in the previous fiscal year). A revision raising usage fees at Tokyo Dome is also contributing. In the next fiscal year, while an increase in costs is expected due to the completion of new large-scale properties, the segment plans to maintain operating income at the same level as the current fiscal year (¥45,000 million), supported by robust demand in the Hotel & Resort Business.

Under "& INNOVATION 2030," the company is implementing progressive dividends (stable dividend increases) and flexible, ongoing share buybacks for the FY2024" through FY2026 period. In the current fiscal year, the annual dividend was ¥35 (up from ¥31 in the previous fiscal year), with a payout ratio of 34.6%. In the next fiscal year, the annual dividend is planned at ¥37, continuing the policy of a total return ratio of "50% or more every fiscal year" and a payout ratio of "approximately 35% every fiscal year." In the current fiscal year, the company conducted share buybacks totaling ¥99,914 million.